♪ haidi: returns from beijing with little to show except an agreement to keep talking. iran warns the u.s. of historic regret if it pulls out of the deal. haidi: i had scratcher for the fed as u.s. wage growth slows despite unemployment falling to 50 year lows. betty: warren buffett taking questions about policy at the first -- after the first lost since 2009. haidi: it is past 8:00 in

sydney. we are two hours away from the open of asia's first major markets. betty: it is after 6:00 p.m. sunday evening in new york. i will look at how the action on wall street will play into the asia-pacific trading day. we saw socks -- stocks surge on friday after that jobs report showing an 18 year low on the jobless rate now below 4%. who would have thought this after the financial crisis? the dow surging 340 points, the s&p higher. look at the nasdaq cowering -- towering ahead. you know, overall throughout last week, it was a doldrums in the market. we ended on a really high note, but that left the markets flat for the week. saw dust haidi: apple was a real

standout. here we are getting back to trading from the last week. it was really disrupted by a number of public holidays around the region. korea notably, public holiday. trading in new zealand underway, seeing the upside of .2%. 20 with the u.s. dollar continuing to pick up pace in the friday section, news headlines from the payroll numbers. futures looking a bit positive. the aussie dollar at 75.39. the headline this week of course for the aussie dollar will be the australian budget being unveiled this week and china trade numbers expected to show a ,ickup in the most recent month and the kiwi trading. goldholding steady -- holding steady. crude is shy of $70. signaling some sort of understanding between iran and saudi arabia, saying they want

to see prices lower than what saudi arabia want a little -- ideal levels. brent at $75 a barrel. us go to haslinda amin. -- let's go to haslinda amin. >> north korea says sanctions are not the reason for removing nuclear weapons. they say they are misleading the public by characterizing those steps as a sign of weakness. they are accusing washington of trying to ramp up tensions ahead of meetings between kim jong-un and donald trump. south korean newspapers say the summit will probably happen in singapore in june. the bank of korea's moved to clarify comments that the bank should raise its benchmark interest rates when it has become possible to do so. hours after a release of a statement saying it was seeking is most general terms, they

reported lee saying the ballots will increase if the bank holds rates while the economy and inflation settle. iran has spoken out against higher oil prices, signaling a split with opec members which is showing a willingness to keep tightening crude markets. iran's deputy minister set a barrel, price to $65 a brent futures surged to 75 bit -- $75. vote counting has begun after .ebanon's policy elections the main battle is between a western and saudi banks current bola.alition and a was -- and hezbollah. [indiscernible] $11 billion pledged at a conference. >> there is hope from the markets that a majority will be

formed to implement the resolution of the paris conference. haslinda: global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda amin. this is bloomberg. ♪ haidi: thank you so much. president trump's top economic advisers have returned home from a two day visit to beijing with little more than a glaring proof of just how far apart the two countries stand when it comes to trade. tom mackenzie joins us now for a debrief of the highly anticipated talks. was anything achieved? tom: very little. away from talks that ended on friday evening. both sides demanding are setting

out lists of demands that are quite eyebrow raising. the u.s. saying he wanted to see china reduce its trade surplus by $200 billion u.s. by 2020, saying they wanted to see china curve its financial support for the made inolicy, china 20 policy, saying it expected china should not retell you for any tariffs the u.s. imposes, and there will be reviews whether the u.s. could check up on the progress of the chinese side, and if they weren't satisfied, impose additional tariffs. on the chinese side you had demands that the u.s. relax its barriers on chinese investments in technology and that it and its ban on the -- that it end its ban on technology from acquiring u.s. technology for seven years which has caused a lot of anger and china and that it lower barriers to chinese access to technology.

