yvonne: i am yvonne man, welcome to "daybreak asia." top stories this friday, positive after wall street's rally to a seven-week high. see you in singapore, president trump confirms the summit with kim jong-un will happen in the lion city on june 12. in newi am betty liu york, after 7:00 p.m. thursday. focus on the economy, mahathir mohamad promising a business-friendly malaysian government. many heads roll after the 1mdb scandal. many rate hikes are likely after

slowing growth and inflation. very different day today here in the markets, yvonne. we had tepid inflation data coming out. suddenly investors were thinking the fed would not be so aggressive in its rate hike path. i am not sure why the inflation data was so surprising. take a look at this gtv. it shows the core measure of u.s. inflation has stabilized. you can see just above that 2% level. just above the 2% inflation target. we have seen that for a while, of course noting the wage data won't budge. inflation is pretty mild in the u.s.

why so many think the fed will be even more aggressive on its rate hike path. yvonne: it is interesting, i was reading a note from mitsubishi, if you look at gas prices at the pump, three dollars in the u.s. per gallon. you have the jobless claims number which shows markets still in overdrive, that is not happening, as well. -- isbroken and is it bit at the right yardstick for the measure of an economy's success? plenty of reasons for investors to buy the dip. betty: it seems that was exactly what was happening. across the board. the dow up 200 points, the s&p up, as well as the nasdaq. let's look at how commodities traded today. oil prices still above that $71 era level. gold futures declining.

some declines we saw earlier in the 10 year treasury yield. sticking close to that 3% level. yvonne: we have the inflation number, the solid 30 year. that led to the curve flattening, the flattest since august 2007. look how asia is set up. in new zealand, up 0.1%. aussie futures up 13 points. nikkei futures flat at the moment. aring of losses from the kiwi dollar yesterday after the r&b said headed up -- after the rbnz had a dovish outlook. ruble, we dothe not watch it much in daybreak asia, but surging the most in the world overnight. a focus, givenis what we have seen in the price of crude.

let's get a check of offshore malaysian markets, the day after the election. ringgit forward seeing weakness. weaker ringgit3% when onshore market opens monday. ishares paring back steep losses, 1.75%. said he would boost the stock market, don't worry about it. in the meantime, let's get you caught up with the first word news. courtney collins with us. >> mahathir mohamad has been sworn in as malaysia's prime minister, promising to lead a business-friendly administration. the 92-year-old said his focus would be on growing the economy and reducing debt, and there is no case for devaluing the ringgit. he says much of the money missing from 1mdb can be recovered in those responsible must be punished.

>> [indiscernible] >> israeli prime minister benjamin netanyahu says iran is crossing a redline by launching missiles. conducted its biggest raids inside syria in 30 years, targeting what it said were iranian military targets. iran says the israeli claims are ally. he called for an end to all hostile acts. mark carney says the bank of england intends to deliver modest tightening after keeping the interest rates at 0.5%.

unexpected economic slowdown slow down the hike investors were expecting as soon as this month. carney says he thinks economic development will redevelop sustainably to its target. trigger-happy on interest rates, just because the recovery started -- finally started in 2013. we will not instantly raise interest rates. we want to see progress before we think about it every -- about it. the reusable spacex rocket is designed to be capable of 10 or more flights with limited refurbishment. it boasts a more powerful engine, a stronger heatshield for reentry to the atmosphere, and retractable reentry leg. 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 courtney collins, this is bloomberg. betty: thank you so much, let's like -- take a closer look at the rally in u.s. stocks, the s&p closed at it -- and -- a seven-week high. a shot in the arm for bowles on wall street. su keenan has more. >> major indices up 1%. all, airfare, utilities, less expensive than the previous month, help to moderate inflation. reasons.a number of you do see the dollar weaker coming off this major rally. 2000, a record close for the small caps.

telecom service shares, the index of high, as was the chip stocks, they were one of the big gainers. let's go into a stock that may decent moves. telecom moved higher, qualcomm moved higher, due in part to buyback of shares. positiveh a spate of news, a joint venture for aluminum production. cvshealth moving higher -- health moving higher, dodging a defamation lawsuit. you can find these charts. the dollar, has it been overbought -- has not been overbought this much since 2014. it shows the dollar against 29 different currencies. overbought, 72% versus

all the other currencies. level, a very high very strong move higher. yvonne: you talk about the geopolitics. we have seen ongoing tensions in the middle east affecting oil prices. su: approaching $72. it certainly held above $71. pulling out of the iran deal was seen -- there is now a view the saudis will step in. check out the intraday chart. i have a two date chart, the gyrations, it has to do with concerns. a bit of a dustup you saw between iran and israel. there is a view there are plenty of players throughout the world, opec, non-opec, shale, which could step in.

there is a view perhaps this is not as bullish as we initially thought, this pulling out of the iran deal. however, there is a strong bid remaining for oil. many analysts predict we could go back to that $100 range. yvonne: that call from bank of america was a shocker. the first wall street banks thought we could return to $100 oil. thank you, su keenan, with a breakdown of markets overnight in new york. president trump will meet north korea's kim jong-un in singapore on june 12. he made the announcement after greeting three americans the north koreans released from detention. joe sobczyk is joining us from washington. we are watching images of the u.s. captives getting off the plane. it certainly was an emotional moment. lots of goodwill efforts from

kim jong-un. now that we have a date and place set, what can we expect from these talks? joe: it is best to continue to expect the unexpected. president trump is tossing aside decades of diplomatic practice. usually these things are let up by lower-level aides meeting for months to bring a deal together, with the leaders coming in at the last minute to nail it down. in this case there has been a little bit of that, but essentially, president trump and kim will be kicking off the process, a one-day affair in singapore. a number ofng to be things the u.s. is seeking. they say they will not move to make any incremental sanction relief for the north koreans, that they want the north koreans to make the first move before anything else is done.

