asia,come to daybreak from our global headquarters in new york. next two hours we were bring you the news you need to know as markets open across asia. ♪ >> top stories, wall street to easegher, they want u.s. tariffs on china but the treasury denies a plan. as mixed earnings reports adjust it is spending free on content may not pay off as quickly as expected. china raises the stakes with

canada, beijing says banning huawei from 5g networks will have repercussions. shery: let's start with a check of the markets, the close of the thursday session in the u.s. as the s&p 500 rose for the third consecutive session, moving past the 50 day moving average. every sector on the s&p 500 was in the green. the headlines boosting stock markets in late trading. we have positive act of data out of the u.s. including -- eco data out of the u.s. andid see morgan stanley reaction to their earnings being negative. financial stocks managed to gain ground for another session. u.s. futures unchanged at the moment. let's see how we are setting up for the markets in asia. couldtralian shares extend gains point fourth straight day and we're watching to see if the gains can crack

5900 points. gains in tokyo and seoul. it may turn out to be another choppy session as markets dissect conflicting reports on u.s.-china trade talks. paymover in sydney, after climbed 9% after posting underlying sales of over 2.2 billion australian dollars in from $918half, up million, making december the largest ever month on record for the company. let's check in on currency, the extending -- the kiwi the losing streak to his fourth straight day on the yen is holding at a two-week low and the pound is steady after rising. palladium, in on 1400 for the first time ever, the rally going along. people run is not teetering out

yet and they expect to be in a supply deficit for an eighth straight year. >> in hong kong, u.s. markets, the session was rising in a late day rally with bonds and bank earnings taking a different turn. stanleye get to morgan which set the tone at the start of the session, it was this rumor that sent the rally going late in the session. >> you can color rumor in the sense that -- call it rumor any supposedlyit is -- supporting the easing of tariffs , i wonder if i make a deal, how would be marker react? s&p 500 shot up. thesee the same pattern in dollar as the reports it, subsequently denied by the treasury department.

the same pattern up and write back down. the 10 year bond made a dramatic move. by the end of the day, you did not see stocks blocking gains. bid,ith an after-hours falling off the rally it was on. saying, weists are have had a lot of noise in the market on the trade front and this was more of the same. you will not be able to trade on the noise, unless there is something substantive that is sustainable. this has quickly gone away but has heightened the market sensitivity to how anxious everybody is unlikely to trade on a new element that may come down the pike. shery: oil trading around $52 a barrel and the rebound is fizzling out. >> if we can take a look at the oil chart, you will see the same kind of spike.

it came back down after hours. that has a lot to do with a couple of factors, the resolution or report of a resolution, very bullish for oil because china, a huge consumer, but there are forces working on the oil market, record production in the u.s. from the latest data, the bull case, opec production cuts appear to be working and if they kick in, you will see that reflected in price in the coming weeks. shery: thank you so much. let's get the first word news with ed ludlow. >> growing numbers of observers are warning the u.s. government shutdown could soon hurt stocks. markets already confronting increased volatility, uncertainty about rate hikes, and a trade were hitting global growth. traders are factoring in the closer which has reached a record 27 days.

they fear the impact will spread as federal workers go without pay. nissan is planning to cut hundreds of jobs at the pickup plant in mississippi with slow truck sales and they are reeling for a drama. it will eliminate one entire shift. full-time workers were keep their jobs. reports from china say north korea's top envoy went through beijing on route to the united states. seeing leaving the vip terminal at the airport after a flight from pyongyang arrived, u.s. officials say high-level talks are planned later friday to arrange a second summit between president trump and kim jong-un. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ed ludlow. this is bloomberg.

comments coming after the canadian counterpart of huawei say the diplomatic feud is damaging beijing's reputation. i'd china correspondent that our china correspondent joining us, this appears to be a rapidly deteriorating relationship. , rapidly downward spiral between canada and china, the spark was the arrest of the huawei cfo six weeks ago in vancouver. wordss a diplomatic or of -- war of words between their ambassadors. but they have real-world consequences. this is a rare set of comments from the chinese ambassador to canada, saying there would be repercussions, threatening repercussions if the canadians block huawei from their 5g telecom network.

he said there was no evidence posed a national security threat and said he was convinced huawei's cfo is innocent. it follows comments from the canada ambassador to china who warned that the reputation of the chinese is being posed a nay threat and said he was damaged globally by the way it has reacted to the arrest, namely the u.s. and canadians, many see as a clinical retaliation from beijing to canadians and increased from a 15 year sentence for a canadian person to the death penalty. canada's ambassador to china saying this is having a reputation problem with beijing and he is trying to rally the canadian allies to pressure to make that point to china. this is a long way from home we saw just towards the end of last year when the two countries were starting and continuing talks around the free-trade agreement, we are a long way from that there. >> what do we know about the

canadians held in china? remain, to canadians, are in secret detention somewhere in or around beijing, they have the lights on 20 47, they have no access to lawyers, they get to see someone from the canadian consulate maybe once a month for about 30 minutes. it is a different scenario from the situation facing the huawei cfo who is living in her $1 million home in vancouver and can travel within a wide radius. sawek ago, the canadian who sentencing increase to the death penalty for drug trafficking, canadian side as a political motivated increase in the sentence and we heard that from justin trudeau. these cases are having a chilling effect on the business community in beijing.

china is trying to increase foreign investment in china what taking what many would describe as a brutish action. shery: we continue to see the pressure on huawei, the federal investigation in the u.s., the u.s. pressuring allies to back huawei. unrelenting, you have a federal investigation in seattle into allegations huawei stole trade secrets from companies like t-mobile, and the case in poland with the arrest of an huawei employee of allegations of spying. you have a campaign by the u.s. to pressure its allies to block huawei. if you look at australia and new zealand, they have had success, the u.k., canada, japan, mulling how much they will allow huawei to sell their equipment into those countries. that campaign by the u.s. is expected to continue. it feeds into the trade talks which are expected to continue on january 30 and generally 31st when the vice premier of china

travels to washington. huawei will be a focus on those by many in the u.s. as symbolic to the chinese ambitions. we have some breaking news, president trump has canceled the u.s. delegation trip to data week,- davos next according to sarah sanders, saying this is on account of what is going on with the shutdown. we heard president trump canceled travel plans to go somewhere else, the shutdown is starting to play into how much the global stage we will see from the united states. shery: talking about day 27 on the partial government shutdown in the u.s., not seeing any more .rogress in the negotiations we heard president trump canceled a trip to the world ,conomic forum later this month we had been expecting secretary

to to take a smaller delegation but now nobody from the united states will attend davos. prime minister theresa may canceled her plans to go to davos. it could be a very light meeting as we see some top leaders not attending. >> the entire u.s. delegation now canceling, it will be quiet. stanley'sd, morgan worst week in three years, shares tumbling today. whether it's performance was the weakest? >> the chicago fed president called for patients, more from our exclusive interview next. this is bloomberg. ♪

