>> it is some :00 a.m.. welcome to "daybreak: asia." markets are set to meander. the trump administration puts a trade war on hold. that will come as some relief for investors. betty: i'm betty liu in new york where it is just after 7:00 p.m. evening. president trump to note the obama administration infiltrated his campaign team. the remaking of malaysia.

malays have nothing to fear from the government. some historic changes happening around the world. , that isabout historic happening in the u.s. treasury market with this 10 year yield. .et's pull up this chart on friday, we closed above the 3% level at 3.06%. 3.2% is veryng close on friday. it looks like this 3% level that we have been talking about for so long has finally been breached. we will certainly test this level in the coming weeks, but we have more bond auction.

more fed speakers, will this rate continue to hold? least i am counting at eight or 10 speakers this week. it will be very busy as far as rhetoric is concerned. the demand for a lot of these onions will be predicated what the fed stance would be -- the tolerance would be for inflation. down or ishat back this the new range? depend on the fed minutes coming out. betty: it will be interesting to see where we close this coming week. let's take a quick look at how we finished the day of trade on friday. unchanged.ty much a lot of concern about the u.s. china trade war. ,hat is hanging over the market

particularly the dow and s&p. some decline for the nasdaq down one fourth of 1%. not setting up for an enthusiastic day of trade in asia. david: no, plus it is monday. have a look at features right now. we could be looking at about 1/5 of 1% in the opening few hours. that is another thing to consider. have a look at currencies and how we are shaping up. the dollar is going for a six week of gains. when you look above euro, the sterling, maybe even the japanese yen, it looks like the dollar is overbought. we are poised for a reversal there. bond yields right now? about six basis points on the 10 year. inare watching that spread

europe of italian over german, the explosion that we saw last week and over the weekend. does that continue to move higher from here? a lot of things to consider. across thede data asia-pacific over the next few hours or so. let's get an update of the first word news. first up, venezuela is voting in an election largely ignored at home. the main opposition is boycotting what seems like a sham. nations -- washington says it will not recognize the result and warns that will sanctions are under active review. italy's populist party has agreed on a prime minister, bringing government closer as warnings grow louder about euro instability.

expected -- is they have not announced any names so far. france has warned the new administration must respect the debt commitment and not threaten the current currency. brexit secretary says supporters should trust prime minister theresa may to deliver on her promises. at the is in argentina start of a latin america trip to drum up post-brexit business. begin withtiations talks about the irish border. bloomberg has been told at atial misuse of money middle eastern investment firm may go beyond its billion health care fund. an audit commission including the bill foundation suggests that money was being diverted

elsewhere. a separate review by deloitte has uncovered potential discrepancies and other areas. 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. this is bloomberg. thank you so much. the u.s. and china out waving white flags on potential trade war after two days of talks last week in washington. policy editor kathleen hays here with more from steve mnuchin, saying that these tariffs are on hold. kathleen: on hold for now. they have had two consecutive weeks of talks. news mnuchin was on fox sunday. here is what he said about waving a white flag for now. >> we are putting the trade war on hold. right now we have agreed to put the tariffs on hold while we try

to execute the framework. the president has been clear since the first meeting in to-a-lago that we are going reduce the trade deficit. we have an agreement with china that they will substantially agree to it. let's remember what the u.s. has been saying it wants out of these trade talks. it would be good for the u.s. and china as well to become a more fair trader. big cut in a pretty a very short time. please stop stealing intellectual property. you must is not the only ones complaining. the threat is $150 billion of tariffs being put on chinese exports to the u.s., which would be a big chunk of that $370 billion trade deficit that the u.s. runs with china. speaking of tariffs, his chief

economic advisor was on face the nation and was asked specifically if the threat is still there. he said tariffs are often put out in trade negotiation. is -- itll there, it sounds like the rest is not eager to implement it right away. -- the u.s. is not eager to implement it right away. david: was there anything else? anything substantial that they were able to find common ground on? kathleen: to certain extent, they are finding common ground in the way that they are meeting to talk. there are some steps the taken to move forward. we have taken the trade war off the table for now. this is important. he went on to say that we made meaningful progress and we

agreed on a framework that includes the agreement to reduce the trade deficit by increasing purchases of goods. saying on sunday, china is offering to lower tariffs on goods that are important to the u.s., which will boost exports from the u.s. to china by billions and billions of dollars. take those steps to cut the u.s. trade gap with china. china is saying that they will fromore goods and services the u.s. and that they might buy more agricultural goods and energy goods. both are seeing more trade in manufactured goods. china is looking a lot at manufacturing goods. try to resolve this question of how to deal with intellectual property. steve mnuchin is saying that