all things that seem along way away -- a long way away. given the convalescence from the democrats and republicans in terms of taking a tougher stance on china and from china's perspective, the demands on the made in china policy and the surplus are a long way from where they want things to be. the divide between these two sides quite clearly articulated. we did have this big delegation within it, the likes of navarro and have always taken a pretty strong stance on jenna and aggressive stance on the relationship between china and the u.s. it seems like their views have prayed out test played out slowly. so laid pretty bare. betty: sounds like mountains too big to climb now. where do we go from here? it is pretty unclear. we heard from president trump over the weekend saying he was

determined to rework the trade relationship with china, saying don't be fooled into believing the deficits are a good thing. so he was hinting he would be taking action of course. 22,u.s. set a deadline, may after which they can then impose the first round of $50 billion worth of terrorists, -- worth of overall is $150 billion worth. there is no timeframe around the talks, but one thing is both sides will continue negotiations but won't have any dates or places for those. the chinese state media took a more positive spin on things, saying there was consensus found in some areas, disagreements in others, but as a professor from cornell said, tensions are likely to rise, given the deadlines around these terrorists and the -- these

tariffs. justestingly these are not trade tensions between washington and beijing that we are seeing in the last few days. we are seeing geopolitical tensions great we saw that with the white house condemning china's demands of u.s. airlines around how they reference taiwan and high 1 -- and hong kong. see it revealed that china has been building and setting up missiles in the south china sea, around the violence, and the u.s. reacting angrily. talking about your political tensions now. betty: thank you. tom mackenzie keeping our eye on the reactions which we will get throughout the week to the u.s.-china trade talks. iran said the u.s. would regret the decision to withdraw from the 2015 nuclear agreement. president trump has a week to decide on the future of the deal he has derided as insane.

let's bring in ros krasny. do we know if the president has made up his mind? ros: i don't think the president has made up his mind. he has had a lot to say about the iran deal the last weeks and months, but we know he loves to talk about it. what he willy know do. in the past few weeks we have seen european leaders, seen under the low merkel, emmanuel macron come to washington to try to persuade president trump on the nuclear deal, and in the next couple of days we will have boris johnson, the u.k. foreign secretary moving on the wires. a while ago he wrote about the iran deal. he wrote in the new york times and basically said the wisest course would be to improve the handcuffs on iran rather than break them, and even though it is not perfect, the office -- it offers the fewest disadvantages. we know johnson will meet on

monday with vice president mike pence, then mike pence will have lunch with trump on tuesday. perhaps secretary johnson is persuasive enough, mike pence will take the message to donald trump, and there could be movement. another interesting voice was mac thornberry, a conservative republican. he is the head of the house armed services committee, he said the same thing. he said the best option for the u.s. is to stay in the deal in terms of being able to monitor iran, better to be in them be out. he is somebody that hopefully they will listen to. haidi: what is the latest we know on president trump's planned summit with north korea's kim? do we know any details at all? ros: not really. timeink it will be some after president trump meets with

south korean president moon, and that is in washington on may 22. there have been reports that the north korean summit possibly will not be until a month after that, and it could be in singapore, so there are reports of a meeting in singapore third week of june. that sounds later than what president indicated last week where he said it would be three to four weeks away, so we don't know. we have seen tension between washington and pyongyang this weekend. i am sure you have seen the story. north korea basically saying that the u.s. is misleading the public wireless to come to the table. it wants to let it be known that the u.s. economic sanctions have enforced a band, and there is a lot of sensitivity with north korea about not wanting to seem to have been forced into vstoxx. -- into these talks. could it fall apart before it even happens? that is a case that could

happen. one thing to look for is the possible release of three u.s. hostages in north korea. there has been a lot of talk about that from various members of the administration, saying they hope it can happen and that it will happen soon. if it did, it would be of , definitelyture sensitivity in north korea to have these talks are shaping up. haidi: thank you so much. ros krasny, washington reporter with the latest, thank you. first buffett sees his net loss in nine years as the counting nightmare comes true. we will break down the results and what came out of the annual meeting. betty: that is later, but up next the wells fargo bank ceo discussed the risk and the u.s. economy. this is bloomberg. ♪ his is bloomberg. ♪

