in hong kong..m. we are live a from bloomberg's asian headquarters areas welcome to "daybreak asia." asian-pacific stocks face an uncertain start with tech stocks under earnings pressure. u.s. earnings falling for the first time in four days. commodities remain strong despite terror of tensions. bloomberg's global headquarters i am julie hyman in new york, for betty liu. it is just after 7:00 p.m. thursday. echoing imf optimism. -- it says benefits must be shared equally.

washington prepares new restrictions on china. powers tose emergency curb investment in certain areas. ♪ julie: we did see a pullback in u.s. stocks after several days of rally. it has once again to do with earnings. what is getting attention is what is going on in the treasury market. we have seen a couple days of yields rising. if you look at the bloomberg, it has meant momentarily a steepening of the yield curve. that is a reversal of the recent direction. flat as 41get as points before reversing course and widening out once again. the consensus, we may continue to see flattening, but there was a reprieve for at least one session. yvonne: at least they are taking

a breather. interesting what drove this. we saw metals mania. we heard a lot of central banks speak as well. think about bonds in europe, how they have performed. this is it sparked, after we saw a classic carney, saying they may hike, we're just not sure when. german bund yields falling. treasuries falling at 2.91. 3% yield back in play. you mentioned the mixed bag and commodities, we do see that falling. you add uncertainty about central banks, euphoria when it comes to commodities, it certainly is going to be a bad day for bonds. julie: it looks that way. getting back to u.s. equities and declines we saw during the session, we saw that three

session winning streak coming to an end. the nasdaq doing the worst, we saw the ripple effect from taiwan semiconductor across to the u.s. i want to look more deeply into want went on in the u.s. around of earnings disappointment. the taiwan semiconductor forecast, all of that contribute into declines, consumer staples doing poorly. su keenan is here with more. when you look at these stocks on individual basis, big percentage declines. su: biggest move, phillip morris point.6% at the lowest stocks were down, bonds also down. the yields rising above 2.9%. the dollar advancing. the oil rally stalling but holding near the three-year high. let's go to the big movers and check out the size. not only the moves down, but moves up. american express blowing it out in terms of their earnings.

that translated to a strong day. bank of new york mellon a strong day, partly on higher interest rates. allergan dropping. but apple, another area of focus. chipmakers dropping, the handset boom declining. the catalyst for everything else dropping. they are warning the current quarter will be $1 billion less than projected, in part because of waning demand for handsets, but a high-end smart phone, hints, hint, the apple iphone. apple iphone sales could be very weak. let's go into the bloomberg at gtv. the philadelphia semiconductor index, these chip stocks have had a wild ride.

look at this, this is a huge drop with this latest news on a possible significant decline in handset demand. yvonne: how we have reached the end of that cycle. you mentioned the look more us. tohave seen this plunge tied disappointing earnings. it sent the tobacco industry reeling. su: an incredibly negative report in that it signals a declining u.s. cigarette sales where there has been pushed as the cigarette -- to discourage cigarette smoking, but in japan, a key area for sales. let's go into the today stock chart for philip morris. you can see how large the decline was, the biggest drop on record. let's go into some of the carnage. you saw tobacco makers not just in the u.s. but europe, british tobacco down in a very big way on the indications of weaker demand. if we going to the bloomberg one is where these

charts are, this one is called tobacco charts. you can see all these different stocks, yellow is phillip morris, they are completely tanking on the trading desk on this latest earnings news. julie: su, thank you so much. very poor action on tobacco stocks today. the short action in tech stocks, headlines today's edition of daybreak. bloomberg subscribers go to dayb on their terminal. it is also available on the bloomberg anywhere app. yvonne: let's look at the asia set up this friday morning. we are seeing upside in new zealand, up 0.3%. .72kiwi, downside 0.1% at 65. dollar catching up. heading to the sydney open, and -- we have not been

able to break away to the 78 handle. higher by three basis points. the open in japan and korea, we are seeing perhaps some downside when it comes to stocks. after the nikkei to do five did not generate a lot of gains yesterday. dollar-yen, 107.41. let's get you caught up with first word news. told president trump has been informed he is not the target of any part of special counsel robert mueller's russia investigation. rod rosenstein told the president he is not involved in the inquiry into his longtime lawyer michael:. -- michael cohen. there has been no

collusion, they will not find any collusion, it does not exist. as far as the two gentleman you told me about, they've been saying i will get rid of them for the last three months, four months, five months, and they are still here. >> south korean president moon jae-in says the north dropped a major sticking point to a summit with the united states. is no longerong-un making the withdrawal of u.s. troops from the peninsula a precondition for ending his nuclear weapons program. the u.s. has almost 30,000 personnel in korea. bank of england governor mark carney says the u.k. should prepare for rate rises over the the few years, but said hike next month is not a done deal. policymakers will make their decision knowing there are more chances to act later in the year.

carney acknowledged recent soft economic data that says they will consider things in a wider context. miller standing down as the fund manager apologizes unreservedly for what it calls misconduct and failurem amp admitted lying to australian security regulators, overcharging customers for services they did not receive. they say the entire board will may to step down and amp face class-action lawsuits from investors and advisors. powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins, this is bloomberg. yvonne: trade tensions are hanging over the imf, the imf having meetings in washington.

one says the global economy is showing solid momentum. christine lagarde says while trade spats may not severely damage growth, they are affecting confidence. let's get to enda curran, joining us from d.c. what do you think we got out of these meetings? what is the mood like? enda: the mood is very good, people are upbeat. yesterday when we spoke to him, described the mood as the best in four years he has been traveling for spring meetings. yonder theto look trade issue because it is looming over all the discussions. christine lagarde put her finger on it today. it is not so much a hit the nominal gdp. the worry is that the trade tensions would start hitting investor confidence, and that would show up eventually in economic data. it is good now, but they are flying blind.

aere is worry there will be corrosive impact from trade tensions as the months go by. julie: it is surprising the mood is so upbeat. new on thet anything trade debate specifically to come out of these meetings? hawkish from the u.s. side, the treasury made remarks, to curb chinese investment in the u.s. we had a white house official, commentaryls, making -- it does not go over well in beijing. overall, the mood at these meetings, there won't be any sort of near-term solution. there is an agreement trade wars are not a good thing, but it is unlikely there will be any breakthrough in the near term. there is a sense this has a long

way to go and will not be resolved anytime soon. yvonne: despite spats on trade, whether -- what are other issues we should be watching? enda: more interesting is the focus on debt. the imf is trying to get the governments to focus on the economy, also at the household level. we see a surge in debt in net -- in emerging economies, households in places like south korea and canada. now is the time when growth is good to start paying down debt. they mentioned when the next in aurn comes, you will be better position to borrow and stall growth. they are getting their house together while the sun is shining. it is one of the biggest issues here beyond trade. yvonne: hoping it is not a missed opportunity. enda, thank you, joining us from d.c.