wilbur ross will mediate with china to hammer out the details. background is in the with the summit in june. donald trump needs to have china in his corner. david: thank you. what kathleen was just talking about, this trade truth is our top story. there is the cover for you. bloomberg subscribers, tv is your function to get that on your terminal. it is also available on mobile. on theme little bit here in washington. president trump says he will be departmenthe justice to investigate possible infiltration of his campaign by the obama administration. the president tweeted, "i hereby -- that the department of justice look into whether or not the fbi/doj

surveilled the trump campaign for political purposes." bloomberg editor has more on the story. what is the president expecting to achieve in all of this? be a newfoundto front or an additional front in his ongoing fight to discredit the probe into the 2016 election or to shut down the pope. -- the probe. it seems like an extraordinary demand. we will see what happens tomorrow. it looks like this is another turn of the knife that we have seen from him. about aed a lot today

story from the new york times, that a trump campaign might have gotten help in the 2016 election or an offer of help from two middle eastern governments. the president's son donald trump, jr. was involved in that meeting. any time his family is is veryed, i think he protective. that may explain why he went off the deep end a little bit today. we will have to see how the justice department responds to this. betty: has there been any response from the justice department at all? have we heard anything? >> we have. we had a statement earlier this afternoon from rod rosenstein. he had a very neutral comment.

he said if there is anything to know about inappropriate behavior, or anything done by the fbi or doj -- or doj, we will get to the bottom of it and take action. that is a very neutral comment. doj already has an investigation going on in aspects of the special counsel probe. and will widen that effort see if there is anything to be found. -- i am sure they will act professionally. betty: to what extent -- given is this back-and-forth, how this distracting from u.s. china trade talks or the upcoming north korean summit? is it? >> one thing that president's lawyer has actually said more

thisonce is that having hanging over the administration is a distraction. it distracts from his ability to prepare for the north korea summit. the is something to be said for the time and emotional energy that he spends thinking about the investigation, detracting from his ability to focus on north korea. every administration can compartmentalize. you're talking about the trade talks going on. it does not completely stopped the administration. rudy giuliani suggested in a couple interviews that the trump element of the probe could come to an end in early september. they be there is some light at the end of the tunnel. maybe there is some light at

the end of the tunnel. they will have their lawyers and others work on this on the side. betty: thank you so much for that update. ahead, malaysian fortician called for an end the race wars. we hear from him later this hour. david: do not miss that. -- a milestone in investing. we will ask whether the market is actually prepared for that opening up. that is next. this is bloomberg. ♪

betty: this is "daybreak: asia." about 11 days we have

more than 200 chinese you shares joining the market index -- chinese shares joining the market index. open.esult of that small joining us to talk more about this is mark austin. thank you for coming on the program. there is a lot to be excited over. misguidedt be some excitement or optimism. there is a huge amount of excitement because this is the first that of creating a huge amount of momentum equities. ofs really brings in a lot passes money. you mentioned what we are seeing at the beginning. starts only about 5% to with. ultimately, china will go up to 100% inclusion in that index

area and that will bring a huge amount of money in. challenge will be over the years to come to take the necessary reforms around stock suspension, to be able to allow that money to come in. i think you are seeing a big shift. was do not position invest in china around the world three years ago. there are still reforms that need to be taken. now the default position is shifting. whether in europe or the u.s., the default position is you have to be in china. you cannot miss china. david: because of the inclusion, there is a forced aspect of this. this seems to be concern, short-term, that the market might not be ready. you do not have the closing option, the capacity from brokers to handle an influx of trade activity. what are your thoughts on that? >> i think the closing option in shanghai would help.

i think that will be something that will come. the stock extensions are more important. a couple years ago, it was very easy to suspend stocks. when the market was going down, stocks were suspended. the issue there is if you are tracking and index, and all of a sudden you cannot trade that stocks, you cannot track that index. that has been tightened up. we will have to see how that works. that is one thing that msci is looking for. betty: this is a first and smaller step to more inclusion in these msci indexes. do you think, despite msci taking this slow approach, do think foreign investors, in particular you investors, are ready to start investing in

a-shares? >> that is the impression that we have. you have to be an and you have to check that index. you have to be ready. they gave enough time for the markets to be ready. the daily creating quotas were increased. the dailynk -- trading quotas were increased. we think there is enough quiddity -- liquidity to make this happen. i think investors are definitely ready. the market is ready for this. betty: it seems to be that way. what are the questions that you are hearing as we see these markets -- as you are seeing a-shares opened to foreign investors? >> i think there are some after dayhrottling one. is there enough capacity among the broker community to make