>> this is daybreak asia. let's get you a check of the headlines, rio tinto says it

wants to raise shipments as much as 3.5% in 2019 after volumes climbed last year, underlying their confidence that the theirwn in chinese -- sales about the 350 million metric tons from australia this year -- the copper output could decline. >> softbank cutting -- offering to buy back $715 million of outstanding notes, their euro bonds jumped in tokyo, the biggest by since july. they have $150 billion of total debt as they transform the company into a giant investment fund, his vision fund has facing company like uber. after bnp paribas -- socgen executive is reviewing

their trading division which makes risky bets with investors money, we are told it has struggled to make a profit and socgen may decide to pull the plug. hasy: the federal reserve probably signaled that after raising its key rates for the fourth time in december, it is ready to wait and see how big global currencies play out this year, from the trade war to the slowdown in china. kathleen hays joined charles evans about a rate caused and what happens next. you asked him about china, is he concerned about growth? >> he is focused on china, saying, yes, china is slowing down, one of many concerns from he sees the economy being softer and maybe the trade war is part of that, trading on uncertainty. he added this to many other

factors. he is still relatively positive about the u.s. economy but the trade war, a slowdown in china, concerns about financial conditions on what they are doing. they have been better lately. even so, the china question is important to him and other fed members. >> he is worried about global growth. markets have ruled out rate hikes entirely this year. as he ruled that out? >> i do not think so, he made it pretty clear that he is still confident growth is still above trend this year, payrolls are still strong, unemployment is low. he spoke on inflation as something maybe softer he thought it would be going into the end of last year. another reason the fed should be patient. he did say this two rate hike we

, that rate dot plot hike number is plausible. i placed him about the view that there will not be a rate hike, maybe even a cut, he seemed to ,ay that, depending on the data let's hear what he had to say. >> i would not be surprised if at the end of the year we have a funds rate that is a bit higher than where we are now, that would be associated with a better economy and inflation moving up, importing ingredients. >> i think this is one thing everybody has to get in their heads, the presidency talking about data dependence, there is a dot plot, traders, investors, economists saying they are on a preset course. they say they are not on a predetermined course and they determine the data to determine what to do next on rates and now

understanding that is more important than ever. yes, globalme that, uncertainties play out to the downside, it gets worse, if it affects the u.s. economy more than it has, yes, the fed will not be hiking rates. what if we do a trade war deal. way to china finds a stimulate the economy? and people have more confidence that this -- and will invest more? if you still have stronger economies and stronger growth in terms of jobs, still low unemployment, and inflation at or at its target, it seems that charlie evans would be on board with rate hikes later in the year. interesting as we hear about other fed officials and watching the data play out. >> coming up next, credit suisse -- people just need to chill out. their top equity strategist

joins us next. this is bloomberg. ♪

>> this is daybreak: asia. >> 2018 ended with high volatility a lower stocks but stocks havety -- rallied. chief u.s.is the strategist at credit suisse. whether the rally this year has legs and in terms of the reaction about the rolling back of china tariffs. it feels like a good practice run as to what would happen. >> i think that the market is making -- i am optimistic, but i think investors are up too much of a belief that this will be a quick resolution and the market

will move on. there is a realignment in the trade relationship between the u.s. and china, that is what is going on, it will take longer than people will be comfortable with. the markets will go up i think, but i do not think a resolution with china will be the catalyst. haidi: this drawn out strategic battle between the u.s. and china, that we are talking about the fed and what changed since mid-december. is it disturbing to you? >> even sophisticated investors talk about a double put on the market, if the market goes bad, on the one hand, the fed would --e or back away from their and now the american president will do the same. i do not believe that is the case. i think you have a market -- if you look at what the futures are telling you, the market believes

the fed is done, not for this quarter but done for the cycle and the next move will be down. powell try to push the market in december, the market said they are not having any part of it. he listened to the market. i do not think a put but him realizing the market sees it as unacceptable. haidi: this chart -- shery: this chart shows how the vix have been falling since december and even as correlation is high, are we near the end of this volatile period? >> i think we are. and the one you showed before are the story, the vic started at 11 and then at 25, we started at a pe on stocks at 18.5 and ended at 14.5. it is a seesaw,. .

you will see volatility drift lower, down 15 and below. when that happens, the market goes up, not because earnings are better or the economy is better or we resolve china, but the market calming down. ifry: will they stay as calm we still see the government shutdown? in january february, with a partial government shutdown, not a affect but this is day 27, the longest on record. airlines are now taking a hit. we, you and the media, we in investment strategy, our super focused on this but when people say what is the value of a large, global business? not value on whether a 27 day hit or a 35 day hit or 90 days, , takeat is the value

coke, disney, microsoft, these long-term franchises are not impacted in a way that meaningful changes. in the first nine months of last year when the stock market was doing really well, we're talking about the fed raising rates and talking about a u.s. battle with china, we still have grumblings around things the white house was doing or saying. yet, you had lower volatility in the stock market and that is what we will see in the next 6, 12 months, more like what we saw in the early part of last year. haidi: a return to a normal normal -- new normal. i want to ask you about the big banks. the first $100 billion profit year for banks ever. given the tax cuts are not in this and what the fed is doing next year, if you look at market expectations. >> several stories with the banks.

