♪ 7:00 a.m. here in hong kong. we are live a from bloomberg's asian headquarters. welcome to "daybreak asia." market set for gains after a choppy session in wall street. the dollar rose to the highest in three months. facebook is an hour after's winner, shrugging off controversies, with record ad sales and daily users. betty: it is just after 7:00 p.m. the wednesday. samsung electronics reporting this hour. analysts expecting record profits, driven by the galaxy s9. and malaysia expects a good

election vote next month. our interview with the prime minister coming up soon. ♪ betty: we are getting breaking news in south korea. we are waiting on samsung results, but the first quarter preliminary gdp or provisional gdp results are coming in. 1.1% is the number, which is right in line with what economists had expected. that is quarter on quarter, seasonally adjusted. year on year, 2.8%. what economists had estimated, for a 2.9% growth rate for the first three months of the year. we are still waiting on revised numbers for south korea.

we are watching gdp numbers closely to see how much currencies have affected import growth, which still looks quite robust. yvonne: we saw the number coming in through earlier this week. decent, solid numbers when it comes to exports. at least the first 20 days of this month. we are counting down to the summit between the two koreas, president moon jae-in meeting with kim jong-un. we are tracking what is happening in the next 48 hours or so. earnings coming through any minute now. betty: we are watching samsung earnings. earnings also a focus in the u.s. markets. let's pull up what happened here in the u.s. a brighter session than that they before, the dow higher 60 points. the s&p up 0.2%.

nasdaq closing a little in the red. one story of a different note, facebook shares rising after hours, after numbers that came out. perhaps that delete facebook movement not affecting yet the robust ad sales on their networking platform. yvonne: not yet. we will watch the next three months or so. optimistic outlook from mark zuckerberg and co. i mentioned a big earnings day in asia, the likes of samsung, s inotec, nintendo reporting as well. new zealand, flat coming back from the holiday when it comes to the ends of ex 50 -- when it 50 and thee nzx kiwi. .7567 for the aussie.

we are about to hear from morgan stanley. about how it is time to buy bonds and sell the currency. he is betting the r.b.i. will not hike rates in the next two to six months. look at japan, counting down the open in japan and korea. futures seeing deepening gains out of japan, after dollar-yen close to 110 against the dollar. let's get you caught up with first word news with courtney collins in new york. raised the quota for funds to invest in overseas securities for the first time in three years. curbs and opening its $40 trillion financial sector. quota was bumped to just over $98 billion as of tuesday, from buyout -- from about $90 billion.

apple boss tim cook met president trump as trade tensions with china cymer. the white house has -- china simmer. the white house has yet to report. apple produces the majority of its products in china and lists that nation as its third-largest market, so it is concerned about destruction to trade. the supreme court looks set to up hold president trump's travel ban after justices heard arguments troubling the policy. bars more thany 150 million people from entering the u.s. overstepped his authority and was motivated by anti-muslim bias. it blocks entry from people from iran, somalia, yemen, north korea, and others.

after winning his narrowest election yet, najib razak told bloomberg he expects a better result this time. in his first international media interview, he discussed the challenge from his one-time patron, as well as scandal surrounding malaysia's fund, 1mdb. the opposition is a motley collection of parties. common.not have much in they were very derisive in their comments about one another for decades. i do not see how they can really work together. >> don't miss our malaysian election special here on bloomberg tv. all the news, views and reaction friday evening. stay tuned. 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. ♪ courtney, thank you. french president emmanuel macron thankss the u.s. -- trump maypoles the u.s. out of the iran deal -- may pull the u.s. out of the iran deal. we have our team on the national security issue. let's take these comments from macron that trump is likely to quit this iranian deal. all that work the last few days for nothing? >> it would be a tough way to end the trip, for sure. he spent his third day pushing the administration and the irandent to stay in the

nuclear deal after the may 12 deadline the president set. speaking to a small group of journalists here on his last he thinks trump was not persuaded and that trump will pull the u.s. out of the nuclear accord next month. he said that would probably lead period of heightened tensions and uncertainty, and the u.s. reaction to whatever iran does. probably not how he wanted to end the trip. i think european leaders got one more chance to work on the president. chancellor merkel is expected to lobby the president over this decision, but right now, the french president's impression is that things do not look good. yvonne: he was supposed to be the go-to guy, more sway than angela merkel. what does this mean for north korea? this is not the time to be showing america is not a

reliable partner when it comes to foreign diplomacy. will this impact of the summit we are likely to see in the next few days between president trump and kim jong-un? bill: it could. the president still has almost two weeks to make his decision. this is the french president's read on the situation. of the iran nuclear accord was reached in 2015 and went into effect 2016. perspective,rea's a country reached a difficult deal after years of negotiations, and then a change in leadership in the u.s., and the u.s. is pulling out of it. an agreementling reached perhaps with the trump administration could be changed during that administration or by the next president. it is not the kind of message you want to be sending, heading into these difficult talks with north korea. yvonne: not at all. thank you, bill fairies, --

faries, joining us from washington. in late trading after first-quarter revenue soared almost 50%, smashing analyst estimates. the social network has been embroiled in controversy, but ad sales remain at record levels. let's go to san francisco with sarah frier. she has been covering the conference call. despite this controversy, it seems facebook, for now, has dodge a bullet on scrutiny. sarah: it was interesting on the call to hear them talk about their business. the pasteard them in few weeks talk to journalists, congress, and say, we are doubling down to take this extremely seriously. we will be making a lot of changes and be doing an audit of our products. on the conference call was a positive message. we have a lot of runway for our business.

this 49% growth, we have so many things we can do. we have instagram, whatsapp. advertising is not going away, only getting stronger. probably the most positive thing we have heard from facebook in a while. be may be thehis last quarter we see numbers like this? sarah: you make a good point. the cambridge analytica data leaked news happened at the end of the first quarter. there are a lot of things in the second quarter that are very concerning for facebook's business. we have the gdpr privacy rules rolled out in europe. that could affect users of facebook in that region. there is the cambridge analytica blowback, the delete facebook campaign. inkerberg's testimony congress, we have yet to see how it affects the company. betty: thank you so much, sarah

frier, on the seemingly no impact of delete facebook. facebook is our top story in ion of daybreak. subscribers go to dayb . it is also available on mobile. more on facebook. later, our exclusive interview with the malaysian prime minister najib razak, as he promises to cut corporate and personal taxes in the next five years. this is bloomberg. ♪ . this is bloomberg. ♪