this happen? our view is that there is now. the industry is ready. they know what they can expect through the capacity. that will be ready on day one and the days following. this is not going to be the same , where ifll of money you had 100% inclusion. that would be too disruptive to the investors and other countries in that index, that would see their numbers fall and could see their markets impacted. betty: that would come at the expense of other countries. speaking about 100% inclusion, do you see that? is that far off? is that a possibility in the next few years? >> we definitely think it will come in the next few years. this is the first step of making that happen. we expect this to go smoothly and we expect china to continue to take those reforms to make

the market able to deal with 100% inclusion. msci, we expect them to make announcements over the coming months. it will not go from 10% to 100%, it will go in the years to come. i think it is an area that needs improvement. we have seen improvement from stock connect. that is definitely an area where they could use more information. continue andt to research to continue. there was an impact because of the fact that the impact it had on research in europe. it is definitely increasing month on month, year on year. david: thank you. now for breaking news.

wherever you are, we have teamed bytwitter to launch tictoc bloomberg. taught me is verified by us. check the handle out. this is bloomberg. ♪

betty: bloomberg users can interact with the charts that we shall using the function tv . you can catch up on the key charts ford save the future reference. our new charts library at tv . rick sure to check it out. this is "daybreak: asia." david: i have been checking it .ut let's get you up to speed on the latest headlines. australia, energy rejected this for its power

station. it has plans to shut the plant down by 2022 to replace it with a mix of renewables. betty: looking for acquisitions to gain a bigger foothold in the u.s. tourism market. they told bloomberg they are interested in anything related to the sector from travel agencies and resort brands to recreational content providers. the owner has launched a new line of chinese resorts. after 11 years, blackstone is finally checking out. with this exit, blackstone will realize some $14 billion in profits.

coming up in the program, we had to malaysia where politicians talk to us. this is bloomberg. ♪ 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.

7:00 in0 minutes past the morning, beautiful, humid morning -- morning. 30 minutes from the open in japan.trade data due in information we will get when we get it. betty: we will indeed. it is 7:30 in new york. still a beautiful almost summer evening, where the markets ended the week pretty much unchanged. you can see the nasdaq taking a bit of a hit on friday. i am betty lou. david: i am david ingles. you are watching daybreak asia. let's get you up to first word news with ramy inocencio. ramy: thank you and good

morning. the trump administration says it is putting the potential trade war on hold after making progress with china on reducing the deficit. treasury secretary steve mnuchin says tariffs against asian are pod.use -- beijing are on they talked about wide-ranging tariffs of up to $150 million, and beijing said it would return kind. trade warputting the on hold, so we have agreed to put the tariffs on hold while we try to execute the framework. the president has been very clear since the first meeting with president xi in their a lago. -- in mar-a-lago. we have an agreement with china that they will substantially agree to it. ramy: to new zealand, the kiwi dollar slipped after the country's retail sales posted their smallest gain in three years. first quarter sales excluding

inflation expanded .1% from the previous three-month. that was against forecasting the 1% gain. fourth-quarter sales growth was 1.4%.d down from 1.7% to the former malaysian prime minister will be formally questioned about the 1mdb investment scandal on tuesday as a new government steps up its investigation into the missing billions. he put in a request for police protection following his party's shocked election defeat and the government for what he calls a campaign of slander and personal attacks. to the movies, dead pool and his crowd of misfits have succeeded in bringing down the avengers. the antihero sequel raked in $125 million at the north american box office, making it the second highest opening for an r-rated film and ending the three-week reign of avengers infinity war, but it fell short of the $130 million fox had

predicted and the $132 million its predecessor earned. looking forward to watching that. 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 ramy inocencio. lookingow i am also forward to that. didn't know it was coming out. in about 27 minutes, we get the market in tokyo, sydney, running. heavy as far as the releases are concerned. reporter: how did you not know dead pool 2 was not coming out? david: not -- royal wedding. reporter: looking out for this monday, we have china trade top of mind. we have japan figures due out shortly followed by trade and gdp from thailand. we have taiwan export orders, and we will get a read of south

korean exports for the first 20 days of the month. as you pointed out, these export-import driven economies give us a sense of the macro picture. we are getting a mixed bag for the futures so far. u.s. futures are on the rise. the u.s. is putting the trade war on hold. also this week on thursday the bank of korea is expected to stand with odds increasing against further normalization, this after governor lee sounded caution. he said it is difficult to remain optimistic despite growth, given uncertainties over the u.s.-china trade dispute and the monetary normalization in countries. david: the dollar is in a five-week run, and that is putting a lot of places on em on the cautious side. are we expecting pain? sophie: most likely. they have raised 2018 gains. look at this chart, which you can find on the gtv go library.

