haidi: good morning. i am haidi stroud-watts. ramy: good evening, i am rainy -- ramy inocencio. sophie: i have sophie kamaruddin. welcome to "daybreak asia." ♪ haidi: our top stories, reports from london said theresa may is ruling out the no deal brexit. she told her cabinet but doesn't want to make this decision public. the trade war taking a dramatic turn. the wto wants to know if the tariffs breach president trump's policy requirements.

maduro dropping his decision to expel american diplomats. ramy: let's get a reminder of how stocks ended on friday. it was green across the board, the s&p up .9%. in terms of a weekly basis it is up four out of five weeks. we are seeing a rebound from december out of 2018. the nasdaq also up, 1.3%. that was in part thanks to the philadelphia semiconductor's seeing their best day in a month. that and others are leading indicators. looking at the s&p active futures, it is pretty much flat, but as i send it over to you in terms of what we are looking on theo, there is a lot plate and we have the next fed meeting that is wide -- is live. also where you are, we are looking at eco-data, in

particular china pmi. sophie: futures are marginally higher. we'll see if last week's rebounds will extend. monday is closed for australia. we will have a global health check up very we have earnings from apple, samsung and sony. u.s.-chinaatures the trade talks. it is crucial for tuesday, the pound checking in on sterling, trading at an october high, now above that 132, the best week since september 2017. so many managers are seeing sterling's rally unsustainable after poor performance against the dollar. we have chinese industrial profits do. the downward pressure is strong. china -- hong kong will report trade numbers after the imf warning that the city will slow growth to 2.9%.

meetingboj's latest minutes coming up. there sophie kamaruddin with us. let's get to first word news. .u: let's start with london reports say theresa may has told the cabinet she will rule out a no deal brexit. ,inisters have been informed but she doesn't want to make it public as that would affect the negotiation's with brussels. parliament is preparing to vote on amendments to her brexit bill with sun backed ventures wanting to delay the march 29 split to avoid crashing out with no agreement. venezuela dropped's decision to cut diplomatic ties with the u.s., -- dropped its decision to cut diplomatic ties with the u.s. it is a climb down by president nicolas maduro after washington and other allies recognize the national summit leader --

national assembly leader as the head of state. europe is set to define president trump -- defy president trump with the special purpose vehicle to keep trading with iran. they want to keep iran in the 2050 nuclear agreement. this would stand between business and iran and with no direct transfer of funds, it would theoretically protect companies from u.s. punishment. 200 people are missing in the latest disaster to hit brazil's mining industry. valley collapsed in the minas state. rising water levels and a number of -- at a number of games printed further evacuation. their stock fell in new york 2022 fellbonds due in

to the lowest since 2017. global news -- global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. ♪ thank you. let's get the latest on the trade war. this could be another piece of the puzzle when it comes to how companies in the tech sector are reacting to the slowdown, in particular the apple slowdown in demand. we are hearing apple iphones are cutting suppliers are thousands of jobs. they see one of the most severe downturns in a decade. foxconn technology group, 50,000 contract workers have been let go of since october at the most important iphone factory in china. that is according to a source being quoted in this report. normally these workers would have their contracts renewed

every month from august to january. that is when the traditional scale back happens. it is important to point out the scale of the cuts of 50,000 workers being affected is not [indiscernible] we are just hearing about these cuts taking place significantly earlier according to industry resources. -- sources i should say. hirehey could have to at a slower pace. in wisconsin they committed -- they are committed to making jobs but they want to remain agile. the u.s. and china will hold a pivotal round of talks when it comes to this trade war. tom mackenzie joins us from beijing with will more. -- with more on what to expect. we had people sing in reported required. reforms are we had analysts saying president akenedcould be we

given the shutdown. tom: all of these playing into the talks. what we are starting with, preparatory talks with chinese officials flying over washington to lay the groundwork before what has been described as destroyed -- decisive talks wednesday and thursday. premier and robert lighthizer will talk. proposals from china to get more goods described as the easy stuff. they also added changes to their intellectual property regime and are working on some ban that could force tech transfer but there has been movement -- little movement. when you listen to the trump administration officials, they want to see more on ip. there is more movement in these to come. more than china needs to put on the table. one key aspect is an enforcement raising to verify and check any

