♪ paul: tech pushes equities higher in the balls retrieve. amazon sells a and jeff bezos pockets another $12 billion as shares hit a record in late trade. kim jong-un would walk into history and become the first north korean leader to ever enter the south. malaysia's prime minister

chocks geopolitics and the china-u.s. standoff and more from our exclusive chat with the malaysian prime minister. paul: hello from sydney where it theust past 8:00 a.m. for open of asia's markets. and i am ramy inocencio and we will look at the action on wall street and how it will play into your asia-pacific trading day. we arewe get to that, talking about history being made in north korea and south korea relations. that theing forward to fact this is even happening. it happened so quickly with what with president moon and kim jong-un, sitting here, i cannot wait to see how this unfolds, if the man walks across and what happens if there is any particular peace agreement or

development out of that. in the meantime let's get a check the markets and how they closed here in the united states. you can see the s&p 500 up across the board in the green. i was looking at the health of the s&p's 11 sectors and information technology was the biggest gainer, facebook in particular up 9%, the biggest jump in two years because of some terrific earnings. it also set up nicely in this part of the world with new zealand trading at off to a roaring start in the first few minutes. thank you weak dollar holding steady off of the strengthening greenback. and the aussie dollar also 75.5.g for at

crudeld up slightly and hovering around $68 and we will continue to see pressure on the coal price. here with first world news is courtney collins. courtney: kim jong-un is set to become the first north korean leader to enter the south since the peninsula was divided nearly seven decades ago. he will make the short walk across the demarcation line and join president moon for the first inter-korea summit in 11 years. the talks will go a long way in determining if ken will go on to meet president trump in may or june. cia director mike pompeo has been confirmed as secretary of state after weeks of debate about the administration handling of the diplomacy, as it was about pompeo himself. the votes show he lost the support of many democrats who backed him last year for the cia

job. the white house mike pompeo's confirmation with a tweet showing him meeting kim jong-un over the weekend. the nafta partners in to reach a deal in the coming days as the u.s. prepares for talks with china. trade ministers are in washington and safety have made progress on the more contentious issues. they hope to reach agreement by may 1, which is when temporary exemptions on u.s. steel and aluminum tariffs asked by your. expire. and ecb president mario draghi says policymakers declined to discuss the end of the bank stimulus program, or the sentiment currency as they focus on the state of the euro economy. the governing council spent its two-day meeting assessing a series of weaker data. it's often over

the course of the year but remain confident in the durability of the recovery. >> overall growth is expected to remain solid and broad-based. our monetary policy measures, which have facilitated the deleveraging process, should continue to underpin domestic demands. courtney: global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. paul: let's get a closer look of the latest wave of earnings pushing u.s. stocks higher. text refgth -- continues after hours as amazon is soaring with a doubling of profits, and intel beating highest estimates. su keenan is here. su: amazon is going to open

friday with a new record. let's get to the after hours board because we see tech flying. amazon is up in a big way, revenue growth 42% and 51 billion eps, beats the street. intel forecast also beat the data. , soes up 15% going into that should help tech on friday. microsoft sales up 60% due to strong club demand -- strong cloud demand. and starbucks falling as the company reports results, investors wanted more. let's go into bloomberg and take a look at amazon. jeff bezos got a lot richer as you see the market cap continues to dwarf walmart. revenuebottom line is

that wall street is watching. let's look into the market snapshot, the big focus was on the bonds. the 10 year yield fell to the first time in nine days and that is something in focus. the dollar trading the highest since january cost demand for gold to sag a bit. let's go into the regular session and the big flyers. tech and earnings, which gates whichd up the market -- huge gains propped up the market. everybody is raising forecasts. let's go into the bloomberg one more time, the chip industry has been hurting but take a look at intel with revenue versus stock price. that should help also on friday. ramy: let's get more on the zugets with christopher

