reimpose sanctions but it still stands. australia's governor stakes its future on a budget aimed at winning back votes. betty: black panther helped disney with the earnings week as

by geithner is confident he thought -- bob iger is confident a deal will go ahead. haidi: it is just past 8 a.m. this is daybreak australia. betty: it is just after 6 p.m. in new york. we will be looking at how all the action on wall street will play into the asia-pacific trading day. it was really all eyes on president trump today and what he was going to do with the iran nuclear deal. we saw oil prices up and down, up and down as there is speculation it was not going to fully collapsed and it was going to. in the end, we know the answer that he is pulling out of the deal. just to remind you of how stocks ended the trading session which was really quite volatile. we ended up pretty much mixed right now. the dow just ending flat as well as the s&p. i would say take a look at all the three indexes. pretty flat. a lack of direction.

oil prices will drive the theme today. haidi: lots of questions over what this means for pricing, energy supplies as well. back-and-forth tension in the market. take a look at how we are setting up in asia. all these oil vulnerable economies in this part of the world will be liking -- watching the likes of india, perhaps coming under pressure when it comes to the oil price. new zealand, the kiwi dollar under pressure. we are getting another voice being added to the mix of shorting the kiwi. joining the last of westpac in that trade. futures in australia up about 1/10 of 1%, moderately higher. the aussie dollar after the retail sales numbers, reaction. seeing some losses after the budget details, hitting an 11 month low. elsewhere, up when it comes to gold as these geopolitical

tensions to sneak back into the fray. new york crude holding at $70 a barrel. the volatility on the iran new. brent crude going a little lower. let's get the first word news with jessica summers. jessica: president trump has opened by phone to chinese counterparts. that is after xi jinping's talks with kim jong-un. it is the second talks between the leaders in less than two months. kim made a surprise visit to beijing in late march. are improvings rapidly as north korea seeks talks over its nuclear program. china and the u.s. have clashes at the wto. claims to's envoy become a defender of free trade has entered the realm of alice in wonderland. china lashed out against president trump's tariffs and

$150 billion of chinese imports. wto's spokesman said the geneva meeting was its ordinary in its intensity. fed chair jay powell says financial markets have gotten the message on gradual interest rate increases and should not be surprised right in section. he told imf reserves that tightening has proceeded without -- he warns some investors may not be well-positioned for rate hikes. >> i don't dismiss the perspective risks emanating from global policy normalization. some investors and institutions may not be well positioned for a rise in interest rates, even one that markets broadly anticipate. future economic conditions may surprise us as they often do. jessica: australia is forecast to surpass the budget surplus in fiscal 2020. economists say that relies on optimistic wages growth. the treasurer's budget for the

coming year offers tax cuts to low and middle income earners, financial perks for retirees, and modest giveaways for help and finance. the average worker's pay growth by $10 a week. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. haidi: one-sided and horrible -- that is how president trump described the iran nuclear deal as he announced his decision to reimpose usa since on tehran. president trump: in just a short period of time, the world's leading state sponsor of terror will be on the cusp of acquiring the world's most dangerous weapon. todayore, i'm announcing that the united states will

withdraw from the iran nuclear deal. haidi: let's bring in our bloomberg congress editor in washington. what did the president say was his reasoning for ending the accord? >> he called the agreement defective at its core because it does not address iran's development of ballistic missiles, nor its influence and meddling in regional conflicts in the middle east. he had said that the agreement is totally one-sided and that he wants to use the punishing sanctions that the u.s. will now reimpose as a way to bring iran back to the negotiating table so u.s. can get, what he said, would be a better deal on its terms. betty: what is the response so far from u.s. can this from cond the republican party? joe: it is largely expected -- it fell along party lines with

democrats almost universally, decrying the withdrawal from the agreement as impulsive and potentially dangerous. most, but certainly not all republicans back the president. they had complained about the accord when it was first negotiated by the obama administration. there were a few notable exceptions like the chairman of the house armed services committee who said he did not want to see the u.s. pull completely out of it. the thing is that congress is on the sidelines of this, as they were when the agreement was first brought about under obama. they really have not much of a recourse, even if there were widespread objections. did the president say about north korea? joe: the president said that secretary of state mike pompeo was on his way, and probably by now should have arrived at pyongyang for his second visit with kim jong-un to clear the

