♪ is to meet election victory in malaysia, the biggest powershift in six decades and independence. betty: the result might be better news for investors and want malaysian etf plunging the lowest is february. haidi: mike pompeo has home from north korea with three u.s. detainees freed by kim jong-un's regime. betty: and 21st century fox disney andte and as

comcast battle for assets. this: hello from sydney, is "daybreak australia". is just after 6:00 p.m. in new york and over the next hour we look at all the action on wall street and how it will play in the asia-pacific trading day. the focus on energy shares as market participants continue to digest the impact of the u.s. pulling out of the iran nuclear deal. energy shares rallying after tight supplies went forward and we saw the energy sector outperform the s&p. let's see how u.s. stocks traded today and how we ended with a nice rally of the doubt up 182 parts, and the nasdaq powering 1%. that is setting up for a bullish session in asia. the central banks coming online with possible rate hikes in the

philippines. haidi: the philippines setting up for the bank of england later on, and we have the reserve bank of new zealand big rates on hold as expected. there expected to keep the level at the break until 2019. new zealand stocks trading up 2/10 of 1% in the wake of that decision and the kiwi dollar weakened somewhat following the announcement. take a look at futures in australia, the energy sector continues to be in focus today with the wti, goldman sachs saying oil could hit the target of $82. sydney futures like positive and .7463.dollar at and he had a mixed session when

it comes to the u.s. dollar against the g10 peers. 71.28, theude highest in more than three years, in addition to concerns tightening, crude is trading at over $77 a barrel. indexue book commodities sees a lift coming through in energy prices and looking at a gain of 6/10 of 1%. also we have chinese inflation numbers coming through that will feed into the asian session. let's get the first world news with courtney collins. courtney: iran's leaders have dismissed the u.s. withdrawal from its nuclear pact with their supreme leader calling president trump silly and superficial.

he said on national television a troublesome creature left the party. >> i don't think they should do that. i would advise iran not to start a nuclear program and did i would advise it strongly. there would be severe consequences. courtney: president trump says he will be at andrews air base to greet three american detainees who are freed from north korea. trump says the three men seem to be in good health and also says pompeo had a good meeting with kim jong-un. lower after a deal to buy 77% of india's the cart for $60 billion and dow

list think the price is too high . are morethey optimistic on the long-term potential and the deal was accidentally announced earlier. and new zealand central bank has helped interest rates at a record low quality the door open to could inflation. at oneor the cash rate point 75% and said it would remain there for some time to come. the central bank president its forecast for the first rate move in the second quarter of 2019. he says it could be up or down depending on time and event. 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.

haidi: what an extraordinary night for malaysia, a stunning victory in malaysia's elections and the a six decade rule. the hard part comes down as he tries to marshall the four party coalition that will lead the country. let's get to our chief international correspondent covering this phenomenal expectedresult, and an -- and unexpected. day fora momentous malaysia. it was meant to be done on concluded 2.5 hours ago. with a stunning victory.

nobody would have thought the opposition would garner support from strongholds. thes significant because wave we have seen from the geordie population and the backbone of the ruling party. change inen a wave of malaysia for the opposition to win this election, it needed the strong support, and that is apparent. when it comes to turn out, it was 75%, lower than the 85% record we saw in the last election, even then, the opposition said before the election it needed a strong turnout, at least 85%. that they have backed

the opposition this time around. when asked what comes next? say is what he had to during the press conference earlier this morning. become -- in to order to become a member of parliament. those who aren't familiar with malaysian politics, he was the premier for 22 years, the longest running prime minister in the country. forced at the retirement to bring down his

persian, the man he put in place and had picked to be prime minister of the country. the two had a massive fallout due to a marriott of issues -- myriad of issues, including a of $600 million found in the bank account of the prime minister himself. when asked what will come and tell the party and government will be formed, this is what he had to say. we will have a ceremony. [applause] [laughter] remember, this is a four

party opposition. we saw the largest malaysian etf fall on this news. -- what are analysts saying about the impact of the economy in malaysia and investors? >> it does seem like the financial committee opposition.ed the they did not factor in a possible went by the opposition and we see indications of a drop in the market. to translate the losses when the market opens. remember, both sides promised two days of holidays after the elections if they come to power. the markets will be shut today and tomorrow so we'll see how it turns out on monday when the markets reopened.