♪

haidi: i am haidi lun in sydney. betty: you are watching daybreak australia. the u.s. jobless rate we saw plunging to the lowest level in 18 years, but it has yet to speed up the race of wage increase. our policy editor kathleen hays here with the numbers and some fed reaction to this. there has not been that many times we have seen the unemployment rate go down below 4%. kathleen: that is true, and some officials have predicted we could get but low 3.5 for it -- below 3.5%. why it has made some us news is we are not worried about the economy creating jobs. it is a question of wages. we have nothing this level since 2000. the problem is wages are stuck in a low gear. average hourly earnings were up

to 2.6%, third month in a row year-over-year basis. want to look at this chart. you can follow along, even when your favorite charts in a library. the yellow line is falling. that is unemployment. you have average hourly earnings like 2.6%, that is the turquoise line. the white line is employment cost index. a broader measure that includes benefits and wages, they are both kind of flat. you don't see acceleration. what is interesting is payrolls up less than forecast. of a00 in april, less forecast of about 194,000. so -- at thee, council of economic advisers, they told bloomberg television, the tax cuts are helping. they were done at the right time . let's listen. >> it was time to perfectly because when firms need to

invest in capital to make their own workers more productive because it is getting harder to find people, we gave them a tax cut to stimulate spending. kathleen: not only the white house team -- donald trump has been talking for some time that hispanic women unemployment is falling. it is now down to a new low. african-american unemployment, the lowest level since this series of data was collected in 1973. above the average is for caucasians, white americans, i am moving in the right direction. the question is, does this move the needle for the fed ? we have a torrent of fed speakers on friday and more this week. kathleen: it does. bill dudley, outgoing president from new york, speaking, then hours after him, john williams, president of san francisco who is the incoming to replace bill dudley. they both said the same kind of thing.

the target for inflation is soft, above 2% or below. let's listen to bill dudley from friday. >> i would not declare victory yet. inflation goes up and down month to month, but we have made progress, and i am happy where we are today. kathleen: i sat down for a special edition of "bloomberg best, a live interview with dallas fed president rob kaplan at was at the conference stanford university. he had some interesting things to say. he thinks wages are rising for lower paid workers. that will start showing up in the data. he also said this is pricing power that is the weakest yet seen in his professional career. that is saying something. he is still in the camp of baseline, three hikes total, two more this year. i said one of inflation doesn't pick up? he opened the door to that but not in a hurry to go from three

to four. if you look on bloomberg, the chances of three are stronger than the chances of four. betty: our bloomberg policy editor. i want to get more with the wells fargo regional cio. thank you for joining us. how do you read this jobs report as well? it is interesting we are not seeing that wage pressure. are you in line with kathleen with the fed officials who say it is still three? >> it is a great thing to think about right now, considering there is not a lot of slack in the system. you would anticipate you see wage inflation at this point, maybe taking a step back and looking at the earlier parts of the cycle, considering the second-longest expansion on record. so to this point the wage inflation data we have seen in the earlier half really has materialized, so trajectory is in a positive direction.

so from a standpoint from confidence, there is rising business confidence, and that did not accelerate until late 2016. business confidence as that starts to move in, we see signs of the cycle finally starting to kick in. and those can continue to keep the wage trajectory in line. seems you are right, that to have a late kick in on that point. i want to talk about what is happening with expectations for rate. , thever happens with wages dollar, we have seen this correlation which had been separated between rates and the dollar coming back again. take my chart here which shows you the dollar which has been steadily gaining traction after months and months of weakness, now set to the best from last week, the best since the election of president trump. what do you say? kei: i think if we look at the diversions between central-bank

policy, what we would say is we are in a later stages of our cycle versus the other economies that are earlier. so come to think we are becoming a less accommodative, so one would imagine that we see dollar strengthened, but the reality is if you look over the past decades, the dollar has been in a secular decline. even though the dollar strength has materialized, we anticipate the dollar will weaken approaching the other currencies. -- thei suppose the net question is nothing about the fundamentals have changed in the last two or three weeks. kei: we don't believe so. the economic environment continues to be strong. as mentioned we are in the later stages of the cycle which is being listed by what has been really a nascent capital spending environment. so what we are thinking internally is if the cycle does