♪ yvonne: this is "daybreak asia." i am yvonne man in hong kong. betty: i am betty liu in new york. facebook has had a tough time, with fake news, hate speech, privacy. nost quarter results showed

signs of backlash. add sales were at record levels and they gained north american users after declines in the previous quarter. let's get analysis from ivan feinseth. should we take a page from the book of caterpillar that says, this may be as good as it gets? not at all, i do not think it is as good as it gets with caterpillar or facebook. they have growth ahead of them and opportunities for user engagement. yvonne: why, how? facebook used to pay people to search. what if people are concerned , -- are selling betty: are you hearing they are actually thinking that? is that just the ivan feinseth formula to for state -- to fix facebook? ivan: they want to increase

quality engagement. would beg said he happy if people spend less time, but greater quality time. we have seen no negative backlash. probably more positive. betty: our advertisers going to want to hear that? ivan: advertisers want to go where the best customers are, for the best way to reach of their customers. facebook has customers advertisers want, and a better way of reaching those customers. there has been a huge migration away from traditional media advertising, to more targeted and social media advertising. people want to be engaged with things they are interested in. people do not like advertising for things they are not interested in, buffer things they are. yvonne: are. yvonne: a great call we heard from jeffrey gundlach, he was

shorting facebook as a trade. we are starting to see these gdpr privacy rules going into effect in europe. has facebook done enough? ivan: i think they will be proactive. benefit big companies like facebook and google because people are more trusting of the bigger, more established companies that can look after them. facebook and google have been customer friendly and focused, even though they are very large and people are often suspicious of very large companies. the users are on facebook and advertisers want to go where the users are. that is where the -- that is where the benefit is. yvonne: can we assume as long as facebook keeps investors happy and they generate these numbers,

that will limit how much is zuckerberg is willing to adjust regulations and changes? it seemed a few weeks ago in his testimony he was open to it. ivan: i think they will be proactive. one thing one of the senators did say to him, you do not want business.ing our i am sure he thought, absolutely we do not. they will be proactive in trying to stay ahead of problems. at the same time, offering their users a better experience. yvonne: it does not seem they set a whole lot in terms of engagement. how concerned are you people are spending less time on facebook? we saw that in the last quarter. they are spending a lot in hiring just to deal with this controversy. ivan: people are spending less time on facebook, more time on instagram. the key will be quality time. hen mark zuckerberg said, hopes total time goes down, but quality time goes up.

betty: amazon is reporting their results tomorrow. what are you looking for with amazon? ivan: this is the first time they announced their prime membership, over 100 million. there will hopefully be more detail on that. the key will be, since it is expected prime members and more on amazon, they want to see the difference. the more detail they can give, the better that will be. prime membership is a big growth driver. they have a prime membership credit that gives you discounts and points. one other interesting thing the prime reddit card does, when you use it in other places, and amazon knows what you like to buy, they can better target you. betty: a never ending quite for big brother, that is how i feel every time i use alexa. what about their capital expenditures?

amazon has been a company applauded for capital investment. there has been a feeling for a long time they would pullback capital investment, profitability would go up, and that justified the premium stock price. as long as he continues to invest in things that have a positive return, and eventually you will have to give your excess cash back to the shareholders, there will probably be a trade-off to see when these returns diminish, rather than when they increase, returning cash to shareholders. a long as they are getting positive incremental return, the stock will go higher. wenne: above all the noise, heard criticisms of president trump, the tweet storm when it came to the u.s. postal service, do you think that will have a factor on how analysts view the stock now? ivan: not at all.

some have said amazon has been positive to the post office. i think trump's biggest beef with amazon and jeff bezos is the fact bezos owns the washington post, and the post is extremely critical of trump. so he has been critical of amazon. it has not had that much of an effect. as long as they continue to grow their business and profits, the stock price will continue to go up. ivan, we will leave it there. thank you for joining us. you can turn free -- to your bloomberg for more on earnings. get commentary, analysis from our expert editors. this is bloomberg. ♪ this is bloomberg. ♪

yvonne: this is "daybreak asia." i am yvonne man in hong kong. betty: i am betty liu in new

york. malaysia's prime minister najib razak expects a better result in the next month's election. in his first interview in three years, he said the opposition led by his former mentor cannot work together. feel most people want more predictability, more certainty, and the government able to deliver. the fact that over the next five years, we have delivered. they know we can deliver the next five years, i think that is key to the sense of confidence. movement for changing the government. i do not see that. we will win amean huge majority. i am not going to predict that, but i will say we are reasonably sanguine about the result. to put au willing

figure on how many seats you think you can win this time? do you think it will be more than 2013, and is the 2/3 majority possibly attainable? i think generally speaking, i am expecting a better result than 2013. theof the reasons, opposition, they do not have much in common. very derisive in their comments of one another for decades. i do not see how they can work together, really work together. -- was the man you to bring to power in 2009, now you are heading together -- heading against each other in the election.

what happened to the friendship and peer relationship? mr. razak: he is obsessive about control, calling the shots. you do not get david cameron or previous prime minister's in u.k.-- prime ministers in telling theresa may what to do. i would not want to enforce on my successor, but he is a test with control. essed with is obs control. in my case, i did not continue with his request. that was a turning point. after that, he declared an open war against me. yvonne: that was a malaysian

prime minister najib razak speaking exclusively to bloomberg. do not miss our malaysian election special here on bloomberg television. all the news, views and reaction. that starts friday evening. meantime, i check of the business flash headlines. ebay has a week outlook, expecting -- weak outlook, expecting to only reach $2.6 billion. there are concerns for the company to return to consisting growth. they are looking to see if they remainain relevant -- relevant in an environment controlled by e-commerce. betty: the pace of revenue growth will slow. -- it will betes tough to replicate growth rates in the latter half of the year. beyonds they should look

the short-term and examine trends for twitter that are more constructive. we will continue our day with a big look at earnings. qualcomm, sparking optimism over a china smartphone market. this is bloomberg. ♪ this is bloomberg. ♪

yvonne: 7:30 a.m. thursday. foggy in hong kong. 7:30 p.m. wednesday here in new york, where markets closed higher. tech stocks getting a little bit of a beat. i am betty liu in new york. yvonne: i am yvonne man in hong kong. let's get first word news with courtney collins. in late traderged after topping estimates in the first quarter, despite a series of controversies, ad sales are near records and users keep logging on. abovee rose 49% to just