-- the that any bank market was down, also, fixed income trading took a hit. this was almost a distortion in terms of the news being sloppy and mixed from the banks, not bad, but not consistently good. i do not understand why, given how decent the environment was for banks last year, by bank stock prices did not do better. when i talk to professional investors, they say the same thing, fundamentals were not that last year but starts did not do as well. haidi: thanks -- shery: banks are performing better than tech. we have run out of time but thank you, chief u.s. equity strategist at credit suisse. apan set to report data in couple of minutes and we will find out how much closer the country is to the elusive 2% inflation target, and as movies

when the doj will change. this is bloomberg. ♪

shery: we are awaiting data from japan. we have the latest cpr numbers. national cpi here on your growing .3%, which is a slow down from the month of november. onluding fresh food, you're your rising .7%, missing expectations. it is also a slow down from the previous month of november. of course, we had seen that fresh food prices, but one it comes to cpr numbers excluding fresh fruit and energy, it is in line with estimates. haidi: 3/10 of 1%. of course, cheaper oil prices weigh in on that and cheaper commodity prices.

we were explained -- expecting inflation. that is the picture we have on these declines in fresh food and oil. coreberg intelligence says inflation will remain under 1% this year. also looking at some downward pressure when it comes to oil commodities. at the end of the day, we are nowhere near 2%, so the bank of japan just continues to do what they do. shery: many more analysts don't think that they will actually ever get to the 2% inflation target. we are getting further and away.r excluding fresh fruit, you're on your .7% growth, missing expectations and slowing down. this probably weighed down by cheaper oil prices as well. brent fell 12% just in the month of december. we already have indications we could see more downside in cpi. ppi also missed estimates. haidi: don't forget that we probably had the effect on

import prices as well. they're interesting ahead of the bank of japan next week. let's go to sophie kamaruddin for a look at how the markets are digesting this. sophie: taking a look at japanese assets, the yen trading at 109.13. we do have jgb futures with muted declines here. we have seen this week some focus on the market ahead of the boj's policy meeting next week. nikkei futures, we are seeing fluctuations when it comes to contract in chicago. we could see some choppy trades after recent declines for the nikkei 225. taking a look at how the session is faring in australia, we are seeing gains for the afx 200 -- asx 200. health care also gaining ground.

let's check in on movers across the board. after pay rising the month -- most in months. health scope rising to an eight month high on the expectation that canada's brookfield will sign off on an offer for the hospital operator. on the backside, steadfast group falling after being downgraded at credit suisse. sydney airport under pressure after being told to so. -- cell. shery: thank you so much for that. let's cross to sydney and moody analytics economist joining us, what. syed led to deflationary pressure in the december numbers? we had declines in fresh food and brent prices falling, but where else could we see

deflationary pressures falling as we have core cpi numbers just rising .7%? >> i think going back to middle of the year when oil prices were high, we saw them filter through the rest of the economy, particularly through transport costs. now that ore prices are reversing, we will see the factors filter out of transport cars. also on the broader economy, we have seen housing prices decline, which has been an entrenched trend for the past few years and we expect it to continue. expect19, we do inflation to decelerate further, particularly the core inflation measure. shery: we are now hearing from more than half of the economists surveyed by bloomberg saying that they don't actually expect to see inflation ever reaching the doj's target of 2%. what are your forecasts? >> exactly the same.

we don't expect -- we are not forecasting 2% inflation at all. unless there is a large structural change in the economy where potential gdp increases, where the workforce expands, we don't expect inflation to hit 2% in the near or medium-term. haidi: we want to go to this chart in the terminal. what you were just discussing, how far away we are from the 2% target. you are looking at excluding fresh food, 0.7%. should the bank of japan essentially abandon this target? there is not much more they could do in terms of extraordinary monetary policy. they are already seeing distortions in the market as a result of policy. it's down to demographics and reform measures that are politically difficult to take. >> i think it's a little too late for them to abandon the target. they have sort of anchored

themselves quite firmly to the target over the past five years, five or six years. i think it's a little too late for them to abandon the target. going back to last year when they introduced flexibility to the control policy, we believe it was measured to pave way for tighter monetary policy, although given inflation is decelerating further this year, we don't expect it to move at all this year. haidi: to be fair, we have had a bit of a peak when it comes to gdp growth in japan as well. how much do you spend time looking at the implications of the trade war, the implications of demand across asia and on the supply chain, how much that really affects an economy that is fairly reliant on trade like japan? we saw particularly towards the end of 2018 with the trade numbers, we saw exports certainly slow down compared to the previous year.

i think the trade war story is likely over for 2019. i don't think we will see an escalation of trade hostilities between the u.s. and china. it appears to be going the other way. i don't think the trade war will be a concern this year, but i think generally the chinese slow down regardless of trade war will have an impact on japan, particularly in slower trade numbers. i think that can be expected to continue in 2019. haidi: we have about 20 seconds. let's talk about the stronger yuan -- or the stronger japanese, because annexed boj official says it could hit the 80's level. we haven't seen that since 2012 or 2013. if we do see a recession, when can we get there? i don't see it going towards that level as long as the boj is continuing with quantitative easing policy. i don't think it will go to the 80's unless there is a huge global recession. there are some push and pull

factors earlier this year for the yen. one of them will be brexit. at the moment, i don't think it is fully priced into markets. if we do see adverse markets coming out of frexit negotiations, i think the yen will go towards the hundred mark and appreciate to that level. but at the moment, we have not seen that priced in. at the moment, the forecast is 105 or 110. haidi: thank you for joining us, faraz syed, moody's analyst out of sydney. reporter: confusion in washington about u.s. tariff strategy on china. the journal reports that treasury secretary steven mnuchin wants to lift some or all tariffs to move trade talks forward. the treasury department denied that, but the report moved markets. trade representative

robert lighthizer is against such a move. theresa may has canceled her trip to davos next week to reach a brexit deal with rival parties. she's also working on a so-called plan b, which will be presented to parliament monday with mp's voting a week later. they say a second brexit referendum remains an option. the eu says they could be flexible if the u.k. changes its stance. bank indonesia says the outlook at the federal reserve prompted its decision to hold rates unchanged at 6%. are halfnor says rates of the effort to reduce the current account deficit and the strategy has almost reached a peak. he says he remains hawkish and preemptive, and fed hikes have been priced in to the planning. four audi officials have been indicted in the u.s. for their roles and a conspiracy to defraud customers and regulators by rigging engines with illegal software to pass emissions

tests. that includes the former head of the audi diesel development team and the former of engine registration. the indictment comes weeks after the company posted its first annual u.s. sales drop since 2009. day, onews 24 hours a air and at tictoc on twitter, by more than 2700 journalists and analysts in more than 120 countries. i'm ed ludlow this is bloomberg. shery: thank you p the white house as president trump is canceling the entire u.s. delegation trip to the world economic forum in davos. we knew that the optics wouldn't be great. u.s. officials mingling with billionaires in davos while 800,000 federal workers being affected by the shutdown. does this signal that we could continue to see the government shut down here in the u.s. extend for already what has been a 27th day? >> it will definitely extend into next week. there are no more votes. no one will be around this

weekend. there is the holiday here in the u.s. on monday, and the senate is essentially going home. there's not much in the way of any action unless there is some sudden breakthrough. the president had gotten quite a bit of blowback from democrats, because earlier in the day he had canceled a trip that house speaker nancy pelosi was going to make with a bunch of other lawmakers to afghanistan. it was an unannounced trip because of security, and it would use military planes, and trump informed her that she would not go. that did sort of contrast with the idea that treasury secretary steve mnuchin, commerce secretary wilbur ross, and secretary of state mike pompeo would be in davos for the event at the world economic forum. that led trump to go ahead and cancel everything for that trip. they said it was out of respect for the 800,000 federal workers

who are either furloughed or working without pay. haidi: in the meantime, the president also called back the pullback of u.s. workers despite the shutdown continuing. i wonder how much the president is copping the blame as we go to potentially another week of these -- the shutdown. reporter: consistent pulling showing that the president is being blamed or taking the majority of the blame for it, that his approval ratings have gone down. the administration has tried to mitigate some of the effects of the general population by having tsa workers on duty and calling back people at the irs to process tax returns as they come in, and several other places. it's difficult there could be an argument made by democrats saying that it is illegal to do that because of the laws on the books for that, but nobody is