not appear now, it never will. starting to build. fundamentals would support a dollar weakening mainly because of the travis of the other economies. relative to the euro and the yen, we do anticipate as we approach here and the dollar will continue to weaken as opposed to strengthen. haidi: when you take a look at the past earnings season, it has been a phenomenal route, phenomenal how many companies have beat, and what have beaten on top of what were high expectations. is this as good as it gets when you take into account any effects of the tax messieurs -- tax measures? kei: we are hearing a lot about that. we don't believe that we are at peak yet. we -- will the earnings trajectory accelerate? absolutely. entering 2019 you don't have the stimulus coming from the tax

reform. we also have expected a demand recovery of the earnings season. many would point to the rough 79% of companies beating estimates on the s&p 500 with 81% of companies having already reported. the bigger surprise than getting a constructive view on fundamentals are the revenue pieces. over the past five years revenue in the s&p 500 average below 60%, but that is at a rate of 77%. so we believe that you are starting to see a little bit of an organic lift and demand -- and demand that can extend the positive fundamentals we see with u.s. corporate. haidi: thank you so much for joining us. wells fargo private cio. for more breaking news, we have teamed up with twitter to launch tictoc by bloomberg. it offers a live video coverage

and hourly updated reports updated by us by bloomberg. tech talk. this is bloomberg. ♪ ♪

♪ betty: a quick check of the latest business flash headlines, a group resenting indian walls were owners is opposing walmart with foot carts. the deal will encourage predatory pricing they say. appealing to the competition commission of india, considering legal action. approvet is going to 75% of the company sold to an led by walmart. haidi: qatar has emerged as a major shareholder in the russian state oil produced in the net. the qatar investment authorities stepped in after consorting between glencore and told they

would not proceed with the original deal. withove links and qatar moscow while it faces isolation from saudi arabia and other gulf countries. this is bloomberg. ♪ ♪

sydney onis 8:30 in monday morning. markets have opened and 90-minutes time. looking at .6% higher. betty: carry on from that rally here in the u.s. it is 6:30 p.m. in new york. let's get to first word news with haslinda amin. haslinda: presidential lawyer rudy giuliani said he is leaning against donald trump, introducing special tells her robert miller in the investigation into possible russian meddling. giuliani said discussion would be a trap and asked for it to be shut down.

he said trump would not have to comply with a subpoena if robert mueller issues one. two days from trading sessions, and this in beijing friday to keep on talking and little else. wasa is the consensus reached on some issues on acknowledging major disagreements on others. wasident trump repeated he that spawned fairness in trade. -- he wants fairness in trade. strikes and excessive celery -- salary demands could sink europe's largest airline. they say the play claims are unjustified. employees must show responsibility. the ceo resigned after failing to read the deathly the agreement with employees. shares dropped after falling for four months. ukip prime minister theresa may

has declared her absolute determination to make a success of leaving the e.u. after she falls under new pressure from conservatives on both sides of the brexit debate. , sheng in the newspaper alleged to lead the single market conservatives. those who can oppose will sign with the labour party in a crucial vote that could come next month. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda amin. this is bloomberg. ♪ haidi: thanks for that. let's get you a quick update on markets, trading in new zealand underway in the early session. seeing positivity. kiwi stocks up .1%. 70.19.i dollar at we saw the upward trajectory resume, up 1.2% for the index last month.