and we want to see what comes from that meeting. there are still those questions of denuclearization, it depends on which country you look at, the different definition. are we likely to see those questions hammered out in the summit? joe: it is brief and the lead up has been short. there are a lot of issues getting from here to there, getting rid of nuclear weapons and north korea. kim would require the i -- regime allow international inspectors in. little is known about their stockpile. it is not clear how far they are willing to go for getting relief from sanctions. it is also not clear how far is far enough to get sanctions relief. there is still a long way to go before there is much progress in terms of getting an agreement or

even beginning to see some of the nuclear weapons the north has, either be disassembled or gotten rid of or whether they will do any of that at all. and the u.s. appear to be at a stalemate in trade. seen headlines on this in the last 24 hours. any signs of movement? both sides seem to be talking at each other rather than with each other. the u.s. will proceed to hold hearings next week for public comment. they have extended them because there are 130 companies and industry groups that want to testify to give public comment on the tariffs the president is proposing. a lot of them are in favor of taking action to level the playing field with china, but many are worried of a trade war, or sparking a trade war that would raise costs for consumers. official will be in washington for talks, following

a u.s. delegation that went to beijing last week, came home pretty much empty handed. there are still talks going on, but no public signs of progress. it there,will leave joe sobczyk, our congress editor. sworn in, malaysia's new prime minister mahathir mohamed becomes the world's oldest elected official and 92. what is first on his agenda. a positive in u.s. inflation easing pressure on the fed over faster cuts to read or faster rate hikes, i should say. daniel murray shares his opinion. this is bloomberg. ♪ this is bloomberg. ♪

betty: we are counting down to asia's first major market open. japanese futures looking like

this. a slight tick up for nikkei futures, 45 minutes away from the open. beautiful day in tokyo. i am betty liu in new york. yvonne: i am yvonne man in hong kong. pressure on the fed to consider a faster pace of interest rate hikes. dollar and treasury yields falling. joining us for now is daniel murray, efg asset management head of research. oversees $20 billion in assets. thank you for joining us. inflation is weak, has been pretty benign. mark carney signaling inflation could be weaker than expected throughout the year, china as well. have we seen enough of this goldilocks economy for you to consider buying more stocks? daniel: last year we saw an exceptional year for equities. the first year ever when we saw them go off each month.

this year we cannot expect a repeat of such a strong year. nonetheless, that continuation of robust global growth, benign inflation, and continued central-bank accommodation is generally supportive of risk assets. yvonne: what about energy prices? what level of crude do we have to start worrying this could feed into inflation and scare the bond market? daniel: the way we think about the impact of energy on inflation, there is a six to 12 month lag. it will not affected until next year at the earliest. the dynamics are interesting, because historically, the supplier responses very slow. course with shale oil, the response has become more rapid. if oil prices rise to quickly, we see the shale figures open, and the supplied much more rapid. it is interesting what a

difference a week makes in terms of the sentiment in the markets. led to thisthink sudden outburst from this downtrend we have seen? most of theed on earnings season already. what has changed, do you think? daniel: the end of last year and the beginning of this year, a lot of optimism about the trump tax cuts which were delivered in january. that almost got priced in ahead of the event in the markets. of accommodation as markets adjusted. delivernies have to against those expectations. i think we have experienced a period of volatility and markets are coming through that. yvonne: the vix has gone down. daniel: it has been a remarkable period. this is more about the return to

normality. volatility was so low and equity markets kept rising. it is a much more normal market environment. we see positive markets and other times we see a more volatile situation. betty: we have gotten so used to this abnormal situation. the abnormal seems normal to us. speaking of that, we are hovering at 3% level on the 10 year. think we areif you hanging around this level for quite some time? daniel: that is a good question. lots of interest in this reaper's end, which is psychologically important, more than anything else. clearly has an impact on the supply-demand balance of treasury. is, for every

$100 billion the fed shrinks its balance sheet, about five basis points. by around $400 billion this year, that imparts about 20 basis points of treasury yield. one thing notable, the risk yieldm, that part of the that is on top of interest rates and inflation expectations. the risk premium has been in negative territory. that is unusual. it is negative about 35 or 40 basis points. if we thought return to zero, that would put upward pressure on the treasury yield. that is part of the story, just a normalization process, which is natural after such a long period of expansion. betty: we are just adjusting.

what is your biggest conviction trade? daniel: we continue to like equities over fixed income. we really like japanese equities. there are a lot of interesting structural things going on there. we expect a nice kicker from the olympics, which is not fully priced into market yet. we continue to like emerging market paper. emerging markets have these crosscurrents where global growth has continued to hold up well. against that we have a stronger dollar, which is typically a headwind to emerging-market assets. we have to selective about which emerging markets we get exposure to in that environment. yvonne: it is interesting, the calls we got from jay powell as well.

his reaction function to things outside the u.s. is not matching what investors have been used to. rates asndle higher well as a stronger dollar. is that the right approach? daniel: i think it is. when we consider of -- the vulnerability of emerging , that is because many emerging markets were exposed to the dollar and higher rates of debt. the issued a lot of debt in u.s. dollars. the degree to which many emerging economies are exposed to the dollar is much less than historically. the debt is much lower than it has been historically. world ishe developed running debt gdp ratios of at least 100% in many emerging -- at least 100%. in many emerging economies it is below that. yvonne: those countries are a

big one. a bullish call when it comes to em. daniel: if you want to be contrarian, russia or eastern europe is interesting. lots of geopolitical uncertainty. the markets are really cheap. with firming in the oil price, that is not for everybody. asset: daniel murray, efg management head of research joining us in hong kong. this is bloomberg. ♪ this is bloomberg. ♪

betty: get a trick -- quick check of the latest business headlines. citigroup, goldman sachs and morgan stanley to advise on ipo for mobile cars. volvo.as valued

sweden andre held in hong kong to discuss both venues. yvonne: the biggest intraday fall since january after seeing margins dropped 200 basis points on year. of up to hundred $32 billion.- $132 it fell short of analyst expectations by 14%. facebook shares recovered from the scandal which landed mark zuckerberg in front of congress. they have addressed criticism afterrivacy policies cambridge analytic obtained data on tens of millions of unknowing users. justs closed at $185 before the scandal broke. yvonne: malaysia's new prime minister says heads must roll

over 1mdb. this is bloomberg. ♪

pres. trump: i am thrilled to be here tonight. betty: that is president trump appearing at a campaign rally in indiana. thes expected to tout benefits of his tax cuts and the booming economy for middle-class families. vice president mike pence just before him, riling up the audience ahead of president trump's appearance. we now have a for president trump a place for his upcoming meeting with north korean leader kim jong-un. there you go. bloomberg subscribers, if you want to watch president trump's .ks can go on live

yvonne: more on this make america great rally in indiana. mark your calendars, june 12, is where the meeting between trump and kim jong-un will happen. >> president trump says he will meet north korean leader kim jong-un as we were just discussing on june 12 in singapore. they are trying to make it a special moment for world peace. singapore has security partnership with the u.s. and strong ties with china. trump made the announcement after greeting three u.s. citizens freedom by north korea, praising the release bite as -- as a conciliatory effort by kim. kenyaburst in southwest killing 48 people. it swept debate -- is swept away hundreds of nearby homes.

