ramy: here are the top stories we are covering in the next hour. president trump has big progress on trade. that come after his phone call with xi jinping. stakes remain high a net -- ahead of talks from nest week. progress onof ending a border wall funding. investors limp towards the new year. we will focus on the outlook for all the equities.

juliette: it is the final day of 2018, can you believe it? of course it has been a very volatile year for investors. this is how things closed in asia on friday. we had a pretty good rally adding onto that strong session thursday. china's market up about 7/10 of 1%. the nikkei was a little weaker. still very much a public holiday in terms of australia, new zealand, hong kong, all closing earlier along with singapore. japan, south korea, philippines, taiwan, bangladesh as well. futures indicating what we could see in the aussie session and of course as we see trade in new zealand. fairly flat.

the kiwi giving up a little against the dollar. you have got the futures suggesting we could see more momentum. that rally is coming into fruition for aussie stocks. the aussie dollar fairly flat. because it is the last day of the year, we can look at my favorite function on the bloomberg which is the seasonality chart. you're actually seeing quite a big drop coming through in aussie stocks. about 5%. by compare that to 2017 where we saw every month higher. according to bloomberg analysts it is not armageddon. it is nothing like what we have seen like in the crash of 1929 or other market corrections. now let's get the first word news with kathleen hays in new york. kathleen: china has announced plans to rein in lending to banks.

the banking and insurance regulatory commission says those lenders including world cooperatives must have proper licenses or wind down their businesses. smaller regional banks have become major drivers for shadow banking in china as they seek ways to enhance profitability. south korea says kim jong-un wants more summits to resolve the nuclear impasse that stalled negotiations with the u.s. moon jae-in's office says kim sent moon a personal offer of well-wishers over the weekend. kim said he was willing to meet more often in 2019. delivers his annual new year's speech on tuesday. the australian securities and investment commission will reportedly investigate deals between employers and superannuation funds according to the australian newspaper sagging the asset commissioner -- citing the asset commissioner. the are prepared to ramp up super sector.

italy's parliament approved as 2019 budget law, meeting a deadline after a standoff with the european commission. -- thet lead anti-migrant league agreed to 2.04%. the initial 2.4% target was rejected by brussels as breaching eu rules. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kathleen hays. this is bloomberg. ramy: thank you very much. both the u.s. and china are reporting movement on the trade front. president trump tweeted this progress following a lengthy phone call with xi jinping, who also reported progress. let's get the latest with stephen engle in hong kong and roz crosby in washington dc.

what do we know about this call? roz: we know a little about the call. we do not know who initiated the call for exactly how long it was. according to president trump it was a long and very good call. the u.s. president had quite enough use of readout on the call as you mentioned at the top of the segment. beat said presumably a trade deal is moving along very well. comprehensive. we know it is apparently the first time the leaders have spoken since the big meeting in buenos aires on december 1. and they have made a commitment to follow through on the agreements they first talked about at that meeting. all in all it seems like a positive development, certainly the readout we got from official media sources in china on behalf of president xi were not as effusive as president trump. juliette: what is china's side

of the story? are they being more coy? stephen: i think they are being a lot more cautious. keep in mind there has been a lot more fits and starts in this relationship. may they thought they had a deal with steve mnuchin only to have it kiboshed by the president. now they are taking a cautiously optimistic approach since that truce in argentina. now just do not upset the apple cart is the approach china wants. according to a chinese news agency recapping the phone call xi jinping had with donald trump, they want stable progress in this relationship and this dispute. the bilateral ties they are saying are at a vital stage. xi jinping is quoted as saying besides hope to meet halfway on a number of the issues.

keep in mind the chinese are readying to host a u.s. trade delegation. we are hearing perhaps the week of january 7, just one week away. that would be the first time they would meet face-to-face after trump and xi met in argentina. they say they will lower import taxes on another 700 goods from tomorrow. they have already resumed soybean purchases. we hear they are talking about starting rice imports. they are also kind of suspending that increase in auto tariffs as a sign of goodwill. , again i think the chinese right now are cautious not to upset donald trump and hopefully move this ball forward. juliette: -- ramy: keep that trajectory going. hopefully some frost melting. the next word we are going to get is from xi jinping himself giving his new year's address it

really just a matter of hours. what can we expect? hishen: we can look at address from saturday. that is a tongue tie acronym. the advisory body to the government. he gave a speech that pretty much ignored or downplayed the trade war. he talked about the three priorities for 2019. fighting pollution, corruption and poverty. these are issues that obviously play to a domestic audience. he also steered clear of other controversial issues in the relationship with the u.s. he stuck to domestic politics and highlighted some of the successes of 2018, but really did not mention much about the challenges the party is facing. i would assume the address to the nation be among similar lines. 2 and -- juliette: what is the latest on

