u.s. stocks reach of their highs as the economy tops concerns about a trade war. last, as g7 may not leaders prepare to meet in quebec. others threatening tariff retaliation. bigpple takes a slap at data, saying privacy is important and offering and app to tackle screen addiction. >> and we know the wind, but not aware. the president will meet kim

jong-un next tuesday in singapore. -- hellofrom cindy from sydney. we are two hours away from the open. i am ramy inocencio. we are looking at the action on wall street, playing into the asia-pacific trading day. looking at the markets, we have another bump in the stocks. up example, the s&p 500 was by 7/10 of a percentage point, excuse me 5/10 of a percentage point. nasdaq hitting a record. this was in large part because of what happened on friday, the wage gains we saw, 2.7%. and despite all of those trade war fears that we have been talking about with china, as well as with the u.s.'s allies, mainly the european union, as well as canada.

hop into the bloomberg, gtv in the bloomberg library. you can see the breakout that the s&p 500 has done over the 274.687,weeks or so, the last time we hit that was back here, if you follow along, mid-march. 2.5 months ago. you see the drop earlier, that was the italian populist government fears. we have pulled up and away from that. but the question now is whether oris is just the now, or fe the future. haidi: looking at the fragility of this rally, how investors will be getting out if we see another bout of volatility, but take a look at how we are setting up in asia. an excellent handover from u.s. equities. the effect of the blowout johnson report still playing --

jobs report still playing out. and new zealand stocks coming back online, after yesterday which was a publicoliday, upside there. weakness in0.30, the u.s. dollar after pushing seven weeks of gains. eventsey, a lot of risk committed, not list -- least of which is the rba decision. expected to stay on low. the aussie dollar after hitting a six-week high yesterday following impressive retail sales numbers, 76.49 is where we are. and we spoke about the rally in equities overnight, not so much in the commodities complex. crude, a little bit of a lift, but falling to the lowest in about a month for a third day when it comes to wti after the open committee stressed a need to ensure that supplies could meet growing demand, getting into the opec meeting in a week or so.

bloomberg commodities complex, index i should say, down over 1%. some of the biggest losers, the attention of trade between the u.s. and china playing out in this space, sugar off by 5% at also falls in cocoa overnight. now first word news. jessica: thank you. hassenate majority whip announced talks have missed a key deadline and congress probably one of time to approve a new deal this year. paul ryan said early last month wat the u.s. legislators work out a deal by may 17, that way they could go before the u.s. congress and. -- ends. he said there could be wiggle room, placing the deadline around early june. apple making its strongest statement yet on privacy, also the inclination of companies like facebook to track users.

the head of software engineering at apple says they will make it more difficult for big data to monitor individuals. the news came as apple announced a range of new software, including features to help global users ween themselves off of their screens. and the supreme later telling officials to boost a nuclear program, all remaining within the framework of the 2015 international agreement. he said he wants preparations to begin on tuesday, but did not elaborate. however he said the europeans should not expect iran to tolerate new sanctions in the atomic industry under restriction. president trump is stoking the debate about his powers. he tweeted he has the right to pardon himself, although he has done nothing wrong. his comments come as the white house sharpened defense and against the investigation into claims of russian meddling during the 2016 election. rudy giuliani says that

pardoning was possible, but would lead to impeachment. global news, 24 hours a day on air and on tictoc, powered by over 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. ramy: thank you very much. taking a closer look at the rally on wall street, definitely risk on with stocks rising to their highest since mid-march, treasuries falling, and microsoft announcing a $7.5 billion deal. we talk about it more. this is like a, what trade war concerns? >> absolutely, it looks like stocks have put it on the back burner. going to the snapshot, a lot of optimism about the strong u.s. jobs number on friday. so if we look at the nasdaq, we saw a record that have to do with microsoft. you also saw the yield pushed up for a fourth to take up session as bonds fell. let's go into thecks in

focus, microsoft at the top. for getlion deal is help -- a coding company. a very big deal. apple at the top, because -- is almost at the trillion dollar mark. no u.s. company has hit that mark. they are closing in on it. at manager $50 billion as of today. and a hint of a trade war here, because canadian solar took a drop. ancillary to the issue, china drawing a lot of subsidies in solar, one of the big funders of solar around the world, drawing back and change in the way it does subsidies, having a very big impact on the industry. take a look at the gtv, where you find our charts. this one, we will go to a video -- we will look at the chart.