the msci currency index fell below the 200 moving day average for the first time in over a year, and that is signaling losses more compared to last week, the worst of 2016, but not a single em currency rising which has been declining with the dollar. putting more pressure on the , and that isrand hurting other asset classes. e.m. currency bonds caught their worst week since 2016. venezuelan bond likely to see a selloff. in asia, indonesia, they have been especially hard-hit, forcing banks indonesia to dip ,nto reserves to stem the rout but not everyone is throwing in the towel. isestments say this is this correction, although there is a trimmed outlook. su: betty: sophie kamaruddin

betty: on the market very let's stay on the u.s. market with the week ahead in wall street. that will see a new round of earnings. mark zuckerberg getting grilled again, and the fed minutes which could give us a clue on the pace of rate hikes and what happens to treasury yields. su keenan has the latest. su: zuckerberg will be in front of parliament. we have international events, but earnings will show through again as the key driver if the white house is successful in putting the trade fears aside. take a look at the market snapshot. the dollar and the bond yields were in focus, but as we head into the week, the focus will shift to the russell 2000 which hit an all-time high last week. can it continue the trend? and the s&p 500 had back-to-back losing days. can it get back in the green? take a look at the companies reporting. and some of these can as they

have on the winningest days push higher. target, tiffany's, in the retail, tiffany in the luxury end of retailing, hewlett-packard setting the tone this week. let's go into the bloomberg. gtv is our library of charts. for small caps, the russell 2000 is that a record. the s&p 500 is a bit away from the record it set in january, and the u.s. dollar, the strength of the dollar has everything to do with this. many of the russell 2000 companies, a lot of the smaller companies that get revenue here at home from domestic sales, they do not have a negative effect from the strong dollar, whereas the s&p international companies do. the stronger dollar causes a negative translation in currencies in their overseas transaction, so they are not performing as well. david: that currency impact.

midweek we have fed minutes due out. there is fed data on deck. give us a preview what to expect. su: they are interrelated because the data coming out that will be in sharp focus is the housing data. we have two reports wednesday and thursday, new homes and existing homes. come outprovided to strong. sales on wednesday are expected to be holding close to the elevated levels we have seen in the prior month, and existing homes, sales of existing homes will be little changed from the prior month, but in april they were at the fastest pace of years.nd roughly 11 they have not seen these that fast, and that is remarkable when you consider we are in a rising interest rate environment, and the predictions were that would have a negative impact on sales, so all this underscores the americans are reaching into their pockets, and housing continues strong.

we will be hearing from these reports on durable goods and jobless claims. you are looking at the fed chair. we will be getting the minutes on wednesday. david: thank you for that review. let's stick with the asia-pacific and look at malaysia. the next prime minister said ethnic malays don't have to hear about losing benefits. so he had previously suggested this match, these affirmative action policies -- let's put this all into contact with haslinda amin. it has been quite a turnaround. haslinda: you are right. a different message from 2013 when his opposition coalition campaigned on rolling back racial preferences for ethnic malays. based on 60%, whose boat is necessary for the election wins, but he did make clear that despite what is called --

policy, other races would receive based on merit and need. you told me this exclusively in an interview at his home. just -- hopefully, yes. that sort of idea, [indiscernible] but i think realistically we should also realize the sensitivity. the malay belt rejected a law, andwe are a bit ambivalent unsure. but lending support in the market [indiscernible] and went to pass, which means we should be then thinking enough measures to try and reach them. them thats assuring we are not going to i think no

or discard the -- know or discard the insecurities of the malays or the muslims. haslinda: does that mean the policy that favors the malays in a big way will remain in place? no.o my thinking, we will of course protect the position of the malays in terms of giving opportunities, but not helping them to become billionaires. haslinda: what will that entail? are you getting rid of that policy? >> no. our position is to dismantle the thecy, but to honor qualities in the constitution which include protecting the interests of the malaysian

population. and generally my discussions non-malays, there is no question. you give scholarships, that is not the question. the question is when you give richact concessions to the thosethen you ignore qualified of the poor or relatively poor chinese and indians, and i think therefore [indiscernible] haslinda: so david, betty, that has been an ideological shift, and that is another signal the winning coalition may be more coherent than thought. four parties with contrasting views, but in effect, with more convergence in their goals that given credit for. betty: great interview. what was the sense you get from

his ideas today compared to before when he was leading the opposition? time in: you know, prison changes a man. he said being behind bars, he has learned the value of freedom, and that will help you look past democratic pageantry to see how economic policies affect his people. some say that he has mellowed. he was more moderate, less radicalized than from 20 years ago. betty: thank you so much for bringing that interview for us. our chief international correspondent for southeast asia. don't miss our conversation with the new prime minister this week . you can catch it friday 7:00 p.m. hong kong time, 9:00 p.m. in sydney. -- a.m. in sydney. talk on the outlook for