the rainy season in march has killed around 170 people and displaced more than 220,000. 3/4 of their counties have been affected. an australian scientist died after traveling to switzerland for an assisted suicide. he did not have a terminal illness but said his qualified -- quality of life had worsened over the past year and he was happy to end it. inhanasia is legal australia, though they planned to end it for terminally ill patients next year. productivity gains have gotten weaker. speed limitto the for hourly wage growth used to be around 4%, but now it is 3%. he says the short-term risk of recession is low. >> i do not think we are at the end of the recession.

it is pretty low still. on the demand aside, we are still getting a good boost from fiscal policy in particular. we think it contribute something 3/4 of a percentage point for growth. i do not think we are far from full employment. >> 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 courtney collins, this is bloomberg. yvonne: we are counting down to major market opens in the asian pacific. we had tepid inflation in the u.s. overnight. mark carney seemed dovish over inflation. he had back as well as when they came out with that decision, the probability of

rate hikes was taken out of the market. we are getting started this friday, the dollar is weaker, but there has been repositioning in favor of the aussie, which is coming back a bit right now. when you talk about dollar shorts, those two reasons you mentioned were good enough in terms of short covering. as far as stocks, futures indicating moderate gains when japan opens later. we are looking at maybe 0.2%. australia, 0.4%. the question is, we are poised for a weekly gain unless the index drops 1.2% today. do we get enough momentum coming through? we have been very range-bound. barely above the 100 day moving average on our index. is this a day we get gains and forget about it the next day? we have to wait and see.

yvonne: earnings in japan, what are you watching? david: 50 companies, a few big names. kirin, panasonic. generally speaking, these four have reported decent earnings. impressed when it comes to sales. not so much when it comes to earnings. lots to consider when japan opens up. a slightly stronger yen against the dollar. yvonne: dollar weaker yield cutting down as well. seems decent demand when it comes to the long end. yieldswhich i guess caps long-term. which takes me to the yen. several things we are following. have a look at some of these things.

we are also watching india, indonesia, in light of things like oil. indonesia has been hammered quite bad. india has been ok, the two-year yield has been pushed up to 7.5%. there is a massive flattening in your five and 30. went from 32 basis points to 27. just in case you're finding out this morning, that is your jumping point for treasuries. david ingles checking on the markets, equity and bonds. around the world are diverging, but there is one key driver, inflation. kathleen hays here with a roundup of a busy 24 hours for central banks. inflation is not cooperating with officials who want to raise rates in the u.s. and the u.k. kathleen: if you're a developed

country -- if you are in industrial country, that seems to be the conundrum. you want to normalize policies following this great inflation, the financial crisis. it is tough. we have talked about it throughout the show. it just did not rise as much as it was supposed to. the companion gauge, the pce deflator, lower prices for cars, tv's, all kinds of things. let's look at a chart that raises an important question. a gtv chart you can find on your bloomberg. let's look at the cpi overall rate, up to 2.5% in the latest month. do not put too much focus on that. look at the cpi core, 2.1%. that is taking out food and energy. the main cpi deflator just at 2%. that is when there was a big war

over the prices of mobile phone contracts. janet yellen talked about it for at least a year. she said it was temporary, when it rises again. it has risen again. you see cpi flattening out. will the cpe flatten out as well? does this reinforce those who say, my baseline is three rate hikes total this year, not four? bonds, bond investors not waiting. if you look at the yield curve today, they have decided rising inflation will not be a problem in this economy, at least not for a while. five to 30, continues to flatten down to 27 basis points. it has not been that flat since 2007, just before the great financial crisis started. investors saying, i am not concerned about inflation. yes,r the bank of england,

they have been signaling rate hikes as soon as august, but after mark carney said we are waiting to see if inflation rises and we think a slowdown was temporary, when inflation peaked around 2%. expecting that the turnaround, but meanwhile has to wait. we saw the weakness in the british pound rally in u.s. bonds. anything on rates until you see inflation coming on board your it -- on board. yvonne: perhaps more drama in the philippines and malaysia. kathleen: they are both looking at inflation, moving in different directions. it is key to their decision. the philippines central bank had to raise its key rate. that is what a lot of banks have been doing so far. they also said they are ready to take more action if they have to. they do not expected.

-- expect it. let's look at another gtv chart of a picture of the philippines. this turquoise line, year-over-year inflation, up over 4%. this ratey they made hike they had not done in many, many years. as i said, they are hoping that with that done, they will be ok. they will watch oil prices and inflation expectations. moving on to the bank negara, the election result that led them to send a rather positive postelection message. it sounds like they want to reassure investors they are there to hold things studying. let's look at what bank negara said after they made their decision to hold their key rate steady. are strongly anchored, it remains positive. the financial sector is strong

and conditions are supportive of economic growth in the postelection environment. remember, bank negara raised its key rate by a quarter-point point in january because inflation has risen above their target, even fallen to 1.3%. they are below their target range now. bloomberg economics pointing out the new prime minister mahathir mohamed has progrowth policies, may be reducing the goods and service tax, which could create more inflation, more growth, and lead to a rate hike later this year. little bit of stability coming from the central bank in light of this election drilled we saw -- onction jolt we saw thursday. thank you. a new era has become -- begun in malaysia. prime minister mahathir mohamed has sworn in. mahathir said he would focus on

growing the economy and reducing --t, labeling his preview labeling his predecessor as a kleptocrat after the scandal with 1mdb. how did the swearing-in go? delays, it was meant to happen and 9:30 a.m.. finally at 9:30 p.m. last night he got sworn in as the prime minister of malaysia. there was so much concern he the constitutional monarch may not want me to be leading, there have been tensions between sides. he did ruffle some feathers. he put a lid on the power of the royal family. for instance, the legal immunity of the royal family. eventually, 9:30 a.m. he was a

sworn in. .- he was sworn in he made it clear his policies would be pro-business. it is growing at the fastest pace in three years. the ringgit is the strongest in asia, up 2% to 3% year to date, despite recent declines. he sent out a message, it will be business as usual, even gscgh he will scrap the 6% implemented years ago. it would hopefully help boost the government's coffers. there are a few questions here and there about how the policies will play out. his first objective is to put the team in place. and that is a big question mark. betty: how are they putting their team together? haslinda: it is

tough, it is a coalition of four parties with their support basis. the former prime minister called them a motley group. mahathir has a suggested himself, it will be difficult to put a team together. fourl be speaking to the presidents of the party, i will have a huge headache. he joked about it, but there is some reality in that. another issue that needs to be ironed out is the issue of anwar, the longtime leader of the opposition, serving a jail y charges.nd sodom we do not know how the transfer of power will be. clear -- the be

the eventual prime minister of this new government. , it ist will pan out hard to say, but it will happen. indeed, up next, goldman sachs says it is a good time to access the market for capital. this is bloomberg. ♪