starbuck you can see the company has been under pressure. there goes the addition of stores. there have been struggles to raise the business here in the u.s., and today other news, a disappointment, the chairman will be leaving the coffee chain later this month. he is 64-year-old, a titan in the industry, he tookt aroun the world. and so this is a very big move. starbucks of course has been under pressure, not just to raise a sales, but socially. it recently closed 8000 stores for sensitivity training. haidi: yes, he is synonymous with starbucks and the brand. i touched on commodities, very different story. being led by oil. su: and with gold, trade war is still a concern. some of it did impact the trade. let's go to oil, we saw it come

down, really below $65 in the latest trade. you have to realize that weeks $100.e were saying $80, is concern that it could be baked in the cake, that the opec oil output curves will be coming off. there is also a concern about rising production in the u.s., so we w it fall below the 100 day moving average for the first time since september. gold with a similar story, it is really coming down. the data available to bloomberg shows that we saw a huge drop in demand for the precious metal, particularly for the metal, open interest positions plunging the lowest this year. again, the safe haven demand really coming down and the rest of the dollar, which has been strong in may come a part of the story as well. -- in may, part of the story as well. haidi: we do have an eye on

geopolitics, as always. more details about the summit that will take place in singapore. le white house says the will be meeting and 9:00 and local time, but we do not know the location. and the strategy of isolating north korea will continue. we will bring in joe, what does the president have to offer in terms of a deal going into the meeting? joe: that is still a little unclear. members of the administration have been giving varying accounts of what they want, what they expect. there has been a little bit of back and forth on expectations, this was on, off, now back on again. but they are maintaining that they will not ease on sanctions in any sort of incremental form, that they want a more complete agreement from kim jong-un to denuclearize. that is, get rid of nuclear weapons. there are a lot of questions that remain, including ballistic

missiles and such. they say that that is the main reason the talks are taking place, but there could be other factors as well. foreigner director of intelligence was in d.c. today, saying that one of the reasons the north koreans were ready to come into the talks was because the north korean nuclear program had been so well developed. it will be a lot of material that they will have to go over before this summit comes to any sort of agreement. ramy: joe, even before singapore we have to get through quebe donald trump going into the g7 meeting. is the u.s. bringing anything to assuage the allies at the summit, especially with the tariffs coming to against canada, as well as mexico? joe: there seems to be a sense of exasperation in the other

leaders, so donald trump will be facing a disruptive -- a disgruntled group of leaders, including the host justin of trump.ho has been sharply there seems to be some expectation that this can change on a moments notice. we saw that the treasury secretary, steve mnuchin saying, we are putting the trade war with china on hold. next thing you know, we had ffs. tariffs were announced, then exceptions made for the european union, canada and mexico. ack on again so it does give them some room on these things, but the president seems to be in no mood in giving on this, because it plays well with his political base. ramy: going into the midterms in a few months there too. donald trump has an assertion -- saying that he could pardon

himself. what are the details on this? joe: this has been a sort of academic question in law schools and among legal scholars. a man be a judge in his own case? which this would be. there is obviously a split on this. some scholars have said that the president's power gives him pretty much broad and unlimited authority on pardons. it has never been tested. if he were to do something like that, or declare this, a special tonsel invalid, it will lead a year, perhaps a years long fight in the courts that will ultimately have to be decided by the supreme court. and it is, as i said it is an untested theory and everybody in congress is it sayiill not get that far to be tested.