oil and the geopolitical tensions, uncertainty over the opec curves, and what about sanctions against venezuela? this is bloomberg. ♪ this is bloomberg. ♪

this is daybreak asia. i am betty liu. david: i am david ingles in hong kong. let's look at venezuela now because there has been an election ongoing that has been ignored by many at home and criticized by many abroad. people are simply refusing to vote in what they say was a sham that guarantees nicolas maduro another six-year term. joining us from caracas is our latin america managing editor. give us a sense of what the mood is like. reporter: i think throughout the how there was surprised empty it was. you saw not only did the traditional opposition voters stay home but a lot of

government supporters as well who are disillusioned or kind of not in the mood to back this government for another six years. at this moment the fold -- the polls are supposed to close, and there is no announcement, so we are waiting for details, and results should come in a couple hours. betty: the fact that is polling stations were empty, what does that say about nicolas maduro, the candidates, and the campaign? reporter: it was an uncharacteristic campaign. there was little show, much optimism or enthusiasm throughout. see himfficult to coming out of this strengthened or with legitimacy at home went abroad. we know that u.s. and regional countries don't plan on recognizing the results whatever they are, so essentially he will be rolling over the same economic crisis they had yesterday, so not a lot will change.

clue what hen no will do to reverse this. betty: thank you so much, our latin american managing editor, as we await the results of the elections. opec members, venezuela and angola led compliance last month while not cartel producers including russia faltered. let's look at oil prospects. so there is certainly lots of criticism from the u.s. about the venezuelan elections and even a threat of sanctions, direct oil sanctions after these results. how likely do you think we will get these? >> good morning. this is not the first time the u.s. has threatened sanctions against venezuela's oil sector. it has always been on the radar, especially her out last year. thee is difference between

u.s. sanctioning iran versus venezuela, but the u.s. doesn't have any oil trade, certainly no trade with iran, it does have a fairly robust oil trade with venezuela. it imports almost 400,000 barrels a day of crude, exports abroad products, a stream -- exports byproducts. thatdon't think personally it will be that easy. there is a major -- the venezuelan company that owns the major refining system in the u.s., retail and network, it will not be that easy to impose sanctions. this is more of a threat, but probably the u.s. will not go ahead and actually impose sanctions. as for as the oil market is concerned, venezuelan oil production is doomed to plummet anyway. betty: i was going to ask you that as follow-up because if we

are not going to see -- we are unlikely to see sanctions on venezuelan oil, what does that mean if maduro continues to stay in power? what does that mean for oil production which has been plummeting over the last 12 months? when you say plunging, what are we talking about here? vandana: well, venezuela and by extension this company, the economic crisis is well-documented. they are having huge problems paying the foreign producers in the country, the service providers and so on. it is even unable to maintain -- some people are making rate that refineries. so we have had several -- chevron and political companies in the past few weeks going after the government -- the groups for different reasons. see production

compared to 2017 average, down 400,000 barrels per day, and there are plenty of warnings around 1.4 million barrels could go down another few hundred thousand a day by the end of this year. cuts fromghtening the opec, very dicey things -- very disciplined. all of that has basically created a scenario of tightening supply for the oil market. david: this is david in hong kong. we will get back to you in a minute. breaking news out of japan, the trade numbers for april are out. 7.8% up for exports, imports also up, missing estimates a little. when it comes to the trade surplus, a little bit higher than expectations, $626 billion. it is still a 17th straight month of export growth we are

seeing in japan. we are seeing details on trade with individual countries, china up 14%.%, the e.u. we will break down those numbers a bit later when the markets open and see if we get reaction. from that perspective, let's get back to the conversation. she joins us out of singapore. your mind andt of the americans deciding what they did a few weeks back, there will be pushback from asia, europe, but do you expect everyone to get in mind -- in line behind the u.s.? vandana: probably not. it is hard to say. the situation is very different from the last time around when we had the most severe western sanctions in 2012 to 2015 against iran. there was a consensus in the international community, was in favor of doing something about curbing iran's nuclear

activities, and is divided now. on friday the european union has moved to start the process to put in place a blocking statute as it is called, which will prohibit european companies from complying with u.s. territorial sanctions. easy, butgoing to be the european companies will have to basically balance due they risk u.s. sanctions or european sanctions? but this would give some more , andrt to asian pushback really three quarters of iranian crude exports actually come into asia. tiny -- china and india alone get all of that, and these countries were that compliance. they did push back a little bit. japan and south korea being u.s. allies were a little more accommodating of u.s. demands to

cut back imports. i expect china and india to push back more this time. much on youryou so insights. the oil markets. we are getting headlines here that santos gets the approved, gets approved offer from harvard energy at $5.21 a share. this has been a continued process between santos and sovard energy on a proposal, harbor energy at 5.21 per share, subject to additional oil hedging. this is another chapter here in this acquisition between these two companies. we will continue to monitor this also as we go through and show approval and regulatory approval as well. more ahead. this is bloomberg. ♪ is bloomberg. ♪