the ongoing government shutdown? ros: he certainly does. the u.s. partial shutdown that has affected so many agencies goes into a 10th day on monday. with really no end in sight before january 3 when democrats take control of the house of representatives. that is the first time we might expect to see any movement. the president over the weekend sent some fairly inflammatory tweets. he blamed the democrats for the guatemalan children in custody on the u.s. border. the kind ofreally thing that will get democrats back to the table. what we are hearing is president trump has not spoken to nancy pelosi, the top democrat in the house. he has not spoken to chuck schumer for a couple weeks, really since they first met in the oval office after a contentious meeting. he seems pretty dug into his

position. we heard a little today from lindsey graham, the republican senator who actually has a solo lunch with trump at the white house. he suggested maybe the two sides could go back to agreements that fell apart earlier in the year, as far away as february, to try and get some kind of compromise. it does not appear the shutdown will and imminently, but as we come into the new year d balls will be in nancy -- the balls will be in nancy pelosi's court. juliette: ros, thank you so much, along with stephen engle. , coming up australia, -- bull isuential bitcoin remaining optimistic. ramy: that is later this hour. next, bank of america merrill lynch is us some strategies for

the coming new year. doesn't look like there will be much relief. this is bloomberg. ♪ is is bloomberg. ♪

juliette: i am juliette solly in singapore. ramy: and i'm ramy inocencio in new york. you're watching daybreak australia. we are seeing new trade optimism following a weekend phone call between president donald trump and xi jinping. the president tweeted if made, the deal will be very comprehensive covering all subjects, areas and points of dispute. big progress being made. joining us now is bank of america merrill lynch head of economic strategy tony morriss. this really has been the prevailing theme over the past 24, 48 hours. how do you think this is going here ininto markets

terms of any possible optimism moving into 2019? tony: yes it is a positive development over the weekend, these headlines. we know the trade delegation will be heading to china. still a long way to go. it is in the interest of both sides they tried to make progress here. we could see economic damage on both sides. the u.s. still has a government shutdown. politics will be formal more a driver going into this year. bes year is going to political instability or uncertainty overall. you'd expect the aussie dollar to perform better, if that is some revolution -- resolution on the trade talks. ramy: there are a few factors here, one, the historical lens

of ties between the u.s. and china, 40 years to the date on new year's. looking at the barometer donald trump likes to look at in terms of the stock market, do you think there was a threshold we saw and said, look, i have hitched my popularity to the hit aow, nasdaq, and it bottom he needed to pull back from? tony: i think he saw from the federal reserve some concession that globally, financial conditions are very important for them and their consideration. i like to think they can maintain their independence in the face of these comments coming from the president. we also know from china that the 2500 level is a pretty important level as well. so, you would think that that level of a comfort you saw in the u.s. going into bear territory. what we like to see now is the market pricing out further

action from the fed. markets stabilizing and focusing on headlines from trade. that still means more political uncertainty. we think by the middle of the year we're looking at the debt ceiling, that might be another issue that the market will have to deal with. int was something we put out our year-end report on the strategy side, a much higher level of volatility to expect going into the year in terms of dollar-yen. by the middle of the year if there's a government shutdown, downside on the dollar as well is something we have been talking about. juliette: there is a lot happening in the u.s. and obviously tension between china and the u.s.. we also have a lot happening elsewhere as well. you cannot discount what is happening with brexit. in asia we have a number of elections happening. so there is a lot of political risk for investors to be looking at, not just focusing on wall street. what are the key drivers for you? tony:, yes, i will start with

australia first. we have a lot of political uncertainty and a look forward to an election in may. at least we can look forward to quitetability to significant support to changing government and a clear mandate of the labour party. to take over that would be after may. markets did not like that level of uncertainty. i like to look out and say there will be policy certainty once elections are out of the way, particularly in australia, after what we have been seeing from the housing markets and ongoing changes in prime minister. something clear would be welcome. juliette: i want to get back to australia in a little while but in terms of the overall picture in asia, what is your forecast for growth across asia? i see you are seeing it

potentially slower in 2019. tony: so much the case. expectall of asia we slowing from 5.6 this year back to about 5.3. north asia seems to be running into a lot of headwind due to uncertainty over the trade issue. on china in particular we see some slowing down to 6.1%. we are seeing's lines they will be moving to a more accommodating stance. in the early days we expect an ongoing level of accommodation. 6.1% is a slowdown. eventually if there is progress on trade talks that growth will find a base. one of the ideas was to remain long on ten-year china bonds. further easing if there is more progress on the trade front. ramy: definitely ending 2018 on a high note for the 10 year. tony morriss, thank you.