haidi: joe, thank you so much. our bloomberg news editor. we are getting some lines crossing the bloomberg, adding more certainty to the report that cannot yesterday that -- was looking to purchase toshiba, but toshiba saying it is talking about selling its pc business with another company. we had this brought out yesterday with sharp talking toshiba'sal to buy pc' business. toshiba has been selling off parts of their business. and it's losses in the u.s.. trying to get more details on that, but it does not appear that the company is saying who is in talks with. ramy: we will get you more

information as it drops across the terminal. looking ahead, apple unveiling a range of improvements, including ways to cure iphone addiction. do you have that? we will get you e latest from the developer conference in san jose. say u.s.fore that, -- trade tensions are like a snowball that is rolling downhill. this is bloomberg. ♪

haidi: we are counting down to the start of trading in sydney. futures looking a little bit shaky. we had a severe selloff across the commodities overnight, so watching to see that play out in a negative way when it comes to some of the oil and energy names, as well as agriculture. they are looking to suffer in today's session. and looking gloomy, to reflect

the market open. ramy: it sure looks like it. i'm ramy inocencio. you are watching "daybreak australia." more on u.s. stocks closing at a 12 week high on renewed economic optimism. joining us is frank lubinski. i want to get your initial reaction to the market close, because despite what has been happening with tariffs and trade, it looks like everybody is still optimistic and there is strength in the u.s. economy and that is what people are trading on. frank: you have seen strength in the u.s. economy for some time. what is interesting, the market can be schizophr. last week we had issues on trade, on the italian political situation, which overshadowed some of the u.s. economic data. but then as you go forward into friday, you got strong economic news here on the jobs report,

combine that with the easing of the italian fears, and it set off a nice market rally was continued on in two today in the u.s. ramy: how long can it last, because this could be a bump? what are your thoughts moving ahead? do we return to the volatility we saw a few days prior to the jobs? frank: our concern for the year has been that there is more -- it will be a new regime of volatility. we were very spoiled as investors over the past year. if you look at 2017, where you had nice returns, but volatility was not that big. and-forward to this year you have already seen 10% cline in the s&p at the start of the year, then another 7% later on, and also a single digit one. so we have had a lot more volatility, only up 2% for the year.

compared to last year, when the s&p was up 20% for the year and the biggest draw down was i think about 3%. an investor, you have to think what are my risk invested returns. you have to factor in the new regime of volatility. ramy: bringing in the investor aspect of things, it is also whether to pull the trigger on investing itself. we had someone from morgan stanley here earlier, let's take a listen. >> if you do not know how supply if youwill be disrupted, cannot anticipate what your pricing structure will be like going forward, you will delay investment decisions. so there is some measure of investment here from trade policy and trade attentions, and at the escalation that seems to be playing out, that is counteracting what was supposed to be a better investment backdrop for businesses coming into this year, because of the

tax cuts, corporate tax cuts and incentives to invest. ramy: we were expecting something better, it was all set up because of the tax cuts, but of course with what is happening th tariffs, possible indecision here. what about the impact of this and when we could see this? frank: i completely agree with that statement. had an upside catalyst for the gdp, but being a globalized economy any uncertainty that is raised because of global trade and supply chains are very global, that is going to delay corporate -- to delay and the corporate board will have to think him a do i want to make the large investments when the outcome is unsure because of the uncertainty from a global perspective. it adds a level of risk, which not only from the corporate side, investing corporate dollars, but also from the investment side when you look at

asset prices. haidi: frank, the other uncertainty is clearly i think the economic fundamentals, where inflation is going, and the historic models we are referring to are breaking down. i want to bring up this chart, global central banks still missing inflation targets, boj is nowhere close, the bank of england is the only one that has gone above that, and the fed is getting close, but not quite there yet. is the risk of a policy misstep looming large at this point? perhaps the fed is too aggressive? frank: we think it is. our the of is the terminal federal funds rate will be 2.5%, only three hikes from here. it gets to the question that has been pondered for the last couple years in economic and macro circles, that is what is the real neutral rate? we are under the belief, because of demographic changes and