, or they areto sue unlikely to sue over the fact that he is calling back workers, but eventually it will start trickling down as we get longer into the shutdown. haidi: joe sobczyk there with the latest. our bloomberg congress editor. coming up next, netflix says it can attract record viewers despite the latest sales and subscriber numbers falling short. we will break down the earnings report, next. this is bloomberg. ♪ this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." i'm haidi stroud-watts. shery: i'm shery ahn. netflix tumbled in after hours trade after delivering a mixed earnings report. it suggests that the unprecedented spending spree on new content may not pay off as quickly as expected. lucas shaw joins us from hong kong. how bad were the results? the stock tumbled after hours.

i have to say, i watched "bird box" on netflix and i did like it. [laughter] reporter: i will admit, i did not like it.i thought it was bad. shery: what? reporter: [laughter] this is one of the first times i remember netflix tumbling like this when the subscriber numbers, both the in quarter numbers and the forecasts are quite strong. they added almost 9 million customers in the quarter, 29 million for the year. the biggest year yet, the biggest quarter i can remember. the forecast for the the revenue was light because of currency problems, and the operating margin and profit was still quite small. they said on the call that one of the reasons is because of how much they spend upfront for original movies, which is a big new priority because of the success of "bird box" and the

like. haidi: i have to say, i have not watched it. eventually international overseas markets will be 90% of the customer base, apparently. how do they intend to make that happen? reporter: there -- they are still a ways away from that. international is more like 60% for now, but they are consistent that they think one day it will be 80% or 90%. netflix views itself as an internet service like will or facebook -- google or facebook. they believe they can get the same ratio where the u.s. is a huge driver of revenue and was their first home, but eventually is ubiquitous. i think it is reasonable in europe and parts of latin america. asia is still something of a question mark. they have invested in original korea.n india and

they are doing one of their first mandarin language shows paired they are doing and japan.l in they are even doing some in thailand and vietnam now. for the most part, most of the countries have one million, may be 2 million customers at most. shery: and of course, netflix recently announced they will be raising prices here in the u.s. i was thinking of renewing my subscription. i don't mind it, i like the original content. will this mean that other subscribers could really be thinking again about renewing their subscriptions? seen,er: it remains to be because this is the largest price increase they have seen in a while. if you go back to 2011, that was the last time netflix had a real crisis when it split the streaming and dvd business, which amounted to a 60% price increase for most customers, and they lost like 800,000 customers in a couple of quarters. since then, they took a while of for raising prices, and since then they've shown an ability to raise prices without losing

customers.they have been steadily raising prices including the u.s., one dollar here, a dollar there, and it has not hurt them. it could be a lot of people feel the way they do like you do, they are so reliant on netflix, there is so much to watch, that they don't mind, especially because the cost of netflix now is still cheaper than the most popular plan for hbo. most of the people paying for that are fine with the price. shery: our bloomberg reporter joining us from hong kong, thank you so much. haidi: some investors are probably thankful to u.s. bank earnings season is nearing the end. morgan stanley is the latest to report that shares fell the most in six weeks. ramy inocencio has been covering this and is looking at what sets morgan stanley apart in the worst way, given we have seen this outperformance by its peers. reporter: i think we are saving the worst for last here when it comes to morgan stanley. taking a look very quickly at fourth quarter adjusted eps, we can see it is an obvious miss,

off by $.16. in after-hours trading, it is on, but it did fall by 4.4% during the day. in terms of some of the weights here, they blamed credit as well as rates products. the bigger umbrella of blame was all about volatility that did hit a fake trading revenue pretty much across all of the six major banks we had been reporting today. flip up the screen, thank you. revenue equities trading, miss, miss, and a miss. some positives, investment banking a little better than expected. forrly, the negatives revenue equities, and this weight into the sentiment. looking ahead, ceo james gorman was on the earnings call and he said the tone starting in 2019 is something that has changed, something for the better, and he's looking at m and a. take a listen. >> there are a lot of spaces

where we can add on. we are not suggesting we are about to do a megadeal in management. you and i and everybody else knows those are complicated. not all of those have been successful over time. reporter: he's also thinking about purchases in wealth management and asset management. he also said that he thinks q4 earnings were not a new normal. but what is something new at least in terms of a record is right behind me on the gtb terminal library. in terms of record profits, this is what we are talking about for the entire year for 2018. this is the breakdown for the six major banks. the biggest one for profits was in blue, j.p. morgan, $32 billion. $120 billion is this line. we've never been here before. hopefully in 2019 that folks are hoping to get there again. we saw a huge surge in

volatility less corridor affecting french banks as well. could we see the impact on asian banks next? reporter: that's a good question. we have to see what happens in february and march when japan, korea, and at the end of march china report earnings. asia overall.out the big headline that came out was a bloomberg news exclusive that did move the markets down by 5.6%. they were thinking about axing their $4.4 billion proprietary trading unit. critics say maybe it's not worth the bang for the buck. between 2015 and 2017, they only made one million euros, but it has assets under management of a little more than 4 million -- 4 billion. it is whether they can find growth in terms of other avenues for some return on equity. we saw that here. in addition, there's also the talk that bonuses might be cut

by 25% either here or at bnp paribas, or even down to zero. shery: thank you so much for that. for a look at some of the stories trending across the bloomberg universe, on bloomberg.com, how china is benefiting more with the u.s. when it comes to soy. haidi: and president trump denying speaker nancy pelosi's use of military planes to visit troops as the government shutdown rolls on. shery: on tictoc, what you should maybe have been invested in legos rather than stocks and bonds. check out those stories on bloomberg, online, and on the terminal 2 this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." i'm haidi stroud-watts. shery: i'm shery ahn paired let's get a quick check of the latest business headlines. china is warning canada the ban uawei 5g protective network