more on with us, australia's economy when we come back from the break. you can get a roundup in today's edition of daybreak. you can go on your terminal and mobile in the bloomberg anywhere app. you can also customize your settings so you only get the news on what you care about. this is bloomberg. ♪ loomberg. ♪

juliette: i'm juliette saly in singapore. ramy: i'm ramy inocencio in new york and you are watching daybreak australia. let's do a quick check of the latest business flash headlines. disney and verizon have reached an 11th hour deal to keep sports programming flowing to its cable customers. it covered 4.36 with customers it was due to expire on new year's eve.

negotiations were seen as a litmus test for disney's business model of charging higher fees from yesterday yen though many consumers are switching off sports. see years may have another chance of survival -- sears may have another chance of survival. the plan needs approval from creditors and a bankruptcy court. liquidators could also outbid, and then sell it piece by piece. china's freeze on videogame licensing. 80 new titles have been approved for commercial release. they said they could still take months for officials to clear the more than 5000 games waiting for approval by sensors. -- censors. turbulent -- as a

turbulent year for markets draws to a close, let's turn to what the next 12 months may hold. company downturn has been a dominant theme, but what does it mean for the rba? let's get into that with our guest, tony morriss. tony, you have seen quite a downturn coming through in those skyhigh property prices across sydney. how worried the you think the rba, obviously they are incredibly worried, but in terms of balancing that with these very low interest rates and trying to encourage consumers to spend as well, how much further downturn to you think there could be for the aussie market? tony: i think what needs to be said is that follows an incredible year. prices here in sydney almost doubling since 2010. it has to be remembered the regulators here, including the reserve bank, by design put in

place policies to try and slow that down. in a way, this has been by policy design. therefore, the market has taken it at face value. it does not necessarily mean the rba will respond to easier interest rates and the hurdle remains incredibly high. the pace of the decline has got them worried. what was unexpected is this tightening of credit conditions from the banking sector in light of the royal commission. you might see a bit of a risk of a so-called negative feedback loop between house prices and demand for credit. that seems to be where we are at at the moment. there are signs they are responding. we are seeing reports the potential regulator is easing investor loan rules. that will not necessarily generate new demand. it probably has a little further to go. but as long as it remains orderly the federal bank just be

stressing. policy. juliette: what is your forecast for economic growth in australia in 2019? i would imagine that will be a little estimate what you saw across 2018. tony: absolutely. hasfirst point here is 2018 been way stronger than most of us expected at the beginning of the year. coming around 3% or so. we expect that to slow but still be slightly above trends. housing will be a bit more. offset will be stronger and offsets, hopefully we get progress on the trade site. and government revenues have been really strong. government spending helped drive growth over the course of the year. there will be more of a slowdown than we have seen over this year, but i do not think it will be sufficient to get the market excited about the possibility of easier interest rates. the level of the currency is providing a lot of stimulation for activity. we think probably as much as 8%

undervalued, current levels. obviously we have to get trade views before he get the aussie dollar beginning confidence over the course of the year. ramy: that was actually my question for you, where is the aussie going. what is your base case? i see it is now trading at $.70 to one dollar u.s. tony: we expect it to be stronger over the course of the year. this depends on progress on trade and removal of political uncertainty. a major theme that bank of america and merrill lynch is proposing is the u.s. dollar has been a standout for 2018 because of decoupling of growth. we expect to see some re-coupling either through slower u.s. gropes, where the markets continue to be at this point, for stronger growth elsewhere. china will be important, there. we expect the u.s. dollar to weaken will help the aussie dollar rise. we expect the aussie dollar to head back towards $.80 towards

the end of the year. we think global growth is able to stabilize this year. we get fiscal uncertainty and maybe the aussie gains ground later in the year. juliette: just very quickly i have a chart showing essentially company profits growing faster than wages. we had the jobs number a couple weeks ago where it essentially it was mainly driven by people getting halftime jobs. at what point you think wages catch up to what we're seeing from company profits, and therefore boost consumer spending? just very quickly. tony: yes. labor markets continues to strengthen. we need to see some improvement in the services sector. it will be slow growing over the course of the year. on technology, construction, we expect wages back towards 2.5% but it will be gradual. juliette: all right. thank you very much, tony