joins us from austin texas. let's get a recap of u.s. markets today. the s&p is up 1% or so and biggest jump in a week and a half. this is a relief rally because we are seeing a lot of right in the past several days? it is a relief rally, and naturally when they selloff to medically, we saw some people by the bottom of the trading range, and now we are getting near the top of the trading range we expected to become better sellers. that is our approach and thing that the market is expensive and we want to be better sellers in the rallies and buy dips when they do occur, but only after significant selloffs that we saw a earlier this year. ramy: what is interesting is we are saying to expect a gangbusters quarter for this year, but it seems people aren't satisfied. hop on to the bloomberg terminal

and i will show you the earnings analysis function, the ea function. is has been on the upside for earnings this year with information technology up nearly 11%. materials up 15.6%. what do you make of earnings hitting and yet people saying, meh? what i have learned in the past 30 years of investing is the way the stocks respond to news is every bit as important if not more important than news itself. buy the rumor and sell the news is the old adage and that is definitely what we are seeing right now. expectations were good and earnings are pretty good, but they are not great. google is a great example where earnings were good expenses were high.nd capex was today was a different story but we are to see this choppiness for the rest of the earnings

season. paul: we have been talking a lot about the rising treasury yields weighing on equities. is that the key factor that is going to push equities lower? question, we are focused on treasury yields. as yields go up valuations come down, that is the method the market. but we know is the fed is going to raise the rates two more times, maybe three or in the states. that is going to take the 10 year treasury up closer to that 3.5% by year-end. that is going to become a real competitor for stocks. when that occurs, we are going to need to see better earnings and higher growth in order for stocks to be able to stay flat, then they might otherwise be see earnings turned down, and you could see a stuff that selloff stock prices as weights come up and become that significant

competitor for stock prices and companies. paul: it is a difficult question, but at what point will rates rich and when we see this at what point will the rates reach this point? christopher: the timing is hard but if you map out the fed's comments that they have made and we assume three and a quarter by june and we assume 3.5 by year end, it is logical to see that the fall is going to be tough. how deep is that correction? there have been some on their web talked about 40% correction. it is hard to get near that path without a recession. if we have a recession, all bets are off and 40% is realistic. but a valuation correction where the economy stays good, we expected to be 10% or 20% from

where we are today. which is still painful for people but not as catastrophic as a 2008 or 2009 correction, which only would occur if we saw a recession. paul: christopher, we will leave it there. thanks for a much for your time. still ahead, amazon sets new records beating estimates once more. we will go over the numbers later this hour. ramy: and making history between the two koreas are kim jong-un is due to cross into the south in a little over two hours time. this is bloomberg. ♪

paul: i am paul allen in sydney. ramy: and you are watching "daybreak australia".

the leaders of north and south korea meet in the next couple of hours for the first summit on the divided and in select in 11 years. kim jong-un will become the first north korean leader to enter the south in his country's history. stephen engle is covering this dramatic moment. who happened so quickly, were talking about rocket man and now we are talking about real developments. donald trump for the kim jong-un as being a honorable man. if come a long way in a short amount of time and we have to keep in mind the summit later this morning should not be businesdismissed. this is going to set the mood for those eventual talks between the united states directly with kim jong-un. there's a lot at stake at how the two sides will press each

me.r in the dmz behind this leads to the dem ilitarized zone. used to be a place where the two cooperated. over to my left is the unification match well president moon will drive into the peace village later this morning. 9:30 a.m. is the first step. we know kim jong-un has left towards the dmz zone and you'll make the first step at 9:30 a.m.. pomp andl be circumstance including handshakes and planting of a trade. kim jong-un will meet and review the south korea honor guard, and 10:30 a.m. is when they sit at a table face-to-face and start negotiations. paul: when they do sit down for negotiations, what are the key questions that can be answered

as far as kim's intentions go? this will all be about the optics and the mood. pushar will south korea north korea to commit to denuclearization? in mind that the moon has spent political capital emphasizing piece first as the first color of his three about strategy to engage with the north. this will set the mood. will the north be willing to commit to denuclearization or will they want to have a peace deal first? that could perhaps be a conditional thing that the two sides will have to hammer out today across the table. chief north asia correspondent stephen engle in south korea for what will be a very historic morning. has been to north korea several times and involved in negotiations with the leadership there is the early 1990's.