betty: a quick check of the business flash headlines, tesla has announced two new versions of the mass-market models. they feature a shakeup in management, a less expensive car and dual murder -- dual motor far. they try to ramp up production's a proxy adviser is calling on investors to reject to board members and once the company to split the roles of chairman and ceo, positions held by elon musk. transformative man died. he turned them into a global tech and power -- powerhouse. he felt ill a year ago and died sunday morning. was expected to be succeeded by his son who was nominated to the company's board last week. coming up in the next hour of daybreak, ubs' harman joins us.

what they are saying to investors, a lot of noise but stick with stocks. he joins us in 10 minutes. this is bloomberg. ♪ s bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around.

>> welcome. our top stories for the asia-pacific involve the new trading week. this is another story. you look at the relief for concern thate and a conflict could undermine the global economy. >> it is just after 8:00 here on sunday evening and trump is hitting out at his predecessor and wants to know if obama and full traded his campaign team.

>> the u.s. is now weighing sanctions. hello. good evening. happy monday morning. just to recap some of the trade will pull thise chart here for you and the herets are up a little bit story onis the longer trade here. this started to roll over. will we get a rebound? we will have the reports on

day. later in the >> trade is complicated here with the looming possible trade war and that strengthening dollar in the currency markets here onots of figures that charge. >> thank you. slipped after the smallest gain in three years. this was against the forecast of came as saleshat were revised down. is voting in an

election that has largely been a it is beinge and seen as a sham to hand maduro another term. washington says it will not and says their results that sanctions are underactive review. in the meantime, there is agreement on maduro's stability. the five-star leader is expected to propose a cabinet and has yet to announce any names. must not threaten the common currency. there will be a questioning about the investment scandal on tuesday as the request was put in for police protection after

the election defeat and he blames this on a campaign of slander and personal attacks. is bloomberg. >> thank you. the markets are sluggish and we are here with the numbers. >> we are getting engines revving up and we have a check on the exports and the and ports year rise in on two months with the first 20 days of may and we have a little bit of a change here with the 1/10 ofnder pressure by

a percent. there is a heavy focus on the market and we have the futures pointing higher with concerns around the u.s. and chinese trade dispute. weeklyp the longest losing run as the dollar steam.s steams -- gained quickly, i want to put on the and a call to stop a deal. that is a corporate story to keep your eye on. storyhave more on the top with the easing of trade and

washington says that tariffs are announcement a new andn increase in expenses this is toning down both sides here. >> it is right that both sides statementring a joint to increase the imports of agricultural and energy products and both sides have committed to strengthening coordination on intellectual property and trade on goods, leading to the u.s. putting on ice tariffs it imports.d to impose on take a listen to the treasury secretary speaking earlier.

>> we are putting that on hold ande execute this framework we are going to reduce this trade deficit and we have an to.ement they will agree >> what we did not get was details on dollar amounts that china has committed to war a clarification of commitments said on friday to reduce the surplus and it remains a question to be answered with no strategy to boost sectors like electric vehicles and artificial intelligence and there was no demand forthe

investments to be treated on an equal footing. tensions ring down substantially from the previous week. >> this is a lot of information to process. what is next? >> the next step is the commerce secretary going to beijing to hammer out some of these details witht is a complex picture some factors that feed into these deliberations that we should bear in mind. seen as both sides not wanting to be at loggerheads with this meeting that could go

ahead. this is an issue and we heard from a respected china-watcher who said that this was a brief de-escalation intentions and fundamentald differences on trade and other economic issues that remain unresolved and this could be easy with longer-term structural issues remaining around the high-tech industries. >> thank you. our top story on daybreak, have there with this storiescan get the top

and,et your day going connected to that, the death of the old markets with bonds. are we there? thisbear market with on ahead? we will continue to drive up this week. are we there yet? safe to sayfairly you can look at this chart here and this goes all the way 1988 and you have how

long this is and this puts the you get 1.5% and and it is thesh 10 year note yield that becomes the benchmark. ,he chart is impressive and right now, you get the bond above their and the there andeld level

you are looking and you can see how each one of these would the strong and, speaking of a test, the treasury supply is coming this week with the fixed rate total is a lot of paper at once with the fed hiking rates and treasury supply seeng and it isn't hard to why people say things have changed and the bond market has a long way to go. >> it would seem that way and speakers to fed complicate that picture. once we have eight different that andthey said

everyone will want to hear about how cautious they sound and if they are getting more concerned about inflation. he doesn't think that the fed , onld hike the rate and wednesday, we have the minutes of the meeting that many did not think sounded as hawkish as it could, when it comes to the rate bees and there will short-term paper in the coming weeks. will that flatten the yield curve? let's look at the flattening line with ae white and itbit flattening

gets down over 27 basis points and becomes a big question in a tightening labor markets when bonds are more bearish on . direction ande the 10 year yield was that 10% and it really isn't that bad. the economy is doing better and the yields probably should rise. >> the venezuelans ignore an election that could set the town for decades. we will go live for the update. risk and sports.

here fromned singapore next. this is bloomberg. . this is bloomberg.