we are counting down to the latest inflation data from japan. outreak the numbers come once they cross the bloomberg and have immediate reaction later this hour. julie: a broadly positive season, indicates the u.s. may have gas left in the tank. this is bloomberg. ♪

♪ we are counting you down to asia's first major market open this morning, futures heading lower. we are seeing less stability when it comes to dollar-yen. inflation data at the bottom of the hour will be crucial, setting up a softening up prices for march. this is "daybreak asia." i am yvonne man in hong kong. julie: i am julie hyman in new york. u.s. stocks fell for the first time in four days.

we saw the bond selloff deepening as well. let's bring in a chief market strategist from richmond, virginia. thank you for joining us. we have been watching earnings closely over the past few days, as we have been starting to get the numbers. what is interesting, companies reporting positive results have not been awarded in them -- rewarded in the market. all that give you pause at when it comes to the earnings season? i think overall we will have a positive earnings season. we like to look at companies, what their expectations were six months ago. thus far we have had companies, 81% of the companies, beat their expectations. sales standpoint. what you will see as the earnings season goes on, the

momentum from the tax reform, a bill that we passed, will really help a lot of these companies and help earnings season. i think it is going to get us out of this trend we have been in, range bound trading on the s&p. there was an interesting call out from morgan stanley that got a lot of attention. they said it is happy hour when it comes to market, later in the cycle than folks are banking on. we spoke to lisa shalit from morgan stanley earlier. i want to play what she had to say. >> we do believe the market cycle may disconnect from the economic cycle. us market cycle looks to like it may be in its final inning. our target price for the s&p 500 decembersince no --

2750. that atally our view this point with a rising, inflation picking up, we cannot count on multiple expansion anymore. julie: what do think the risk is this earnings season will be great, but we will see things slow as the year progresses? kevin: i think things will slow as the year progresses, but i think we can at least get back to the levels we saw earlier in the year, closer to the january high of maybe a little over 2800. 2, the highgot to 287 of the market. i think we can get back to the 2800 level. yvonne: what should i focus on in earnings, the top lines are higher input costs, how that will affect margins, or the q2 guidance we are hearing from the

ceos? kevin: i think you have to look at all of them. line, to look at the top see what the sales are and how the sales are doing. i like to look at the bottom lines, the earnings. one thing we always want to make sure of is that people are being really real about their earnings projections. that is why we like to take a look at where they were six months ago, because there is not a lot of tinkering with the numbers, guiding down so they can beat later in the quarter. whereas when you look at them six months earlier, it is a true test. i think this earnings season is going to -- you will have days like today where you will have a series of companies that miss, but i think the energy companies

are expected to have a strong earnings season. the few that have reported have done pretty well. yvonne: we have seen a tick up in energy costs. chart to highlight moves in commodities and what that is doing to bond market inflation expectations. the break rates are climbing higher now. seems to be more calls, fears we will hit 3% on the u.s. 10 year treasury. is that going to spark the selloff we saw back in february, wehave re-reached -- have reached equilibrium? kevin: i think we are at equilibrium. the market took a while to get 3% range. our target for the year on the 10 year is that by year end, we will be trading in the 3% to 4% range. actually go will little higher

than 3%. historically when you have a 10 above 3%, it risen has not affected the equity markets as much. equity markets were still able to rally when the 10 year was above 3%. we still feel comfortable with our year and guidance. you aret sounds like relatively bullish on u.s. equities. are there particular sectors you think are going to perform better? are you staying away for rum more interest rate sensitive areas? kevin: we tend to be overweight financials. we have been for an extended of time.eriod we think they will continue to do well, even as interest rates rise. the biggest thing to worry about, the curve flattens a lot. expectations

continue to go up, i think the 10 year will start to move as well. i do not think the curve will totally flaxen or go inverted at this junction. kevin thank you, nicholson, talking about his outlook and liking financials. bloomberg users can interact with charts. you can use gtv to do so. andh up on key analysis save charts for future reference. this is bloomberg. ♪ this is bloomberg. ♪

♪ yvonne: a quick check of the latest business flash headlines. are asian-pacific chipmakers after taiwan semi fell short of $1 billionabout

below analyst projections. abr fell in new york on the news. they had closed higher in taipei after the earnings release. the wall street journal says wells fargo could agree to a fine as much as $1 billion as early as friday. they failed to report improper charges to customers. ano, ties to gun makers in array has prompted the federation of teachers to remove it from its list of recommended mortgage lenders. koreanrd of gm's south group meeting to discuss bankruptcy. --y have yet to receive who receive approval for the proposal. it would be in line with the strategy to quit markets not adding to the bottom line. alibaba loss jack ma increasing

investment in thailand, including a hub to improve its sales between other countries. the operation expected to come on stream next year and will serve as an r&d center for alibaba. >> people worry about alibaba. are we going to occupy thailand, take away jobs? we are not interested in that. we are interested in and focusing on enabling entrepreneurs and partners in thailand, making sure our partners, our entrepreneurs in thailand, are successful. yvonne: we are counting down to opens in japan, korea. inflation numbers coming in a couple minutes time. see how we are set up for the tokyo open.

looks like losses on the nikkei 225. dollar-yen, we did see strength in the dollar overnight, 107.40 where we stand right now. still weakness when it comes to the yen. inflation is the big picture. looks like more softening. looks like the boj is still far away from the 2% target. julie: we will see if there are big swings in the future. the latest inflation data out of japan is expected to show a slowing march. we will break those numbers, they are due out in a few moments. we will check markets to see if there is reaction. from new york this is bloomberg. ♪ rk this is bloomberg. ♪

♪ julie: it is 8:30 in tokyojulie: . we are counting down to the first major market opens across asia. we will also have economic data to consider, affecting potentially those market moves as we watch them. yvonne: they are just coming through across the bloomberg right now. taking a look at the headline cpi number, bank in line with estimates for -- for the month of march. january, 1.5%. core inflation, excluding fresh 0.9%, alsog gains of in line with expectations. seeing a cooling.