joining us now from santa fe is former u.s. ambassador to the united nations, bill richardson, also the former governor of new mexico. thank you for your time this morning. yet been involved in negotiations north korea before i might remember all the fanfare around the distraction of the calling tower 10 years ago, and now here we are 10 years later. is there any reason to think this time will be different? i have been involved in this issue for a long time, and it could be worse until the new summit between north and south and thehe olympics, trump summit. i am optimistic for the first time. there is a lot of pageantry and symbolism, but that sets a tone for the real substance that would come with a trump and

north korea meeting. the big issue is going to be how serious is north korea on denuclearization. i don't think they are going to do it. it is going to cost a lot of money and a lot of issues and a lot of time. freeze on have a missile and nuclear activity artillery and conventional there, then easing i think the summit is a success. it is not just the korean peninsula. paul: so denuclearization might be difficult, but white house do think we might see? -- but, peace treaty what else do you think we might see? bill: i think and the trump summit the americans will hopefully be released, the three americans, and there return of some of the remains of american

soldiers in the korean war. hopefully also a stoppage of chemical weapons to syria from north korea. and nuclearissile materials from north korea. but what i think is most important is exactly what denuclearization means. per north koreans it means a andpage, perhaps a freeze moratorium on new development and technology. but there has to be, verification. there was only one facility the north koreans about for inspection in the united states. and they have many nuclear sites hidden. they have to have unfettered access by the international community. a verification and inspectors. that is the key to any kind of agreement. ramy: do you think out of all of

this, we know they still currently have an armistice, you think the realistic thing will be in peace deal? bill: north korea has wanted that. that is going to be one of their big objectives. a formal ending of the korean war. the reason it is important to them is that governs the american south korea military relationship. on the good side, the north koreans have said they expect that american-south korean military relationship to continue. it is a bit of a concession on their part. but i think the north koreans want is to be on the same part of the united states as the leaders agreement on nuclear weapons in asia. they look down a bit on china and south korea and japan. they see the two as the big boys, so there's a lot of

symbolism and ego. you have to watch the north koreans, they are up to something. ramy: let's say we get past today with as little problem as possible, pushing ahead to a --ential chem-trump meeting kim-trump meeting. we had mike pompeo sworn in as secretary of state, so who you think will lead the meeting? hope it is diplomats and not spicy do this. -- i hope it is diplomats and not spies we do this. i hope cocktail relies on -- i hope pompeo relies on diplomats and the president should listen to him instead of tweaking and depending on how he feels a certain morning in making a statements.

so far his statements on north korea have gotten better. but you never know what he is going to do the next morning. ambassador, on that theme so noted kim can be hostile, he has a few things common with president trump. can you expect anything productive to come out of a room those two gentlemen present? bill: the good news is both can make decisions. past negotiations have been from the bottom up, special envoys and ambassadors. this time it is the two leaders who both need success. president wiest this to be a foreign-policy achievement because of his domestic problems -- president trump meets this. kim meets is because he has reached a point with his population that i have my strongest military might, now we have to rebuild our economy which is in tatters.

both sides need success. that is what i think is driving the potential success of this summit. let's wait and see and not get too keen any positive result. i think it will be, but let's be patient and careful. paul: we are out of time, former u.s. ambassador, bill richardson in santa fe, thank you for joining us. you can watch hasn't responded our interactive tv function and diving to any securities or bloomberg functions we talk about. check it out at tv . this is bloomberg. ♪

ramy: welcome back. deutsche bank's plan to cut more than 10% of u.s. jobs as it withdraws from areas it can compete. does the first conquered sign of

how far lenders arbitrating from being an investment bank on a global scale. america accounts for more than 10,000 employees at the 10th of barges global staff. we are told 400 people were dismissed this week. >> there is a basic difference shift in strategy. we are a global investment bank based in europe with global reach. there is this rescaling of our missions, particularly internationally. and a discipline on the focus, make sure activities in the u.s. and to some degree in asia aligned with that european core. paul: fourth-quarter profits fell with provisions overshadowed a rebound in trading is volatility returned. that income split in three months into march and synthesize more than 20 $37 million in legal costs are a legacy

transaction that preceded the purchase of lehman brothers assets in 2008. coming up next, the boj expects to house he unchanged the focus remains on inflation forecasts. we are live in tokyo next. this is bloomberg. ♪ welcome to the xfinity store.