way and do some set up for what is going to be a summit between president trump and the north korean leader. there was also some hint that pompeo would be seeking to negotiate the release of some americans being held there. trump said the time and place for this summit had been set, but did not reveal the where and when that would take place. he continued to be very optimistic about the possibilities of getting a deal that would result in the denuclearization of the korean peninsula, but did not give a lot of other details about what the next steps will be or exactly when it would take place. betty: we believe that there. certainly watching out for that meeting between the u.s. and north korea. joe, our bloomberg congress editor, on both of those topics. let's stay on the iranian nuclear deal. the u.s. withdrawal, meaning sanctions are coming back.

the white house saying only they will target iran's energy, petrochemical and financial sectors with 90 and 180 day windows for companies to exit existing commitments. i want to bring in the managing director and senior political analyst at kappa alpha partners. when we hear the president say the highest level of sections reinstated against iran, what the you think he's aptly me? james: trump is trying to up the ante. he is putting all of iran's bad behavior on the table and he is saying he is willing to break the economy, break the regime unless their behavior improves. he is talking about a new deal that covers his new concerns. they are incredibly greater in scope than the obama administration's focus on nukes. betty: there is guidance from the treasury department to note what the sanctions will be. what are the details that will be critical?/

james: the treasury department without guidance on how to comply with section. sanctions require licenses from the treasury department. in particular, debt, u.s. currencies, those come first. you have to have a plan to get out of those in 90 days. then, dealing with oil or financial transactions dealing with oil or other commercial transactions with iran generally, that is under a 180 day countdown clock. the treasury department says it will work with you to get out of deals, ideally within this 90 to 180-day window but everything that is not inked yet is frozen. do not do it. the effectiveness of this announcement is to really free the prospect of any new investment coming into iran at a time when the economy is nearing a crisis because its currency has collapsed. you theid it surprise level of certainty and firmness

in this decision because we have come to know president trump to talk big when it comes to bama-era accords or agreement believe some degree of flex ability. that is not really here in this situation. james: trump has always stuck to his promises and that he will do ultimately what he says he is going to do, whether it is renegotiate nafta. he has not pulled out of nafta. there are lots of reasons for that, but he has been very aggressive in using tariffs. that, but he has been very aggressive in using tariffs. somethinghe stuck with this clil allies on domestic issues here. i think the trump stance that i will really walk away here unless we have a totally new deal covering all of iran's malign activities, that is a very powerful bargaining tool. the deal is not over yet. we are reaching a new stage of negotiations for the next couple of weeks or months. he's got an appearance of a

final decision and quite a lot of strategic ambiguity as he is waiting for the u.s. allies in europe and congress to come back, as he is waiting for the emboldened u.s. allies in the middle east to also put pressure on iran. it is a high-stakes gamble. he is walking away from this deal and wondering what the outcome will be from weeks to months. the outcome could be something that is much more restrictive deal on iran. in effect, he is saying you want to be a normal company? shut people thought he would not do. off hamas. shut down the war in yemen. behave like anyone else. fray: how much does this the u.s. relationship with each additional allies? james: it potentially does. it is a huge irritant. if you see the french president macron, angela merkel, came to washington. boris johnson appealed to trump

not to do it. the three allies put out a statement saying that we regret this move, but i think at this point for the immediate future, it is a very guarded posture. they are taking a wait-and-see prospect. timeclock doesay obviously impact commerce immediately, but it still leaves some wiggle room and some ambiguity. the french in particular have been working with the u.s. to come up with a new aggressive sanctions on missiles. tougher sections on the ballistic missile program may be something they offer, something that they used to keep the talks in play, with the result that this period of uncertainty continues. trump could certainly walk back his threat to invoke sanctions after 90 to 180 days. he has discretion. he can change that timetable. he is encouraging people to come to him, and so far, they are looking at the deal. betty: just before we go, i want