this was dragged down by food prices, weighing on these numbers. take a look at the new core inflation, which excludes food and energy, holding steady at 0.5%. we are heading in a different direction to what the boj wants. we get immediate reaction to the yen so far. let's get more with sophie kamaruddin. sophie: just a touch of a move, the dollar-yen trading at -- above the 107 -- above the 107 handle. core inflation hovering above 1%. our policy data will not mean much, despite showing how for the boj has to go. that signaled more stimulus. mics looking tenuous, given the scandals. governor kuroda a has to keep

politics in mind at next week's policy meeting. despite losing ground over the last three weeks, the yen remains the best performer against the dollar this year, up 5%. as you see on this chart in the gtv library, resistance is holding. the boj has refrained from cutting its bond buying, perhaps to avoid a repeat of january's experience. plus, there is a busy auction schedule. no tapering is expected as kuroda needs to discuss his timetable at next week's meeting. let's check in on futures. contracts pointing lower across the board. a weakness for the nikkei 225 at the open. bond markets heavily in focus with benchmark yields on one point sent. -- 1.1%. the u.s. treasury considering using them -- an emergency loss.

on the radar. aluminum fell from a seven-year high on speculation russia may resolve. stocks in sydney eying a lower open. talk more about that taiwan semiconductor ripple effect in a moment. let's get first word news with courtney collins. >> the world bank is echoing positive comments from the imf, saying the global economy is showing solid momentum. both institutions a growth should continue for at least two years, although there may be a downturn on the horizon. china will continue to be a key partner and driver and the challenge now is to boost lending to low and middle income nations to ensure benefits are felt by all. >> the challenge now is to ensure strong growth translates to inclusive growth so economic

integration is enjoyed by on members of society. >> australia's finance ministers says he does not think the u.s. and china will escalate trade tensions into a full-blown war. the u.s.old bloomberg would be welcome back into the tpp if it chose to rejoin. speaking in washington he said the world's top two economic powers will sort out their differences. thereare keen to ensure is no such thing as a trade war and no winners for a trade war. we do not believe there will be a trade war. issues have been put on the table. [indiscernible] confident things will work themselves out. >> hong kong's defense of its theency affecting -- monetary authority has bought

$6.6 billion of the currency this week. that caught -- cost interbank liquidity. cuba has a president not named castro for the first time since the 1959 revolution. raul stepped down in favor of his deputy miguel diaz-canel. to reform the economy and make the government more accountable. he says he is willing to talk to america, but would not bow to demand for change. and the fearless girl statue that became a symbol of female to us --ll be replaced to a spot by the u.s. stock exchange. she became a tourist symbol by

confronting the american symbol of the bowl. she was designed to pull attention to the low number of women in corporate america. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins, this is bloomberg. yvonne: let's get reaction from japanese trade data. edging off of the numbers we saw. 1.1%, the core at 0.9%. chief economist at demand -- japan macro advisors joins us. your initial take on these numbers? we heard this year we are halfway there, this domestic demand story is still really strong and we do not need heavy lifting from energy prices anymore. has that mood changed now?

>> yes. i think the first three months has been rather disappointing. consumption has not grown much, export has not grown much. in terms of economic growth, japan is losing momentum. yvonne: where does that leave prices? you have done research in terms .f the lag time we are also seeing moderate wage growth as well. to keepenough momentum core inflation above 1%? >> yes, i do believe so. you are quite right. there is a difference between growth and the labor market. we are seeing some positive numbers when it comes to edge growth. that growth is up. when you look at workers, wages growing 2.4%.

there is a positive upward pressure on inflation, but it is just taking time. yvonne: what do you think is the biggest drag? food prices, or what we are seeing in yen? >> i would say neither. fresh food prices, it is just a temporary passing factor. we should really disregard that. what we should focus on is the core, excluding cpi, food and energy, which is at 0.5%. 0.5% is the state of inflation in japan. julie: where does this leave the governor kuroda, given these numbers and the recent trends we have seen still below his target? it pushes off the normalization in japan. himselfgovernor kuroda

seems to have almost given up achieving 2% inflation target. whatever he says to the press. there is a very aggressive inflation target from a vice governor awaktabe. wakatabk's -- governor e. next week's meeting will be the first he is in. julie: what do you think we will hear from the bank of japan after the next meeting? i believe the boj will definitely assert their intention to keep the target. evidencect to see some wakatabe is influencing the bank of japan, to boost inflation. yvonne: why are we hearing

asnomists saying as long japan gets out of deflation, the boj does not care if it hits 1% or 2%, to decide whether to exit policy. what extent is that actually true? these are the economist talking about what the clients want to hear. they want aggressive easing to stop. yields targetsar to be abolished. they say the boj should forget the target. that is what clients want to hear and that is what they are saying. i know you said before, given these scandals around the prime minister, he may have to

step down. what does that mean for the boj? when they have more freedom in tweaking policy? freedom they have more in tweaking policy? will bethe fear abe gone, replaced by a prime minister who does not believe in the 2% target. the question for reflation is, the bank of japan is independent, and there is not going to be any replacement until 2020. bank of japan will remain as reflationist as they are right now. we will talk more about the political drama at home for shinzo abe as the domestic scandal pops out on his ability to stay in power. this is bloomberg. ♪ ♪

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we are -- julie: counting down to asia's first major market open this morning. japan futures have been trending lower, trending on the tax-driven selling we have seen around the globe. looks like that could influence the asian session as well. this is "daybreak asia." i am julie hyman in new york. yvonne: i am yvonne man in hong kong. shinzo abe's future increasingly in doubt, the lowest level since he took office in 2012. until recently, he was a shoo-in to win another term as president, giving him a shot at becoming japan's longest serving premier. still with us, takuji. hads the prime minister little to take home from mar-a-lago. how do you think that will be received at home where you are

in tokyo right now? this u.s. trip was one of the last chances for prime minister abe to show he is a strong winner and can win aced on the diplomatic side. [indiscernible] what can he do on the trade front? it did not seem president trump was likely to rejoin tpp. he reiterated that during the press conference. enter into a bilateral trade conference with the u.s.? or does shinzo abe have to go back to tpp and say, let's come up with a deal trump cannot refuse? as -- yes, they

do want the u.s. to come back to tpp, but i am not sure they want trump to come back. they were confused about negotiations. when he said he will, he said, not so fast. i think in terms of a steel industry is steel no longer the big industry in japan anymore. is not going to damage japan's economy that much. julie: is there anything domestically the prime minister can do to help his standing in terms of economic policies and to try to distract attention from the recent scandals we have seen? takuji: yes, if they are. he can come back with economic reform. he has gradually lost his credential as an economic reformer.