i can tell you about... streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included. whoa, you're good. i'm just getting started. ♪ simple. easy. awesome. come see how you could save $400 or more a year with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today.

paul: it is 8:30 a.m. in sydney and the market opens in 90 minutes time. futures looking positive, up three quarters of 1%. it is 6:30 p.m. in new york and you're watching "daybreak australia". us get the first world news. kim jong-un to set the become the first north korean leader to enter the south since the peninsula was divided nearly seven decades ago. he will make the short walk across the demarcation line and jordan president moon for the first inter-korean summit in 11 years.

the talks will go a long way in disarming if kemp will go on to me president trump -- talks will go a long way in determining if kim will meet with trump. courtney: we are told the lobby by you nations is going to attempt to ease u.s. sanctions with industry warning of chaos of the situation isn't resolved. washington has hinted at easing treasures, but the departure is set to be the price. where to delays in rusal resuming supplies in aluminum. former hsbc trader mark johnson is behind bars in new york, going to prison after he was sentenced to two years for currency rating -- currency ri gging. reject hiswould request to be submitted at a

later date. fraud.mitted for wire couldmedian bill crosby die in prison after being found guilty of assault. the 80-year-old was convicted of driving at attacking a woman into thousand four -- was andicted of drugging attacking. you'll be sent its at a later date. shown thaty has women are worthy of being believed. i thank the jury. global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. ramy: back to back meetings by

two big central banks have markets around the world on their toes. bloomberg global economics and policy editor kathleen hays is outside of japan. but signals are we expecting from the bank of japan later today? what is interesting about this meeting is it has to much to do with what is going on outside of the bank of japan, the building behind me. it is about what is going on around the bank of japan. the president's popularity rating dropping to 29%, what some call crisis levels which resurfaced, and sexual harassment scandals, with some saying the link between i base three arrows, monetary easing, and the bank of japan that by governor kuroda, is so strong that it i've a is we can this

get free up the bank of japan to take some of the steps towards normalization. listen to what a member of the board policyicy -- had to say. goal isnk 2% inflation promised to the government, but if the government is weak and it could modify the 2% inflation goal. fact,en: as a matter of ands a member of parliament possibly some say could someday be the first female prime minister of japan called an interview yesterday, slamming the boj's desperate push for 2% inflation. this is getting politicized in japan, and the bottom line, people are wondering if a new go towardsr will

more easing human if the boj says it wants to stay on track. paul: to shift continents on you, the ecb didn't face political pressures going into its meeting. tricky path towards normalization, but what signals to mario draghi send? didn'tn: mario draghi apparently look at the course of monetary policy. basically it is going into this meeting that signs the euro economy has slowed. we saw the big plunge and german business confidence and resolve production slowing down. here is what mario draghi carefully said about the slowdown in economy in his prepared statements earlier. information since our meeting in early march points towards

moderation. consistent with a solid and broad-based expansion of the euro economy. said that wealso ,re going to be watching data decent watching carefully to see if this is a temporary slowdown or something more permanent. he is hopeful inflation will get closer to its 2% target, but right now that is a distant goal. tokyo, ihleen hays in give for joining us. what does the ecb mean for euro traits? des? adam haigh joins us to discuss. move onw a significant the back of mario draghi's comments overnight, and the euro

is in quite a bit of pressure in the last 10 days or so. some of that is a function of the rebound we had in the dollar that has taken a lot of people by surprise. it is interesting that a week ago, as you can see on your chart on the gtv library, optimism by speculators was at the highs the has been on record. this is cftc data we get every friday out of the states that shows speculative positions on currencies. people are doubling down on their optimistic view of the euro. that marioommentary draghi has given up momentum slowing down is going to be very painful and extension of the pain these euro bulls are feeling. we will see if we continue to get the dollar strengthening and get the latest numbers from the cftc later on on friday from the u.s. we'll see if the position has

been dialed back, but a fair bit of pain for euro traders. ramy: and in asia the focus on the two koreas meeting. what if any reaction might we see on the markets in the back of this? the good thing is where going into the session with a broad risk on tone. tech dominating with amazon and thel giving hope of fragility we saw in the tech sector going away. this korea summit and talks going on friday is key but perhaps more key on the mystic side and south korea is what is happening across the other side of the border in china. backsts continue to come to south korea again, there's been a huge problem in ebbs and flows in the last two months.