to get your opinion on president trump, he was so though severus about how the -- vociferous about how the iran deal is defective at its core. we're the israeli prime minister talk about how this deal did not reduce iran's aggressiveness. it only dramatically increased it. do you agree with that? james: i think objectively, that is the case. the idea was if we let iran conduct a peaceful nuclear program, they would feel heart of a peaceful community of nations. the obama administration hoped that iran could be a regional leader using whatever hegemony it possesses to calm the region, to stabilize it is that of actively destabilizing it. that is the answer. the iranians have been emboldened by this. i think that is something that trump is taking into consideration. this: do you think part of

is setting the tone going into this north korea-u.s. summit? james: i think this appeals to trump on many levels. certainly, the maximum uncertainty over the outcome with iran being in a very tight spot does put pressure on north korea in a way that north korea would not be under pressure if trump quickly cut a path for the iranians. look at the other reason that merkel and macron came to washington, which was to talk about this ancient 252 sanctions on steel and aluminum, and the prospect of global trade negotiations with europe, asia, the chinese. that is also in play. i think that the longer you have uncertainty and doubt over iran, over north korea, over trade policy, it gives trump a lot of levers in all this regard. it means the europeans will consider a calculus of what is in their interest, trading with

iran, but also their interest with regard with trade with the u.s. and how they would like to work with the u.s. to achieve a better trading relationship with china. it is a complex multidimensional puzzle. the more dimensions and a more angles and the more uncertainty, the more leverage trump has. haidi: james, thanks very much for joining us. appreciate your time. james lucier with us talking about the revocations of what comes next after the u.s. to withdrawal of the iran nuclear accord. we will hear from australia's prim finance minister. we're talking the winners and the losers of the budget. betty: that is later in the show, but next, all the action in the markets after president trump's announcement on iran brings geopolitical tension back front and center. this is bloomberg.

♪ s bloomberg. ♪

haidi: i'm haidi lun in sydney. betty: i'm betty liu in new york. let's get back to the u.s. market.with president trump 's iran decision, it triggered many volatility on stocks. su keenan here. sue: stocks did sink lower after the decision. oil on a wild ride. the dollar moves higher.we are continuing to see dollar strength. treasury in focus as jamie dimon talks about yields at 3%, get ready for 4%. as you can see,dollar strength. gold higher. oil closed just before $70 but will move higher. we will move into the bloomberg. average geopolitical risk has been higher in 2018. that would be slightly an understatement because we started out here and we are at a

whole new normal with this whole iran talks. a lot of the various european allies had lobbied trump to stay in the deal. iran especially said the u.s. was making a big mistake. there was a view this would actually worsen things. however, donald trump is convinced otherwise. haidi: let's talk more about jamie dimon morning on 4% yield and where oil goes from here. su: let's talk about the talk from yield from jamie dimon. it really did have a ripple effect on the market. citigroup, up 3%. lower.es like pg&e down let's go to the bloomberg. treasury volatilities tumbled as yields climbed. weon was really warning could go to 4%, something to consider. volatility is approaching record lows as the yields climbed higher. that is something the market

should focus on. let's go into the oilhaidi: cha. the countdown to the decision as oil spikes to $70 as we look at the year-to-date chart. if you look at the intraday, the two-day chart, you can see the huge gyration in the intraday leading up to the decision. one news organization reported, he will pull out as expected. another news organization pointed out there could be a delay in imposing sanctions. there were concerned if the trust of oil -- price of oil would move lower than higher. we can see the bullish bid is there for oil, around $70. forecast forng a brent oil above $80 as we head into the summer. that is the latest. betty: su keenan on the markets. next, australia's treasurer weighing in on the latest budget reveals yesterday. trying to balance the books a year ahead of schedule.

we will hear from scott morrison next. this is bloomberg.