$12 billion, beating forecasts. nearly 1.5ys it has million daily users. the cambridge analytica impact may be felt later. french president emmanuel macron had told america turning its back on the wider world is a major risk. he appealed to the u.s. not to turn inward, when he listed climate change, nuclear weapons, inequality and fake news. he says the only option is to strengthen cooperation and build the 21st century on a new type of multilateralism. >> the commercial war, opposing the line, is not consistent with with our history, our current commitment of global security. increased of the day,

prices, we will have to pay for it. expects the macron u.s. to pull out of the nuclear iran accord. iran has ruled out any renegotiation after the deal, after france suggested a new agreement would keep the u.s. on board. president trump has described of the accord as insane, and has hinted at dropping it. iran says they will not entertain new talks, and will walk away, if necessary. >> i have spoken with president macron several times. i have told him we will not add anything to the deal, nor take anything from it. a deal is a deal. >> lockheed martin will provide latest later technology on the f15 it will offer to win a bid from india. the plane will be equipped with

advanced new radar, as well as a and a tracking system, new radio datalink system. also includes shifting production to india, as it takes on competitors saab and boeing. 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. ♪ we are counting down to some of the major market opens in the asian pacific. let's get the latest with sophie kamaruddin. a lot to look ahead to. big day in asia. china easing its grip on capital outflows. onhie: the fog might left asian equities. the start of the session, the yen back above 109. benchmark treasuries above at 3%, the dollar at a three-month

high. after facebook's impressive results, that could increase gains. major markets down for the year, including south korea, japan and australia. they can make another attempt at your today gains. the emphasis on south korea after first-quarter gdp came in as expected, and samsung headlining earnings. we will look at oil earnings. expectsch president trump to ditch the iran deal by the deadline. the market has not priced in the impact from a potential supply disruption, should the deal collapsed. barrel, as of a the last close. yvonne: we could see a resumption of this rally. ine a look at earnings japan, we have the likes of nintendo. after what we saw with caterpillar, people are looking

at commodity stocks. sophie: reporting stocks after the bell this thursday. it was a second opinion on the health of the global economy, following caterpillar's signal sales for the year might have peaked. commentarypillar's added to the macro gloom, it could be overdone. it indicates rising prices for equipment, which could underpin komatsu. they hit a seven-year high in march as stricter environmental rules have taken place. we expect another health check from komatsu this thursday. betty: thank you so much, sophie kamaruddin. earnings are a major story today. samsung results coming in. ramy inocencio has the results. it looks like it is a

match in terms of what we were expecting, for both revenue and profit. samsung electronics first-quarter operating profit, 15.64 trillion won. 14.5 trillion,s before the preliminary number came up for april 6 out of seoul . walking through the sales , -- numbers, barely a beat. an estimate of 61.3 trillion won. on par with what we were expecting. we are still waiting for the breakout in terms of divisions. i was talking to you earlier about what we were expecting for displays.

a lot of those coming from apple. strangely, in terms of those displays. waiting for those numbers to drop from the semiconductor, the chipmaker aspect of things, especially because samsung did release its marquee galaxy s9 in february. we will see if there is an imbalance or overweight. we are waiting for the lines to drop. electronicssamsung for the one year, up nearly 18%. your today, it is down 1%. look at the ups and downs. it was up as much as 35%. and it fell to 12%. of the the volatility smartphone market as well as displays and chips. stock.quite a volatile it looks like more bullishness, positivity on samsung, then apple, right?

ramy: i want to show you what this is all about. what you are going to see here is consensus -- not this one -- let me walk you through this. the consensus of the average buys and sells. samsung is 4.7 in terms of a consensus. that is an average of the buys and sells. apple is 4.27. 38, 4, 1. apple it is -- investors are more polish on samsung, despite the smaller market cap. betty: thank you, we will keep an eye on samsung shares. samsung, facebook, a few companies posting earnings today. also, twitter, ebay, qualcomm.

keenan here with more. let's talk about qualcomm, which sees the chinese smartphone improving. su: buckle your seat belts, we will fly through these. rising on the positive outlook, they see fiscal sales at $5.6 billion versus the analyst billion.of $5.45 they believe the crucial chinese smartphone business is showing signs of life. recent reports had concerns over prices in china. have qualcomm stocks fallen 20%, year to date. this is a needed boost. expectedpredict -- $.70. twitter, here is a today chart. earnings validated the turnaround. startedas executives

talking, warning the pace would slow in the second half, down 7.7% after gains a 14% earlier. analysts say twitter is dealing with credibility. it pales in comparison to the growth facebook is thing. most of twitter's user growth is outside the u.s. ebay, disappointing outlook is the title here. revenue growth takes the shine off the ceo's turnaround strategy. the stock fell as much as 7% after hours. you are seeing it rebound a bit, down only half that much. they are expecting revenue of $2.64 billion. investors closely watching to see if the market dominated by amazon.com can allow this company to flourish. yvonne: a lot ahead of those amazon earnings. we will let you take a break and ask you a question. beat the highest

estimates, announcing four additional cost cuts. su: the second thank millennials because they do not like credit cards, and they do not qualify for them, and they raised the limit. the younger consumer prefers the debit card. check out the chart for visa. it has had a nice rise. debit card jumped 16.3%. ford, they beat on first-quarter

revenue. the ceo is targeting $25.5 billion in options. listen. >> we are clearly going to allocate more capital to the higher performing parts of the business. we will talk about that in our call today, and take capital away from lower performing parts of the businesses, and, or, looking at other options. su: ford has been down 10%, your today. they see any percent profit margin by 2020. they are sharpening the knives by cutting another $11.5 billion from spending plans. all of that expected to be a nice boost for ford stock prices and investor optimism. yvonne: continuing on this earnings trend, samsung electronics. seemed to be a beat. take a look at first-quarter 61nsolidated net income, 11. trillion one. -- won. the estimate was for 10.9 t rillion won. a sizable beat for the first quarter, perhaps shaking off

concerns of iphone demands, iphone x. take a look at the chip cycle. that will be the focus. we will get analysis from bloomberg later on. for trade imbalances between the japan and u.s., our guest joins us in just a moment. this is bloomberg. ♪ ♪

♪ ."tty: this is "daybreak asia i am betty liu in new york. yvonne: i am it yvonne man in hong kong. they told stephen mnuchin protectionism is not good. the u.s. wants to pursue bilateral deals, while japan hopes the u.s. will rejoin the tpp.