technology that the neutral rate is lower and that we are pretty much close to it. thef we do get, i call it four by fours, the people who think we will hike four times this year and next year, in our forecast that would be a fed policy misstep. haidi: we talked about the shift of growth back to value, when we have the selloff. have you actually seen that take place in the market? frank: you have seen the fixed income from an equity perspective, you know, small caps have done better. you think about how trade, it will obviously affect more of the global companies, so if you are a domestic player and now you have a lower tax rate that will affect your bottom line a lot quicker and he will not have the same exposure. sure, you could have exposure on the supply chain, but i think

you are seeing a rotation from that perspective to get away from the global fears and more toward an insulated domestic play. haid frank, thank you so much for joining us. frank: thank you for having me. haidi: you can get more on the stories you need to get your day going. you can go to your terminals, gtv . also available on the bloomberg anywhere app. you can get news on the assets that you care about. this is bloomberg. ♪

haidi: let's get a quick check of the latest business flash headlines. anthem saying they are under investigation in china. macron says it is also being visited by regulators. samsung says they are cooperative with authorities.

none of the three chipmakers have said why they are being questioned, although the south korean media says china is accusing them of colluding. ramy: nintendo investors want answers after the thought suffered its biggest two-day drop in 18 months. shares stumbled more than 6% on monday after losing 4% last friday and it left the price at its lowest ever since september and at its biggest discount versus wall street targets in a decade. theories range from falling expectations for any positive news at next week's conference, to trouble with online games. haidi: u.s. based digital currency exchange coinbase is expanding into japan, raising its profile in one of the hottest crypto markets. the company already operates in over 50 countries. and coinbase will need a license to open up in japan it is says it is in discussions with the financial services agency.

just ahead, privacy and performance, apple comes up clean with a range of new software that helps those screen attics. we will get -- addicts we will get an update from san jose, next. 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.

haidi: markets open in just about 90 minutes, features looking a little bit negative. we are expecting to see the central bank keep rates on hold as we have inflation not near the household debt is fairly high, and a lot of uncertainty with a trade situation, australia exposed to that side of the growth story. haidi: i'm haidi lun. ramy: i'm ramy inocencio. you are watching "bloomberg daybreak: australia." now first word news. jessica: the white house has announced the first details of president trump's historic

summit with kim jong-un next week. they to will be meeting at 9:00 a.m. on june 12, although not clear exactly where. the agenda is also unclear. both sides say they want denuclearization, but that means differ things. the u.s. want north korea to abandon nuclear weapons, the north wants american forces to leave the peninsula. reports from washington say that the former white house economic aid gary cohen withheld payroll numbers from donald trump. he held onto the information out of concern the president might comment on them. week move the markets last , tweeting that he was looking forward to them. news thatcks fell on the chairman is stepping down. he took the company from 11 20,000 andmore than 77 countries. his the pressure comes as a u.s. sales growth slows.

and as a starbucks was criticized for the arre of two black men at a philadelphia campaign. there is speculation he may run for president. and the number of people killed by guatemala's volcano fire has risen to 62, and it is expected to go even higher. the eruption came without any warning, leaving residents no time to escape. it has had minor eruptions over the years, but you buy kuwait and were not ordered. the activity was reported to be decreasing. global news, 24 hours a day on air and on tictoc, powered by over 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. haidi: thank you so much. now a quick update on your markets. trading in new zealand getting underway, after the long weekend for the clean's birthday holiday, pretty strong gains. stocks up by 7/10 of a percent,

kiwi dollar trading at 70.2 9 -- 7029. and sydni features looking a little bit -- sydni features -- sydney futures looking a little bit negative. expectations for a rate hike have been pushing to next year. the aussie dollar trading at 7650, losing steam after rising to a six week yesterday on the back of the retail sales, and corporate profit numbers. and this is going into the open in tokyo, we had the nikkei with its biggest gain in two months in yesterday's session. sterling was a bit weaker overnight, but currently holding out. u.s. 10 year yield seeing 2.94 with the bond market push down overnight. u.s. docs closing at a 12 week high, s&p among them, up half a percent.