you can see in your chart and fee library that tourism has gotten hit. now that is easing back and tension eases, it means people are more happy to travel from china into south korea for their holidays, which is a huge momentum indicator and sentiment back in favor of south korea. we will be monitoring the situation very closely this morning on the border in south korea. i think more broadly speaking we have a good set up from risk sentiment this morning. equities have a good start in asia. see: we will look ahead to how that plays out, especially in the united states and if there are ripple affects coming out of the korean peninsula. you.haigh, thank in the meantime, don't forget to check out the charts on your gtv library. and you can also turn to your bloomberg for more on this and go to tliv to get

commentary and analysis from numbers expert editors. coming up next we are pressures amazon hitting record highs in after hours after profit forecasts the estimates. we will speak to a chief technology officer and why he says amazon is the next ge. this is bloomberg. ♪

ramy: i am ramy inocencio in new york. paul: you are watching "daybreak australia". let's get a check of business flash headlines. profits is operating forecasting profits through next march and will climb to billion dollars. the highest since 2010 when the wii was dominant player within

the introduced a new president. ramy: and baidu grew strongly in new york and expectations, with revenues at 3.9 two $4.2 billion. pr at a dollart 60 and the improvement is due to surging at sales on its new talkingand subscribers to its netflix like operation. microsoft exceeded forecast lifted by a strong corporate demand for cloud computing services. rose $7.4 billion, or $.95 per share. sales rose 16% to $2.7 billion as marc a soft drop demand for its clout products. ramy: intel is offering

better-than-expected second-quarter sales forecast and raising earnings outlook for is the wider computer industry continues to make money. od is in the current peri beating estimates raised on the strong start to this year, intel is also boosting its forecast for 2018 revenue by $2.5 billion. ramy: that's stay intact as amazon it records after profit forecast top analyst estimates on prime growth. our next guest says amazon is the new ge, and here to explain his retail chief technology officer pd singh. pd is it the new ge year? is an amazing company

and we say it is the new ge because if you look at all the different business life they have got to have a diversified portfolio. and they are on top of the industry in every domain they operate and. that means cloud and retail and video streaming, even smartphones. they are doing very well. if you look at what has made them great, it is their leadership principles and .elentless focus on customers it has given them the ability to go and do really well in new businesses, and also grow existing businesses. if you look at future investments and what they are doing, they are using advanced analogy like ai across the board. and use it on amazon.com, also on the supply chain. as they say in some circles,

even before you buy a product, they know you are going to buy it. if you look at what they are doing in physical domains after the whole foods acquisition, they are testing out things like cashierless checkout stores and physical brick and mortar bookstores. and the amazing company incumbents in this space, especially in retail, it will be hard for them to compete with amazon given the lack of analytics and advanced tools that amazon has access to. thought, we have breaking news coming across the bloomberg terminal. we have to trade balance for new zealand for the month of march, and it is a big miss coming $86 million deficit that compares estimates of $275 million. in reversal from february, and

exports starter than expected that imports wait $5 billion worth of imports on that trade balance for new zealand. we see the kiwi dollar racking little -- reacting a little, to reconfirm $86 million deficit for new zealand in the month of march. pd, back to your thoughts on bricks and mortars. that is an area amazon has shown some interest in. will that be a mistake and is that what retailers want? a big your apartment, consumers -- i beg your pardon, consumers. pd: you would be surprised at a percent of we kill cells still happen in brick-and-mortar stores. it is about making that experience -- you would be

surprised that 8% of retail sales still happen in brick-and-mortar stores. tups are all about using that friction for the shoppers as they go into these big and mortar retail stores. has almost 70% of the onlye retail market, but accounts of 30% of the overall retail sales. just to say brick-and-mortar is ead, and notng d dying anytime soon. if you apply technologies like ai, you can realize a lot of efficiencies, even in brick-and-mortar's. what does efficiencies realized can pay for those