deal. what china will agree to that is crucial. after these talks we are expecting both sides to go back to their presidents, then it comes down to how they decide to move forward. there is a lot of uncertainty on where president trump is taking -- whether he is taking the side of the china hawks are paying more of focus to the impact on the markets. the clock is ticking down. there are several weeks left. the u.s. administration has promised they will raise tariffs from 10% to 20% on chinese goods. a lot of focus on washington. trumpthe wto will look at tariffs on beijing. jacob kierkegaard said he hopes was never actually ends. could this throw a spanner in the works? it is a fly in the

ointment. this is an investigation that is expected to start today. it was a case brought by china against these terrorists, $250 billion of tariffs on chinese goods, trying to argue the chinese side that the u.s. have taken a wrong turn and are not living up to the agreements are a favored nations. they were supposed to apply the same tariffs to all countries. the u.s. says this is a different case. pesetas intellectual property theft from the chinese side, something not done with my the wto. you say this is likely to play out over a long time, and the u.s. have some leverage over the wto. you have a backlog of cases and 23 cases against the u.s. obligated issues not expected to result anytime soon. overshadowing these talks in washington. one other thing between

china and canada. the canadian ambassador has resigned after comment he made about huawei. -- comments he made about huawei. tom: yes, china and canada are facing the most severe test of their relationship. china,s ambassador for resigning friday. this was following the reported comment intimating media he suggested the cfo of huawei had a good case, strong case to make and suggesting if the u.s. was to drop their extradition case, that would improve relations between canada and china. to remind you, the cfo of huawei was arrested in vancouver. she is out on bail. this has caused a lot of tensions. china has arrested two canadians the canadians say in retaliation of the woman. another was given the death

penalty over a drug case. a lot of friction, now the canadian ambassador of china resigning. really pivotal moment in these relations. sour sentiment. all it does all right, venezuela has abandoned its decision to cut to the medic ties with the u.s.. this marks a de-escalation -- cut diplomatic ties with the u.s. this marks a de-escalation after juan guaido was recognized as the rightful head of state. ros krasny joins us now. has the u.s. ruled out military action? ros: i think as you would expect from the administration, they haven't ruled anything in or out. we heard from mick mulvaney, the acting chief of staff and national security advisor john bolton, kind of the same ideas.

nothing is being rolled in or out. seems like president maduro acted to deescalate what looked like a prickly situation. we have mike pompeo speaking to the u.n. he talked about the choice of mayhem and freedom, and the u.s. is trying to line up allies to support juan guaido against maduro. it remains to be seen what happens next. most in the u.s. will be surprised if president trump went all the way to military action, but his team and never say that is not on the table. -- can never say that is not on the table. haidi: we saw the markets reacting with a sigh of relief, then at least the shutdown is over for the next few weeks. we are hearing president trump would not shy away from shutting it down again. an interesting

few weeks. we think another shutdown is not on the agenda for most republicans in congress. but president trump again, his acting chief of staff didn't rule it out or a national emergency being declared to pull funds from other parts of the government. lawmakers will start talking in earnest on wednesday. the first conference committee meeting on the budget negotiations, that will be very closely watched. there will be talks ahead of that. eye looks like neither side has changed its position. the democrats know -- democrats, stilll funding, and trump wants that despite the cave in friday. you would think republicans in congress would really work hard

on this. that is what we will see, very optimistic comments with the talk shows from both sides of the aisle. there is quite a commitment but really a long way to go. haidi: lots of discussions between now and then. ros krasny joining us from washington. still ahead, should investors expect progress after these trade talks in washington. a china expert joins us to give us base case scenario. economy gets al health check for looking at key data from the u.s. and asia with the chief aipac economist. this is bloomberg. ♪ his is bloomberg. ♪

ramy: welcome back. this is daybreak asia. i am ramy inocencio. haidi: i am haidi stroud-watts. the three major economic engines

are showing signs of fatigue, and we will see just how tired the u.s., asia and europe are from trade wars. it is a packed calendar of market moving news to come. joining us is alicia. moste watching china pmi keenly as this is a piece that fits into how the trade war and domestic slowdown is affecting the pace of growth. we have seen some outsized if loki assets on the pboc. how much concern is there in beijing and commitment to going full qe we are on the road to? alicia: full commitment, pulling out all the stops, it is very others are pboc and engineering stimulus that is different from the past and more