kathleen hays is joining us, standing by with a former trade negotiator. take it away. kathleen: thank you so much, we are happy to be joined by --, from the foreign ministry. he was at the ministry of foreign affairs. a wide range of topics we can cover with him. welcome, good to see you. >> thank you for having me. said, poorhe media prime minister abe. donald trump could have thrown him a bone to help him out, but you do not see if the same way. >> mr. trump said he would bring japanese abductees kept by the dprk as an issue to

speak with kim jong-un in the summit. that was one of the biggest things he got from mr. trump. >> today make any progress toward either side? the tough thing i see for mr. clearly preferse a tapp -- tpp. the united states is kept outside of tpp by its own choice. in the meantime, for the japanese agriculture market, there has been -- that has been taken over by australians, new zealanders. and also in the case of australia, they have a bilateral trade agreement since 2015.

the duty rates on beef have been coming down, for the betterment. i think if the united states wants to make the larger market here, i think the return of the united states back to tpp is imperative. the sooner the better for the united states to come back to tpp. saideen: you have also tpp 12 is a insist de facto bilateral free trade agreement between the two countries. what do you mean by that? >> it is a compilation of bilateral talks between 12 nations. japan and the u.s. were also engaged in a free-trade talks on the auto industry is, agriculture.

japan has a sensitivity in agriculture, the u.s., the auto industry. 12 was a disguised form of -- between japan and the united states. if they want to bilateral deal, it is better we go back to the original tpp 12. kathleen: donald trump went back-and-forth. he said maybe we could go back, if the u.s. gets the kind of deal i think is good. what can japan do now to move it in that direction? or do they just have to convince sees, itee what japan is already a good deal for you. what have you done? mr. watanabe: if you look at the , that japan has been

working so enthusiastically, thatwas just for fair -- was just to prepare of united states to come back to tpp 12. all the u.s. items have been suspended, facilitating the other 11 countries to form tpp 11. it is preparation for the united states to come back. hope the united states will make their return to tpp 12. put on your foreign ministry hat for me now. this very important meeting now between north korea, south korea. we are looking ahead to a meeting between kim jong-un on president trump. start with what is happening tomorrow. are you a skeptic who says, forget it, this is just another talk, it will not lead to

anything substantive that will change north korea's position in the world? or do you see signs as hope? mr. watanabe: it is good to identify what dprk and mr. kim jong-un thinks. too optimistice or pessimistic, it is a kind of reality test. from the japanese perspective, the nuclearization of the korean peninsula itself is an important subject matter. we hope mr. trump will keep that kind of position, the denuclearization -- the de -nuclearization, as a priority of the talks. kathleen: what will it take for kim jong-un to be willing to

take that step? hard to believe he would just agreed to give up nuclear warheads like that, although trumps maybe what donald expects. mr. watanabe: i think the dprk shouldn't -- should accept monitoring facilities to be established within its own territory, particularly within the testing site of nuclear weapons and missiles. this kind of monitoring, 24 hour monitoring, should be installed. if these, we never know promise has been honored by dprk. kathleen: presumably what north korea will want is investment. they will want the means to develop their country along the lines of what they see around

them in japan, south korea, and so many nations. do you think the japanese government would be willing to step up and make those kinds of investments, loans, promises, to get this deal done? mr. watanabe: we have to be reminded we have a quite big peninsular the korean energy organization. that was on the basis of the dprk united states agreement from 1994. but dprk never really honored promised, soously kpeo project was never honored. and electricity powerhouse in dprk, if they honored there kpeoses under this kep --

project. we have to be very careful. kathleen: if we are moving ation, whatcleariz chance do you give it? mr. watanabe: may be less than 10%. kathleen: we thank you so much for joining us. back to you, betty. betty: thank you so much, kathleen hays with yorizumi watanabe. for more breaking news on japan and other markets wherever you are, we have teamed up with a twitter to launch tictoc. networke first news offering hourly updated top news reports updated by us. make sure you follow tictoc by bloomberg. this is bloomberg. ♪ this is bloomberg. ♪

♪ betty: a quick check of the latest business flash headlines. postponed a sale after suspected iran sanctions violations. the doj joined other agencies examining the smartphone maker. huawei will consider returning to the bond market at a later -- later opportunity. the u.s. has already banned zte from allegedly breaching sanctions. yvonne: examining potential acquisitions as they expand agricultural businesses. syngenta is seeking deals. chem china had the takeover back in january. coming up, we look at china's latest move to open up by easing

its grip on capital outflows. cio joins us in a couple minutes. this is bloomberg. ♪ rg. ♪

yvonne: we are live from bloomberg's asian headquarters. welcome to daybreak asia. asia-pacific markets look set for gains after a choppy session on wall street. the dollar rose to its highest in three months. samsung beat in the first quarter driven by booming demand for memory chips. profits topped $10 billion. i'm betty liu in new york. macron tellsanuel congress america would be wrong to turn its back on the world. he also expects the u.s. to drop the iranian deal.

minister's bige the bloomberg about next month's election and the one mdd scandal. yvonne: earnings front and center this morning. samsung, once again continuing the pattern we see where in the first quarter we are seeing gangbusters and when it comes to earnings, they beat by $925 million. revenue up from 20%, but once again, it was the guidance from the second quarter that seemed to be not as rosy, as we are hearing in the conference call. look at this gtb start -- gtb chart. that is why we are seeing concern in the chips and selloff because there is still the concern that the demand for chips has reached a peak, samsung not alleviating that too much. salesre saying stagnant

of chips and mobile and are concerned that profit growth could decline in the second quarter and their mobile business. betty: that's right, some concern, but those numbers show that this giant continues to dominate. seeming toinvestors life these results that we see out of the tech giant. certainly seems like a theme across the world. facebook shrugging off some of those concerns. investors liking samsung as well with the chip demand issue. let's talk more about some other issues affecting the markets. let's get to the first word news with paul allen. cook metle boss tim president trump in the oval office as trade tensions with china cymer. the white house has yet to provide details of the talks, but cook also met the top economic adviser larry kudlow. apple fritters is the majority of its products in china and list the nation as its

third-largest market, so it is concerned about any lasting disruption to trade. the supreme court looks set to uphold president trump's travel ban after justices heard arguments challenging the policy. they will rule on a measure that indefinitely bars more than 150 million people from entering the u.s.. trump overstepped his authority and was motivated by anti-muslim bias. the band blocks or limits entry by people from iran, syria, somalia, yemen, and north korea. french president emmanuel macron has told america that turning its back on the world is a major risk. addressing congress, he appealed to the u.s. not to look inward as he listed a range of threats, including climate change, nuclear weapons, inequality, and fake news. he said the only option is to strengthen cooperation and build the 20 on a new type of multilateralism. war is notcial

consistent with our mission, with our history, with our current commitment to global security. wille end of the day, it destroy jobs, increase prices, and the middle class will have to pay for it. in latecebook surged trade after topping estimates in the first quarter, despite a series of controversies. ad sales are near record and users keep logging on. revenue rose 49% to just below $12 million, beating forecasts. now facebook says it has almost 1.5 billion daily users. the cambridge analytica scandal broke towards the end of the quarter. its impact may be felt later. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than hundred 20 countries. i'm paul allen. this is bloomberg. yvonne: taking a look at regional benchmarks, up .1%.