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

york. access thed time to market for financing. across manyuption industries, the time is right to take on extra risk. >> i would say the market continues to be very attractive. this isk historically, still an incredibly good time to access that marketplace. the market is vibrant and performance continues to be good. however, we have seen more volatility in concert with the broader market environment. it has been a rougher ride this year. it is not been as a singularly good as last year. credit investors are most focused on credit they understand and know well, and less desirous of owning riskier credits. >> we are seeing risks with m&a.

deal,ok at the shire decatur was devalued on that. if the tent -- you look at the shire deal, takeda was devalued on that. have credit rates taken a backseat to m&a opportunities in this market? >> we are at an extraordinary time for strategic activity. there is disruption in all industries, some more than others. companies have to deal strategically with their businesses and looking to expand in other areas. that strategic behavior is taking presidents over almost anything else in their arsenal. it is not that the companies want to get downgraded, but the strategic imperative is taking president. >> does that mean companies are taking more risk than they should be? the would argue that is not case, it is a great time to be taking on other debt.

the cost of capital is extraordinarily attractive. when you have a strategic imperative and can finance at such attractive rates, it is value creation. it is a great time to be accessing that capital. up the debt moved ranking in the last few years. curve inmoved up the terms of what you're comfortable with? has been marked more by equity and m&a orientation. we recognized a long time ago we needed to build a bigger debt franchise. we thought about it in an integrated fashion. it is jointly owned by our securities vision and investment banking. we view the business as an integrated platform. salesve to have a

capability where you can distribute that originated product. the distribution capability is really important taking on what risk you are going to absorb. we have a top three franchise in the debt business. here we are talking more below investment grade. we continue to be focused on it. it is strategic for our m&a franchise. you talk about debt-financed and debt-financed m&a. >> what leads what? business bring in the debt business, or is at the opposite? be the ceo, the cfo, the board advisor. we want them to think of us as their holistic advisor.

how you're creating value and compete over time. we try to bring other capabilities, debt financing being an important one, hedging, market perspectives, as a component piece of a more holistic solution. >> you have a new entrants coming into this market. as a more regulated entity compete with that? >> we still think we have the best platform of anybody to understand what is going on with companies globally. position in terms of originating product. there will clearly be other participants that want to buy do notoduct, but we think anybody has the capability we have to understand what their needs and ambitions are and find the origination of that product. it is a unique skill. anso it does not push

institution to take on more risk just because you have more competition? >> no, i do not think we have to take on more risk. we view every situation as a micro-situation. we might take prudent risk in terms of what is going on in that market. other times we are not prone to take that risk. yvonne: that was goldman sachs' co-head of investment banking. for breaking news wherever you are, on twitter we have launched tictoc by bloomberg, designed for social media, with hourly updated top news reports verified by us. this is bloomberg. ♪

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

york. dana gas reached an agreement with key holders, $700 million of its bonds to restructure them. anders include blackrock goldman sachs, agreed to accept an immediate cash payout of $.20 to the dollar and roll the rest into a three-year security. panasonic says tesla is still slightly behind its model three mass production schedule, but is making steady progress. panasonic supplies batteries for tesla in nevada. the high goal set by elon musk -- also says panasonic is open to making batteries of for tesla in china. jpmorgan the latest to be accused of currency manipulation, charged in new york with the rigging of

african, european and middle eastern currencies. prosecutors say he and his accomplishment -- accomplices competitionliminate by fixing prices and raising bids and offers. yvonne: core cutting continues apace in the u.s. networks down 4%, your to date. another down 5%. switchingof viewers to streaming services such as netflix is set to continue in the near term. betty: coming up, we will unpack the latest inflation numbers. that is in 15 minutes time. casino operators work toward japanese expansion. caesars entertainment joins us. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

♪ yvonne: 8 a.m. here in hong kong, i am yvonne man. welcome to "bloomberg markets: asia." week inflation in asia is a signaling no speed up your fed hikes. president trump confirmed his summit with kim jong-un will happen in the lion city on june 12. yvonne: and from bloomberg's global headquarters, here's betty liu. betty: 8:00 p.m. on this thursday, malaysia's new prime minister saying that much of 1mdb's missing millions can be recovered. he labeled his predecessor a kleptocratic.

's business is running to a halt and they tried to calm workers during worsening trade tensions. ♪ yvonne: betty, let us go straight to the live captures happening in elkhart indiana, where the president is. from thisgood news summit between kim jong-un and president trump which will be happening on a june 12 and singapore. he is now announcing a proposal on how to break down drug prices and bring them lower. a key issue here is been ringing since his campaign. big pharma has been getting away with murder, some of the things he has said come and he is now tackling this part of his agenda. betty: that's right, releasing a new plan "american patients first."

trump says that there will be a great health plan coming out over the next four weeks, where he will be outlining the new drug pricing blueprint, so to speak. as you mentioned right now, he is at a campaign rally in indiana, where he notes that the american economy -- america is a ing" in his words. let's get to the first word news now with paul allen. mohammed mahathir has been sworn in as malaysian prime minister. focus-year-old says the will be growing the economy and reducing debt come and there was no cause for devaluing the ringgit. he also said come up much of the money missing from 1mdb can be recovered and those responsible must be punished. [indiscernible][laughter]

[applause] that some people were the previousetting leader who was a kleptocratic. israeli prime minister, benjamin netanyahu accused iran of crossing a redline by launching rockets against opposition. in response, the conduct of their biggest raids inside syria in at least 30 years, targeting what the country says was iranian targets. iran says that is really claims are a lie. mark carney says the bank of england still intends to deliver modest tightening after keeping the key interest rate at 0.5%. the unexpected economic slowdown derailed the plans for hikes investors had anticipated. carney says he thinks the the

momentum will reassert gradually. >> we are not trigger-happy on interest rates just because the recovery has finally started, i would remind, finally started. , in 2013 we will wait until we see some progress, before we even think about it. paul: spacex has postponed a planned launch of a bangladeshi satellite on top of a new generation falcon 9. the reusable rocket is designed to be capable of 10 or more flights with limited replenishment. , a first powerful inches stronger heatshield for reentry into the atmosphere and new landing -- the launch was econds. with just s global news, 24 hours a day, on tic-toc on twitter, powered by more than 2700 journalists and analysts, in over 120 countries. allen.ul this is bloomberg. ♪ yvonne: paul, thank you.