one of its best games of the year, looking closer levels from last year. futures in australia looking positive. 0.63%. that monday open, the aussie dollar at 75.36 ahead of the budget and china trade numbers looking to fly on that. 107.36 for the aussie-kiwi. we did see some moves in the yen, gaining the most in the g10 space, rising for an eighth consecutive day against the dollar and sterling, 135-37. it is a hawkish hold that could provide support for a paper that has been treating 6% lower since mid-april.eak in looking at the u.s. 10 year yield, unchanged, still closer to 3%. a reminder of how u.s. stocks are fluctuating for the session but ultimately finding

positivity in the labor market numbers with the s&p closing higher over 1%. let's get more on what we should be watching us trading gets underway in asia. the fx and race reporter rick carson here. billion hitting the market, how are investors expected to digest that? >> another mega-week for auction. $7 billion more this week compared to this time last quarter, and it comes at a time when yield has reached five -- four-year highs. let's look at this chart on bond yields and auction demand. even with yields rising, demand for paper has not search as much by comparison -- surged as much. seeing with the bond market is heading next, morgan stanley reckons 10-year yields have to reach 3% again in order to attract investors to the options. -- auctions.

haidi: we have been speaking -- betty: you can continue. [laughter] haidi: i was going to answer, we have been looking at the very bearish tensions on investor pay when it comes to the debt markers -- is that of you being held? -- a view being held? billion pension fund in australia being very bearish on bond markets. they have got all of the bond holdings in real returns portfolio. the cio jonathan armitage recommends that will be another selloff in bonds, and investors are expensive. but look at the chart of where -- let's look at the chart of where the 10 year yields are heading next, and a good hit 3.7% by the end of this year, and that is driven by monetary

policies everywhere. buying inflation -- haidi: don't forget to check out our gtv live for some of the charts including the one we just brought up. it is on gtv on the bloomberg terminal. forfirst half earnings australian banks. the housing market is in good shape. but get more now. the asia correspondent, let's say look at the numbers. reporter: they are pretty good. we have had a mixed season of reporting this time. we have had a few misses, big announcement like the national australia decided to get out. no fx is good. no one off, no big surprises him a just above analyst expectations, 6% up. pretty good really. haidi: i suppose the more overwhelming headline is the

stuff out of the royal commission. emily: that might get in the way from that. it is a big drop -- a backdrop that the banks have to report again. brian hartline are said this was a critical time for the industry , and did it knowledge there are headwinds for it now. he did not give much more detail than what we have already heard of the royal commission, other than saying putting things wrong, and noticing they have been reviewing their products, making changes really don't feel they now meet. this time he said he has talked previously about customer expectations. and can change community views. betty: thank you, our asia finance reporter. now back in february, warren buffett called the new accounting rule to report on realized gains or losses a

nightmare. that turned into reality. ramy inocencio explaining that. ramy: the reality is they are seeing theramy: first net loss ever since 2009, almost a decade . the number is $1.14 billion. i want to show you this on our bloomberg tv chart. you can see here what you are looking at, on the right-hand side of the screen, i am wakeling it around -- wiggling it around, the last time was 2009. you wondered what happened here, this big thing. that was thanks to the overhaul, that was a distortion. now we see this distortion as warren buffett put it, severely distorting net income figures, leading commentators as investors said back in february. we are talking about how he is he is likeof omaha, the wizard of oz. the wizard of omaha because he

is basically saying pay no attention to the accounting changes behind the curtain. he is saying go ahead and look at the up rating profit. i will show you this year. go look at the bloomberg terminal. what we saw, we see this huge gain in terms of the first quarter 2018. this is 49% from the quarter billion.ear to $5.3 mr. buffett is saying these operating results are a better barometer of company performance. it will be interesting to see what investors hang their hats on when berkshire hathaway shares start trading on monday, but there are some pluses and the businessrms of breakdown. when it comes to the railroad, utilities and energy business, there was a 31% profit jumped there. bnsf, a railroad is this, saw its railroads prices rise.