as far as the economy is concerned, it is growing the fastest space in three years but there are challenges ahead. it is a very open economy and three quarters are in exports and with tensions in the u.s. and china, malaysia will be hit directly and indirectly. will have to take these things into consideration and has to maintain the growth momentum if it wants employment to pick up and once wages to increase. these are the bread and butter issues the people are so unhappy about. much, amank you so sure it has been a long few days for covering the elections. has revealedmp more details about his upcoming summit with kim jong-un as mike pompeo heads home with three detainees, giving able to the equity markets here. i want to begin joe sobczyk now. we have a date but we don't have

a place yet. joe: we don't have much of a detail on the summit that is going to take place. the president is teasing out pieces of this as he goes along. he had talked about wanting to meet in the demilitarized zone and today he said it won't be there. be somewhere else without giving details. saysth korean newspaper singapore is likely the spot for that summit, which would make some sense as a neutral territory that has relations with the u.s. and north korea and china. betty: did the white house give a reason why it won't be in the dmz? joe: know, they did not. no. there's othere

security issues that the u.s. side will be worried about. it is probably best for such a meeting take place in a more neutral territory. the dmz is technically no man's land, but still on the korean peninsula. they are probably looking for a spot that would for both parties be totally neutral. did we get for the remarks from the president on iran? joe: he once again issued a warning that should iran restart its nuclear program as a result of the u.s. pulling out of the agreement, they would suffer severe consequences. this is like the way he don't with korea when he talked about fire and fury, all the not quite as bold as that. this path and they are getting ready to impose

some more sanctions on iran. that is going to end up squeezing both iran and also the u.s.-european allies. joe, thank you for that update. still ahead, and closer look at the fallout from president trump's decision to scrap the iran nuclear deal and how it changes the outlook become sticky commodities. betty: up next, market strategies as 10 year treasury yields top 3%. this is bloomberg. ♪

betty: miss markets closed higher taxes support from energy and financials. for more, ramy inocencio with the recap of the big movers. ramy: greet across the board,

and taking a look where we ended, you can see where they issed up 1%, and the nasdaq up 1%, the highest in three weeks and for the nasdaq hi ghest in seven weeks. i want to show you the imac function and the health of the 11 sectors. you can see energy is up by 2% and the biggest jump for the energy sector in the past three months or so. financials not far behind, information-technology also up will put 4%. 1.4. the handle we're talking about is above the $71 and the and for brent crude, $77 and up more than 3% here, more than two

dollars up in the past 24 hours. we are seeing this push in the energy sector, and hop into the bloomberg terminal, ice ball and energy goes so does the market. see the snp energy sector in the bars and is as close sector ise energy where it is at. with that we are seeing the highs we haven't seen in the past three weeks, especially with the nasdaq up in the past seven weeks. haidi: credit also has to go to .he financials help bring the bop up in the 10 year yields. ramy: we are a hair's breadth above, and follow me on the screen where i show you where we ended for financials. these were the biggest point

winners in the financial sector, j.p. morgan chase up, and wells fargo and citigroup more than 1%. as he said, the second-biggest sector bob after energy. bobsecond-biggest sector bu here we arem atp three. percent, and as that has been rising we are starting to see a little bit of correlation move back in with the dollar and you can see the bloomberg dollar spot taking a little like up leg up herettle bread is flip the boards were morten and look at stocks, these are the big things and a couple of things of note, walmart down 3% and internet it to a 77%

flipkart.ndia's the and burglaries biggest shareholder pulled out and sold states, and trip advisor up 23%. -- don't you wish you were in trip advisor? beatingtronic arts estimates and this is a record with analysts saying the profit guidance they are pushing ahead is conservative. a lot of people bullish on that stock. betty: thank you for that. for a closer look at the markets, with our joined by randy schwimmer. seeing in financing trends as we talk about central banks raising rates?

as you noted, there is going to be crosscurrents that are going to shift day today and some of the issues coming out with regards to inflation and indicators you are pointing to. oil is a big mover in the last six weeks. overall, the credit markets are doing well and the backdrop of economic and supply and demand for capital as yields continue experts continue to go up, investors are looking for yield and securities. lessare looking for correlation because they're concerned about volatility. betty: what you mean with less correlation? randy: where the public markets are trading the last couple of months. on february we saw dramatic change in terms of what is going on public indices. calmed down.