morriss. have a great new year. next, a look at what is in store for equity markets in the year ahead after a painful 2018. this is bloomberg. ♪ ♪

it is 9:30 in sydney where markets open in 30 minutes. the final day of the year, futures suggesting a positive one for the asx. i am juliette saly in singapore. ramy: i am ramy inocencio in new york. still december 30, but we'll catch up to you. you are watching daybreak australia. let's get to first word news. kathleen: president trump reported big progress in trade talks with his chinese counterpart xi jinping after a phone call saturday. he said the deal is moving along very well and will be comprehensive. they leaders -- the leader spoke

as the u.s. prepares to travel talks.ing for trade this came before the 40th anniversary of diplomatic ties between the u.s. and china. the u.s. will welcome the new year with the government and partial shutdown, with little indication of agreement to resolve the standoff. 400,000 federal employees are working without play -- without pay and others are furloughed. blamed democrats for the death of two children at the border. liam fox said the chances of exit happening are -- brexit happening are 50-50 of parliament rejects the withdrawal agreement. he said if lawmakers vote down the deal, there would be a sense governor -- government had betrayed people. he said it is a matter of honor for lawmakers to back may, and he would rather accept a flawed agreement on risk brexit

failure. the party of the bangladeshi prime minister is heading for a landslide victory in elections marred by violence. they got 130 to of 300 seats. the opposition has called it for to slow -- has called it farcical. the woman will extend her rule as longest-serving premier. 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. hays.athleen this is bloomberg. ramy: it is going to be another holiday shortened week on wall street. but that is unlikely to lessen the volatility. we have economic data, automaker sales and a public appearance by the fed chair. the big focus is market direction for the week ahead and the year. su keenan joins us.

su: nomura has said we could get a bounce in january but the nowhere in terms of direction. doesn't build confidence. let's go into the bloomberg because the s&p said no surprise to end december as the worst month in nearly a decade. a 13% decline in volume from last week because of the holiday ended up being a wild week. marketook at the snapshot. the dollar was down for a second day on friday. crude managed to be above 45. what we saw was the tech index lower, the energy-based stocks still drags on the market. let's go into one of the big themes of 2018, the faang stocks. look at the dramatic loss of these posted. very interesting going into 2019 analysts say it could turn around. as we look at the big performers

for the year, interesting themes emerge. disney is a stock to watch, even though it is ending flat, slightly lower and comes off the deal with verizon, multiyear deal, that could actually be a positive. twilio is one to watch. big issue because they deal with infrastructure. stocksthe medical device that took off had a slight bump at the end of the year. those were the winners. ramy: we still have trading hours left. we kick off with fresh economic data and remarks from the fed chair. su: we have a big economic gauge out on monday. we take a break for the new year, than the other big economic data will be out of cells, -- auto sales, the jobs

number, and that is a perennial data point. we also have the fed chair being interviewed toward the end of the week with prior fed chairs. that will be interesting. the market will listen closely. let's go to bloomberg. we talk about the forecast going forward, it was a bad year for equity holds. strategists saw their forecast steamrolled. you are starting to see calibration in the expectations for 2019. analysts scramble with this, there has been interesting themes emerging on -- yen, oil and the frank the faang stocks. theon the yen, it is one of winningest currency trades, going into 2019. 109 bylar-yen falling to the end of 2019. oil bulls projecting oil could

turn around. it could be $70 a barrel. west texas hasn't fared as well as brent. stocks,the key faang apple badly beaten up, lost its trillion dollar crown, the biggest company by market cap worldwide. even that has been troubled by iphone sales, analysts see a turnaround in 2019. juliette: su keenan, thank you so much. let's check in on assets to watch what we get more trade coming through across the asia region. andrea.ing in news of the talks quickly provided spice for asian markets, but can it had off the asian stocks closing out their worst year since 2011? reporter: that is right.