would have consequences. they say there's no way it represents a security risk and he hopes the government will make a wise decision. the warning comes with china and canada at odds over the arrest of the huawei cfo in vancouver. haidi: a company that reported one of china's biggest corporate bond assaults is -- shanghai listed when time energy is a coalminer, and it surged 60% this year to lead the benchmark. shares have rallied even as it warns it sees uncertainty over it paying a $150 million bond next week. shery: japan and south korea coming online at the top of the hour. let's go to sophie kamaruddin in hong kong for a preview. sophie: nikkei futures are pointing at gains after a two day decline for the nikkei 225. the kospi could extend its advance for a fourth straight session if investors could sustain appetites for risk

assets. stocks tomes to watch, we are keeping an eye on nissan on plans to cut as many as 700 workers at one of its american factories. hitachi on the radar as well after cutting its full-year net income forecasts on a write-down related to scrapping a u.k. nuclear project -- project. adr fell 5.8%, the most since january 2013 ahead of the third quarter results. let's check in on how american depository receipts fared overnight. advisor say the company is under lighting week factory automation orders. jeffries points out that demand grew for the company. haidi: sophie kamaruddin on the markets. let's take a look at the broader markets trading at the moment. australia seeing upside about

3/10 of 1% with the aussie dollar jumping one point in the overnight session. potentially we have china tariff s from the u.s. being rolled back. gains in new zealand with manufacturing highest in eight months. ♪

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haidi: hello, and welcome to "bloomberg daybreak: asia." i'm haidi stroud-watts. shery: from bloomberg's global headquarters in new york, i'm shery ahn. sophie: i am sophie kamaruddin in hong kong. we will bring you news from across asia over the next hour. haidi: top stories this friday, asia-pacific markets headed for a higher start despite the shadow of more week data. inflation slows again in japan as cheaper oil undermines the boj. some think cpi will never hit the 2% target. shery: china turns up the heat

-- banningeing huawei networks. sophie kamaruddin with a check of the markets. we look at some risk appetite returning to the markets with wall street gaining for a third session as well. sophie: risk appetite just somewhat here this friday. the nikkei 225 gaining one third of 1% after a two day drop. ,hares of sydni gaining boosting the benchmark. we are seeing if it can reach the 5900 level. 8% asx 200 could be up by for the end of the year, if reasonable outcomes can be achieved on trade and geopolitics. let's switch it out to check on the yen for a gauge of the risk appetite. it is on course for its first weekly lawson sometime. 109.16. . not much reaction to jgb's.

. they seem to be shrugging off the mixed reaction. holding steady avenue -- ahead of an enhanced liquidity. sophie kamaruddin checking in on the markets for us. let's get you up-to-date with first word news with ed ludlow in san francisco. reporter: president trump has pulled the whole u.s. team out of the world economic forum in davos next week, saying the government shutdown in washington is more important. treasury secretary steven mnuchin was to have led the delegation including commerce secretary wilbur ross and secretary of state mike pompeo. the president was going originally, but withdrew early on because of the shutdown. there is confusion in washington about u.s. tariff strategy on china. the journal reported treasury secretary steve mnuchin wants to lift some or all tariffs to move trade talks forward the treasury department quickly denied that, but the report did move markets. mnuchin is a known proponent of easing restrictions, while trade representative robert lighthizer

is against such a move. cutan is planning to hundreds of jobs at its mississippi plant. slowing truck sales adding to a list of woes after reeling from a drama. the plant will eliminate a whole shift affecting up to 700 contract staff full-time workers will keep their job. 166,000aled almost tighten and you -- suv's last year. reports from china says north korea's top envoy pastor through beijing en route to the united states. they were seen leaving the vip terminal. u.s. officials say high-level talks are planned later friday to arrange a second summit between president trump and kim jong-un. indonesia says the outlook of the federal reserve prompted its decision to hold rates unchanged at 6%. the governor says rates are part

of the banks effort to reduce indonesia's current account deficit, and the strategy has almost reached a peak. he says he remains hawkish and preemptive that the fed hikes have been priced into the banks planning. global news 24 hours a day, on air and at tictoc on twitter, by more than 2700 journalists and analysts in more than 120 countries. i'm ed ludlow. this is bloomberg. haidi: thank you paired china's ambassador to canada is warning that excluding huawei from the 5g wireless network will have repercussions. shery: comments coming after his canadian counterpart says the two-way diplomatic feud is damaging beijing's reputation. tom mackenzie joining us now. this seems to be getting worse. that is pretty fair to say in this latest round of sparring coming from the ambassadors. the chinese ambassadors speaking in canada, making pretty rare

comments, saying, essentially threatening canada, saying if you don't allow while way to install technology or if you banned them from the 5g telecoms networks, there will be repercussions. also saying and denying there are any national security risks around the company, which is of world'schina's, or the second-largest smartphone maker, and china's largest company. many u.s. allies fear china could be used -- it could be used as a backdoor for chinese spies. wasourse, the huawei cfo arrested six weeks ago in vancouver, and the ambassador says she is innocent. theourse, the comments from canadian ambassador to china, says that china's actions and reactions to the arrest of the huawei cfo were undermining china's reputation on the global stage, and was doing its reputation damage.

we have seen the arrest of two canadians in china on what many are saying are trumped up charges, and then you have the death penalty for another canadian in china. many would say it's a politically motivated move from the chinese side. . we are a long way from discussions that canada and china were having last year about a free-trade agreement. these political machinations still have a long way to play out. haidi: you mentioned the canadians being held in china. what do we know about these individuals? reporter: the most recent case was the trial or re-examining of the sentencing of someone called robert schellenberg. monday this week, he was given the death penalty rather than 15 years. justin trudeau saying that was a clear example of a politically motivated move from chinese courts, which of course are controlled by the paul meanest party. -- communist party. then you have the two that are in detention. it is clear they have been

issued with trumped up charges officials.o canadian . the chinese say they breached national security paired they remain in detention, lights on 24 hours a day, no legal access. ' casesre the canadians here in china and it has caused some tension. shery: we are seeing increased pressure on while way not only from within the u.s. but also from europe and elsewhere. reporter: it is pretty unrelenting pressure. the most recent case we've got is a federal investigation in seattle looking at allegations that huawei stole robotic technology from t-mobile. we have been told an indictment could come soon. of course, there would be repercussions to that. then there is the case of the huawei employee arrested in poland on accusations of spying. the u.s. continues to try to pressure allies to block or at the least limit access for while networks. telecoms