but the overall worry and is lessical issues tradable and this correlated with public moves and that is what the credit which is where we are is so attractive. i want to point for the treasury market overall and get your reaction to the tenure earlier which we saw the 10 year option. we saw the ratio increased from the average, and the yield settling at 2.995%. that 3% threshold is still ceiling.o be a the upward move is going

to be course that direction and there's no question the fed, while patient last month, are going to continue to move up. whether it is two or three moves will see but there to get the right way and be patient and looking at data. everybody views the economy doing well and the jobs openings is now equal to the number of job applicants out there for the first time in a long time. also saw, and you did a great story on the amount of recent bond market coming through, there's a lot of paper out there. as you guys turkey rise did come a lot of appetite for the paper -- as you guys characterized it, there is a lot of appetite for the paper. is, where doestion we get to 3% and what happens beyond 3%?

us he was at 4% as a possibility but the market could deal with that in overnight we heard from blackrock saying about 4% would be downward drafting and hurt growth. the chart tells me what move us towards that 4% route, which is inflation hac tracking. deal on a one-way track story and we get the fed reacting or than expected to that. where do we need to get to before we see pain in the credit markets? randy: great question, and what we look at his long-term investors and the king several years and looking at the history of investors than this for 13 years as a team and look back at 2006 and two dozen seven is the potential mark of where rates

were and there were roughly headedness and direction as we are today before the recession. is hard to remember what the fed funds rate in july into thousand seven was 5.5%. where less than 2% and with a long way to go. in thefed raises rates next three by five years will get to that 5.5%. i think the stock of the economy is such that the upward bias is up based on what jb and others at blackrock have mentioned. a long-term view it is not going to be a direct line and it will be a sideways move along the way. but the general move is up. you.: randy, thank for the more to come.

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haidi: the market opens for trading in 90 minutes time. the upside points on going to the open and energy expected to be up for a second day as the sector is leading gains in wall street overnight. betty: you are watching "daybreak australia". get the first world news. courtney: the malaysian prime minister elect sayswarning on thursday after bidding opposition to a historic victory.

he has promised to stand down and install former opposition leader as prime minister after he is released. june,will be released in .nd then we will work but he will have to step for elections to become a member of parliament. scrutiny after comes to put money into the account of michael ump's lawyer, cohen.

admitted to paying $1.4 million. president trump's nominee for cia director has told the senate intelligence committee she doesn't believe porcher works and she would not carry out any presidential order she thought was immoral. gina has both an a covert action site for terror suspects were water boarded. take cia backer to an interrogation program. the cia follows the law, we law then and now and i wouldn't support a change in i will tell you this, i would not put cia officers at risk by asking them to undertake risky controversial activity again. courtney: former italian prime minister says he is open to a government including the

five-star movement which you previously opposed. that could lead to a populist type with the euros skeptically. given theent has populist 24 hours to form a coalition before he appoints a nonpartisan premier. 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. get a quick look at the markets, we see a bit of upside with the back of new zealand keeping rates on hold. say that is where it will stay until late 2019. the kiwi dollar is falling somewhat after that.

and futures looking positive and as weergy sector in focus oil.ains in let's look broadly across the region. a mixed session with the u.s. dollar. and sterling unchanged going into the bank of england policy decision. and the u.s. 10 year yield holding 3%. ackrock hexane will be a plus for the global economy and we see some upside back to the 1% height when it comes to u.s. stocks overnight. malaysia is in focus after the upset result.

>> it was an absolute shocker and there is talks there might be closer than thought but he would not lose. malaysian assets are closed for the week, to have stayed a holidays come but overnight we have a chart in the gtv archives showing what happened to those malaysian trades overnight. etf that got hammered. even with oil, a key input for malaysia, doing well. malaysia is clearly going to be in trouble once those assets open. talk out of malaysia and china because there's a lot of inflation data we are watching in u.s. and i data showshina cp

that might see the economy in china holding back a little bit? china is an ongoing worry for much of this year and chinese assets broke down before the february meltdown that came with the u.s. inflation upside surprise. further signs of a slowing chinese economy would be a worry, especially in a week where chinese stocks are one the bright spots that are doing well and we have another chart for you to look at at the gtv archive that shows ppi is slowing cpi, we might get good news because pbi is forecasted to excellent. having consumer inflation

dropped below 2%, that is concerning. if there is downsides best and we could see sentiment get hit. to thatith look forward chinese data and don't forget to check our gtv library for the charts you just saw. it is on gtv and type gtv . awaition as investors decisions. bloomberg policy editor kathleen hays is here with more. it wasn't the decision that matter, right? kathleen: coming back to the reserve bank to be the chief after being debated governor. 30 yes to deal with a different that of inflation issue.