mixed pictures when it comes to equities. a of earnings to digest during the asian session. let's get a quick check on the market open with sophie kamaruddin. sophie: quite a few factors to consider. the back above 109, the 10 year yield above 3%, u.s. futures looking higher. the mood in tokyo looking optimistic, the nikkei 225 adding .33%. australian markets coming back alive. now off by .1% for the asx 200. we also have the kospi gaining ground after a four-day drop. plus the latest read on gdp growth, which came in as expected for the first quarter. these are the ongoing exports recovery and corporate investments that help the economy rebound after gdp fell for the first time in nearly a decade in the last three months of 2017. we do have the korean won beating a retreat, trading at

108550 -- 1080.50. a march 26 low. we do have foreign investors selling korean equities in droves. this has quickened as korea's yield premium over the u.s. continues to shrink. you can check this out on the terminal for users. it is coming even as optimism builds ahead of the inter-korean summit. korea could be the canary in the coal mine for emerging markets capital flights. benchmark treasuries shrinking, that is the line in white. let's check on movers in seoul. so far leading gainers this morning, joined by high next in green. health care stocks also gaining grounds. radarctronics also on the as we have results from that company along with hyundai motors. checking on the laggards, want to highlight some of the movers.

hyundai motors losing ground, off by .6%. we do have consumer stocks also on the back foot. let's take a closer look at samsung shares after its first-quarter results. stock is rising after a two-day drop, but still off the year's high it hit a week ago. as we can see from the consensus stock portfolios in one sales call. betty: let's dive more into those samsung results. ramy innocencio has more. this giant of a technology company, coming out and saying, really reporting great numbers. ramy: basically here we are, we are here to stay, forget about your concerns with apple, with the screens. it really is the tip. that is what investors are hoping. we are seeing the share price rise about .8% right now. let me walk you through the top flight numbers, then go from there. for consolidated sales, 60.5

trillion won. that is really one of its best so far, just a tad off what they were expecting around 61.5 trillion won. consolidated operating profit, 16.6 trillion. that now we know is a record. we were expecting that when samsung came out with its numbers about three weeks ago. samsung electronics, the first quarter net -- once you dive into the bloomberg, i'm going to show you where we stand. this came in at 11.6 trillion , roughly $10.5 trillion u.s. going gangbusters as we move along. since we got those top lines out of the way, what we really have been waiting for was what was happening in terms of the chips, the screens here. samsung's screens, let's go there. as yvonne implied earlier, the first quarter profits actually

were affected by slow demand for the flexible oled. guess where they are? they are in those apple iphone x 's as well as the 8's. one thing i am confused about is samsung said it expects increasing sales of oled panels. if i had them at this table, i would be saying, where is this coming from? we expect the forecast, so we know the forecast for the apple x's. falling based on the supply chain operators, so i wonder where that is coming from. the galaxy s nine does have a price of about $700 rate of dollars for the plus version. i am wondering if there is a falling appetite for the higher and prices. let's also talk about what's happening in the chip division, because the operating profit came in at 11.6 trillion won. that is gangbusters relative to the mobile division, about 3.8

trillion won. the chips -- investors are hoping this was going to be something good. turns out it definitely was good in terms of what was happening for the smartphones for samsung. those are the top line. a couple other things. samsung as see stagnant sales of its flagship models, notably the + as well as reports of the equivalent of the x, some kind of a foldable smartphone that might be released at the end of this year or beginning of next. yvonne: thank you, with that breakdown on samsung. our other big story, china has eased its grip on capital outflows, raising the quota for funds to invest in securities overseas for the first time in three years. let's go to china correspondent tom mackenzie in beijing with the details. what are the practical details -- practical implications of this move? tom: this is a move that has

been broadly welcomed. what it means is institutional investors in china will be able to buy more securities abroad. the government sets a quota and it has relaxed that quota and increased the amount of to buyies it is allowed them about $89 billion u.s. to about $98 billion u.s. as of april 24. so it does give institutional investors more options and it seems to be another step towards this gradual move to open up the financial markets here in china and see the markets and investors be more integrated with the global system. it should be seen in that context. it is being welcomed by economists as a significant move. betty: why has beijing made this change now? tom: we got a chart that illustrates a key component.

it is really the strength of the yuan. if you bring in the gtv terminal, this chart illustrates since the- yuan devaluation in august 2015. now the level is the highest since the devaluation, around 6.3 right now. that seems to be giving quality makers the confidence to start to ease the capital controls. we heard from an economist suggesting that policymakers seek further appreciation for the yuan. as yvonne was saying, this is the first time they have done this since march 2015. we also heard from another economist saying that chinese policymakers had been looking previously to increase inflows into the chinese market. now they're looking for a more balanced portfolio, so it should be seen in that light. we heard earlier this month from the pboc governor saying there would be steps to open up financial markets around banking

and securities. yvonne: part of the longer trend of opening the capital account. tom mackenzie, thank you, joining us from beijing. joining us is michael kushma, morgan stanley income ceo. he helps oversee millions of dollars in assets. welcome. $98 billion to $89 billion in this quote are being boosted. more symbolic or material i think it is -- more symbolic or material. >> i think it is a material change, integrating chinese markets more into the global financial system. it is part of a process where they got the won introduced into the sdr a few years ago. this is an ongoing process to continue that trend. i think it will liberalize the market and restrain further strengthen the currency. confident theare currency will hold its own and not require government support. yvonne: certainly a lot of demand for domestic funds that

want to invest abroad, whether u.s. treasury's were stock. where do you think the money is going to go now? >> financial markets are a bit unsettled this year. it is not obvious that anything is going up in price meaningfully right now considering the uncertainties which exist about u.s. monetary policy, equity valuations. i would not see any rush into any particular asset at the moment, but yields are getting more attractive world ride because of rising yields. yvonne: you are right on the money, michael, for most of the year when it comes to em debt. it has become almost a safe haven given the rising yields and concerns of 3% on the u.s. tenure. -- u.s. 10 year. it seems like things have changed because the dollar seems to be tracking with the rising yields as well. does that change how you deploy your capital? >> it is very important. to understand the implications