that is continuing. you have australia and new zealand already putting in bands -- bans, and countries like the u.k. and germany mulling this. be can imagine this will part of talks between the u.s. and china, although you would notct that the doj would stop investigations into what way. haidi: tom mackenzie in beijing with the very latest. let's take a look at global markets. by our asiad editor. a strong u.s. close, japanese inflation is a key factor. going back a step before that and tying into these trade tensions and strategic pensions tom just went through, we got a dry run in the u.s. session as to what might happen if we get a resolution on the trade front. we certainly did. not only did u.s. stocks jump

remarkably, so did the aussie dollar. it went on a real tear against the u.s. dollar and also against the yen. that signals that there is still such a strong underlying desire tradeinvestors for this war to end, or at least ease off. there is so much concern about global growth slowdown and trade being a big part of that. easing intention or even i think part of the positive reaction sustained somewhat even after the comments were walked back by officials, is that the idea that the u.s. government is sufficiently concerned about what's going on in markets in particular to be therefore considering pushing to lift some of the tariffs, even temporarily, that shows there

are motivations on both sides now for a trade deal. that can be taken as a positive. news: of course with that and wall street rising, we are seeing asian stocks gaining ground. this morning, we had japanese cpi data, missing estimates. rising 0.7 percent, getting further away from the boj to percent inflation target. many more people say the boj will probably not move throughout the rest of the year. reporter: that seems very likely , and perhaps that is reassuring. usually when the boj has carried out tweaks over the last couple of years, it tends to cause volatility and disruption. they can't resort to the bazookas of 2013 that sent .verything soaring

when they try and finesse policy, it often ends up doing .ore harm than good i think we do need to see gains today, a return of risk appetite, considering you have had all these china stimulus plans, you've got some prospect for trade optimism. myselfittle skeptical that this is necessarily a good sign, but you can see the reasoning for people to take it as a good sign. if we can't get some life in asian stocks today on the back of all that, then i think we really are in trouble on the medium-term picture. our bloomberg live editor in asia, coffered reynolds joining us from sydney. the japanese maker of robots and cars, sophie taking a look at what is going on. sophie: aside from making cars and robots, it makes motors for

everything from hard drives as well. it cut the fiscal year profit outlook by 26%, blaming the escalating u.s.-china trade war, putting share price under pressure, as the company sees operating profits at $1.3 billion, a reduction from previous guidance. it also reduced the sales outlook by 9.4%. . the founder and ceo said on thursday the plunge and orders in november and december was unlike anything he has ever seen. giant employs more than 100 thousand people globally and is seeing an adverse ripple effect from the u.s.-china trade dispute. haidi: thank you for that. sophie kamaruddin in hong kong. still ahead, we take a look at the outlook when it comes to the chinese pharma industry. there is a bright spot. shery: we are live at the morgan stanley global investment conference with the head of asia wealth management, vincent chui. this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." i'm haidi stroud-watts. shery: i'm shery ahn. hong kong is hosting the morgan stanley 2019 annual global outlook investment conference. stephen engle is there. what is on the agenda? reporter: our next guest is going to be giving the opening address. this is his conference here in hong kong. he is it -- he is vincent chui. you are the head of asia-pacific for wealth management at morgan stanley. thank you for joining us. we did have the morgan stanley results overnight and wealth management did not perform that well, but it has been a volatile and choppy market in 2018. one of the biggest sources of newly minted millionaires and billionaires, china, has hit a bit of a speedbump. what is the outlook for 2019? >> good morning. thank you for having me here with you this morning.

global and asia trade and vitamin to will be -- environment will be volatile. in this kind of volatile , we need advice and suggestions, good products, to manage assets, restructure assets, to navigate the market environment so that we are well-placed to help them. reporter: how do you see the market volatility that was exacerbated by the trade war, which is still ongoing? how much of an overhang will that be into 2019? >> i think it will go on for a bit longer. later on today when you speak to some of my colleagues, they will elaborate on that. it is a concern. our clients'nsider interests, business interests and personal interests. we needersonal side, people. the volatility is there, so how

you manage your own personal diversify assets locally over overseas, that is hugely important. reporter: where else are you building up your wealth management businesses? i know singapore, the philippines. but china must be a key focus. >> china is our most important focus. i will give you a couple statistics. it seems for five years ago, you look at the rate of high network assets in this part of the world, 13 percent per annum. 61% of the growth of the entire high net worth population actually comes from china, so any bank has to get china to be a successful bank. reporter: looking at some of the numbers, we looked at the bloomberg billionaires index. 120 people in asia on the 500 member list. there, first time wealth in the region actually dropped since the index started in 2012, though. more than two thirds of those

trainees on the list had their fortune drop -- chinese on the list had their fortunes drop. does that make it more difficult , or does it make attracting customers a little easier, because they think, i need to preserve my wealth? >> that is one way to look at it. it could just mean a deceleration of wealth creation, and also fluctuations of the market cap environment as well. on the other hand on the overall basis, think about the number of new entrepreneurs who are actually coming to the market who will become millionaires or billionaires or the numbers are still very large. we as a bank, we help a lot of these come to the market through our banking colleagues. from our perspective, holistically speaking, i think the opportunities will be mega. reporter: and you are targeting second-tier cities as well, a lot of these new entrepreneurs going public, they are based over there? >> yes. i think everybody knows about beijing, shanghai, shenzhen.

but remember, a lot of second-tier cities in china will be classified as first tier cities and most parts of the world. i think we have huge opportunities. people in china are creating wealth. they are accelerating. this is partly as a result of the deal between the u.s. and china. we are actually proactive and constructive. reporter: how is the tax regime in china affecting customers and maybe attracting people to set up wealth pockets outside of china, as they want to take wealth and protect it offshore? >> if you look at the history of the wealth industry, this is development outside of china. i think a normalization of the part of the path you have to go through, and people welcome the formalization. it moves a lot of uncertainty. there is enough wealth both

onshore and offshore. i'm not worried about that at all. actually, this is a time when we are able to try to help clients to manage finances. this is the time. reporter: i know you are expanding in singapore, but this is also a direct offshoot about the china story as well, as they andup family businesses affiliates in singapore. they want their wealth as well transferred. i was looking at statistics. the number of dedicated firms wealth inng personal singapore quadrupled from 2015 to 2017. what are your plans for singapore and what is the headcount? i look we look at china, at hong kong and singapore as one. relatively speaking, i think in hong kong, we noticed we have a lot more high net worth and entrepreneurs. they actually operate on a more individual level. actually that is where we focus -- we focus on