effective. it is focusing on the private sector, the banks. they want credit on balance sheet. they are helping balance issue huge amount, and this will start all right away. bought bonds -- sometimes that things will exchange into bills. [indiscernible] to stimulate the economy. -- sixishyou look at percent growth isn't that bad. and authorities and the central government can keep that pace of growth more or less on track with a few tweaks here and there. is it a better -- bigger concern china is kicking the can down terms ofinstead -- in putting aside structural reforms

that had been talked about but really clearly not prioritized in the face of slowing growth? .licia: certainly i personally would be more worried about structure in china going down more quickly. we know it is coming down but the question is what speed. the problem is it is a cyclical slowdown. we have to look at state owned companies, it is close to zero. why? there is a lot of negative sentiment why to invest. as for the consequences, anticorruption campaign in the that, china beyond slowdown, that is stimulus because it is the worst time on earth to think about u.s.-china trade talks to show weakness. that is going to happen. china is going to leverage again, and i understand that because this is not the time to

slow down so quickly. ramy: i want to get your thoughts on how the recent targeted midterm lending facility that surprised us changes the game, $30 billion u.s.? alicia: this is a very interesting new development. this new access to lending is at the cheaper rate. it is there to make sure bank lending in the private sector -- remember the idea is they will have to lend 100 basis point below the lending rate average to the private sector and the targets are pretty much one third for big banks, two thirds for smaller banks. which means they need cheaper funding no matter how cheap compared to the past it is expensive for them to lend to the private sector, even the risks, at least for part of that sector.

this is why they need liquidity. ramy: do think it is enough? we are talking about rrr cuts, monetary easing even if they ever did a deleverage. yes.a: it might not see enough. there are other mentions being one on the bond, bond financing, everything but shadow banking. issue, chinesee it so thend finance credit rate goes down in the market. remember most of the bond issuance happened for state owned companies. the private sector has been cash strapped even on the bond market. they also look at equities, helping securities companies with their equity, which they

are now holding at a much lower rate, even the top market correction. they are hoping. securities -- they are helping securities companies, helping equities to issue, banks to lend to the private sector. 2018, look at the fiscal published last week, it was 4.2% with massive increase in the last few months. we estimated the fiscal deficit, the narrow definition to be 5%. and local government around 7.9%, meaning already the fiscal situation has worsened. we have conducted stimulus late 2018 and they will continue, no doubt about it. even if you consider perhaps we get a positive outcome, an extension of the longerdetente are a

resolution, -- or a longer resolution that doesn't impact of the slowdown in china. you can't blame trade or the u.s. for all of it. alicia: indeed. if the u.s. administration were to push china or they were to realize structural reform is of the essence, maybe that would be a good outcome. if you had a settlement that is structurald around reform in china, it is coming from both sides willingly. that would be a good deal. my impression is it is a massive amount of import from the u.s. here and there we see a correction in the direction of imports of technology, sensitive technology, forced transfer, but this is not really reform for china. way, we once imagined the change in china's structural growth out of the

[indiscernible] indeed. haidi: i want to get your views on venezuela, walking back or down the confrontation from the maduro camp. does this suggest we will see a more peaceful resolution, more sanctions, or him clinging to power with the support of the military? incia: i worked in venezuela 1993 to 1996 and already then i thought this was a banking crisis. i thought the country was going in a direction that is hard to change. we are now they are at a crossroads. a lot of deterioration. maduro has nolas academic means other than china rolling over its $60 billion loans or $6 billion for russia.

it already had the means offered by russia and china to continue. this is really all about a new type of cold war. how ready are china and russia to support maduro as opposed to the u.s. supporting guaido? doesn't have the full backing and is worried about that. very important sign of a cold war. in a globalized world, venezuela was the largest exporter of oil to the u.s. money years ago, before saudi. imagine for the u.s. [speaking simultaneously] alicia: and it is going to be now the crossroads. this is venezuela today. thank you. haidi: great to have you as always. the check -- chief aipac economist. this is bloomberg. ♪ ♪

haidi: they rather quiet start to the trading week with australia being off. we have seen positivity going into the tokyo and seoul open.