betty: good morning, i am betty lou in new york. haidi: i'm haidi lun in sydney. australia's government has driven a budget that can boost rates with elections due within a year. the deficits of 2018 and 2019 forecasted under 15 billion australian dollars. immediate tax relief with income earners will amount to a seven dollar a week tax cut which drew criticism from the opposition. the government promises to crackdown on tax avoidance by multinationals. betty: we spoke to the treasurer scott morrison who says the pathway to ongoing circles is that surpluses is -- ongoing

surpluses is possible. >> the strong growth we will continue to see -- unemployment in australia and other countries. it is the natural rate. there is for the room for the market to expand and grow and that is what is boosting revenues over the medium term. the initial commodity price that we will see, we have had a much more cautious forecasting. that will go straight to the bottom line. upliftger term revenue is the sheer fact of the growing and strengthening economy. >> last year, there have been heroic assumptions about wages growth. 2% growth in 2018. 2019, rising to 3.25%. we are not seeing anything like those numbers. why are you so optimistic? scott: the reserve bank of australia -- right across the board. we have consistently forecast conservatism and that is why at

each and every budget update, we are presenting better than expected outcomes. has happened again in the presentation of this budget and we will continue to be cautious. i would not share that view, that outlook because i am optimistic. we revised slightly down from the disaster -- the december statements. paul: you talk about the global financial crisis and the mining boom has ripped billions of dollars out of the us drilling economy. here we have tax cuts and no planning for future shocks. is the economy planning for future shocks like a u.s. and china trade war? mr. morrison: we are putting the budget back into a positive balance and reducing the debt. on top of that, we have the strongest financial system are really in the world when it comes to the banking and financial system. financial stability and strength. whether it is the financing or banking system which weathered the global crisis, or the fact the gross level pace at less than 30% and plenty of countries

that love to swap places with australia on those metrics. the way we stand globally, i think we are the envy of many developed countries around the world. paul: tax cuts of about $10 a week for low and middle income earners. you say that can be responsibly afforded. an election coming up in 12 months, will that be enough to win over voters? mr. morrison: what voters do is a matter for them to decide. we have stepped away plan over the last five years since we were first elected. we reduced the level of welfare to its lowest level in 25 years. we are turning the corner of has happened again in the presentation ofdebt. we haven't able to bring the budget back to wait modest balance, one year early. that is a strong record of achievement but there is more to do. betty: that was australian treasurer scott morrison talking to paul allen. haidi: we are just getting some lines crossing the bloomberg. world bank of australia, the

largest lender in the country, reporting an uptick on home loan. paid assets rose to $6.6 billion in order to cash profit at $2.35 billion. mom you called?

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♪ sydneyit is 8:30 a.m. in where markets open in 90 minutes time. we do wake up with trading in the asia-pacific, a pretty volatile session as markets digest implications of president trump's is the work withdrawal of the iran nuclear deal. betty: it is 6:30 p.m. in new york. you are watching daybreak australia. let's get the first word news with jessica summers. jessica: france, germany and the u.k. say they regret president trump's decision to withdraw the u.s. from the 2015 accord to curb iran's nuclear program. the u.s. will reinstate

sanctions to the republic which will open an uncertain chapter in the middle east. trump called the deal a horrible and one-sided. president trump: at the point when the united states had maximum leverage, this disastrous deal gave this regime -- and it is a regime of great terror. many billions of dollars, some of it in actual cash, a great embarrassment to me as a citizen and to all citizens of the united states. i order the iranian organization to be ready for action if needed, so that we can begin our industrial enrichment without any limitations. until implementation, we will hold talks with our friends and allies, and other signatories of the nuclear deal. remainho arwill

lawyer will talk. jessica: the malaysian prime minister is seeking a solid victory to move across a corruption scandal surrounding the state investment fund. he's denied wrongdoing and was cleared by his own attorney general. the scandal triggered the political comeback. the 92-year-old former leader who leads a fraction coalition. argentina has asked the imf for financing to help with a five-month rally that is triggered a surge in interest rates and threatens to derail the economic recovery. in a televised address, the loan would help avoid a crisis like the one argentina has faced for. he did not say how much money was sought but a source puts the figure at $30 billion. congo's government has declared an ebola outbreak in the rural

northwest. that is where two cases of the deadly virus have been confirmed. a team of experts will head to the region on wednesday to stop the spreading. the team will investigate the origins of the operate. without preventative measures, the virus can spread quickly and it is also fatal in up to 90% of cases. says the stateor needs federal help to deal with the eruption of the volcano that has destroyed homes and prompted evacuations. he's called the white house and federal emergency management agency. he spoke while meeting evacuees on hawaii's big island. lava has destroyed more than two dozen residences. global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. haidi: let's get a quick update on your markets as trading