this client. in theapore, people offices, they seem to like that place of bit more than hong kong. we are actually hiring wealth planning colleagues based in singapore, people who have experience with families. i think the management opportunity is so large, i'm not making much distinction between these cities. both are wealth management hubs for this part of the world and chinese clients. reporter: what is your strategy with cross-selling according to what morgan stanley has been about-- you lead and 2018 at least 20 different offshore ipo's for chinese linked companies. give me your strategy on how you can cross sell your wealth management products to them. >> the motto is simple. we would like to position ourselves as the partner to our customers. ceo you think about a

trying to bring the business to the market, we start thinking about your capital market needs and banking needs, and my colleagues will bring in the wealth fund to look at how the listing itself will actually affect the individual's finances and family needs. we go in together and work on a holistic solution on the banking side and on the wealth side. way we cant is the add the most value on a holistic basis for our customers. reporter: back to the first question, how choppy is 2019 going to be? we know the revenue in the fourth quarter globally for wealth management is down 6%. that disappointed the market. do you see reason for optimism? first quarterthe or two, i think things will be continuing to be volatile or may be a bit slower. on the other hand, we have been in asia for long enough that we know things can turn quickly, so we are positioning ourselves for

a very strong recovery in the second half. ofhink by that time, some the tension between the u.s. and china on the trade side will disappear. head of: vincent chui, morgan stanley wealth management asia-pacific, thank you for joining us and thank you for having us at your conference. we have a full morning more coming from the conference here in hong kong. haidi: looking forward to it. that was visit truly, head of ofac -- vincent chui, head asia-pacific wealth management at morgan stanley. catch up on any part of the interview if you missed any part and do a deep dive on any of the securities. you can also join in on the conversations and send us any questions for guests. check it out at tv on the bloomberg. this is bloomberg. ♪ . this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia."

i'm haidi stroud-watts. shery: i'm shery ahn. let's get a check of the latest headlines.ash aiming to raise annual iron ore shipments as much as 3.5% in 2019 after volumes climbed again last year. it undermines the miners confidence that the slowdown in china will derail demand for its top earning material. sales of up to 350 million metric tons from a premium this year. however, he thinks output could decline as much as 13%. haidi: a jump in late trade-offs in second quarter, earning estimates. revenue at $299 million, up 39% from a year earlier and ahead of the average analyst prediction. at last, the revenue in the third quarter up to 350 million dollars earning for a share of $.18.

shery: softbank is taking a small step to cut the debt pile, offering to buy back $750 million of outstanding notes. softbank eurobonds jumped in tokyo, seeing the biggest rise since july. softbank has about $150 billion of total consolidated debt, asthma seo she sun country -- transforms the company into a investment fund. the ousted ceo from cbs les moonves fighting the lack of severance pay. he was ousted amid allegations of sexual misconduct and cbs said he would not be receiving the $120 million pay index. he was repeatedly listed as one of the best paid ceos in the u.s. coming up next, a top north korean official set for high-level talks in washington. could a second trump-kim summit happen soon? we will have an update, next. this is bloomberg.

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>> you are watching daybreak asia. observers are warning that the u.s. government shutdown could soon hurt u.s. stocks. uncertainty about rate hikes and a trade war. trades spurs -- traders factoring in closures. the impact was spread as federal workers continue to go without pay. canceled heras trip to davos next week. she is working on a so-called plan b which will be presented to parliament on monday. ther continues to rebuff

invitation, saying a second referendum remains an option. flexibleys it could be if the eu changes that stance. >> the red lines are britain's red lines and with these, they shut the doors themselves. if these red lines move, it is -- if the british red lines move, we will also move immediately. >> president trump is calling for an expanded missile program to protect the united states. he said his goal is to destroy any weapon potentially using sensors in space. he said national security is a priority. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

at asiantake a look markets so far this morni. -- asia stocks led by the nikkei through the investors assess the prospects of the u.s.-china trade talks and the and is under pressure in the korean won nudging higher, but set for a weekly declines. -- we are seeing declines in the aussie. the government will expand subsidies for hydrogen or electric cars to nearly 60,000 vehicles eligible and neck on shares rising. and became a bid for a -- next rising--t on shares

nexon shares rising. after pay in sydney jumping the most. >> thank you so much. 's top envoy has willed in washington and arrange a second summit between president trump and kim jong-un. novemberhat the meeting have been canceled because people could not see eye to eye on how to proceed. what has changed since then? >> not a whole up visibly has changed. is the desire of trump to change the conversation in washington. thing.ght be one

as far as what has been happening, that is at a standstill. the u.s. is very reluctant to give any sanctions relief without some concrete steps for denuclearization. there have been talks underway ciaeen kim's regime and the and they are discussing what either -- other measures they could be. it depends on how far along they are, whether the u.s. is ready to give some release and whether they see that as a way to move forward. >> we heard from vice president pence telling ambassadors, saying there have been no concrete steps taken by north korea in terms of an effort to abandon its nuclear program. does that contradict the president who said north korea

is no longer a nuclear threat? >> president trump has kept that narrative since the june summit where he was flying back from singapore and said the threat is over. that herative is one keeps siding and speeches, but when you look at what has actually changed, there is not too much. has not committed to giving up its nuclear weapons yet. they want sanctions list. -- they want the sanctions to be lifted. standstill for months and we have not seen a real breakthrough. whether they can achieve anything from the second summit really depends on, is the u.s. willing to relax a little bit on the sanction side and will north

korea be able to do enough and have the usb able to find that to actuallyenough start dismantling its nuclear program? heard the foreign minister talk about the u.s. and south korea, discussing corresponding measures in order to reward for denuclearizing? measures caning cover a range of things, peace declarations, easing of sanctions. these are all things being considered. mentioned that the u.s. might allow humanitarian assistance into north korea. this could allow the aid to go in. the question is, does north korea see that as a way to commit to anything serious on

their side order -- or will they press for more easing's on sanctions -- more easing on sanctions? beijingindications that resumed economic relationships with north korea. is this going to be a challenge ,oing into any future talks that they have some of the regional players being bold with the negotiations? korea, if it does get trade going again with china and south korea, that is plenty for the regime. says it is still abiding by the yuan sanctions, but you over for theun go fourth time in the past year.