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su: you are watching daybreak asia. the trade war is becoming more complicated with the wto opening an investigation into president on chineseiffs goods. they are asking whether the duties breached the requirement wto members must give equal , as beijingment asserts. a new talk will begin with potentially new duties being imposed in march. the interim finance minister in india will meet state run banks later to discuss the health of the sector days ahead of the budget. the reserve bank governor is likely to attend the talks, which will cover sour loans,

nonperforming assets and general nonperformance in the face of $200 billion of bad debt. china named a banking veteran as head of the securities regulator csrc. theas recently the chair of largest lender. his new role puts him at the forefront of opening china's $40 trillion financial system to oversee. a majority stake in the chinese -- j.p. morgan and -- leading companies in the u k and germany preparing to cut thousands in jobs in accelerating online shopping. this company is illuminated 15,000 -- eliminating 15,000 positions. this german fashion chain is going into insolvency.

global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: let's get more on what we are watching monday morning in trading. hong kong where we go with sophie kamaruddin. australia is off for a public holiday. what are you watching? sophie: enjoying the log weekend, but across -- long weekend, but we are seeing modest gains for asian stocks after the benchmark added 1% last week. we could see continued gains after a three-week event. we are seeing a hint of losses in new zealand with stocks down less than .1%. this week and a string of data including from japan. let's look at the dollar-yen. retail sales and industrial , thet on the calendar

economy is slowing. that will prompt yen goals to reassess outlooks. the yen is already testing resistance gear the 110 level. that [indiscernible] today we are going to get trade data from hong kong. that data comes after the imf warning growth in the city will slow. that hasn't derailed the honk saying -- the hang seng just yet. january index up, on track for the best gains in 12 months, even as mainland investors remain on the sidelines. buying momentum has reached the highest since last january's rally. hitting a one year high. the hong kong index, the line in blue, that etched into the overwatch zone friday. and this one is being met by the availability of cheap shares in

both city with the housing one of the cheapest indices in the world, trading at 10.5 times the forward 12 month earnings. thees are 7% cheaper than year average. haidi: it is a big week for tech earnings in the u.s. and in asia. more importance given the u.s.-china trade war negotiations and apple warning earlier this month. .ooking at what we can expect apple has essentially become a china story. stephen: we are looking at smartphone demand and chip demand. tech has seen some weakness following the january 2 apple warning. don't let the rally we saw late last week in the philadelphia semiconductor index -- it rallied 8% -- basically on lam

research and texas instrument's getting better than expected or better than feared. that lifted sentiment but don't expect that to last too long. we are expecting a second quarter in a row where tech results trail the water -- trail the broader market. qualcomm and tesla, results coming up. that is wednesday. apple, already lowered its first-quarter outlook january 2. the focus is on the conference call with tim cook and company up for second-quarter guidance. tim cook has cited economic weakness in china. also on the fourth quarter call apple announced it would no longer disclose ipad, iphone and mac unit sales. that was a warning to analysts. ofneed to know the source their first-quarter weakness.

inventory is building up. that could pressure the second quarter. and since the january 2 warning, biggestich their customer is apple, warning it their quarterly forecast revenue is below forecast. that was a harbinger. qualcomm out wednesday, the chip company along with amd and others. we are watching them to see if they gain optimism like lam research did. in linestrument was with forecasts. easing in the chip doesn't look great. fiscal second-quarter should be strong. enterprise across the board upgrading i.t. systems but forward guidance will be key. ramy: you took us on a whirlwind of u.s. tech stocks. let's look at asian companies. what do investors need to know?