of a higher interest rate, we have to know why they are going up. we had higher yields earlier and the dollar did not care. short-term yields did not matter. now it matters. it is a function of threshold. once you reach certain thresholds, you start to think it is not just a short-term correction, it is a more meaningful trend. this can be much more potentially supportive of dollar strength going further. betty: michael, we are going to talk more about the treasury yields in a moment. i wanted to ask you further on emerging markets and how much they might see the trade friction, tensions that make the headlines, u.s.-china. how much is that volatility going to affect emerging-market? >> it does affect it. risky assets per se do not benefit from higher volatility in general, but particularly volatility where you are seeing rising yields and falling equity prices, falling corporate bond

a risk offt's environment where the factor can be negative for everything. it is not too dissimilarity 2013, where everything was going on -- going down for some time, because everyone worried monetary policy would change in a dramatic fashion. betty: we are going to have more with michael kushma after the break. we are diving deeper into his strategies, including where he is hunting for yields in the middle east. later on, the malaysian prime minister addresses the 1mdb scandal, saying the opposition party agenda was to blame. this is bloomberg. ♪ mberg. ♪

yvonne: this is "bloomberg daybreak: asia." i'm yvonne man in hong kong. betty: i'm betty liu in new york.

let's talk about treasury yields on the rise, the 10 year hitting above 3%, the highest and four years, despite the lack of any truly jolting economic data. what has happened to change all this. michael kushma back with me -- back with us. view on what is your this 3% level and how important psychologically it is for investor sentiment? >> you're right, a very sharp increase the last couple weeks, the yields of 20 basis points in just a couple of days. the yield curve steepen's with longer underperforming shorter maturity yields, the opposite of what has been happening the last 18 months. we have reached thresholds which are interesting. you mentioned the high for the year. i think the decade high of 2014 was right around these levels. it is going to be interesting to see if we stop here and hold

these levels or establish a new range. i were a view for a while has been things are changing. the world does not look like it did between 2008 and 2016. things are greater, we have synchronized growth, banks are on a mission to keep raised interest rates. we have a lot of negative news. it is not one factor that drove yields sharply higher, it is the accumulation of lots of things. the straw that broke the camel's back is the inflation fear. betty: do you think the 3% level is a cap? >> fundamentally no in this sense that when we look at valuation models and where is fair value, appropriate value, given current situations, it is probably higher than now, but not a whole lot higher. no higher than 3.5%. , how of it comes down to much do think the world in the future is going to look like the more recent past, or are we

returning to a world like prior to the global financial crisis? where you stand on that, how much the future is going to be stagnation were breaking out on the mold, will tell you, are we going to break 3.5% or higher? or stop somewhere at 3.25%? yvonne: michael raises the question, at what time does it worry a pause on em to get to 3.5%? we have a gtv start -- chart. asia, and in asia, in one of these routes when it comes to government paper. the biggest one-day selloff of indonesian bonds in seven months just yesterday. the central bank trying to put a floor in the currency for two months. seems like they cannot do much about it. at what point do you think central banks are at risk of defending their currencies in vain given the rising dollar? >> a very good point. i put forward the idea that a barometer of risk is the dollar. the dollar -- if the dollar

meaningfully strengthens, that is a bad sign for the world. usually that means risk premiums are rising, the dollar becomes a safe haven. u.s. interest rates are destabilizing the world financial outlook. people are fairly complacent about risks around the world, emerging markets are safe havens, indonesia, india, brazil in some sense. central banks are cutting rates in these countries. currencies that are going up our stable. low-vol worldign, is not correct and how things are going to work out. yvonne: are we hitting them to inflection point where we should be looking outside local debt in e.m.? >> i don't think so. i think this is a correction from too large positioning in the market. fundamentals are still supportive for emerging-market local debt, relatively speaking. maybe it is -- maybe positions were too big relative to the shop. rising long-term treasury yield

is not a big deal if it happens slowly and steadily. sharp upward moves like this month are not so benign. it shakes out sort of low conviction investors. betty: the hunt for yield not only happening in asia, but other parts of the world. where are you looking for that yield? i know the middle east might hold possibly some attractiveness. >> very good question. one of our general themes is trying to find idiosyncratic opportunities. what i mean by that is where the domestic situation or anyamentals can blunt global forces that would be negatively impacting that market. in the middle east, a country where i thought things were on the upturn in terms of fundamentals and evaluation, was egypt, where yields are very high. from a local perspective, 17% plus six-month yield of currency which is stable to strengthening. inflation is falling, current account deficit is falling.

the currency had gotten cheap. the central bank is happy with a stronger currency. all those fundamentals suggest egyptian bonds can perform well, even if we get negative factors influencing it. betty: we are going to have to leave that there. thank you so much for joining us, michael kushma, morgan stanley investment analyst, global fixed income ceo. bloomberg users can interact with the charts using gtv go. to catch up on key analysis and save charts for future reference. this is bloomberg. ♪

betty: a quick check of the latest business flash headlines. huawei postponed a euro bond sale amid a justice department investigation for suspected iran sanctions violations. the doj has joined two other agencies examining the smartphone maker. sources say huawei will consider

returning to the bond market later. the u.s. has already been china's dde from buying crucial tech for allegedly breaching iran sanctions. yvonne: china syngenta says it is examining potential acquisitions as they plan to expand and -- expand into digital agriculture businesses. is seekingd syngenta targets in the u.s., brazil, and china for deals valued to $50 million to as much as $1.5 billion. chemchina completed its takeover in january. betty: noble group says it will vigorously defend lawsuits by goldilocks investments seeking to the -- seeking to prevent its controversial debt restructuring. the trader's third-largest shareholder filed suit to block the debt for equity swap. goldilocks also wants to stop noble's agm next monday. next, samsung reporting the big

beat on profits but has a warning about stagnant shales -- sales of flagship mobile phones. this is bloomberg. ♪

yvonne: 8:30 in singapore. looks to be pretty sunny inside, different from hong kong. now just half an hour away from the open of trading. i am yvonne man in hong kong. betty: i'm betty liu in new york. you are watching daybreak asia. let's get the first word news with paul allen. paul: thanks, betty. samsung beat expectations in the first quarter thanks to booming demand for flash memory chips. net income came to $10.7 billion as sales rose 20% to $56 billion. the result uses concerned that orders for chips might be slowing. not all good news. salesg is seeing stagnant