investors boosted by the economic afterglow of the payroll numbers on friday and putting traded tensions and a geopolitics to the side, for now. let's ta look at what we should be watching as trading gets underway in asia. investors seemingly forgetting all aboue trade wars. how quickly we forget. >> trade wars, italy, turkey, argentina -- haidi: it is all too much. >> it is all too much. the jobs numbers in the u.s. the latest in a series of the figures that have indicated that the u.s. economy is regaining momentum after what was a surprisingly soggy first quarter. i think that is what is driving the u.s. stocks and has helped to drive alo the asian stocks yesterday. asia,s look like today in before we moved to asia we can take a look at the charts here, the key takeaway telling you that we are looking at growth optimism as a way that both yields and stocks really

bounced over the last couple days in the u.s. everything back to normal there. asia today looking like there could be a hangover from wha was the best day in almost three months. most equity indexes indicated slightly up, but that is surprising considering how strong the direction was from wall street. ramy: you know, what dangers lurk going forward? we have had frenetic downs and ups over the past several months. i was looking at the historical price chart, the weekly basis for the s&p. either -- and every week it is either red or green, red or green. garfield: and during the week it or red. or green, what that brings in, what people are concerned about, especially

with the summer coming up where you get a little bit of liquidity coming out of the market, and you have a lot of risks. wars is still there, trade are still on the horizon. part of the difficulty in pricing those in in the short-term, they are not really short-term impact of vehicles, but at some point something is going to trip things up. the theme has been volatility is back, across all assets. yes, it came back down again last night, but you can see you are holding above a trend line that -- i mean, last year the low volatility milk up was almost inconceivable. ramy: that is right, taking a look at it, falling just a tad, but analysts thinking volatility will be rising moving ahead. garfield, thank you very much. gtvk out four -- our library on your bloomberg terminal.

switching to technology, now. apple giving the software that runs iphones and ipads a much-needed overhaul. it has used its developer conference to unveil a new operating system, including tools to monitor's green time, as well as taking a shot at rivals over policy -- privacy. joining us is our apple reporter, who is in san jose, california. a lot of announcements,? what was the biggest? mark: the biggest annocement was the new initiative merging applications. starting in 2019 you will not be able to run your iphone and ipad applications on a mac, it is a combined platform for applications and we will likely see the app stores merge as well. this is apple saying we want to broaden the ecosystem, make the most out of this.

it is a multiyear plan that they introduced today, as we reported that they would all the way back in december. very exciting for consumers and developers. ramy: for the iphone, many folks are wondering, what are we getting? mark: we are getting a lot. this year, new features, but also a big focus on performance and reliability. there is a slew of new tools see new options, a way to how you are using your phone, upgrades to face time with group video calling, a new voice memo at. -- app. apps are getting big updates. my earlier point, four of the new apps are part of the cross platform ecosystem, home, for your appliances, also the stocks application and apple news. haidi: what about the future of

ar and what it represents for the company? mark: so a.r. is a big part of their future, today we saw a multiplayer a.r. and some three-dimensional features. a neew app so you can measure things in space in your own home. we will soon see a headset, and they are also using the camera he iphone and ipad as a big part of that. this was a really big tease of the future of the company in terms of a.r. hardware. haidi: thank you so much, mark gurman with the latest on what to expect from apple. and next, we are talking about why -- does not see any movement -- with decision day not expected to move today, at least. this is bloomberg. ♪

haidi: i'm haidi lun. ramy: i'm ramy inocencio. you are watching "daybreak australia." central banks making headlines today, jay powell facing criticism. the head of the central bank in powell --ng that jay the rate decision coming up in australia in a few hours. not pulling any punches. >> you make a point. when you put in article, an op-ed in the financial times, exactly what he did, basically saying one big reason why emerging markets have been in turmoil is because of the fed. the title is "emerging markets face double dollar whammy." you said it is not a fed rate hike, it is the fact that the

fed is tapering down its balance sheet, at the same time the u.s. treasury department has boosted the issuance of notes and bonds to finance the tax cuts. he says that this is a problem, it is slowing down global growth. his plea is slow down the tapering to stop the turmoil. this is what he said. "dollar funding has evaporated from sovereign debt markets, emerging market have witnessed a sharp reversal of capital flows for the past six weeks, often exceeding five fillon dollars a week, as a result currencies have fallen in value." he says the fed needs to calibrate, not that they cannot do this, but they have to calibrate the balance sheet reduction. it is interesting, because it was in may when the fed chair gave a speech where he basically said that the fed's impact on global markets and emerging markets has been exaggerated. he says that the fed tightening -- it will not spark emerging-market turmoil.