any measurable achievement he has done so far. [indiscernible] he can score a few points. the biggest chance he has is on the diplomatic front. front,on the diplomatic as we have been talking about, his recent meeting with trump was not necessarily successful. what kind of points do you think he can achieve in that arena? what is next? it may sound sarcastic, but for prime minister abe, he wants the u.s. and north korea's diplomatic negotiation to break down the so north korea can go back to being a threat, and he can pound on that he has been reviveright to try to condition reforms.

that is where his chances lied, basically -- that is where his chances lie, basically north korea going back to where it was, as a nuclear threat to japan. julie: that is anyone's guess, whether the u.s. negotiations are going to be successful. do his that distraction, political fortunes spell trouble for his domestic reform attempts, if he is trying to deal with these other political maneuverings? i think his fate has been decided by other policymakers. chance of prime minister abe exiting from the seat at 70% by the end of the

year. possibility he may have to resign in the next few months. time is becoming very limited. yvonne: what comes next if that happens? abenomics stay intact, or do they have to bring in a new regime? cs itself think abenomi is a sound policy for a country still at risk of deflation. fiscal stimulus -- broadly speaking, these policies are not going to change. however, in terms of relative next prime minister will not be as market friendly as prime minister all they -- prime minister abe has been in the past. yvonne: we have to leave it there.

don't forget our tv function, tv . interviews,h securities and functions we talk about. this is bloomberg. ♪ . this is bloomberg. ♪

♪ ."onne: this is "daybreak asia i am yvonne man in hong kong. julie: i am julie hyman in new york. taiwan semiconductor forecast will be $1 billion less than analysts projected. that is raising concern iphone demand is continuing to wane. ian joins us from san francisco. report this taiwan semi have such importance and such a big ripple effect? smc is not just a low-cost

manufacturer, they make something important to apple. they are the key makers of the processes, they have a leading position. --is not an issue of them they are doing something fundamental and that gives them a clear picture of where demand is going. yvonne: you have to read between the lines. is this an indication the smartphone boom is over? ian: there is a huge debate. when you look at the numbers, there are only so many people in the world. quite a high percentage of them have a smartphones. it is easy to be a naysayer and say we are not seeing much more of a growth opportunity here. at the same time, the

replacement in developed markets has slowed down. coming, we will be offering new services, reasons to buy new phones. most people would admit we are at least in a lull right now. julie: that is not the only earnings report we have gotten within the semiconductor research. and the in the u.s. netherlands those reports were not taken well by the market either. ian: you are absolutely right. why they are important, they supply the equipment that companies like samsung and intel used to make chips. you buy the equipment, build the plant, and start taking orders and building chips, which take three or four months to make. the chipmakers themselves are maybe pulling back a little bit on their spending plans, may be

got more of a conservative or negative view of where their future demand picture is. that is why those companies, not particularly massive companies, but were taken as a bad overall sign. is fascinating because this group had been doing incredibly well. the philadelphia semiconductor asex was at a high as early march 12, and seems to have slipped. what comes next in this earnings season and the group? ian: you're making a good point. we not seeing anything collapsing here, declines in demand or anything disastrous, which would make semiconductors the old cyclical story where everybody needs to run away. that is not the issue here. have seen a huge run of companies like intel delivering -- like intel, up $40 billion company now.

--uations are really hide. high. an investor, if you are looking to take money off the table, semiconductors may be one of the ones you look at. yvonne: thank you from san francisco. the australian fed, now speaking. announcing tougher penalties for corporate misconduct. you are taking a look at the financial services minister speaking. they are talking about how australia's banking system is rocksolid, but they are looking for tougher penalties for corporate misconduct. this is on the back of what we learned early this morning of erp, the ceo craig mell he deliveredafter lee misled regulators, overcharging customers for services they did not receive.

amp, the stepping down of the inquiry intoa's misconduct in the financial industry, this is sending shockwaves here this morning. we will watch those lines. julie: let's get a check of other business flash headlines. phillip morris fell the most in million after a $4.5 move in new products failed to gain customers. tobacco companies are racing to diversify and maintain revenue. a device that heats up a tobacco plug without setting it on fire has been slowing, despite initial success in japan. yvonne: qualcomm has reapplied for china's approval for semiconductors. they are extending the deadline to july 26. if not, there will be eight

termination fee of $2 billion. $40 billion deal they have been chasing for several months. we have the market open coming up to read this is bloomberg. ♪ . ♪

♪ yvonne: 8:00 a.m. in hong kong, we are live in bloomberg's asian headquarters. i'm your yvonne man. welcome to "daybreak asia." tech shares under earnings pressure. u.s. equities fell for the first time in four days. commodities remain strong amid heightened tariffs tension. the oil rally stalled as opec and its allies meet. julie: from bloomberg's world headquarters, i'm julie hyman in new york, where it is just past 8:00 p.m. thursday. disappointment for the new head of the doj, inflation slowed in march and remains far from his 2% target. the world bank echoes the imf

optimism, seeing global growth for at least two years, but the benefits must be shared equally. ♪ yvonne: we are watching out for earnings. we are focusing on the commodities space, which has spread into the bond market. take a look at this chart that shows where we are at the moment. we have taken a breather, perhaps on the magnitude of gains given these tariff concerns and news that russia may be stepping in for aid. china perhaps also may be buying those volumes. today we are taking a breather, but still elevated. julie: the question is now, as we see this surge and ask ourselves whether it is going to be sustained, is it going to have an effect on inflation? is it going to effect corporate

profit? tbd at this point. we will be watching it to see the raffle affect -- ripple effect. let's get the first word news with tom mackenzie. tom: bloomberg has been told the president has been informed that he is not the target of any of robert mueller's russian investigation. ron rosenstein told the president he is also not involved in the inquiry into his longtime lawyer. the president says it is not time to remove either rosenstein or mueller. >> there has been no collusion, they won't find any collusion, it doesn't exist. as far as the two gentlemen, they have been saying i am going to get rid of them for the last s, theyonths, five month are still here. ampceo greg miller is