the market opened so far is pretty positive compared to what we saw overnight with inflation numbers coming up in the u.s.. >> yes, that will work in favor markets.ng as you can see, korea has the most pronounced move so far, half of 1%. the korean won is also on the move there. a really tepid, we will give the markets sometime up.et warmed the other big story from yesterday, the rbs feeling dovish, that is playing out across the bond space come in and as he heard from paul, the comments from mark carney, slightly dovish as well is the bank of england. there is a massive move higher across the gills. futures pointing to a higher .9%. let us break down australia, 63 up, 42 down, 105 have not yet

unchanged.or are let is get the function of here on bloomberg to give you a more colorful illustration of the sector breakdown. .nergy is on the way up, 2.7% really intuitive, given where we are with oil prices. and guess what, at this level, 61.23, we are very close to the highs of the year. that is the level right now. go, 61 .5 isere we what people are talking about at this point in time. companies reporting earnings today, it has been decently ok as far as sales are concerned. as led majority are reporting arise, but earnings are disappointing at 46%. as. is the breakdown as far positive on the flipside, you have about 5 53% reporting negatively.

impressed.o far this market has really failed to put any decent momentum together, rsi for you, to give you a sense of where we are. let us see what happens to the moving averages. we are basically halfway back. this function will give you a sense of the movers, 152 up. -- longfairly risk session in japan. pricing on your two-year, 253, tenure is that 2.96-2.97. story there, -- the 10 year, given the inflation rate. down is thents curve, the flattest in about a decade's time. betty: thank you so much, david ingles there,. president trump is reporting an effort to bring down prescription prices in the u.s.,

fulfilling a promise. he made on the campaign trail let us get more from our health care regulation reporter in washington, this story just broke a few hours ago. can you tell us more about this plan, anna? what senior administration officials told us is that the plan will be called "american patients first." a package of legislation that the president would like congress to put in place, as well as regulatory actions, think that they had musician can take pretty much right away. he will also be asking for more from the public from stakeholders in the industry as well. these are all generally what they will try to do, which is implemented more competition so that there can be generics getting to the market faster, as well as trying to bring down the out-of-pocket costs that patients pay, particularly seniors, who are in medicare.

and also, trying to get foreign governments, who set prices for what they pay for drugs, to pay more for those drugs. so that that is in the interest unfair trade. as well, he will try to incentivize drugmakers to bring down the prices they said, best prices they set especially when negotiating with insurance plans. yvonne: what about for big pharma, how will they take the news? is any of this surprising at all? sort oft really, we knew this was coming, but i don't think there are going to be any big surprises for them. certainly, they are not being hit as hard as trump would have done if the plan was coming when he first took the office of the presidency in january, 2017. he said just before going into the white house, that he would like to see the government negotiate prices directly with

the drugmakers, and that will not be something we see proposed tomorrow. so it is certainly not as harsh as it could have been at one point in time. a lot of this is something that drugmakers are expecting. proposals that we have about for a while, many of them made in a budget proposal which the president sent to congress in february. that being said, we don't know all the details of the plan yet, we just have some of them. so there is a possibility of a surprise tomorrow. yvonne: we will see if democrats are satisfied with the plan. of course, is it likely to get interest in light of novartis's payment to the trump lawyer? anna: i think certainly, when you look at the payments from novartis, it shows just how interesting or how interested, the drug companies were in trying to pay 10 get insight on administration.

we have seen all of format increase their spending on lobbying the administration in the first three months of this year, so i think people will be watching with that in mind, and with novartis in mind, seeing that pharma is not being hit as hard as president trump originally said they would, maybe that will make people more interested in exactly what is going on, what lobbying was able to influence here. yvonne: one more question, the one line you got from the speech so far in indiana is that he wants other countries to pay more for drugs. who is he speaking to with that message? there was talk months ago about how the china tariffs could potentially raise drug prices as well. in a: he is sort of talking in this case, more about the moreean countries, who are

socialized in their medicine health care, or who said prices directly with drugmakers, telling them what they will pay. they pay a lot less than we do believes ist trump are basically, americans subsidizing all the innovations that drug companies do. so foreign governments and their citizens are able to take advantage of that riyadh sort of what i would expect, is -- take advantage of that. make a expect for him to better position for american patients through trade deals and push these governments to pay more for drugs and set higher prices. yvonne: thank you so much, we will get more clarity on the speech tomorrow for you all. our health care regulation reporter joining us from washington, thank you, anna. resident announced on twitter that he will meet with kim jong-un on the june 12 in

singapore, also adding that three korean americans were released from pyongyang as a gesture of goodwill ahead of the highly anticipated talks. jodi schneider, our bloomberg senior international editor. we have a date and a location, why singapore? guest fish for several reasons, it is neutral talks. the u.s. has security agreements with. tiespore, china has strong there, they have a stake in these talks, and north korea as an embassy there. it is seen as a very secure place as well to have these kind of talks, which is of course, very important to the u.s.. also, they have had meetings like this before. in chinese president met 2015 with his then counterpart from taiwan there, so they are used to doing this. it is also seeing perhaps as a concession from the north korean .eader, kim jong-un to

travel there it will be the farthest he has been as a leader. itre were talks about having in the dmz at one point, or in seoul, nort south korea, so right now, isails viewed in and of itself, as very important. that this is actually going to occur. betty: how important was it that the three korean americans were released from pyongyang, how important is that all of this? jodi: is symbolically very important. president trump thanked, personally, the north korean leader for their release, the new secretary of state, mike pompeo traveled to pyongyang to secure the release and bring them back. it is all symbolic and important. the real question now, is what happens at the talks. the stakes are very high and president trump has shown that he can lead deals that he can

leave deals, like he did with the paris accord's end the iran deal. but making you agreements, isecially this complicated, the question. what can get done i at the summit, is now the question facing both parties and the world. betty: jodi, thank you, our senior international reporter there. coming up, we will speak to caesars entertainment about their bid to bring a casino to japan with a massive integrated casino resort. yvonne: that is later in the our come by and we also get an outlook on malaysian markets as we continue. this is bloomberg. ♪

♪ the betty: this is daybreak asia, i am betty liu and new york. yvonne: and i am yvonne man in

hong kong. the yield curve is at the lowest level in august since 2015, this saw. highlights what we combination of weaker inflation, and weaker than expected cpi numbers. solid demand is also for record demand.tions, boosting we have ubs asset management had of fixed income here in hong kong with us, hayden briscoe. bond options are pretty tepid, and we are seeing demand from indirect bidders. 10 year willn them be obsessed, that we will be heading sideways from here on forward? hayden: it really does feel like investors are coming back. having money disappearing into it, taxes going back to the federal government. so it looks like now, we will just wash around the 3%. .