stephen: let's start with samsung. they are heavily exposed in chips and handsets. both will show weakness. don't let that stop rebound on the far right of the screen deter or kind of confused you because samsung is expected to report first half profit drop, the first profit drop in the first half since the third quarter of 2016. that is halting a multiyear growth. chip prices will see a downward trend and it has cents -- and handsets likely also saw profit decrease in the quarter. alibaba third quarter, abby to slow 11%- ebita to year-over-year. for alibaba, revenue growth and the consumer in china are slowing while bottom line pressures mount on the margins

because their costs are going up, they are investing in new areas including off-line retail. if revenue from the consumer of a despite the single day extravaganza and blowout numbers, if revenue is slowing, that will pressure the bottom of line -- bottom line that alibaba. ramy: china is trying to shift to the consumer, so that is concerning. thank you. to the week ahead on wall street, putting a focus on the fed, some of the biggest names in tech, and new bumps in the road for oil bulls. su keenan joins us now. su: we had a good rebound in the stock market. the bumps in the road not just for oil are what will be key here. we mentioned all these tech stocks, the guidance they give will intimate -- impact sentiment. we have a number of them reporting. this is a make or break quarter many say.

ouris where you can find library of charts. firstebounded, but the down week in five, does that spell trouble? it is something chart watchers want to see in momentum correct. you mentioned the big names, but you can see half the faang stocks cohort and alibaba. also not just tech but a lot of industrial giants, can appear -- caterpillar, boeing, these are in the crosshairs of the trade war. when they say how it will impact or how it has impacted them, it will be key and signal sentiment going forward. health care, they hit this coming week. they have been the stealth rally. we had stocks, the chip stocks that were strong last year. these have been strong this year. what they have to say is merger

acquisitions going on. it is a peak week for earnings. qualcomm, tesla is in the mix. it will be chock full of action and numbers. the general sentiment of these earnings, how strong they are is what will influence direction. i should point out the market has been beefed up because of the strength in these corporate earnings. will talk more oil in a second, but let's talk about the fed. we are not expecting a rate hike, but we are getting a press conference. what do we want to hear? su: it is the first start of these live press conferences. we are getting -- it used to be occasional. you never thought it would be full or not. there are now routine. we will get comments and insight, and while we know there is a pause, we are not expecting

a rate hike. what they have to say about the balance sheet will be key. there will probably be movement coming out of that. oil, the past five days, you see the rebound in the past three. friday you got a big boost from the shutdown deal but into the coming week you have fresh turmoil on the horizon. venezuela is the name of what we are talking about. there is the political crisis, no president maduro is being challenged -- now president maduro is being challenged. it is one of the biggest countries in terms of oil reserves and they impact the situationand immensely. if you look at how oil has rebounded, 18% in one month, it is significant. up onl bulls have loaded forward positions. in terms of hedging and the trading that will take place, they say this week could be tough because you have so many

cross currents. ramy: thank you for that very in depth report. going across the bloomberg terminal we have saudi aramco oring it will buy up to 19% one trillion on -- one trillion won of hyundai. this is according to a report from the korea economic daily, citing unidentified people in that. aramco is identifying a writ -- hyundai that -- we will get more. they say they will buy 20% of its stake in hyundai oil bank. lighthizerrep about and the chinese vice premier will meet in washington. we can see if there will be any progress before the tariff truce

ends. this is bloomberg. ♪ bloomberg. ♪

>> the danger of populism is high in europe and in ukraine as part of europe area we have politicians -- europe. we have politicians who will make promises. and we have russian influence on the election. russia used the democratic instrument to make an inference on the democratic countries. >> the american administration conducts its politics with a great deal of sanctions, with leaving a number of international agreements. this is not a good way of working with others. >> when you are looking at the situation all over the world, the rise of china, the risk of having a trade war between the which wouldna

jeopardize the world growth, when you look at the situation of all citizens, we can expect more growth, more jobs, more justice. do you think we can have so many divisions among nations? >> many countries are looking inward when making policies area unilateralism, protectionism and populism are spreading in the world. opposing challenges to the international order. >> new wins are blowing across the -- winds are blowing across the world. is it fair weather or a storm? is this pattern of disruption a force for good or not? i would argue this disruption is a positive development. ramy: those are will leaders in davos sounding off against

populism and protectionism. that comes out of top-level talks with the chinese vice premier and robert lighthizer in washington, dc this week. let's get to discuss this further. always great to have you here. looking ahead to this impending the u.s. anden china, i am curious on something you think china would compromise for sure and what not. goi think the chinese will and make a push to offer a range of consensus -- concessions on tariffs that they know they need to make an offer buying opportunities, then play will into something the trump administration is looking for, concessions and verify china is honoring agreements. we are seeing china is resistant to offering any type of broad market access as specifically in