inflation has fallen and he says it is below target for some time. concerned or surprised that wages are not rising faster. unchanged --the qa he did leave the key rate unchanged. let's look at the first gtv chart because it shows patience is going to be required. at can see this is inflation 1.1% year-over-year. brand is well below that. the kiwi good weekend, and heidi mentioned that after the question out that inflation will get back to 2%. dollar ands. weakening in the kiwi is expected to boost exports and relief the downward inflation push.

meanwhile, have to navigate a new landscape. mandate notdual just price stability but also maximizing employment. is something else to look at today after leaving rates unchanged. and exact they will not be in a position to raise rates they while. asian central banks are meeting today and one has a historic result, and what are we looking at is the most significant aspect? kathleen: let's start with malaysia, as garfield run through, the market reaction today. yet volatility and uncertainty about policy. on the fiscal side and taxes and more, it leaves the bank comfortably on hold after this historic powershift plays out for the government and the economy.

let's look at another chart that inws that this white line rate -- thatkey inflation was about the target advocate how inflation has come down. they have room to hold steady. if we move on, it is a different picture. a lot of central banks in asia could hike the key rate when they meet the inflation above target. and you have a rising oil price that could boost the looking at inflation because they depend on imports of oil products. it's a good another gtv chart that shows the big gap between the key rate at 3%, where it has been steady for many months. inflation is way up here and that is why you expect to move. head says he is

going to take appropriate prices. to keep r stable. for the philippines, it will boost inflation further, but the malaysian value of exports is good and for that it is economy plus anytime they can afford to worry so much about inflation. haidi: kathleen, thank you for that. the bank of england is coming up later this week. fox reported weaker earnings in its first quarter of a looming deal to offload and timid assets the focus off the headline results, that spring get our limerick intelligence analyst from princeton, new jersey.

how do we expect this to shakeup? >> the key to how this plays out on how another drillship so which is the at&t acquisition of time warner. all the legal hearings are done in that deal and we are waiting for the june 12 verdict from the judge was going to roll either for or against the deal. depending on how the ruling goes, that is going to be the point when comcast actually might make a formal bid for the rest of 21st century fox. we are waiting to see how the at&t deal shakes up. haidi: i wonder why it would fox potentially prefer disney over comcast if we're looking at this all caps off are from comcast? >> comcast has already made an offer and made late last year for fox that they were turned down.

there are a couple of different reasons. roads fox thinks the towards regulatory approval might be easier with this the rather than comcast because comcast owns nbc. that could actually cause problems. the other aspect is the tax implications. this is an all cash offer from comcast but will also be a huge cash burden that fox would not have to face with the disney stock deal. couldk the murdochs what be a significant shareholder in disney when all is said and done and they would want 5% of disney stock. betty: what about the remaining assets of fox? withat fox is not parting is this contest the volume, which is the broadcast tv network and stations. core competency in

they are doubling down on news and sports. seventhey went and bought tv stations for under a billion dollars. they are keenly focused on that part of their business and they have a lot of competency and edge over rivals. line somewhere down the they go back and recombine it owns the corp., which wall street journal and other print businesses. ahead, wti crude rising above $70 a barrel for the first time since 2014 is the restaurant sticker iranian oil. next. this is bloomberg. ♪

i am betty morning,

lou in new york. is above $71 a barrel for the first time since 2014, the midwest sections that -- and thesupply most bullish possible scenario, senior energy director at corporate solutions joins us now. to me start with this quick chart first, you can see over the last few months, we have bed, iranian output cur in the longer run, we see sanctions lifted compared to decline we saw in saudi production, what do you think the opec reaction would or should be? are we talking about next