point inflation as you pointed out, is pretty tame. wages are not picking up, not that well. a lot of that has to do with the fact that the biggest employer has been of the health care sector, a pretty regulated sector. held the wages take off if you are a highly regulated sector and the biggest employer in town. yvonne: energy prices as well. at what point do start to worry that it will rattle on investors well? we are talking about $100 oil, as big when america was saying yesterday? yes, we do have a long way to go before getting there? hayden: oil has been at that level it is, but core inflation is starting to pick up. we saw the number pick up last night, we have a 2 in front of the number, which i think is fantastic. i think the biggest risk to look at is outside the u.s.. for me, the worry is that like

it always does come at the domestic economy, they get led into the rate hike cycle and don't focus on the u.s. dollars outside the u.s. domestic banking sector. that is the big non-us global banks. we are starting to see cracks open up their. rates,that in the libor and argentina, in turkey, you markets.emergency risk offset here some places having to open up now because of the falling dollar market. yes, it seems like jay powell is saying that e.m.'s can handle it, but if you look at indonesia, turkey, is that the way that he should be dealing with this kind of issue? where you look outside the u.s. anything, shrug it off, or should it be more cognizant of what is going on? hayden: my sense is that the fed always follows that script. when you get late in the cycle here and they make a mistake, it ends up in a circular fashion, coming back to bite the u.s.

economy because the rest of the route is starting to get week. we are now in the second quarter of a synchronized slowdown happening around the world, whether it is your rope, japan or the u.s.. yvonne: but can we still see three rate hikes this year and 2019? hayden: i still think it is in the cards. historically, to to the 60's, usually we end up in a recession when the rate hikes 200 basis points and energy doubles. you have to have both things together. what he of had so far is a doubling in energy prices 1.5%, and we're pretty close to another rate hike. yvonne: just to say -- eddie fisher hayden, i love your glasses, by the way. i was staring at them for a moment[laughter] . betty:[laughter] outside of your great eyewear, we've had a lot of guests on the program shared this sentiment, which is that whatever happens with the fed rate hikes were

inflation, the emerging markets space is a bit more effort than it was 10 years ago, or back in 2013. ?o you share that view as well hayden: i think argentina just proved that it is not very well buffered at the moment. people focus on the price of the fed rate hikes, but they miss the supply of quantity and money. i have been working for 30 years, and this is the first time in my career where you have actually had the fed as a net seller of securities. it has been a buyer the entire time. that means, reducing supply around the world. the thing that is the hardest to get your head around is the supply of dollars in non-us global banks which are non-deposit taking or non-us the dollar deposit taking institutions.

so they get in trouble very quickly, and effectively, we have in broken out of this structural program that we've had over the past 30 years the most 1980's. emnne: in terms of the countries, malaysia, turkey, where does malaysia stand for you? hayden: they had a really surprising election yesterday, so it is a bit of a wash of the moment. a 92-year-old president coming in, he actually made a comment yesterday's surprising us, saying that we may want to hang around a little while -- saying that he may want to hang around a little while, even at that age. the market was closed yesterday, but in the forward market, there was a selloff. i think there are quite strong , they are in oil exporting country. betty: how much more do you think the ringgit could strengthen further? hayden: one of the things happening in asia right now is that we have been selling currencies that had current account deficits and purchasing

currencies that had current account surpluses. what is happening is that people are starting to trade as a bloc again. people are selling asia as a block and starting to put the lengths back and say, if they can sell off 20%, that is not it yet.g opportunity just we are word -- if the dollar takes off, that is the single biggest risk right now. we will start doing five or 10% of the dollar, which i think good possibly be on the cards, then yen will be under a lot of pressure. betty: hayden, thank you so much, hayden briscoe, for joining us. we have headlines from rusal noting that the current situation on the markets is largely affected by the sanctions imposed by the u.s.. according tocus the company remains on the maintenance of its operations

and will likely impact or materially be adverse to business. we saw reports earlier about treasuries soft tuning -- the u.s. treasury softening is stance on sanctions which so far have had an impact on the business. resolve is saying -- we have seen the prices tanking on these sanctions. wenne: right, and of course have seen a perhaps a bit more negotiation with stephen mnuchin about perhaps listing that. but there is a question about whether the leader will relinquish control as well. that will also be affecting the price here in hong kong, where they trade as well. we will continue to watch the headlines coming through. betty: a quick check of the headlines here, citigroup and goldman sachs will be chosen to advise on a global ipo for the automaker. we're told, they are discussing

a range of 15-30,000,000,000 dollars on the stock sale. meetings were held in hong kong this month to discuss the wall listing in many venues. yvonne: the biggest fall for this company since january, growth margins stopping dropping this year. guidance of high single digit revenue growth also fell short of revenue expectations of about 14%. betty: facebook shares have recovered from the data scandal that landed the ceo in front of congress. facebook has been scrambling to address privacy policies after revelations in march that a consulting firm gated data into tens of millions of unknowing users. shares had closed at $185 just before the scandal look. yvonne: dana gas said to make an agreement to restructure their bonds. sources say that the community

represented the bond is agreed to assess an immediate cash payout of $.20 to the dollar to roll it to a three-year security, which could end a legal battle that has unnerved the islamic finance industry. betty: the latest person to be accused in a global crackdown of currency manipulation. he was charged in taking part in the manipulation of african and currencies.pean it is said that he did this from 2010-2013, to eliminate competition by fixing prices and manipulating bids and offers. yvonne: malaysia's newest sworn in prime minister says he will do whatever it takes to fix the stock market. we go to paul lump or next with our team coverage continuing in malaysia with haslinda amin. this is bloomberg. ♪

lumpur nextkuala with our team coverage continuing. toand had to mom you called?

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♪ singapore. in yvonne: you can start marking your calendars, one month from today is when president trump and kim jong-un will be meeting for the first time summit. a lot of preparations are ahead of that internet four weeks or so. we are now a half an hour away from opening the markets there. betty: and i am betty liu here in new york, you are watching daybreak asia. let us get to the first word news now with paul allen. betty.hanks, president trump says he will meet with kim jong-un on june 12 in singapore tweeting that both will try to make it a special moment for world peace. singapore has security partnerships with the u.s., the

north korean embassy, and strong china.ith trump made the announcement after greeting three u.s. citizens free to by north korea, calling it a conciliatory gesture by kim jong-un. president trump says five top leaders of the so-called islamic state group have been captured, caught on a complex cross-border operation carried out by iraqi and u.s. intelligence. it is said that the three-month operation truck the groups hiding in syria and turkey. one of the people captured is described as a top aide to the leader, al-baghdadi. wage growth is set to be slower than the previous decade because productivity gains have been slower. the chief economist has said that that speed limit for which growth used to be 4%, but it is now about 3%. he also says, the short-term risk of recession is low. >> idle think we are at the end, i think the risk of recession is