becomes underway in asia. new zealand, we are seeing trading in the early hours. this is what we are watching. pretty much flat when it comes to kiwi stocks. those chorus of voices going short on the kiwi getting ever louder as the yields of the premiums over the aussie. the aussie dollar at 74.72. broadly, a third day of gains for the u.s. dollar, hitting another high for the year. the japanese dollar-yen holding. sterling falling to its weakest in four months ahead of the bank of england policy rate decision. the u.s. 10 year yield inching higher, almost up 3%. jamie dimon says 4% is a possibility. actually beyond 4% for the 10 year. we did have a topsy-turvy

session as markets react to the iran nuclear deal decision. the u.s. withdrawing from that, setting up volatility going into asia. let's get more on what to be watching with david stringer. we will start with president trump's announcement on iran and how that will be playing out not just for oil but for will commodities. david: good morning. a lot of eyes will be on the oil market this morning. what we saw overnight was wti crude that rebounded from earlier and the announcement was confirmed by president trump. it did close tuesday slightly lower, but held above $70 a barrel. that is after he climbed above that level on monday for the first time since 2014. what we are seeing in the broader context is russia, opec both cutting production. iran, opec's third-largest producer. 2 million barrels a day in asia

and europe. any loss to those cargo, we will see that squeeze on supply exacerbated. people will be looking at crude prices in early trading this morning. elsewhere in commodities, we did not see any -- gold with little change. that probably reflects the fact it was widely anticipated. we did see some of the base metals decline. metal traders will need to wrestle with yet another set of sentience. they are already chewing over the measures that president trump imposed last month. measures that really have caused chaos across alumina markets -- aluminum markets. betty: turning to emerging markets in asia, some investors are being told to add risk to their portfolio? david: that is right. we are seeing those dollar gains this year. some investors have the

opportunity to buy and not sell riskier assets in asia. pine ridge investments, they are on the hunt for assets and looking at things like indonesian and malaysia in bonds. there is more appetite for risk than others in the market. betty: thank you so much, david stringer. don't forget to check out our gtb library on some of the charts you just saw in this program. it is on gtv on the bloomberg terminal. in extendedher trade after beating wall street estimates. its blockbuster black panther and the marks offset a decline in the television business. i want to bring it chris palmeri. any big surprises in the earnings today? chris: the film studio was a big surprise. we knew black panther was a global hit, $1.5 billion, but we

did not know how quite they. that was the 29% jump in studio profits this quarter. that is coming off a pretty strong quarter a year ago. the theme parks continuing to deliver in even what is considered an off quarter time of year here. the ongoing struggles of tv. mentioned, the stock will be moving on these numbers. on the after hours, it turned lower. what is the market reaction so far? chris: i would say it is fairly tepid. it was a strong beat, but the underlying issues for disney continue. they are seeing subscriber losses in theit was a strongrise investment in the new technology. sportsunched espn streaming service last month and they say the cost associated with that will be higher than the anticipated. haidi: what did he have to say

about comcast with the intent with the bid for fox? chris: that is the news desk contest potentially making a run not for sky, but potentially all of the assets that disney wants to buy. iger said he was not convinced this would really be an auction, but he remained committed to doing a deal. he said he really likes the sky assets, customer service and technology. he reiterated the fox studio and the other tv assets for a big part of their strategy for the future. thank you so much for that, chris palmeri. china and the u.s. have clashed at the wto. says beijingenvoy claims to be a defender of free trade and entered the realm of alice in wonderland where white is black and up is down. china also lashed out against president trump's threats to

slap tariffs on $150 billion of chinese imports. the wto spokesman said the geneva meeting was extraordinary in its intensity. it seems that animosity from the u.s. trade delegation beijing has not gone away. we spoke exclusively to a former pboc advisor who says president trump's trade team was over -- overly aggressive and making it difficult for the two sides to make a deal. >> i think right now, it is very far apart. very far apart because of two reasons. number one, the list of demands, side isst from the u.s. not only long, but also very aggressive. > side is not only long,> $200 billion thr the chinese to reduce the trade surplus they have. feasible.doable,

china can do it, in my view. my minority view in this regard. i believe china can do it. stephen: how? give me the but first. get fromwhat china can the other side -- i look very carefully at the art of the deal. literally. read very read very carefully. i bought 50 copies of the chinese version of "art of the deal." i send it to all friends, especially friends who have high influence on policies. to see how to see how trump is thinking? li: i truly respect president trump. this wonderful leader, wonderful businessperson. we have to understand his mentality. i think, can do it. but, the issue is it is a negotiation. but the u.s. side can give to china.