south korea also wants to do this and move ahead, so kim is achieving his goal of normalizing north korea and normalizing himself. from that perspective, he is still making gains and the longer it goes on, the more pressure. the security council and other places where others can say he has done enough really, let's give him a break. the pressure will be on the trump administration to keep the sanctions in place and keep the world focused on the sanctions in place. time.ppreciate your the federal reserve has signaled is ready to wait and to see how global uncertainty plays out during the trade war. kathleen hays ash the chicago

red present about a rate pause and what comes next. slower,ts may have been to truly assess growth towards trends, so it may not be more different of an outlook. i think that puts us all at a situation where they are comfortable. i don't think there is a hurry and also don't want to make a mistake. think you see an economy that is potentially strong -- renault mentally strong-- fundamentally as long as these factors don't get worse? in other words, is this a dovish stance? >> i don't know how to evaluate

be dovish stance. , where in the moment growth is good, unemployment is good and the consumer is strong, still, a lot of wherewithal from tax reform and good conditions going forward. my outlook is for continued uncertaintythere is and also, we are at a point where if there is shock, maybe the global slowdown is more severe, so that take more of an effect. let's look at the lay of the land. i'm not worried about inflation getting out of hand. if anything, a little softer than i was expecting and i would say i would be cautious and take a little more care so that we ratify our objective. the fed is going to irate two

times or three times next year? >> i don't know how the data will play out. i think markets are going to ensure outcomes that they can't control themselves, that is sort of the way things play out. >> they could still happen? >> it is still the case. we are at the moment will we are still looking at the data. i'm going to -- the median and that is entirely possible. -- plausible. about concerned are you the global growth slowdown, particularly in china? >> i think china has turned softer. discussionstrade

have probably contributed to that to some extent. they are a big player in the ,lobal economy and others are so we have to look at all of that. i think it is important to assess. >> charles evans there with kathleen hays. coming up next, the rare exception in china. bloomberg. ♪

>> i should anticipate >> this is daybreak asia. iposwas a record year for in hong kong. also marked the worst returns in a decade with newly listed bio techs overweight by the broad slump in chinese health care stocks. will this year be any kind are?

-- kinder? >> hong kong allowed the rules rally.y were enjoying a beijing among the first accelerating into .ecember when it changed drugs in that time, the line in blue on the chart, lost nearly 56% thursday, the line in yellow is down 23%. check out the line in white. that has outperformed, 48% listing and jen she bio has managed to stay above on its christmas day debut.

after a lackluster view -- was a jointan sachs sponsor. the company has revenue-generating and it is profitable. we will test consumer sentiment this year with more in the pipeline. going into 2019 and beyond, policy risks remain for the broader health care sector with faster approval by foreign drugs . mentioned, it is an exception into what has been a hard climb lately for chinese socks. they are up by 50% since nearly october. great to have you with us.

she went through some of the challenges in terms of regulatory changes, as well as the social or political issues great we had a massive scandal that really reverberated. how do you position your company in the wake of all the uncertainty? what you have in the pipeline -- what you have in the pipeline -- what do you have in the pipeline? >> thank you for having me. we see a lot of opportunities for this particular area. since it was established seven years ago, we have been seeing a lot of regulation changes, which would be more pro-high-quality companies and more innovative companies in china, so overall, we believe the industry is getting better. >> how you position yourself in

terms of taking advantage of the demographic need of pharmaceuticals? health care is a massive area that needs instruction. it is a major issue for the government as well. >> absolutely. as you mentioned, china has a large population and several of major diseases attacking the world populations, especially cancer. for us, we have been focusing on big molecules, products for we've actually been able to develop 20 products to be released to the market. china has lack of innovative products, lack of delay treatment which is available on a worldwide basis and that provides a great opportunity for

company like us to produce a front for the chinese market. mean you are extending when it comes to products on your pipeline? arrivednths ago, you that china approved your arthritis drug application. look at what you are focused on in the next few years? >> we have around 20 products development -- in development in the first product approved a short time. we will have new products within we have and we believe a rich pipeline, late pipeline compared to other companies and

werefore, we believe generate more milestones and achieve more milestones in the upcoming years. beneficial fory the company, the market and investors. >> when do you expect to be profitable? company,e we are a bio one of the characteristics is we have to invest a lot before we turn into profit -- profitability. we have around 20 products in development. ,n order to be reasonable investment will be a crucial area. anticipate we will have to be in investment move -- investment mode for several years am a but

year we should have about four products on the market that will be very beneficial for our revenue and .ur probability a real trust deficit in china when it comes to health care and you can see probably why with the likes of the vaccine scandal last year. how do you overcome that and then compete against a foreign competitor? is we of the uniqueness -- using an international sender for quality control, manufacturing and development. we have entered a strategic

lillyrship with eli pharmaceuticals. throughout the years, we codeveloped the product and also getting certain reviews and monitoring to ensure the quality is up to the international standards. quality is very important and we the stand by that as one of companies to produce this product. u.s.-tradeeeing the sentiment dampening. we are seeing signs of an economic slowdown. is that having an effect on your business or are all pharmaceutical industries competitors right now? >> i believe this is a microlevel issue. on a microlevel, a company will latestish [indiscernible]

, moreical products advanced products for the ordinary people and that is something we are doing and what we are doing is providing a drug which can treat a lot of patience and allow patients to live longer. any spender, this is a very noble mission and we believe this will not be impacted. so far, we have not seen any impact for our development or the drugs we are about to launch. .> thank you for your time of course, you can get around up of the stories that you need to know to get your day going in today's edition of daybreak. on mobile available in the bloomberg anywhere app.

roundup. this is bloomberg. ♪

>> this is daybreak asia. watch,more on what to with to hong kong. the wild ride continue thursday afternoon,

.osing billions of market value some traders pointing to the real estate development and looking ahead, they say expect more similar stock crashes this year with a lot of share prices underwater. very much focused with a revenue outlook coming in below projections. the stock did rise thursday. jeffrey says that is a display of confidence. metal brokeous 1400 after trading at a record level. >> but sick a look at how markets are trading across asia so far. we are getting a little optimism so far. we are seeing gains of close to 1%. was though the report

probably refuted by the treasury, a little bit of positivity in the market. wall street also gained for a third consecutive session and moved past the moving average and was not able to reach for the december. taiwan and malaysia looking positive. >> bloomberg television will have coverage next week. they will be speaking to top asia delegations. join us for that.

>> 9:00 a.m. in hong kong and shanghai. this is "bloomberg markets: china open." >> asia-pacific stocks are rising, building on the recent rally in risk wall street gained overnight on disputed tariff claims. >> inflation slows again. cheaper oil undermining the boj. some fearing cpi may never hit the 2% target. >> beijing says banning huawei from 5g networks will have "repercussions."