16% jump inaw a revenue, and there is good news in terms of the holdings berkshire hathaway has. berkshire said they bought more apple shares, raising their stake to nearly $41 billion. that is from under $30 billion in the first quarter, and for kraft heinz, there was a negative. fair value dropping by $5 billion because their shares fell 25% in the first quarter. depending on what investors are looking at, if they want to look at the net income or the operating profit, it will depend on where they will see those shares on monday. haidi: after those earnings on saturday, warren buffett and his vice chair held their traditional hours long atm. they looked across a pretty broad canvas of topics, including politics. ramy: with six hours you can get

through a lot. they talked about trade tensions between the u.s. and china they even got swipes in with elon musk and charles -- and tesla. the talked about gender gap, .uns and succession for the asia-pacific audiences, they are interested in the trade tensions that have to do with the u.s. and china, and basically mr. buffett is optimistic that they will get through this. he is quite positive that this really is all just talk as well as very little action. in terms of cryptocurrencies, that was interesting because they probably reserved some of their biggest and harshest words, he and charles munger. mr. monger said it draws in a lot of charlatans, and it draws in people who have less than stellar character. but he also said it is not just

discussing -- i don't know if i can say this, it is someone else's trading turds. that is pretty far destroyed. politics,talked about and how bank of america and dick's sporting goods are saying we will not get involved in terms of the gun litmus test. warren buffett said we will not wait into this, and he got applause for that for investors that don't want politics to get into this. i will send it back to you. succession, people saying, are you retired, he said i have been semiretired for decades. he trusts his deputy he has already chosen, and he pointed out while his two deputies control $25 billion, he controls $300 billion, so the power is in the buffett. haidi: not your usual definition of semiretired. thank you so much for that.

you can get a roundup of the berkshire earnings, that conference call, a roundup of that and the top stories in today's edition of daybreak. do -- bloomberg subscribers can go to dayb . schulz weighing in on tape -- trade talks with china and donald trump. hear what he has to say. this is bloomberg. ♪ this is bloomberg. ♪

♪ haidi: i am haidi lun in sydney. betty: i am betty liu. you are watching daybreak australia. u.s. officials left beijing empty-handed after two days of trade talks. kathleen hays spoke to the former u.s. secretary of state george shultz who said the u.s. needs to be more engaged with the world's number two economy.

he is the author of a book. >> we want to make sure we have fair trading relationships with other countries. there is no doubt china does some things we ought to persuade them not to do. but if you are worried about the trade deficit as the president seems to, we are not going to get there by dumping around with the arrangements for each country. in order to trades -- change the trade deficit, change the expenditures, and the culprit is the huge deficit in the federal budget. if you have a balanced budget, you would not have a trade deficit. reporter: what about exchange rates, because the chinese are living there -- letting their exchange rates move more freely. george: those are two sides of the same coin. they will affect particular things, but the point i was making earlier is whatever you do on that kind of thing, that could change the overall balance of trade.

you have to do that by having the united states assume only the amount it produces. because it is very particular. if you consume what you produce, you got to get it from somewhere. kathleen: what about intellectual property rights? even the european union and japan have joined in on the complaint at the world trading organization. they feel the chinese are not playing according to the rules? george: that is an issue, and is worth working on. it will not trade our -- change our trade deficit, but it is important to have a strong working relationship with the chinese. kathleen: there seems to be a concern the u.s. is pulling back. donald trump is getting very much involved with negotiations in north korea, but more broadly i think starting when he said we are pulling out of the tpp, and

this has been a concern of many nations like japan. george: i think he realizes that was a mistake, and i see he wants to get back into the tpp. not so easy at this point, but i think probably that will happen. that is a good thing. kathleen: is this a trend, pulling back from asia, you have seen a whale -- a while? george: there has been a lot of rhetoric like that, but we seem to be preoccupied with china, japan, north korea. we are engaged heavily, and we should be. kathleen discussed north korea with judge schulz after pyongyang -- george schultz after pyongyang said it would accept inspections of its nuclear facilities. establishing a verification system is absolutely essential, he said. george: this is better than we were a couple of months ago when

we were talking about throwing nuclear weapons around. that would be devastating. but there seems to be a different attitude. we will have to see. you go and test and see the administration has been right to say we will keep our sanctions in place until something happens, not that they agree to something, that they do something. the three american hostages, i think it is getting around to saying let them be free before the meeting takes place. kathleen: you talked about closer ties with the soviets when you are giving advice to pray to -- to president reagan. do you see anything now similar? george: it is a rather different situation. small, pooris a country. and it has some awesome power. we are trying to deal with that. we also have a situation on the