give me this, give me this. this is not a way of negotiation. as it is, president trump is sending out a team of barking dogs -- sorry. -- stevebarking dogs mnuchin and wilbur ross. li: i apologize for my language. i full respect for my american colleagues and friends. they are perceived to be overly aggressive, unnecessarily aggressive by the chinese general public. this makes deal i reaching unnecessarily difficult. i am still optimistic. i think by the end of this year, i'm saying relatively conservative terms, both sides will be able to reach a deal. the two sides will reach a deal. stephen: a face-saving deal? li: not face-saving, substantial deal. the two countries are too

important to the whole world and to each other to be going on like this. was a former pboc advisor speaking to stephen engle in beijing. coming up next, we will speak to the australian finance minister about tax cuts. this is bloomberg. ♪

betty: good morning, i am betty liu in new york. haidi: i'm haidi lun in sydney. budgetia's laid out its with a deficit forecast of $10.8 billion. the government is willing voters with the promise of tax cuts and a path to its first surplus since the global financial crisis. here is what the australian treasurer scott morrison had to say. room forson: there is

our labor market to expand and grow in that is what is boosting revenue over the shorter term. priceitial commodity improvements we have seen, we have had cautious forecasting. upliftger-term revenue is the sheer fact of the growing in strength and economy. haidi: paul allen is standing by for us. paul? paul: a very warm and sunny here. budget the svevnthenth and this is the warmest received i have remembered. the budgeted forecast for 2019. the return to surplus a year later of $2.2 billion in tax cuts coming as well. mediumr year for low and income earners at the maximum level. as with every budget, there are assumptions involved, particularly in this case about

gdp projections and wages growth. earlier, we were speaking to the opposition finance person. here is what he had to say. 2019,have seen surplus in is it based on optimistic of substance about -- assumptions on wages, based on parliament. on what may or may not be a temporary spark in revenue coming from very positive global conditions. the first surplus is based exclusively on one change which is bringing the tobacco tax collection forward a year. the budget is built on very shaky foundation. paul: i'm joined with one of the people who well at all the answers to the questions, the finance minister, mattias korman joining us. thank you for joining us today. let's start with those wage growth assumptions. i believe we have an assumption

of 2% growth for 2018-19, rising to 3.25%. where are you getting those numbers from? they sound very optimistic. mr. cormann: it is realistic assumptions. our forecast are based on assumptions -- the bank of australia in line with the international institutions. i will just say about your observation of the opposition spokesperson comment, labor over the last few years has consistently said we are making overly optimistic assumptions. yet, again and again, we have outperformed. the performance of the budget has been better than what we forecast. paul: it is not just the labor opposition spokesperson making criticisms you would expect. amp shane oliver point out the wages growth section. optimistic gdp numbers. the revenue boost may not be sustainable. are these numbers sustainable going forward?

mr. cormann: we honestly believe we are. our growth forecast is more conservative than bank of australia or international monetary fund. they are hardly overly optimistic organizations. we have made realistic a substance. the track record is there for us to see. the 2016-2017 budget, a $4 billion improvement to the bottom line compared to what was projected. if you look at the outcome of the situation, significant wasovement compared to what forecast last year. the deficit, $90.2 billion, is the best bottom line in australia since 2007. we are projected to get back in surplus onward. paul: the revenue boost also giving the option or the opportunity to offer some responsible tax cuts. $530 per year. that is just part of the plan.