stepping down. the fund manager apologizes unreservedly for what it calls misconduct and failure. they admit to misleading and lined to australia's security regulator, overcharging customers for services they didn't receive. analysts say the board will have to step down and amp may face class lawsuits from investors and advisors. bank of england governor mark carney says the u.k. should prepare for rate rises over the next few years. he has hinted that expected hike next month is not a done deal. the pound fell as he said policymakers will make the decision knowing there are more chances to act later in the year. he also knowledged recent soft economic data. the mpc would consider things in a wider context. south korean president moon jae-in says the north has dropped a major sticking point to a summit with the united states. kim jong-un is no longer making

the withdrawal f american troops from the peninsulao a precondition for ending his program. the u.s. has a most 30,000 personnel in south korea. week,nd kim meet next ahead of a potential summit with president trump in may or june. global news 24 hours a day powered by over 2700 journalists and analysts in over 120 , i'm tom mackenzie, this is bloomberg. yvonne: we have some breaking news. developments coming in. it was just yesterday we heard from the chairman of the commodity trader trying to ask, demand answers when it comes to shareholders and how they feel about the revised rescue plan that would give them a bigger stake in the new company, or likely they would suffer the consequences. we are hearing from one of the shareholders. it looks like they are not interested in signing off on the current offer. they are saying they should

negotiate -- they don't negotiate with creditors and outlining alternative restructuring plans for noble's growth. they are in talks with partners to review the business plan. they are urging a shakeup of noble's group board. they say investors are prepared to provide working capital. goldilocks also said they should renegotiate with its predator. it seems like this saga is not ending soon. it may take it while before we see some type of deal. we continue to watch the lines and the reaction once singapore markets open. let's do a market check with sophie. sophie: we see stocks sliding chipmakers leading the decline. l in tokyo, the tech heavy index lower by 2/10 of 1%. in sydney, utilities, the

biggest drop their. we drop energy and material players gaining ground, even as the metals rally. after the latest inflation update, we not seeing too much reaction in the yen. it is on course for a fourth weekly drop after trump held back from criticizing japan on trade or the yen. despite losing ground, the yen remains asia's top performer. recent rallies have failed to keep it above the one away handle -- 108 handle. for dollar going buying with the 10 year treasury yield recovering 2.9% levels and it is digging that this morning. checking on moves in tokyo, highlighting some of those chipmakers. tokyo electron on the back foot. also want to highlight takeda, which is losing ground as the back-and-forth continues for its

acquisition of shire. tobacco,hing japan's this after philip morris said sales are week in japan and jp is to report first-quarter numbers. switching it to check in on the leaderboard. you have kobani recovering from the losses on thursday. that was sparked by the partnership with the game maker being ended. one of japan's biggest trading houses agreed to send $1.1 billion to take a majority stake in the convenience store operator. this is happening as the stock hit a record high this week. we will be paying any that they will be paying an 11% premium. mike allen is wondering why they waited until now. agong the stock one year would have shaved $475 million from the price tag. julie: checking the markets.

japan's core inflation numbers came in weaker than the previous months. the price is rising less than 1% from the year-earlier. our japan and korea managing editor is with us from tokyo. are these numbers likely to affect the bank of japan's thinking when the policy board meets next week? >> i think there are a couple of things to look at. there are a few factors driving the latest numbers. some of them may be seasonal. we had household durable goods prices fall. prices for electronic parts falling. prices for recreational services also falling. some of that may have had to do with the end of the fiscal year, companies trying to drive results in the last minute with sales. if that is the case, they will recover. the other factor was prices for fresh food, also prices for other kinds of food. that is expected to be

sustained. they will be thinking about that when the policy board meets next week. staye think the boj will tight on policy and won't talk about exits. there is also the risk of keeping the yield too flat for too long while the fed is continuing to hike interest rates. yvonne: shinzo abe returning to japan with little result after his meeting with donald trump. how would you rate his trip? >> nothing bad happened, he escaped without any kind of altercation. he didn't get bashed over the yen. the yen remains on the currency monitoring list. that could have happened, and it didn't. it is sunny today in tokyo, a beautiful day. he did come back with at least the perception of a good relationship. good photo ops, good comments,

trade will continue to be big. he did not get the exemption on steel and import tariffs some thought he might get. tripottom line is the doesn't really switch focus away from the domestic problems that have been afflicting him for the last couple of months. we are going to see what happens when he lands. he will be landing in japan probably right about now. we are going to look for his first comments when he gets here as soon as he gets back into the capital. julie: that should be very interesting to hear. brian sauer is our managing editor. the world economy is enjoying the fastest and broadest expansion in it years. central bankers and finance ministers gathered for the imf and world bank's spring meetings. they are concerned about the trademark, and increased debt. joining us is rob cornell, ing bank' asia-pacific head of researchs and chief economist. we spoke with our reporter

earlier, who is in washington, d.c. at the meetings, he described the mood as upbeat among the officials. even despite some of the risks. do you think that is justified? when you weigh all of it out, do you think global growth is going to overwhelm some of these other issues? rob: it would be great if it did. -- i wouldn't be upbeat. there was talk about caution earlier on. i think caution is probably more central. there was momentum going on in the global economy. this is the sort of thing that forecasters use and extrapolated forward for the next two years and hope it stays in place. just because we have growth doesn't mean it will stay indefinitely. i am incredibly worried about the trade debate, the skirmish that is beginning to pick up. perhaps not a war yet. it has scoped to undermine

things badly. julie: how are you factoring that into your models? it seems it is pretty difficult to game out. in terms of market-based perception in the u.s., things have calmed down. there does seem to be some optimism that an all-out trade war can be averted. what is your view? so. i would hope in terms of how you model this, it is binary for the most part. it either will or won't happen. our forecast typically is we are not going to get anything dramatic happening on the trade site. when you forecast, you have to forecast a number, not a nice range of abilities. that is not what people want to hear. -- thebability is on probabilities on the downside are more concerning been on the upside. i think that is how you deal with it, much the same way the imf is doing.

we think things are going to be fine, but you talk about the downside risks. when you do that, the risks mount up. there are quite a lot right now. yvonne: does the market have a right? up until today we were talking about an inversion in the yield curve. how do you interpret the move and what we see overnight in the last one for hours? -- 24the last four hours hours? rob: it was raising away, yields were smashing higher for the early part of the year. that has ground to a halt over the last 24 hours. we have seen it looked like it may be back on the cards with a 3% target on the 10 year treasury back insights. justifiable,ely given what people think the fed is going to be doing. given from recent commentsj and where people see the fed going. the thing about the yield curve inversion, we have to accept the