korean peninsula where the. people have been divided for all these years, and they don't like it. i think they would rather be one. we are trying to help that. kathleen: do you believe kim jong-un's statement that he is willing to denuclearize completely, and can you trust the north korea-china border might not be a source of treaty violation as this moves ahead? george: as you move into any negotiations on nuclear matters, you have to have in mind that you have to have an agreement that people will carry out, and you have to have total verification procedures, so you know what is happening. trust but verify. if you are willing to verify, maybe i can trust you a little bit, but in the case of our first treaty with the soviet on-sitee had

inspection. you look with your eyes and see something being destroyed. that is what you need. kathleen: we have to insist we get that. george: absolutely. ,etty: that was george schultz former secretary of state and editor of the book beyond disruption, technologies challenge to governing. we can see the past interviews like that one on our interactive tv function, tv . you can find securities and functions we talk about, and you can become part of the conversation by sending us instant messages. this is for subscribers only, so check it out. this is bloomberg. ♪ ♪

♪ morning.od i am betty liu in new york. haidi: i am haidi lun in sydney. you are watching daybreak australia. a quick check of business flash headlines, alibaba shares jumped up after the acceleration of sales as it unleashed spending

in cloud computing supermarkets. it expected revenues to surge 60% in march. transport business startups. alibaba is seeing sales rise 50% ahead of the 22% projected by analysts. betty: we may see nestle's first tie up with a major copy rival. it is close to a business that sells beans in supermarkets. a deal will be announced monday. nestle recently added a niche brand, food bottle coffee and chameleon cold brew to its portfolio. first cash profit of $3.2 billion and will they an interim dividend of 94 cents per share. cash term equity 14% with net interest margin of 2.17%. asked really is banks have been under pressure, and the royal

commission examines claims of conduct. betty: disney's latest avengers movie is the fastest movie ever to notch $1 billion in global ticket sales. they turned around the year's box office even before opening in china. it topped sales for the second weekend in a row, generating $112 million. it has a clear run. the release of dead pool to his out later this month. haidi: that is a must it for daybreak australia, but yvonne and betty are not -- her up next. rishaad: we got through a heavy week of data as well as u.s.-china trade talks. where is that for asian equity? the head of asian equities joining us in a couple of minutes time, he is saying, trade tensions are simmering, using a bit. he said investors should not

overreact when it comes to trade war possibilities. also the jobs data, seems we saw softer wage growth, softer job stompers as well but not enough seems to shake the fed, so we will see where things go from here when it comes to stocks. betty: what does that mean for the bond markets? jamison bond director is going to be joining us with his take. it was interesting to see that .obs report, 3.9% jobless rate but the economy might be heating up, but wages aren't. where does that leave his positioning on bonds, and what about the correlation we are seeing side-by-side between the u.s. dollar and treasury rates? how is that affecting his outlook as well in the fixed income market? anticipating his interview coming up. haidi: and we will be talking about blockchain and social media. we will be joined by the siemens

ceo. it is a blogging and social network website that uses steam. it distributes and awards cryptocurrencies. you can upload videos about all sorts of things and even leaving quality comments i believe. betty: it is very interestingbetty:. we got the ceo and scott joining us. scott. it is a new form of facebook where you get paid to post for things. you get cryptocurrency dollars, but a lot about quality of that, also how sustainable is this is this model given the fact they are paying millions of dollars for people to post on this site. seen, no onehave seems to be short of breath when it comes to wanting to talk about the crypto markets or blockchain. miltonlly given that

debate panel. that was heated. haidi: yeah, and privacy always the issue. plenty more to come on daybreak asia next. this is bloomberg. ♪ i erg. ♪

a.m. in hong kong. welcome to "daybreak: asia." politics making headlines. returning from beijing with little to show. u.s. aboutthe historic regret if it decides to pull out of the 2015 nuclear deal. betty: i'm betty liu. a heads scratcher for the fed. unemployment falling to 18 year lows. policy and succession at berkir