investors are looking for any positive news, and this news on some sort of progress, on the trade talks, is going to be welcome. this has to be put into context. we have two of the major market in the region closed, china and japan, and japan is out most of the week. even though futures in australia and hong kong are keeping a higher open, it is barely going to put a dent into what is shaping up as the you -- as the sinceyear for stocks 2011. this is down 16% this year, and it is down 20% from january. china, one of the worst-performing markets this , one of the5% worst-performing major stock markets in the world. stockso have global

shaping up for the worst year since 2008. even though we might get respite , we are going into 2019 with a nervous group of investors. butight be a relief today, wouldn't read too much into today's trading with liquidity. ramy: a lot of concern hanging on the markets on this last trading day. bloomberg news across asset editor, thank you very much. cryptocurrency, what a difference a year makes. bitcoin have just it is record hit -- a year ago had just its record high but december this year it is under $4000. i spoke with the founding partner of crypto oracle about bitcoins prospects for next year. one of the most influential

crypto bloggers, and he is a bull. it is stored value. the main value is gold, $8 trillion thing. $60 billion, so i can replace gold as the dominant stored value, and it can go 100 fold from where it is today. even if it becomes a strong second, it can become -- it is a better way to star -- stormier value. gosh,when people say, bitcoin, what is the explanation for this fall? >> we got ahead of ourselves. i use a word to describe the tendency, bubbles crash, bubbles again. capitalism. thee is something called -- impact of great technological change is overestimated in the short run and underestimated in

the long run. bitcoin in the broader crypto category, this competing platform of blockchain, cryptocurrency, the disruption from that is going to be greater than the disruption from the internet. bitcoin is the early leaders like yahoo! of its day. it is massive but not the thing. ramy: the fall on the nasdaq was down 78%. we are seeing a match with bitcoin. if we got ahead of ourselves, ahead ofe un-get ourselves? >> nobody knows the answer. if we believe in 20 years this will create trillions of dollars of value like the internet, we are at the beginning today, it will be here in 20 years -- [speaking simultaneously] and the great thing about making 20-year forecasts is you know you will be long for a long

time. we know the path to getting there will be like this. if you focus on where you will be in 20 years, kind of all of this is noise. ramy: a bloomberg news article said the days of 20,000 for bitcoin about a year ago are behind us. what do you say? >> if this becomes a stored value -- gold had a 5000 year run. value. a better stored if the world comes around to sharing that view, and we are on that path, we are easily over 100,000 in three or four years. ramy: interesting. i will come back to you in 20 years, wherever you are. when you talk about stored value, you push this relative to gold and silver. >> if you look at currencies

over time, 100% of them until 400 years ago went to zero. the truth is if you think of the dollar, it is a ponzi scheme. it is fine. this is how governments work. nobody thinks we will ever pay back the debt that we have. we will not pay back $20 trillion plus. there will be more coming. if you want to maintain your purchasing power, the only thing that has held up has been gold. that is how you store your value. currencies degrade and go to zero. eight trillion dollars is stored in gold. people say i don't want to hold -- it is part of a diversified portfolio. silver is the second-biggest stored value and bitcoin. it is taking over second-place from silver as a stored value.

some folks say bitcoin is the first iteration. what would be next? >> bitcoin started off to be a digital currency. it can potentially become one, but the problem is as the first iteration of the decentralized entity that achieves scale, there is not a functional governance for bitcoin, so it really struggles to evolve. all they can really be -- it doesn't need to evolve to be a stored value. it needs to evolve to be digital currency. we think there will be digital currencies, governments will issue their own, but they will be pegged to the regular currency and degrade over time. nongovernment digital securities where you know how many dollars or whatever it is they will be, nobody knows how many dollars

are going to be other than you know there will be more. ramy: final word for bitcoin? >> it has gone up. ramy: we will check back in with lou koerner in the next few years to see if it does go up. 79.5% ever since its record high in december 2017. jay powell may be getting a holiday invite which he would probably rather avoid. find out why the fed chair may have a lot to lose and little to gain, all that in a face-to-face meeting with president trump. this is bloomberg. ♪

ramy: welcome back. i am ramy inocencio. juliette: you are watching j big australia -- daybreak australia. one to 18 has been far from a holiday for many very we have talk of a meeting between president trump and fed chair jay powell and the pboc pushing back suggestions it is revving up its monetary policy engine. kathleen hays is with us. what could powell and trump hope to get out of a face to face meeting? kathleen: that is a big question. a lot of people have looked at these. wall street journal was one of the first to report the white house staffer were trying to set up a meeting between the fed chair and president. president trump has been critical of the fed, people are wondering if this would be more of a loser for powell than for trump. maybe they just want to get them

together again, even though it comes after the president talked about firing jay powell. what is behind this? a private meeting could ease public tension. some say it might look like powell is giving in to pressure from trump, could create infusion over what was discussed if the president says jay powell said -- we could have to raise rates. iwell says, that is not what said. he could misinterpret what mr. powell will say. governors -- one man who was on the board of governors many years ago, this is what we ran through all the things we could get through this. he said it could be an opportunity for jay to confront his riddick and explain what the fed is doing. mohamed el-erian, a bloomberg opinion writer, was out over the