low for 2018 and 2019. on the demand side, we are starting to get a good boost, contributing about three quarters of a percentage point to growth. on the supply side, clearly we are moving into a labor shortage environment. at an think we are far beyond full employment. paul: the dam bursting in southwest can has killed at least 44 people with dozens more still missing. water rushing from the hotel dam l rush throughte the city. flooding has killed over 100 people in kenya and displaced over 200,000. most three-quarters of kenya's 47 counties have been affected. global news, 24 hours a day, on tic-toc on twitter, powered by more than 2700 journalists and analysts, in over 120 countries. i am paul allen. this is bloomberg. ♪

yvonne: paul, thank you. the numbers seem to be pointing to a happy friday here in the market. let us get the latest with david english. david: we have seen the best weekly gains so far, going back about one month. earnings are decent in a japan, not so much in korea, but there , of course with the upcoming meeting with donald trump and kim jong-un. inflation also, we will talk about that later on. yields are actually pushing lower here and we are getting the south korean won, a little bit higher. an ringgit, we are seeing easing towards the strengthening of the ringgit. features indicating .9% gains, and positive movement across the commodities space. speaking of commodities, we $78 yesterday, it is

$77.50. that will warm up once. chinese markets open up and these other markets in southeast asia. also, these airlines will be listing as well. higher oil prices are also markets.he we will talk more about the inflation story a bit later on with kathleen, but look at the two-year, 2.53, 2.96 the five-year. 30 curve is at a flat rating since 2007, the lowest. i put together a very basic chart here. at the current pace, the five and 30 curve actually turned negative, the spread turns negative by august or september. so from about may to october last year, there's about 30 basis points. from poverty to make, sorry --

from october to february of this year, about 30 basis points, and from then until now, about 29 basis points. if you go by simple math, this converts by the summer. does it mean that recession is around the corner? that is being debated. betty? betty: think you so much, ingles. inflation as a global conundrum, many of the world's developing economies finding it hard to rev up increases just as the fed is trying to normalize raising interest rates. kathleen is here with more on that. this could signal that the fat ?ill possibly set tight here kathleen: well, we are closing on the next meeting in june, and a lot of people are thinking that they might pause, because inflation is going to rise, has been people are convinced. consumer pricing index is the

second most important indicator, continue tohan accelerate, it has paused in the latest month. let us look at this chart, i think the chart is a bit different from the others would have been showing tonight that it makes an interesting point. look at the core cpi. take food and energy, oil prices listed it up. for two months in a row, it is at 2.1%. what the chart shows, the turquoise line showing a three-month course of the, it acceleration.n the question is, does this leveling off in the year over year suggest a trend of acceleration being over, or will it continue and help to let higher? that is what we and that fed know.doesn't we know that the core cpi was held down by lower prices on cars, cable tv, many things. so maybe surprise pressures are coming out of the economy now. we saw a strong 30 year bond

auction that helped flatten the yield curve as david showed. investors don't seem to be worried. retail sales coming out next week, that is a big thing for markets and the fed and everyone will be watching. it looks like the forecast is perhaps that the april data will reinforce what we saw in march for retail sales. let us look at another chart here, tax cuts, remember. are they coming into play? maybe people have more money in their markets -- these are three months of negative retail sales. auto sales are negative for two months in a row, then you get a rebound in the latest month. that would have been march, to 0.6% up. not just autoas sales, it was also furniture, appliances, things that suggested that the consumer is feeling a bit more healthy and confident. the headline number is expected to bring a retail sales up

0.4%. the core cpi is expected to rise 0.5%. anything in that neighborhood, will show an anomaly. but consumers are back. if it disappoints, there is a bit? over the consumer, and over u.s. inflation as well -- there is a over thequestion mark u.s. inflation. i guess we saw the inflation today. the bank of england has been making some noise is about gearing up for rate hikes, so people were looking to this summer for the rate hikes to happen. but if you look at mark carney and what his colleagues at the bank of england have been looking at, they decided it is not yet time. this chart shows inflation in the top panel. and got up as high as 3% for year over year. -- thes been that

weakening of import prices, that was part of it. this lower chart shows you gdp, the quarterly change. look how weak it has gotten. in his press conference after the meeting, mark carney said, we don't know, maybe it was a climate. even so, with that in mind, he said rate hikes will still be needed, he thinks, because gdp and inflation will pick up. but they are going to be patient. let us listen to mark carney. >> given what has happened on the external side, that combined , combined with the week first quarter means that it makes sense to step back and say ok, we think momentum will be reestablished, let us see it evidence of that, before moving? kathleen: at this point, chances of a rate hike in august are now

seen at 50%, that is what people were geared up for. many traders and investors were ready for that at the and of the year. so you have to watch gdp and inflation in the u.k., then you get a better sense of seeing what will happen. yvonne: thank you, kathleen, our global economics and policy editor, joining us from new york. as we have been talking about, then you euro has began in malaysia where the new prime minister has been sworn in in a late-night briefing. he said that he will focus on growing the economy and reducing debt. added that solid terms may need to be renegotiated and also labeled his predecessor a kleptocratic over the 1mdb scandal. let us go back to haslinda amin joining us from kuala lumpur. about thell us more swearing-in ceremony? it seems like it was a long time coming from what we have seen?

haslinda:[laughter] it was definitely a long way, because mahathir wanted to be sworn in as soon as possible. it happen at 9:30 last night, because it was delayed several times, first at 9:30 a.m., then 5:00 in the afternoon, then 7 p.m.. so 9:30, there you have it. people will be talking about this for a long time, very few people saw this coming. mahathir is the seventh prime minister and prime minister for the second time in the country's history, going back more than 60 years. this is of course, the man who was pulled out of his retirement at age 92. you talked about how he made comments after being sworn in. one of the things he lamented about was inheriting messy finances. he said he is aware of a debt 10 banks amounting at $200

billion. he would like to reduce the debt as soon as possible. of course, this is an economy growing at 5%, the strongest in three years, so he has to ensure that momentum is kept up. we know as well, he has made promises during the campaign, that he will abolish the 6% tax implemented three years ago. some in the market are saying, what will happen to government revenue? that will be raised about $100 billion, but he has said the four that he will implement other measures to ensure that government coffers are left intact. yvonne. yvonne: he has so much on his plate, what is first on his agenda? haslinda: first on his agenda is to put a team together. we are hearing that he wants to do that as soon as monday. as you know, the opposite

coalition is made up of four different parties, some say it was a party coalition of convenience. if you refer to what the former prime minister said, he did call it a motley group of people. there is some truth in that. so it will be a difficult position, lots of negotiations hasprime minister macarthur in fact acknowledged the challenges ahead -- prime minister mahathir mohammed. he says that it will be a huge headache for him. betty: thank you so much, haslinda amin there in kuala lumpur who has been reporting on elections.an we will be going live to tokyo next and speaking to the president of international development for caesars entertainment, about the company's expansion plans for asia. this is bloomberg. ♪