this seems like a direct response from patel. and the former head of the reserve bank of india actually, at monetary conference, also in early may, touched on these same things. there needs to be some consensus about how to deal with this from the central banks. haidi: of course, talking about the rba not expected to move on rates, for this meeting or the next, to be frank. what signaling are we expecting? economists do not expect anything in 2018 or 2019. >> they have already held key rates steady for the 19th straight meeting. the longest time they've ever had policy on hold like this. let's take a look at what they are going to be looking at, as they get ready to put out their numbers, not just their decision, but the policy statement again. because this is a bloomberg chart from our bloomberg library.

what they are waiting for, wage growth. people say they will be on hold until inflation picks up. you can see the wage price index, how it has been steady for a year, and even though there has been good news on jobs lately, that is something that they expect to be forecasting -- in fact, that maybe we will see this increase. holdis the cash rate on since the beginning of 2016. here is the cpi, hanging just below 2%. again, the policy statement, what is their outlook for gdp growth, they are expected to repeat gdp at 3% this year and next. housing: we have seen housing prices decline. wage growth, consumer spending, april and may weak for retail sales, they will probably express uncertainty about the consumer. finally, still low, commenting on trade and traded tensions, and that means -- what that

means for the export dependent economy in australia, that could be something we hear about. patel will talk about fed policy, maybe not surprising if there is a veiled allusion to the fed staying on their balance sheet path and what it could mean for the future. haidi: thank you so much, kathleen with a look ahead at the rba. we are not expecting any policy moves. of course, the usual suspects. ourdiscussing policy with rates specialist. it has become a common refrain, no inflation, high household debt, and now trade uncertainty into the mix. >> we think, of course, they looking the cash rate unchanged, heading for two years now. things are starting to shift in the number of dimensions and i

think that we will see a softer tone come through today, basically for three reasons -- global data has been softer, market volatility has been up, and then on a local front, housing data and house prices continuing to go lower. i do not think it is enough to knock the rba's central case, the 3% growth, i do not think it is enough to knock it off track, but i think that there are risks. i think we will get a little bit of a slightly more cautious tone from them today. haidi: you look at when they are likely to hike, and it really has been decimated for the rest of the year, looking into june of next year before you have any expectation priced in. what are the chances we might get a cut? >> i think the rba will not cut. they would already regard cash rates at rock-bottom levels. if we think about a 1.5% cash rate, in the context of a 2% core inflation, it is actually

negative in real terms. never say never, but barring a complete dislocation, causin nt rate to shoot up, i think you can roll out a cut. -- rule out a cut. haidi: when you look at the trade front, we talk about it being super exposed because it is so trade reliant, but is there any resilience to be able to rebalance there? >> i think australia is doing pretty well. we have had a good look at u.s. china trade tensions and whether it could impact estoril you. we are not -- impact australia. we are not terribly concerned. you know, the area of potential weakness for australia would be lng exports. thenevertheless, we think domestic market could be looking at a shortfall. and clean fuel, pretty much solid demand globally. so we are not over concerned there. i think as we are talking about all these short-term u.s. china traded tensions, i think it is

important tor in mind longer-term positive that could come to australia. our tim across the region has been writing about how we are at $1.5 trillion of spending over the next 10 years. increased infrastructure spending, road p everywhere from bangladesh to for iron so increases ore. and australia is well-placed for that. ramy: that is a perfect segue into my question about commodity prices looking ahead. of course, the avs just came out with numbers. miners up 11% yesterday. and do you think that this is maybe a saving grace moving ahead? and to what degree can this be counted on for support? >> we would not think australia's commodity prices should fall to much further from here. iron ore prices, number one for