weekend speaking to fox news, face the nation. he agrees with the president that maybe powell could learn to have a better feel for friends and indicate better. let's listen. >> is in the fed is understanding it needs to communicate better. these are two things in particular. one, they should be more sensitive to markets and what is happening outside. there is risk of spill backs. the president says get a better feel for what is going on. the president -- the fed needs to realize it cannot take and keep an important policy tool on automatic pilot, that he needs to be -- it needs to be more sensitive to what is happening. they are self-inflicted wounds. kathleen: that was mohamed el-erian. i have to add his last testimony, jay powell said reducing the balance sheet is on

an automatic pilot. there is a monthly reduction the fed agreed on. they never said their interest rate policy was on autopilot. there are more opportunities come this week when they will be on a panel. they are interviewed by the new york times about were policy is and where it is heading. juliette: a bit of a surprise friday when an official from the pboc said the central bank's policy hasn't changed, all when they agreed they were segments -- they were fit for easing. kathleen: they did say, they did remove language, the policy leaders that is, that said the policy would be appropriately balanced between tightening and easing. people thought they would get easier, but the director of monetary policy department at the pboc, said it hasn't gotten

easier, their stance hasn't changed. they don't intend to flood the money with excessive liquidity. even though economists talked about more cuts in reserve ratio requirements, no sense that is what he is signaling. even though they didn't mention theyuan last week after economic conference, he says it is not a change in currency policy. so communicating, very big deal for the pboc. ramy: the bank of japan facing a new dilemma. they were talking about pushing the 10-year up. what does this mean for january policy? kathleen: the jgb has fallen below zero or briefly last week, first time since 2017. 0.1 top of the range, the pboc agreed to widen that out.

the stock markets get volatile and start falling. people wonder about the global economy, so there is a bond market rally. they have this meeting at the end of the month and the question is first of all what does this do for reflation efforts if this is happening to the jgb yield, and also bank profits, flat yield curve following 10-year note, not good . these will be talked about after the meeting. communication is very important. ramy: already looking ahead to global -- looking ahead to 2019. issues,he biggest macro earlier we spoke to our bloomberg intelligence analyst to find out how the tension will affect markets and the economy in our new year's series b.i. predicts 2019. ♪ >> despite the recent trade

truce, there is still a fair amount of uncertainty regarding the trade war, and that could impact consumer sentiment. >> we will continue to see the shift of manufacturing capacities out of china as the entire supply chain diversifies beyond risk on a longer-term basis. >> our view is this could be limited downside. if trade tension continues on, for a long time, the chinese government will actually step in and reinstate the tax incentives , push up sales. >> [indiscernible] going into a trade war, that is clearly negative. [indiscernible] in our view, the container shipping sector would be affected. >> prices will remain volatile next year, and the trade war is

only driving a slowdown in oil demand globally. that could accelerate. juliette: that is the production of 2019 from our bloomberg intelligence analysts. users can interact with the turks shown using gtv , browse the charts featured and keep up -- catch up on key analysis. this is bloomberg. ♪ ♪

juliette: i am juliette saly in singapore. ramy: i am ramy inocencio. you are watching daybreak australia. let's look at business flash headlines. was fargo -- wells fargo will pay $75 million to settle a scandal. it resolves state investigations into wells fargo's practices from 2002 to 2017.

this included staff opening focus accounts, charging improper mortgage fees and in charts -- insurance fees on customers. juliette: goldman sachs poised to be the best bank for takeover advice for the second year in a row. they will exceed 28% for dealmaking. morgan stanley, j.p. morgan and archelaus round out the top 5 -- citigroup and barclays round out the top five. this fell short of a record set in 27 -- in 2007 as they put takeover aspirations on hold. the: aquaman remains champion for the second week running. the d.c. comics based movie collected an estimated $51.6 million, beating mary poppins returns which retained second place in the listings, bringing

in $27 million. juliette: that is a must it for daybreak australia. trading in new zealand is underway. looking like a positive start for the final day of the year. this is bloomberg. ♪ is is bloomberg. ♪

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♪ juliette: good morning and welcome to daybreak asia. i am juliette saly. ramy: i am ramy inocencio. top stories, president trump touts big progress on trade after a phone call with xi jinping, but the stakes remain high ahead of new talks next week. hold your horses, the pboc signals monetary policy in