>> this is daybreak. the return of the stock markets does not mean that the good times are ending, but investors need to be savvy about adjust the and exposure to the downside in areas with risky credit. joining us is the head of asia-pacific equities. .xplain this you say that investors are being

a bit passive in the markets. that wanted to emphasize central banks have really supported us in the equity and we arethis stays giving a couple of interesting aspects with volatility cyclically going up. space, we canity actually have volatility works in your favor and getting gauged in equity markets with hedge funds that have historically had a bit of difficulty and things do not move apart from each

seer enough and we now evidence of this active approach working and it's not that we don't like equities for the country, but it is time to look for different sources of return. >> you mentioned a focus on the 10 year above 3% with a focus on higher yields risk. underestimation of what do you mean? space isnd particularly interesting and gets challenging in pockets. ant i mean is, to give

example, this high-yield space that is supported and you wonder if it deserves the name of high-yield, at this point, given what the yields are that you can get and we have our overweight position here and we think it is worth having to get compensated compensated.lly , wehe emerging markets think of this as a cyclical play and we don't think that the cycle will end, but it is other regents still

have a bit more momentum to go, even given the economic acceleration happening in asia with some focus on more rotations that happened and they should benefit from that. >> part of this report is that you say that investors are not sufficiently thinking about the long-term. define the long-term for us. what does that mean? a series of ideas we call long-term investment and we are looking beyond a business something that is not

only cyclical. also talking about angles care insm and health long-term being 7-10 years. >> ok. i know that you are an equities i hope thatuy and you don't have a biased version of the world cup. you have germany winning the world cup. can you tell us how you arrived at that? >> it was a bit of a statistical sectors to forecast on

and we shouldn't rely too much on past performance, but there is an algorithm that we look at involving the recent past and overlaying that with a monte carlo simulation. have some of the highest it's for germany, brazil, and spain. my colleagues will surely cheer for the other teams. >> thank you. he is there out of ubs. you look at that ranking and i feel violated. they should not be that high up.

more importantly, you can become part of the conversation by sending us messages. this is bloomberg bloomberg

>> you can interact with a lot of the charts that we bring up on the show here. you can catch up on the analysis and this is daybreak. check of the latest business headlines. withproved takeover offer six aussie dollars. proposal is based on

doing more hedging and the firm offers approval from the board. offer has beennt rejected for the power station -- new southell's wales. now, the government has been to sellng the operation to someone who will do well. fourth-largest conglomerate's chairman has -- he fell ill one year ago and sunday morning.

his son was nominated to the board of lg last week. his son was nominated to the we are going to ask about what is being called a sham vote and how that could affect the energy markets. markets. 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.

>> we are half an hour from the ouring of markets and starting point today had inflation out and -- >> we have a lot to look forward to. you're watching daybreak. let's get to the news. >> thank you. the trump administration says it is putting the trade war on hold after making progress. president trump said that there

had then the threat of wide-ranging tariffs. warned that it would retaliate. >> we are putting the trade war on hold and the president has we arery clear that going to reduce the trade have an agreement that they should substantially agree to. >> exports picked up after a let's -- lackluster performance in march. andments of rod were 7.8% in down deliveries rose just under 6% with the estimate of of $5.6 and a surplus

billion. that hehnson says should trust theresa may to deliver on the promises. formalt round of negotiations begins with the talks stalled. crowd ofool and his misfits have brought down the avengers. this makes this the second-highest opening ever for an r-rated home. short of theell 132 million the predecessor earned. powered by is

journalists and analysts in 120 countries. >> this is bloomberg. >> thank you. time for a look at the market and a little bit of steam was lost after this. ande are seeing moods sour take a look at what is going on in tokyo. andee the support coming this was despite the largest trading partners seeing trade frictions at that time. we are seeing pressure for asian currencies and this is the worst-we really losing streak since 2015. investors get a handle on the and they namedes

who will be holding the ministerial positions. this extended the losses from last week with relative stability helping bonds and i want to show you what is andhappening over recent months its a defiance of the selling off and the bank staying dovish with korean bonds this month and we are learning more and thee bank of korea korean economy. >> ok. energy has a new bid with verizon the company at just over