there is an idea down the track to get rid of one tax cut entirely. is this the first step towards a flat tax rate in australia? mr. cormann: this is a seven-year plan to provide income tax relief for low-end at oakland income earners -- low to middle income earners. it is responsible. the reason to do it is we want to achieve stronger economic growth in australia on the back of our economic reforms. we have been able to get spending growth under control. government debt under control. government debt is inspected to peak this financial year. we are projected to pay off 230 billion plus over the next decade, going down to 3.8% of the shared gdp. paul: you are confident to have the aaa rating going forward? rating, we: the aaa leave those judgments to the credit agencies.

we always do the best we can't to have australia as the strongest possible fiscal foundation. paul: the tax question. you always have support for the first step, but not for the rest of it. how are you going to get it across those political hurdles? mr. cormann: it is a seven-year plan. it is a holistic tax reform package. it is a whole package and we want to see it pass as a whole package. paul: this is the sort of thing obviously you are preparing to take to an election, eright? -- right? mr. cormann: income tax relief now. rewarding them for their hard work and encouraging them to look into the future so we can continue to grow our economy more strongly. he wants to stand in the way of income tax relief. paul: there were a lot of announcements this was obviously a pre-election budget. can we expect to see some announcements further down the track? mr. cormann: we have released the budget last night.

the budget we released last night is our plan for the next four years, for stronger economy. it will deliver more jobs and ensure all the essential services will be within the budget. it is a plan to ensure the government listens. paul: it is always enough the end of it. are there more announcements? mr. cormann: there is another budget. obviously, every year we have a budget. every year, the government continues to review what the challenges and improvements are. how we can have the us reeling government as strong as possible. and making sure our expenditure is sustainable and affordable for the future. you said a revenues be limit, 23.9% gdp revenue will not rise above that. it seems like an arbitrary figure. whahow did you arrive to that? mr. cormann: obviously, if you want to ensure you keep

discipline on expenditure, you have to keep discipline on the taxes you take out of the economy. we want to keep employment growth strong. we have to balance all the different objectives. if you keep increasing your tax on the economy, you put pressure on investments, economic growth and put jobs at risk. minister,nce mathias cormann, thank you for joining us the day after the the delivery of the australian budget. thank you. betty: thank you so much, paul allen with the australian finance minister. bloomberg users can interact with the chart we are showing you using tv . browse the charts on bloomberg television. keep up with charts for future reference. this is bloomberg. ♪

betty: good morning, i am betty

liu in new york. haidi: i'm haidi lun in sydney. it is almost it for us this morning, but yvonne and betty up next for daybreak asia. what are you watching? yvonne: we will go back to day two of the jpmorgan global summit in beijing. after we heard from jamie dimon of the 4% yield as the economy continues, it rallied a lot of -- rattled a lot of analysts. we will talk to the asia chairman exclusively, joining us on the 8:00 hour. he will talk about the rise of the innovative chinese companies over the next decade. that will be a key focus for the next couple of years out of china. also, talk more about the competitive landscape change in the onshore market of the next few years. what could we see as a result of this opening. betty: we will talk more about the impact on the u.s. pulling out of the iran nuclear deal. daniel hynes joining us to talk

about his outlook for oil. he sees brent crude at $80 a barrel. wpi not far behind at $79 a barrel. noting the u.s. pulling out of the nuclear deal will reduce output by about 200,000 to 300,000 barrels a day. he will give his take on what that means for not just oil prices, but energy industries as well. haidi: absolutely, our top story today. we are also watching malaysia as the market is closed today for election day. speaking to one of the managing partners at rho ventures. haidi: absolutely, our top story today. we are also watchinghe is one o, second generation of former politicians and business people in malaysia to set up this millennial venture fund. talking about opportunities, but also the risk space as we go into this election, what the forecast will come to growth in

malaysia and the new industries like ai they are trying to break through. that is it for daybreak australia this morning. we are setting up for a little bit of a next open as we had all that volatility in the u.s. session. the market continuing to digest u.s. withdraw from the iran nuclear deal. ♪ eal. ♪

♪ yvonne: 7:00 a.m. here in hong kong. i am yvonne man. welcome to "daybreak asia." top stories, asian stocks headed for a big open. oil rebounding after president trump pulls the u.s. out of the iran deal. allies regret the decision to reimpose sanctions. betty: from bloomberg's global headquarters i am betty liu in new york. the u.s. and china in a heated wto clash on trade. saying beijing is acting like alice in wan