of flagship smartphones and is worried about decline of mobile profitability in the second quarter. to investraised some in overseas securities for the first time in three years, using capital curbs and opening its $40 trillion financial sector. the qualified institutional investor quota was bumped as of tuesday from about $90 billion. that is the first increase since march 2015. says he expects the u.s. pullout of the iran nuclear accord for what he calls domestic reasons. iran has ruled out any renegotiation of the 2015 deal after france suggested a new agreement could keep the u.s. on board. president trump has described the accord as insane and has consistently hinted at dropping it. iran says it won't entertain new jobs and will walk away -- new talks and will walk away. >> we defend the agreement, we consider it useful and it will be complied with. that being said, i heard what

president trump said on number of occasions and his willingness not to support this agreement. i do not know what president trump will decide on the 12th of may. >> [translated] i have spoken with president macron several times. i have told have explicitly we will not add anything or remove anything from the deal, even one sentence. . the deal is the deal. paul: lockheed martin will provide its latest technology on to win a $15 bid billion order from india. the planes will be equipped with advanced radar that is fitted to the f-35, as well as a tracking system and new radio system. bid also includes shifting f-16 production from texas to india as it takes on competitors saab and boeing. global news 24 hours a day on air and it up on twitter,

powered by over 2700 journalists and analysts in over 120 countries. this is bloomberg. yvonne: time to see how the asian markets are shaping up. tracy: -- sophie: asian stocks are mixed but mostly higher as investors are inundated with earnings. samsung a highlight, the stock snapping a two-day decline, adding over 1%, putting the kospi for its first rise in five sessions. the korean won firming up after a four did decline. strengthhering throughout 2017, we have seen an impact on earnings. samsung highlighting a 600 billion won negative impact from forex in the first quarter. in tokyo, tech and materials are leading sectors higher on the nikkei 225. australia, we are seeing energy lead but financials dragging on asx 200. the currencies base,

highlighting the yen, holding losses above 109 after the words -- worst stretch of declines in 18 months. one expert says expectations are stronger for higher yields and higher stocks to support the dollar-yen. it -- but caution is advised ahead of thursday's ecb meeting as a hawkish draghi could push the euro higher and weigh on the euroyen. should draghi take a dovish tone, we may see the euroyen moving lower in the short-term. the currency pair is trading around the 133 handle. we do expect a finish around 131 by the end 2018. terminal users can check out this chart on gtv go. betty: thank you so much. just korea's gdp expanded

over 1%, as we mentioned, in the first quarter, in line with expectations. stephen engle joining us now from seoul, breaking down the numbers on south korean gdp. pretty robust, just missing their year-on-year. what else can you tell us? stephen: the south korean economy is doing ok given the headwinds, the potential trade friction between china and the united states, and also the warnings from samsung today and high next earlier in the day. first quarter growth, quarter-on-quarter as well as year-over-year, was pretty steady. year-over-year in the first quarter, 2.8%, now 2.8% in the first quarter. also quarter over quarter came in at 1.1%, in line with estimates. in the first quarter, we did see some strength in semiconductors, weakness in automobiles because

of the strengthening won over the last year. we have to keep in mind that samsung and hynix have had warnings about smartphone demand. is there going to be pressure on semiconductors down the road? the bank of korea has kept rates unchanged for the last couple of meetings after that hike late last year. they are little concerned -- concerned is maybe too strong a word -- basically inflation is not rearing its ugly head, so the bok has stayed on hold with hiking rates, even though the economy seems to be doing ok. exports make up nearly half of gdp and that inflated won against the dollar has been pressuring companies like the automakers. yvonne: you are there as we count down to the meeting between the two koreas. richng about how symbolism these meetings are going to be. walk us through the optics, when

we do see kim jong-un crossed the south korean border and shake moon jae-in's hand. stephen: it is going to be the pictures for the ages. we are hearing media reports that kim jong-un is going to review the south korean honor guard and there is going to be lots of pop and circumstance. people will be reading the tea leaves. we are already hearing leaks about what will be on the banquet table tomorrow night. we are hearing cold noodles from a very famous pyongyang restaurant among the items on the menu. but it is the optics that is really going to be front and center, because the negotiations are going to be may be a long and hard fight, whether we are going to get a piece deal, go from an armistice to a peace deal, is the big question. this leads up to what everyone is anticipating, perhaps as

early as june or late may, and that is the summit with donald trump. yvonne: this meeting really do set up for that one. thank you so much, we will get back to you in a couple hours with an update. stephen engle joining us in seoul this morning. keeping on the korean theme, we will break down samsung earnings more. booming export of its memory chips. it sounded a warning on mobile profitability, saying it sees stagnant sales on flagship models. let's bring in sin -- let's bring in a senior analyst. she covers telcos and technology. break it down for us, you think the initial flash of these numbers. seems like the first quarter was banging and they come up with guidance saying things are not as rosy. >> i think they have to be conservative. the first quarter was very strong, but bear in mind seasonally the first quarter is usually weak.

samsung in spite of sluggish demand for its flexible oled panel and weak orders, still it managed to beat estimates. the fact that handset profit may slow is very reasonable. first quarter they launched the galaxy s9 earlier than last year. tsmc is giving a negative outlook on-demand. i don't think the market is handset profits may slow in the second quarter. the focus is on the memory chip division. the second quarter should have stronger demand. this is good enough to overcome all the weaknesses. betty: certainly the chip demand, a big boost for samsung.

more on the profitability of the mobile phone division. what are some of the competitors to samsung? what are they seeing in terms of profitability? >> i think profitability will be difficult to enhance. look at the price is not coming down much. content requirement continues to increase with more ai features and also more demanding camera requirements. you see that while way -- you hasthat rua way -- huawei three lens cameras. it is very harmful for handset makers to increase their profits. what they can do is be more efficient in the markets. we believe one of the reasons why samsung manages to have a decent operating margin in the first quarter was that even

though the sales was not that great, just ok sales in the first quarter. betty: we are going to leave it there, thank you. while the yen is trading around 109, having ended its longest losing streak in 18 months as japanese markets show resilience in the face of rising u.s. treasury yields. kathleen hays has been in tokyo for us. let's talk about the yen. where does the end go from here? sec. tillerson: -- kathleen: i had a very interesting conversation yesterday with yamasaki. he spent his entire career starting in 1980 at the ministry of finance. he was director of the foreign exchange division from 2002 to 2004 when japan spent $427 billion on exchange rate intervention when they were trying to stop the yen from getting stronger.