the tech type fields, whether someone conductors, telecom, areas like this which they consider central to national security. will whether there is a and whether there is enforcement. i know this congress committee looking at an investment bill in advance of these talks. say,y rubberstamp i might but this calls into question the enforcement. do you think there will be any game changer? there could be. to beijing's credit they have opened up avenues for additional international investment, such as thinking. this calls and the question whether they are -- such as banking. this calls into question whether they will do it. questions always be on enforcement in china and that is on the radar of the trump

administration. you have written about this and maybe you are at liberty to talk about this now that you are not in china, but as opposed to more opening up and more market oriented set of reforms from beijing, are you seeing a greater centralization power in china, and if that goes against what washington will be asking for? does that suggest an impasse with reforms that the u.s. wants? i am -- that they want happen? chris: it is fair to say there has been a centralization of the chinese economy under the presidency administration. this is a sore point not just orh the u.s. businesses european businesses, this is a sore point in china. one of the issues over the past couple of months is the sense

among chinese private business beijing is weighing in and helping the sme's at the advantage of private enterprise. this is for beijing to adopt officially anyway a policy they called market neutrality where they agree not to favor state owned enterprises over private firms. this is not just an international issue. it is in china as well. view: i want to get your on the latest effort to jumpstart without tweaking of the bond market. bank't it kind of redirect assets back to the pboc? as the data qe by any other name? chris: that seems like what it was like. when they opened the municipal bond market to swap those into pboc assets, we saw a similar thing and the domestic pboc balance sheet expand

dramatically. there is now a debate in china with administrative finance and the pboc as to issuing government that the pboc buys as a means of stimulating. doing this with chinese bank perpetual bonds is the beginning of that process. ramy: let's put a button on this. do you think donald trump is on the back foot after the government shutdown where basically he caved in and didn't get anything in return, and he has to maybe push something more aggressive to china? chris: domestically that is accurate. i don't sense that with china because one of the things that has happened is there is broad agreement between republicans and democrats to take a tougher line with china and his policies are in general terms getting bipartisan support. i don't think there is as much

-- is as much of that. ramy: the author of sovereign wealth funds, new intersection of money and power, thank you. following demand in china, outliningout suntory concerns. this is bloomberg. ♪ ♪

haidi: suntory is worried about the impact of trade tensions on consumer confidence in china. said technology will be the key issue when it comes to u.s.-china trade talks. >> the momentum of consumption in china has been slipping for sure because we have restaurant business in shanghai. comparing with last year, is 10%

down. consumptionhinese lost confidence, so all confidence is somewhere gone in china. i am worried. reporter: what assumptions are you making about crude in china? >> yes, i think so. as long as the tension between u.s. and china will continue, i believe china and the u.s. will make concessions as for goods. a lot about the tech war, but ip protection. i think china will make a third confession about ip -- technology, i don't think any -- jenna: ken confidence in china come back if we see a trade deal? >> i don't think so because only good trade doesn't bring

[indiscernible] iserlining problem technology. that has already created negative momentum in the u.s. and china --. reporter: you expect products to be subdued because of tensions? what makes chinese confident or not? >> definitely the u.s. and china will keep a dialogue. once it is cut off, the confidence will go down further. as long as there is dialogue the two countries continues, i think momentum will be kept because chinese government is going to use -- [indiscernible] and they are going to use a lot of money to raise confidence. ramy: more concerned about falling chinese demand from the suntory ceo. let's preview the market open in japan and south korea.

sophie kamaruddin. sophie: let's get stocks to watch. nissan is the latest sales of electric battery, so want to reaction. suzuki could move out after they missed estimates. and there was a missing third quarter -- miss in third-quarter openings. and looking at japan display on the reports the screen maker crisscrossed their fifth consecutive loss. -- could post their fifth consecutive loss. this company was downgraded to neutral and macquarrie and samsung reported another lost for 2018. samsung first quarter numbers were softer than expected. but this one was decent by nearly 43%. haidi: sophie kamaruddin looking at some of the movers we are watching. looking at this quiet start to monday morning, australian opens -- markets are closed for the public holiday.

trading in new zealand, it is kind of stagnant, just up .1% higher. looking at nikkei futures turning lower but the kospi starting off on the right foot. this is bloomberg. ♪ omberg. ♪