10 year u.s. treasury yields are not free of contamination right now. there is still a lot of financial crisis intervention, and extraordinary monetary policy weighing on the level. i wouldn't get too concerned about the yield flattening completely or inverting. i think you have to make adjustment for that. the other thing people tend to forget is the last couple of business cycles, where we have got an inversion, have usually been followed by recession. they are a different starting point. moving from financial crisis to decent, sustainable ongoing growth. there is no reason you could expect unadjusted yield curve to flatten and then be followed recession. i wouldn't be worried about that. cornell, ing bank head of research and chief economist joining us from singapore.

still ahead, despite a recent bounds, chinese mainland stocks keeps singing the blues. julie: commodity commotion, the oil rally. from new york, this is bloomberg. ♪

♪ asia," this is "daybreak i'm julie hyman in new york. yvonne: i'm yvonne man in hong kong. opec has stalled as producers gathered in saudi arabia amid signs of worldwide like has been erased. joining me is tracy. before i get to opec, i want to talk about what we have been seeing. the surge in these prices given some of the concerns on us sanctions, russia, alcoa talking about we are in for a wild ride. how much higher do think prices can go? tracy: aluminum prices went up

around money percent from the back of the sanctions on russian oligarchs. we are looking at a mess of supply construction in the short-term. and the magnitude of about 2.7 aluminumounds for disappearing from the market overnight. we see typical supplies squeeze at the moment with liquidation on the curve. it is difficult to assess the sustainability of the supply construction spread current prices are high enough to incentivize major league stars out of the u.s. we might see some of the other companies restarting their aluminum with the prices at $3000 per pound for full price in the u.s. reports that the russia might come to the rescue, china, perhaps, they might be meeting with counterparts.

do you think china will likely be the white knight? tracy: it is tricky. currently with the chinese price discount to the u.s. and the european prices, you are likely to see major exports of china aluminum products to the rest of the world. the export of ingots is under 50% for tariffs. opened.ow has not yet at this moment we are still seeing the price differentiate between shanghai. any potential inflows into china be redirected to the rest of the world to be consumed. yvonne: when you talk about potentially some of the other smelters ramping up production or coming back online,

traditionally when we had supply shocks, how quickly can they do that? is there a risk between that and china coming in to oversee correction to the other side? tracy: when it comes to restarts, chinese smelters would take about three to six months. for the rest of the world it takes longer. for those in the u.s., we understand they need to negotiate power contracts with the local governments. it takes longer for those issues to be resolved. i guess with that in mind, it probably means in the short-term we are likely to see aluminum prices be higher for longer. ofs very negative for some the aluminum consumers who have struggled to secure their supply at high prices. julie: what about some of the other industrial metals? palladium has moved similarly, nickel has also had a sharp

move, are the factors in play similar? are we going to see divergence from aluminum prices? tracy: surprisingly, if you look at nickel or palladium, although they enjoy the same story as aluminum, mainly the u.s. section on russia, we haven't really seen any major supply disruption out there. it is still questionable whether there is a fundamental story behind the nickel or palladium rally. on the aluminum side, we think there is a story. we saw some major differences. it is worth watching if nickel and palladium prices will come up in the near future as the markets start to believe supply is not going to be disrupted by what has happened. julie: i want to move on to oil. we have been seeing a big rally in oil.

it is stalling out today. we have the informal meeting of opec and non-opec nations in saudi arabia. do you think anything comes out of that meeting that changes the picture for oil? meeting is mainly to assess the complies of the opec russia cut over the last month, which seems to be well on track since the beginning of 2017. we should not be surprised to see another month of strict compliance. it is worth watching whether there is any new major thing brought out to assess the expense of the cuts. any kind of inventory levels they make target in the future, and any possibility of extension of the cut into 2019. oilently, as we mentioned, is in a political risk environment where the market is concerned of any outbreak of geopolitical tensions in the

middle east and a tight, physical market. then high prices are likely to trigger and multiply, particularly out of the u.s.. marketould bring the oil into a surplus in 2019. julie: where does that leave prices? will the saudi's get their way and get $80 oil? tracy: that is what some of the market commentators have been saying. saudi has came out saying they are not targeting a specific number, which is tricky to interpret. what we know is high prices are in quick supply. when you get to the magic number, it means more supply is coming up. julie: where are we looking for a range? we arefor this year looking into a range between $60 and $70, next year it is higher.

julie: city commodity strategy joining us in hong kong. you can interact with the charts. bloomberg users can browse recent charts. to catch up on key analysis, you can save those charts for your future reference. make sure to check out this function. this is bloomberg. ♪

♪ yvonne: this is "daybreak asia," on your yvonne man in hong kong. julie: i'm julie hyman in new york. a quick check of the business flash headlines. goldilocks is a struggling commodity traded saying it should renegotiate. they say it and other investors are prepared to offer additional working capital as the group struggles with more than $3 billion of debt. noble's proposal would hand control to editors, wiping out control to shareholders. yvonne: the lasting age of

chipmakers second-quarter outlook falls short of estimates. a revenue of $7.8 billion this quarter, is about $1 billion below analyst productions. -- projections. shares closed higher in taipei for the earnings release. julie: qualcomm has reapplied for china's approval for its acquisition of nxp semiconductors. the company extended the deadline to july 25. if there is no deal, qualcomm will pay a termination fee of $2 billion, scrapping the deal it has been chasing for almost 18 months. on thursday, china said the deal would negatively affect the chip market. yvonne: wall street journal says wells fargo should agree to a fine of up to $1 billion as early as friday. includes failure to prevent improper charges to customers. the bank's financial side, the

nra, promptedthe the american federation of teachers to remove from its list of recommended mortgage lenders. still more to come, this is bloomberg. ♪ welcome to the xfinity store.