technologies. what it reached a traditional retailers to push against amazon or is the battle lost? pd: i don't think the battle is lost. the good thing about artificial intelligence a new technologies is that we use a lot of available an existing researchers brick and mortar retailers have put into place. tap intople we cameras for security and use artificial intelligence specifically on learning on top of the scammers. --re are automated systems specifically learning on top of those cameras. it is all about applying the right techniques and the right manner to be able to realize these efficiencies. it is not a lot of cost for brick-and-mortar stores. ramy: we get it, amazon is

amazing, but i look at our bloomberg news article, and one thing we point that is amazon has been losing money on its international expansion. australia, middle east, care to comment on that? pd: that is an interesting point because the weight retail works in international locations is different than how it works in the u.s.. when you applied for success in the u.s. markets and take that internationally. for example in the middle east, we are working in developing technologies and countries like vietnam and china. over that the scenarios are completely different a gift of -- over their the scenarios are completely different and you have to focus on retail in different markets. singh, chief technology

officer coming from us from seattle. thank you very much. bloomberg users can interact with the charts shown using gtv . browse recent charts on the brick tv and catch up with key analysis and save charts for future reference. this is bloomberg. ♪ ♪

ramy: delicious prime minister says china's growth to superpower status should not put it at odds with the u.s., even though he calls it a cliche to talk about the peaceful rise. in an exclusive interview at the xmas elections, to suppose about his widget up with donald trump. i have a good, warm, personal relationship with president donald trump. i knew him before he became famous. he was famous than, but he is

more famous today. him,ng as you suggest to you could with his priorities, then he will be receptive. by thingsbothered that do not matter to him. >> talk to him about his real and asia -- to talk to him about his view in asia? after decades of providing a security umbrella, is that something you are concerned about, and you feel like it is an opportunity to china to escalate its rise in the region? >> we think the two superpowers have a crucial role to play in asia, because if they play their way, and iroductive benk asia will definitely

the most progressive region in the world. >> you see a point for china will become the biggest power in the region and is that a natural consequence of their economic clout? >> china will be the biggest economy, that is a fact. but china will not be able to match the united states in terms of being that military superpower and such. the u.s. will still be the predominant strongest in that sense. rise, it sounds ominous overtime. the evil china rising. what is your view of china's rise and what kind of power do think it wants to be? >> i think the rise of china is inevitable.

whatever you say, you cannot stop it. it is inevitable. we would like to see china as a force of good for the region. that was malaysian prime minister najib speaking exclusively with bloomberg television. paul: don't miss the malaysian election special later on friday on bloomberg tv at 9:00 p.m. sydney time. that is it for "daybreak australia" this morning but eli manning and ramy inocencio are up next with daybreak asia. yvonne: will caps on the historic summit happening in the korean peninsula and kim jong-un finally -- we see him walk through the demarcation line in the first and a north korean leader steps into south korea.

a south korean program director is joining us in the next few minutes to go through the lead up to this moment. it seems like it is awash with symbolism, and can we get anything substantive when it comes to denuclearization and some form of peace treaty. it will be something to watch. look at will also possible opportunities for buying and maybe even selling on the back of this. at 7:40 a.m. hong kong time, stephen in glass joins us -- ingles joins us. earlier this said it will be positive steps but is weaker in the past week. forget it is's not decision day for the bank of japan. we do not expect change to the policy but it is the first meeting for coronas new deputies -- kuroda's new deputies.

that is it for "daybreak australia" but stay tuned, asia is next. this is bloomberg. ♪

♪ 7:00 a.m. in hong kong. live from bloomberg's asian headquarters. welcome to "daybreak asia." asian-pacific markets set to tech wave. the nasdaq gained more than 2%. amazon sales surged. another $12 billion. shares hit a record in late trade. globalfrom bloomberg's headquarters i am ramy inocencio in new york. it is past 7:00 p.m. set to keepjapan policy unchanged as the stimulus m