-- paul allen has this offer in a. >> the offer just keeps getting thater with this increase and this isay arise and 11 billion euros and we now have them in a trading whole. the share price is up. of this isr part attaching a condition. andt has to do with hedging a change in that hedging plan

santos agreeing to hedge the outputs and shareholders were told to take no action of certainty reached. bloombergurveyed by seem to concur as well. you have a couple of buys and a sells. of cell in venezuela, the country has held elections that have been largely ignored at home. to comeple are refusing in and participate in what they are calling a sham election. this is live from the ground. here is our reporter.

you.w, good to have .ive us a sense of the mood >> it is quiet in the streets and the polling stations are open with few on the streets. and peoplese crowds were coming out to play pickup soccer and dominoes in the street and the highways, we saw a few cars and the past elections were a party here and we did not see any of that today. this was more local or municipal. so, what does this say about the candidates and the campaigns and the results we will get? the main opposition is

boycotting this election. they are staffed deal a total authority and wanted more time. they said they have been able to it doesn'twds and seem like people believe them and me rolling blackouts with rampant hyperinflation and there is a lot going on. >> ok. we will watch for the results. that is the oil markets with the crude trading

above 71 bear -- $71 a barrel and there are tensions in venezuela and iran. let's get more from our editor. it jumped about $80 and is trading near highs. tell us about some of those factors and whether the results of the venezuelan action will impact energy prices. , it is brent, wti trading at a high and there are factions -- factors. is expected to win and most outside observers call this a sham election. thatther part of this is we have 2.4 billion barrels a expectatione is no

theift production and expectation is that the country may plunge further into crisis to this is contributing those prices. goes into sanctions with iran and you could see oil those are factors helping to drive prices higher with global inventories more in opecce and that is because has these production cuts and i think that those factors are helping brent trade.

there are risks that seemed tilted to the upside with prices and i would imagine is encouraging a lot of supply to come to the market. how does that affect the overall balance that we are seeing? see producers and there is price and there could be limits to what they can export. there is growth they may be able to have this year to export more limits to how much more they

can export with more they can export with disruptions and exports falling off from places like venezuela and iran. could lose production some. >> thank you so much. thank you so much. now, coming up here on the program, we go to malaysia and allegations of corruption as he plans to meet in the country. anti-corrupt agency. plans to meet in the country. anti-corrupt agency.

>> this is daybreak. former malaysian minister is going to be questioned of the state investment funds with some of them ending up in the bank account.

this forerious is them? this shows the investigation this isng momentum and that the headquarters for ofsday and the investigation international. there has been a rejection of the claim with a statement reported at his home now. they said the scandal was much worse than initially thought and one of these was on friday evening and he threw his full weight behind this days after getting released from prison.

believes he is fully behind the reform agenda and the common desire to address the widespread corruption that brought them together again. here is what he had to say. he should be given double opportunity-- ample is my believe he should be given all of the support possible. it expresses some of my concerns and desk >> in your conversations, what

are the priorities? this is the need to ensure with professionalism and the independents that must the dust >> do you see anyone getting put the hindindependents bars? >> i cannot get into what will happen. ask about this. -- ouldn't have happened

[indiscernible] from thequandered people and the wealth of the nation, he has to answer. much cantic way, how the current government achieve in the next five years? >> we could dismantle this to and it seemsa comfortable with --

[indiscernible] it would feel great with this. >> a lot of this comes from fitch and moody's and say, you get rid of this and it isn't compensated and is credit negative. your thoughts on that? can look at this .xclusively

there is thethere is the decisie we corruption and it means and the increase in the to hopefully and that. -- end that. isa power transition expected in 1-2 years. policyaffirmative-action , what do they say about that? took over from there and have thehat this will security of held and said that correctingfocused on

economic inequality. town.a full change in >> thank you. conversatione full there. we will be showing that on friday. that and ford for more on the program. this is bloomberg.

>> this is daybreak asia. at theave a quick check latest headline. moreys he won't put product into the market unless the prices go through the ceiling. the brazil-based miners have been keeping things in the ground to prevent another glut that kept things low. >> a look at tesla. mass-marketn of models to shakeup management. the less expensive dual motor advisers not

-- ing on > the carrier will add extra services and is pitching for slots with china southern planning closer times for foreign travel. slots with china southern planning closer times for foreign travel. slots

rishaad: muted start for a new trading week. asia-pacific stock markets struggling for direction. dollar-yen weakening through 111. united states says the progress made with china on tariffs are on hold. in hong kong, i am rishaad salamat. haidi: in sydney, i'm haidi lun. also coming up, the remaking of malaysia. the veteran prime minister must begin in every support, according to an official. this is "bloomberg markets: asia." ♪