final twod up the years of his career as the vice minister of finance for international affairs. the tiptop of the organization. i asked him about the big factors driving the yen. it is not prime minister abe's political fortune, he says. it is more about the central ,anks, where the fed is going for him to say he thinks the yen's rise is over for now. let's listen. >> [indiscernible] you see more tightening. the ecb [indiscernible] boj because of the inflation rate may be the main policy for some time. i can't say. yen is not likely to continue to strengthen [indiscernible]

is current japanese economy not ready to buy the extent of demand, domestic demand. the exchange rate has impact on the japanese economic growth trend. [indiscernible] improvement over the productivity of japanese companies. shouldwhy i think japan be more and more immune. let's contrast what mr. toasaki said compared another man who held the same position at the ministry of finance, saying the end is going to push toward 100. yamasaki saying probably not. one more thing i would like to

add when it comes to north korea, he does not know what is going to happen, but hopes something does, that japan, south korea, and the u.s. can push this forward. he sees hope that something will. kathleen, the question of central-bank policy exchange rate is front and center right now as we await the ecb decision, the boj on friday. what should we be expecting? kathleen: it is so different from the fed, isn't it? we have the battle of hawks versus doves within the fed. this is the battle of the doves, ecb versus boj. people are saying maybe the ecb is going to fly lower. here's the deal. mario draghi wants to announce further reduction in bond purchases, june perhaps. but now the economy has stalled. we were talking about a plunge in german business sentiment yesterday. he is going to be cautious maybe, look at the economy. that is going to sound dovish. what is the boj going to say?

what mr. corona has been saying forever, more powerful easing is needed. people are looking for the euroyen. if mario draghi comes out to test the floor level of 129, in place for the past year. i think in the currency markets, there is probably some wagers going on. yvonne: yeah, who is more dovish, who has the coldest feet. thanks to our global economics and policy editor, kathleen hays. in a moment, malaysia's prime minister points the finger at his opponent for this scale of the 1mdb scandal. check out our exclusive interview. this is bloomberg. ♪

yvonne: this is "bloomberg daybreak: asia." i'm yvonne man in hong kong. betty: i'm betty liu in new york. ahead of malaysia's may 9 elections, prime minister najib razak has lashed out at the

opposition party over the 1mdb scandal. his first international media interview in three years. he again denied any wrongdoing in an exclusive interview with bloomberg. >> it started from the business model, actually itself was not that sustainable. an issue for what is essentially a business issue, became a political issue. because my opponents wanted to use 1mdb to change a democratically elected government between election cycles. that's why they created this as a big issue. meanwhile, our rationalization program is working well. our debt level has gone down to about 30 billion from 32 billion. we have got enough assets to

cover our debts. actedn people say you dishonestly about the funds, you have been called a thief, what is your response to that? >> there is no evidence of that. you cannot just accuse somebody of being a thief unless there is evidence. goin, if i can quote tensing , he said we have to act on evidence. they could not find any evidence of wrongdoing. that is a politically motivated statement. >> you have admitted that the funds did end up in your account. cleared,it has been there has been no wrongdoing. so i stand by it, there is no wrongdoing. the saudi government has come up with a statement admitting it is an official donation. the facts speak for themselves, but it has been turned to become a political issue. >> do you regret what happened

and looking back, is there anything you would have done differently? >> yes, i would have probably not had that kind of business model. probably i will make sure tighter supervision. but we all learn from our mistakes. detract from the huge number of successes that we have had in other areas. yvonne: that was malaysian prime minister najib razak speaking inclusively with bloomberg. his comments, head of the election in two weeks, shaping up to be one of the most crucial in decades. our chiefto international correspondent for southeast asia, haslinda amin. 90 -- is najibs of winning this time after losing the popular vote in 2013?

huge majority, but he is reasonably confident it will be better than 2014. that stems from a weaker opposition, which he calls a motley collection of parties. he is referring to an opposition alliance called the party of hope led by a very familiar name, the former prime minister of malaysia, who was in power for more than 20 years. he came out with an admission to bring najib down. he is now taking issue with najib's government, plagued by the scandal surrounding seoul -- surrounding 1mdb. a multibillion scandal being investigated by several jurisdictions around the world. a difficult year for najib razak. also bread and butter issues like rising living costs and discontent, even with gdp at the

highest in three years. , issues thees opposition party is hoping to gather support from the population. betty: the election is tinged with race and religion, so how does that stand right now? haslinda: you are right. you can say this election is a battle for the heart of malaysia, especially in the rural areas. the key voters, the base of najib's support, the farmers, civil servants, low income workers. najib has been courting them with cash handouts. more than ever, najib needs malaysia. he has also bolstered his grip on power. those who did not show as much loyalty were fired, like his then-deputy. he put a lid on internal part -- internal assent. parliament recently passed a law against fake news. isll, najib says he

campaigning around economic growth, the promise of infrastructure, more handouts. he says there are no plans to scrap the gst. the opposition has promised it will remove the gst if it comes to power. let's wait and see. odds are the ruling coalition will win. yvonne: thank you so much, haslinda amin, chief international correspondent for southeast asia. don't miss our malaysian election special on bloomberg television. all the news, views, and reactions on friday evening. this is bloomberg. ♪

betty: this is "bloomberg daybreak: asia." betty: yvonne: i'm betty liu in new york. now for a look at the next few hours. rish, what are you watching? rishaad: bank of japan starting off the two day policy meeting. we will see if there are any nuances. kathleen hays is going to be talking in about 40 minutes. the chip, what is going on with the chip business? right andg it is all some saying it is going off a cliff, the effect from last week. analyst ink to an just over an hours time, hour

and a half, getting his views. what does it tell us fundamentally about what's going on smartphone-wise? is this smartphone craze drawing to an end? let's have a look at the commoditization of this energy group. we are getting views as to what has the 3% handle on treasury yields meant for em currency in this part of the world. who are the beneficiaries and who are the losers? we are going to be finding out. there you go, a lot going on and there is a lot of news, too. betty: a lot, as usual. before we hand over to you, a quick look at how the markets are trading right now. the boj meeting starting today. ,he nikkei looking quite robust up about .6%. we had samsungi,

results, and also gdp result for the first quarter, up an even more robust 1%. the asx 200 also in the green. setting up for more art markets -- more markets in asia to open higher. yvonne: samsung is big for the kospi, that is lifting the entire benchmark. take a look at the rest of asia, singapore, taipei about to come online. looks like we are in the green as well, especially taiex futures. could be seeing a rebound after the down days when it comes to these chip stocks. taiex up .7%. our markets coverage continues with rish next. this is bloomberg. ♪ retail.

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