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yvonne: a: 30 in singapore we are -- 8:30 in singapore did not just half hour away from the "head on your yvonne man in hong kong. julie: it looks nicer everywhere else than in new york. i'm julie hyman. you are watching daybreak asia. let's get the first nude -- first word news with tom mackenzie. tom: australia's government says it is increasing criminal entities for misconduct. the legislation is to be passed this year. it includes prison terms of up to 10 years. the powers of the australian security and investments

commission will also be increased. the announcement comes as a royal condition -- commission investigates the banking industry. this is very disturbing and shocking. these issues while as a foreign as they are, our complete -- as of lawrence as they are a separate that is rocksolid. tom: hong kong's constant defense is starting to affect interbank rates. the monetary authority has bought $6.5 billion worth of the local currency in one week after it the weekend of its trading band for the first time since 2005. that cut into liquidity by about 30%, pushing three months for an cost to the highest since december 2008. cuba has a president not named

castro for the first time since 1959. diazl the is can -- addressing and pledging to defend human communism and making the government more accountable. he is willing to talk to america, but would not b the minuteow -- balfour demands to change. lance armstrong has settled in a lawsuit that could have topped $100 million. the $5 million deal comes ahead of a case involving former teammates floyd landis for performance enhancing drugs. the government was seeking compensate -- compensation after he admitted doping. global news 24 hours a day powered by over 2700 journalists and analysts in over 120 countries. mackenziem this -- i'm tom mackenzie, this is bloomberg. yvonne: time to see how the

asian markets are shaping up. we are seeing a stall when it comes to commodities rally. certainly bonds in focus today. for the latest let's go to sophie. sophie: we are seeing bonds under pressure, looking steady after the retreat we saw a early in the week. asian stocks are on the back foot, sliding from a one-week high. in shock afterks the forecast given the swap -- faltering smartphone market. samsung falling as much as 2.2%. apple supplier lg down as much as 4%. this is the time to buy in, the decline and orders from apple was already expected. space, the dollar continues to climb. you want to keep this chart in your back pocket. 3% back in play.

checking in on this chart. where we have a bear market back in bonds from the u.s. and u.k., germany to australia. this bond selloff is a bit ominous as it comes as stocks are also falling. the culprit seems to be commodity prices, which is feeling inflation concerns -- which is fueling inflation concerns. oil maintaining its recent rallies. opec and its allies meet to discuss the strategies. prices have stabilized during the asian session. we are seeing the likes of red crude down. new york crude is pretty flat. natural gas is seeing a bit of a bit at 2.68. let's bring in can all ever call to talk about more. is the mission accomplished?

ifthey are getting their, you look at the number -- they are getting their if you look at the numbers. since the opec cuts. you have to understand that also opec said it has reached globally, that is five years including the highest of the last several years. for the global market to really balance, investors have to fall towards a longer-term 10 year average. for that to happen, you have to see the s&p up. i would say opec is getting her. -- getting there. yvonne: as we see the moment -- julie: as we see the momentum to the upside, how far can prices go? will we see demand distraction triggered at some point? >> that is a very important

point. we could see oil prices go up because opec, saudi, and the russians have been hinting that they would want to continue the cuts going forward into 2018 and 19. that would be a positive sign for oil prices to go up. prices have been rallying because of geopolitical risks. all that could lead oil prices higher. we are coming into a scenario were demand instruction could come into play. in the last couple of years, opec has been that story. demand has not been discussed too much. you will see that decision coming for it. in india, you could see despite oil prices rallying in the last one month, retail uses have not gone up. that is very important. the government doesn't want inflation concerns to come into the picture, given elections coming in 2019. there is a lot of risk on the demand side, that could possibly

cause oil prices to lift. julie: something else that could affect oil or energy prices, china's threat to impose tariffs on u.s. propane has kindled concerns the oil and lng could be next. do you think that is likely? who stands to win or lose? >> we really don't know how it will play out. if you look at the scenario were there are more for lng and crude oil, what we see is there is more risk for the u.s.. markets, itthe lng is still a well supplied market. there is still overcapacity in the system, week should -- which could taper down. less than 2% for of chinese lng. the big risk would be for the u.s.. it is still very fizzling.

they only have about 2% of the capacity. years, the u.s. lng capacity will be about 25% of global capacity. they will have to find newer markets. much, senioryou so energy analyst for bloomberg intelligence. national banks said -- the swiss national bank is in no hurry to change monetary policy. the president addressed the currency challenge in an interview with bloomberg's francine lacqua in washington. >> the swiss bank is very strong, significantly overvalued. we start to see a correction after the elections. below 120,k dropped something we haven't seen since 2015. >> it goes into the right direction. overvalued swiss

bank, now we saw corrections. the corrections continue. it is exactly what we expect. there is no need to do anything regarding monetary policy. francine: is a psychological? do you think it will change their minds on how they view it? >> it is hard to say, it is a fragile situation that can change from one day to another. we remain prudent. francine: when you say it can change, is there something else you think can make it go the other way other than trade war? >> markets react quickly to changing sentiments. it could be north korea, or something else, russia, europe, russia and the united states. we have a very distant -- we have a very different situation than. francine: do you think markets are functioning in general very differently to what they were five years ago,? >> a couple of years ago we had

this big recession. we had the financial crisis. today we are in a better situation. the need for safe havens is smaller, although we have one or two of the special events. before we had a financial crisis, the sentiments were different. yvonne: that was the president and chairman of the government board of the swiss national bank, thomas jordan. talking more about earnings, china mobile is to report robust earnings numbers later on today. lack.bring in andrea she joins us live with what to expect. it looks like we will see slowing when it comes to 4g user growth. should investors be worried? >> it has been unavoidable for china mobile, given that small arrivals are trying to step up in terms of network. the fact that they have such a high base.

see thet months, we growth deceleration seems to be taking -- slowing. it is not slowing as much as before. the key is that 40 years of focus ishe point of fall givenple will that rivals and technologies are underutilized. a lot of data plans to compete and passed down -- press down apple. yvonne: china mobile has had significant share when it comes to broadband subscribers. when can we expect real money to be made? anthea: it has been almost free. now that they have reached certain market shares, we believe it is about time for them to increase the prices to chart something -- charges

something. this year, we think it will continue to go over. yvonne: gte is being cut off because of sanctions. what effect will that have on 5g development in china? anthea: definitely the choice of suppliers would be now. from our conversation, we believe it is very easy to replace the supply in order to still have it. they still have nokia and other western suppliers. in terms of 5g, we don't think they will be late because of zte. julie: thank you so much, bloomberg intelligence asia senior. china's benchmark gauge rebounds

from the key level, driven by an advance in debt materials shares. we did deeper with one of china's leading asset managers, next. this is bloomberg. ♪