strategy? exit strategy? i think what saudi will end up doing is waiting for the six-month period for the shots anctions to come into effect to see if the market is in balance. it is not a valid michigan them or because the five years encompasses years of oversupply so i think the saudi's are the they will have to inject more supply and market to make up for the iranian shortfall. the other thing to consider is how much iranian barrel skip holtz out of the market as a result of sanctions, that depends on the level of cooperation from other countries outside the u.s., mainly europe and asia. haidi: is there a great deal of

uncertainty over this deal and how it materializes in actual fact or do think for the short-term long oil is a one-way bet? >> there are questions in terms of how exactly sanctions will be implemented. the questions are, who will cooperate? even though the eu has said they want to see the deal stay in place and it will take measures to protect their companies from continuing to do business with iran, we have to see if those companies themselves want to run the risk of being a south from the u.s. financial market -- of being exiled from u.s. financial markets. we don't know if there will be any exemptions like there were for still and aluminum t ariffs.

this is a fundamental backdrop for oil in the context of inventories coming done globally and demand strong around world. the geopolitical risk premium in the price of oil might embolden iran in terms of generating or activities in the region and building more opportunity for risk with direct conflict with other countries in the middle east. betty: a more aggressive iran perhaps. you think this will lead to the unraveling of the opec agreement? >> i don't think so because saudi is still involved in the data ensure higher prices and increased their level of spending so their fiscal break even has increased this year relative to last year. it is about $85 and they are spending more to get their mission in place for their ipo and increased the level of social services spending. they need a higher price and

they are invested in that, so i think they want to keep it continued, and they are worried about market share. they learned a lesson the last craters, youket incentivize more production from other players. betty: like the u.s.? >> exactly coming down. balancing the market and that of the necessarily causes a deal to unravel but you have to look at the fact there are conflicting incentives right now within opec. saudi is focused on higher price and i think iran and russia are focused more on lower price and keeping market share in customer base intact. a gtv chart that shows you one popular energy etf and how much volume are presented by the green. has doubled.

you expect that activity can continue? with our in uncharted territory here on with sanctions are going to be. high, and arel be so many speculative traders involved in the energy market, more so than fundamental traders. still move based on things that are not fundamental to oil prices and move based on currency moves and volatility in the broader markets. all of that will serve to drive volume especially now in this market worth a geopolitics are in play, not only in the middle east with iran, the potential for more often with saudi and israel and other players and what is going on in venezuela as well. stoking the markets to be more reactive to headline news. senior energy director and nasdaq corporate solution, thank you so much.

see our past interviews with our interactive function, tv . as you can become part of the conversation by sending us instant messages during our shows. this is for subscribers only. this is bloomberg. ♪

betty: good morning, i am betty lou in new york. haidi: you are watching "daybreak australia". race $2.7 billion in its ipo and business is made up of rest separations of europe's second-largest insurer, and the deal is to become the biggest u.s. share sale this year. stakesspecially selling

in its business, our sources say india's top wireless operator plans to raise as much as billion dollars by early 2019. that is it for "daybreak australia" but yvonne and baby are up next with daybreak asia. we continue coverage on that malaysian upset in the election in the last supper of hours. becoming prime minister at the age of 92, we speak with the professor of political science who says that this election was not his to lose coming was losing the narrative of momentum during his campaign, but what comes under this new regime?

we have a former prime minister wrote for more than 20 years coming back into power. betty: they questions there, and we also talk with the center you and alsotrategist, weighed in on the impact of this stunning victory by the opposition party. on what is his take next for the malaysian economy and how it affects relations between malaysia and other asian countries, particularly china. haidi: and we know the malaysian markets proper are off the rest of the week because we have malaysian proxies taking a beating. from globalntary wealth management joining us, and what the tatts to existing

-- and what it as to existing emerging-market assets. without this phenomenal political shift in malaysia. we have more coming up. this is bloomberg. ♪

7:00 a.m. in hong kong. i am yvonne man. welcome to daybreak asia. mahathir mohamad leads malaysia to a stunning victory, the biggest powershift since independence. the result will add the nervousness in emerging markets. eps tumbling along with ringgit. >> i am betty liu in new york, it is after 7:00 p.m. wednesday. they are focused on the sprint sale and masayoshi son's