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yvonne: this is "daybreak asia," i am yvonne man in hong kong. betty: and i am betty liu, here in hong kong. and maybe a few years before china opens its first casino. boating on the implementation bill is aimed on june 20. caesars entertainment is on of a number of major casino operators looking to japan. they have committed ¥25 million to find responsible gaming initiatives in the country. joining us from tokyo is steven tight, the president of international development at users.

there is certain -- at caesars. there was some challenge it japan in terms of expanding gambling. what would you say is the biggest challenge you are facing right now? steven tight: i think the government has been extremely it come ito pursuing think that was part of the stimulus package for prime minister shinzo abe. the challenges of population who have never been exposed to gaming resorts, they are concerned that we are basically bringing a big casino to japan. in fact, that is furthest from the truth. resortstegrated are about entertainment, and casinos are a small part of that. so helping to educate the people is the challenge. integrated resort experience being all about entertainment for the entire family. we know the japanese love entertainment. betty: they certainly do, in fact, all of asia, so in japan though, they have certainly

given more details allowing casino operators like yours to know what sort of lands to put in place there. was can of concrete details can you give us on your plans in japan? steven tight: caesars strategy embraceys been to collaboration with the communities in which we operate. so our plan is to work closely with partners in japan who share our vision for bringing responsible gaming developments to japan and bring caesar's form of entertainment which blends of not only what we do best with international entertainment, but blend that with our culture, their culture, the architecture and all that japan has to offer, with this incredible hospitality that exist today. betty: in the implementation bill though, the parliamentary session and quite soon, some time on a june 20, in fact.

do think there is enough time to have that pass? steven tight: that is a good question. right now, we are very happy to see the ruling coalition has reached an agreement on the main terms of the draft bill. it will now have to go through other and there are party issues to be addressed as well. we don't know if it will pass in the session, but we are hopeful it will pass by the end of the case.n any this has been a very long-term process, and we are excited to move forward with it sometime in the coming year. yvonne: to betty's question there, some of the proposals laid out when it comes to the tax rate, a tax rate of 30% for gaming, $55 fees for locals also, a 3% gross gaining floor area cap -- does it give you enough reason to get more clarity from us about how much you will invest in japan? we have talked to mgm before,

just a couple of months ago, they said 2 billion for them, can you quantify that for us? steven tight: it is still early in the process, we don't yet know which cities will be selected to host the integrated resorts. and of course, each city has a projected size of the market that is different. but we do know that caesar's is prepared to invest whatever it takes to create a world-class, uniquely japanese entertainment resort. yvonne: what is your timeline, for when the bidding process will begin? steven tight: if in fact the integration bill -- the implementation bill passes by the end of 2018, we would expect bidding processes to 2019.sometime in they first have to select the city they will be hosting, then we have to determine which consortium will be representing the city.

then it goes to the central government for final selection. we would hope that by the end of 2020, there is a decision, and licenses are awarded. yvonne: a couple of locations in japan have put their hands up on whether they want to actually build an integrated resort. of soccer, nagasaki, which are in are you interested in the nagasaki?aka and steven tight: we are in a unique position, we operate so many different types of resorts, 53 of them in five different countries. so we can offer something in any of those markets. we have expressed our interest in osaka, certainly the most .otivated of the areas pursuing a license we have also done a master plan for tokyo, yokohama, one of the first companies to look at yokohama. we hope the government will decide to pursue a license there. we think hope is also extremely attractive. so we are spending -- we think

.okkaido is also extremely attractive it is a marathon process, and it is the first step in taking off the bidding process. yvonne: are you working on any potential partnerships in japan? think,tight: caesars, i has the most partnerships in any of the big integrated companies, so we can reassure our japanese potential partners, that we have a proven track record of good, strong partnership that can be trusted and is transparent and transformative. that is i think, our message. we have talked with all of the interested japanese investors who have had initial conversations about the consortium to pursue a license. we will see as. the implementation bill passes, continuensortiums to pursue a license, and we hope to link up with the strongest. yvonne: steve, thank you.

tight from caesars entertainment, talking about bringing to the nose to tokyo. team into daybreak asia, 6:00 a.m. hong kong time and 6 p.m. in sydney. this is bloomberg. ♪

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asia.: this is daybreak betty: i am betty liu in new york. yvonne: and i am yvonne man in hong kong. let us take a look at what is coming up next, rishaad, what are you watching. have a look atl what is happening to the strength of the dollar of late, and we tame cpi numbers, will look at some of the more vulnerable emerging markets. we will also talk about the situation in malaysia which has been dominating headlines after the shock result by mahathir mohammed. we will get insights from a banking director. and also, what about the state of banks in hong kong? we will be talking about that, our next guest saying that they could be weakened by the growing linkages between mainland china kong.ng

sourness guest will be joining us at 9:40 hong kong time. betty: a lot on the agenda this friday, it has certainly been a. is a week before we head over to bloomberg markets: asia, let us get a look at how markets are trading right now after the rally today here. that japan nikkei adding 200 points, the korean kospi up about .6%, and we are learning the news that president trump and kim jong-un will be meeting in single or in a june. the asx 200 up .2% as well. yvonne: yes, it looks like things could continue when it comes to the rest of asia. singapore, kuala lumpur, or lump or is closed for the public holiday. in the lion city, singapore, we are seeing futures in the green, type aking at the stocks, we saw a decent session happening yesterday -- the taipei. we saw that tech stocks being again. favor once

we will continue to watch the markets come in over the next couple of minutes or so. certainly, we will also be watching a lot of what happens with the dollar. looking at this, there is some relief perhaps, for some of these em currencies and assets throughout the week. betty: that's right, the dollar, it has been interesting to see the divergence of opinions on focus.day, the big that is it from "daybreak asia." market coverage continues with rishaad salamat and haidi lun, next. ♪

rishaad: asian stocks making some gains, wall street hitting seven-weak eyes, data suggest breathing room on rate hikes, yuan leading currencies in this oft of the world, but whens -- winds of change blowing. why it could be getting easier for global speculators to short chinese stocks. in hong kong, i am rishaad salamat. haidi: in sydney, i am haidi lun. malaysia's new prime minister says the missing millions can be recovered and labeled