♪ yvonne: this is -- julie: this is "daybreak asia," i'm julie hyman in new york. julie: i'm yvonne man in hong kong. chinese markets are saturated with round numbers. investors are trying to gauge the government's commitment to and a nearly trading dollar selloff. the gauge rebounded above the key level. let's discuss that and the importance with our portfolio manager at the fund which oversees about $190 billion. it seems we were shaken out of this funk, do you think anything has changed when it comes to chinese markets and the concern investors may have? >> china has embarked on

deleveraging on its financial sector, which is a huge relief for all of us who monitor this. it is something that has been on china's to do list. we are six too nine months into the progress, and it seems to be coming together. pain,e of no gain without we can't go through deleveraging without some parts of the financial sector sinking, particularly around the banking sector. we have waited for this, it is happening. governmentnk the will relent. we are in a nice space in terms of the global economy. as long as there is not too much pressure, i think it will be the same. yvonne: stocks are not reacting too positively to these numbers.

we saw a modest response to the cut we saw this week. what does that tell you? can we rally back to the january highs? erwin: it is difficult. think back two years, everything looked grim. the market is always telling what is in the future. the future is slower growth. conditions,iquidity all leading to a positive outcome. we need to see that levels stabilize, which they are. we need to see off-balance sheet financing channels moving on balance sheet. growth has to come down to a lower level. yvonne: i want to pull up a chart. a lot of investors are not really just buying domestic gdp story when buying into china. you see chinese are increasing

their exposure onshore, one belt, one road is driving that. es thercentage of sal companies get outside of their home country. how significant is the shift? does it make stockpicking more important? erwin: stockpicking this year is more important in general because the economy is slowing down. we see much more divergent sector performance. on the overseas expansion, there are two channels. one is the more directed government led channel, we find it less exciting from an investment point of view. what is more exciting is in the leadinge years, the private companies have started to think about becoming more multinational. it will be a long process, but we really like the dynamics we see amongst the private sector leaders. they have former business out of china today than they did five years ago. julie: to dig down into sectors,

i want to talk about chipmakers. we had this zte ban on buying u.s. products. now it seems if you look at the bloomberg that we have this boost in some chinese chipmakers on optimism, hopes, that the chinese government will come in and support homegrown industry. do you think that is realistic? has thesehink china private sector -- as these private sector leaders in china have become more multinational in operations, there has to be integration in their behavior that we see through the chinese economy with what we see in the global marketplace. there is a lot of pressure on that with the disputes that are happening. the positive we see through this is the policymakers in china are moving quickly to deregulate parts of the domestic economy.

therefore allowing the integration to happen, remove foreign ownership limits that were there. it is a nice response to what is happening at the moment. that is the way forward for china. julie: when you are talking about the removal of foreign her --hip limits, are teh are there any sectors that are particularly attractive to you that will be targets of foreign companies coming in and taking more stakes? inin: the stake we operate asset management and the financial services sector is gaining the most attention at the moment. there have been a lot of limits. to evolve for we do to compete -- evolve what we did in the global money manager space. that is the same story in the

chinese banking space, the insurance space. as a leader in this sector, we don't have too much worry. i think for the smaller players in the local government financials,ctor and it will be a much tougher time going forward. julie: thank you so much, we appreciate your time. bloomberg users can interact with the charts shown on bloomberg using g tv . you can browse recent charts featured on bloomberg tv to catch up on key analysis and save charts for future reference. this is bloomberg. ♪

♪ yvonne: breaking lines coming through. a possible merger we are hearing from reports that florida's health care is getting an unsolicited officer from radiant health care. it is india's second-largest hospital chain. they saw a cash offer coming in at 165 per share for shl. we will continue to watch that. they are saying they will form an advisory panel to evaluate this deal. ergan has confirmed it will not make an announcement for shire. it was after reports that they would make a replay or -- a plate after a takeover bid was rejected by takeda.

let's bring in our asia consumer reporter. if you can dissect this. there were a lot of developments overnight your time, regular market hours my time, about this withdraw back and forth with allergan and the rejected bid from takeda. know, takeda announced they are interested in the possible acquisition late last month, a disclosure they had to make early under the u.k. takeover law. last night, they announced they made an offer for shire last week, about 46.50 pounds, an offer that shire rejected. within hours of that, another drug maker came in saying they were interested in possibly an acquisition of shire. about five hours later, they walked back on it and said they

were not interested. now we are back at square one, takeda has said they are interested in the possible exhibition of s -- acquisition of shire, and remain in talks with the board. it has been unexciting 12 hours for investors. julie: do we know why they rejected the offer? was it a matter of price? i think most analysts are in agreement that it wasn't just the pricing, it was the structure. 46.50 pounds, the majority was in takeda stock. i think they were in agreement that the cash portion needed to be bumped up to sweeten the deal for shareholders. yvonne: is there still a chance for ticket a cou -- for to cater to come through -- takeda to come through? question, is the big shire is a bigger company after the speculation. everyone is very curious how

takeda can pull off the financing. if they can, it will be the biggest takeover ever of a japanese company of a foreign firm. we have to wait, they have until april 25 to make the intentions clear. yvonne: we will continue to watch that. the shares are down 2.5% in light of this news. lisa, thank you for joining us from tokyo. now for a look at what's coming up in the next hour on "bloomberg markets." a lot going on when it comes to commodities, bonds. >> we have it all going on. we have andy robin coming in in about one hour. he will be telling us about what his views are on the story. looking at where he is putting his money, as well. looking to china has been the world's best consumer story in his opinion. looking at the chinese economy in detail, what do they do in this fiscal trick, this miracle,

if they can pull it off. cut prices and increased spending while reducing deficit and maintaining growth. it is a difficult nut to crack. also looking at what we have in about 10 minutes. taylor from dws giving us his strategy. nintendo in focus, gaining itself, senior analyst in about half an hour from now. we look at all of that coming up in a couple of hours on bloomberg markets. yvonne: that's it from us on "daybreak asia," markets continue with resh and haidi. this is bloomberg. ♪

♪ pacific markets dipping with tech shares under earnings. wall street falling. commodity strong despite trade tensions, but the oil rally stalls. spotlight, taiwan semiconductor's tepid forecast. some say the smartphone boom is coming to an end. in hong kong, i am rishaad salamat, and this is "bloomberg markets: asia." ♪