australia, currently at 64, it could get into the high 50's, that is in line with consensus, the official forecast. but we are not too worried about that. we are watching it closely, of course. our team is blue consensus in terms of the china gdp forecast. and we're looking at slowing in the property sector in particular, as a concern with managed debt, up front and center. nevertheless, the chinese can economy is -- chinese economy is continuing to grow. ramy: sticking with china been, of course we have been talking about u.s. china issues, the trade tensions, the tit-for-tat, so to what degree could that impact australia? or is it pretty isolated? >> look, i think that we are pretty safe. if you look at the energy and ag products, which has been discussed. i think australia should be

party good. on the ag side, the products are sm australia, so for that the damage as would be pretty modest. on the energy side, lng is about the only weak spot and we do have offsets there. say if china was going to take more aircraft from the u.s., we are not big in that space, so the damage would be limited. ramy: think you for that analysis. we are looking ahead to the rba, and we already know what will happen, let's be honest. andrew, thank you very much. do not forget, you can always find in-depth analysis and the big newsmakers on bloomberg radio. tune in from six a clock a.m. hong kong, 8:00 a.m. in sydney, and down the app -- or download the app. this is bloomberg. ♪

haidi: bloomberg users can interact with the charts shown using gtv , browse through the charts featured on bloomberg tv, catch up with key analysis and save charts for future reference. those can be found at gtv . ramy: now a quick check of the latest business flash headlines. -- is to pay $1.3 billion to resolve an inquiry to bribery in libya and to settle a u.s. investigation into manipulation. in the libyan case, the justice department says that they will plead guilty for conspire thing. socgen joins deutsche bank and others who have paid billions of dollars to settle such charges. haidi: the buddhist government elling in 7 -- british government is selling a stake in the royal bank of scotland, reducing holdings in decade

after the financial crisis. the stake was with about six -- aabout 2.6 billion pounds. the government injected billions theounds into the bank, biggest bailout in the world. ramy: and the purchase of get l extend a transition away from a strategy of developing software in secret. the ceo has been trying to convince them it is ready to embrace the open source coding that the former boss described as a cancer that went against the american way of doing business. >> you think about microsoft, we have always been a developer first company. and now we are all in on open source. with that really coming together, microsoft makes a lot of sense to us. haidi: that is it for "daybreak

australia" this morning. ramy will stick around. here is a look at what is coming up next. >> looking at the central bank watch in asia, you are just talking about the rba. r will be interesting tomorrow as well, a lot of pressure from the bond market. and patel could be raising rates. we are hearing more from citigroup, talking about what is to come when it comes to policy makers here. are we seeing the worst of em now? and is liquidity still a big issue? ramy: we will be unpacking what has been happening at the worldwide developer conference with apple, speaking with a chief strategy officer and head of technology research. and we aren i'm -- talking about software. it is not about hardware. we know there is saturation in

the iphone market. with the ios 12, in addition to privacy controls, as well as how to manage your time better on your phones, on your iphone's -- haidi, i know i have issues with that. haidi: multiple screens at the same time. and i will be heading down after the show, down to the 74th annual meeting of aviation head ands speaking to the president of emirates airlines, talking about the seasonal dip in demand in the gulf. what they see in terms of really the pressure and threat be imposed by the low-cost ultra long-haul carriers. and if they are planning to get into that game, talking about this type of economy into their services, and the double whammy from oil prices. we've all the action on daybreak asia, next. are we going to see the 12 week

high replicated when we get the asia open? stocks looking little bit negative here on rba decision day. this is bloomberg. ♪

>> it's 7:00 a.m. in hong kong. i am yvonne man. welcome to daybreak asia. this tuesday, asia-pacific markets signal a as traders but protectionism aside in favor of optimism. that move may not last as g7 leaders prepare to meet in quebec. ramy: from bloomberg's global headquarters, i am ramy inocencio in new york, where it is past 7:00 p.m. on a monday. apple takes a swipe at big tex rivals -- tech rivals saying data privacy is important.