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a very good morning, i'm haidi stroud-watts in sydney. asian major markets just opened for trade. ramy: good evening, i'm ramy inocencio. sophie: i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." haidi: our top stories this monday. the tariff more takes a twist. the wto wants to know if president trump's duties breach a quality requirement. a report out of london says to remain is reporting after a no deal brexit she's telling her cabinet, but doesn't want to

make the decision public. in the front lines as the u.s. lifts sanctions of the a billionaire. start in saudi asian market trading day. theralian off on account of public holiday. let's look at how we are faring as tokyo and seoul come online. sophie: we are setting up for a busy week. a highlight.s chinese industrial profits may offer clues on economic outlook. from hong kong, we get exports. they may continue to contract in september. the yen, the boj released its meeting minutes. most members agree it will continue easing persistently. the yen is trading around the 109 handle. we also got pbi data for

december. rising a touch softer than expected. increasing 1.1% on a yearly basis. let's check in on the open in tokyo and seoul. the nikkei 225 on the back foot. resuming losses. down 2%. the topics also lower. set to snap a two-day gain. the cost be looking to extend its advance for a fourth straight day. on the markets are closed for the australia daybreak. asian stocks looking good after a three week advance. let's look at hundai. this stock in focus as aramco has said it's buying up to 20% valued atk in a deal 10 trillion won. this deal was the oil bank raise. 2 trillion won. it could become one of the bigger shareholders of the company. haidi: sophie kamaruddin on the markets.

let's get you the latest first word news with su keenan. su: we have reports from london saying theresa may has told the cabinet she will rule out a no deal brexit. ministers have been informed, but made dozens want to make it public is it would affect rustles. mentors wanting to delay the march 29 split to avoid the agreement. europe's retail route is deepening. leading companies in the u.k. and germany prepared to cut thousands of jobs in the face of accelerating online shopping. eliminate 50,000 positions and close is delicatessen counters. a fashion chain is going into insolvency. is announcingtore -- and acting more than 2.5 thousand stocks.

venezuela dropped its decision to cut diplomatic ties with the u.s., saying they have an interest in their respective capitols. it was a walk back by the washington and several allies recognized the national assembly leader as the leader of the state. the venezuelan army still supports maduro. china named a banking bettering as the banking security had. e was most recently care of the country's largest lender. his new role puts him in the forefront of opening of china's $40 trillion financial system to oversee interest. jpmorgan is looking to follow ubs in winning csrc approval for a majority stake in their chinese ventures. a day, ons 24 hours air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than wanted to 20 countries. i'm su keenan, this is bloomberg. across the breaking

bloomberg terminal. the starbucks founder says he is seriously thinking of an independent run for the 2020 white house. the x coffee ceo has floated this plan for the white house on cbs in the u.s. he said "seriously thinking of an independent 2020 run." interestingly, this independent is the stress. willlicans and democrats be eyeing whether an independent run by pretty much anyone, let alone mr. schultz, could siphon off votes from the democrats. just recently, he did have this quote saying "i love our country. i am seriously considering running for president as a centrist independent." he also said "it feels good to be here, my hope is to share my truth, listen to yours, and build trust." breaking across the bloomberg terminal.

he's seriously thinking of an independent 2020 run. howard schultz not shy about his political and social views in the past. now potentially throwing his hat into the ring. let's get to one of the biggest geopolitical even risks of the week, the u.s. and china heading into a pivotal round of trade talks this week to attempt to put an end to these trade frictions. tom mackenzie joins us from beijing with more. how is this playing out, given some people say president trump has seemed to back down on his border wall with the shutdown? what are we expecting as the outcomes? om: there all interesting dynamics leading up to the talks. you can almost hear the drum the talks start january 30 and 31st. we have until now proposals from

the u.s. and the chinese side are far along buying more u.s. goods. that was in the easy side of these negotiations. the chinese also discussed in forcing or reinforcing their intellectual property regime. they talked about a potential law that may ban forced tech transfer. the u.s. wants to see more in terms of details of those issues. we have heard little from china on their made in china 2025 strategy, their industrial policy. the u.s. likely to push for more on that. u.s. officials also want to see a mechanism for verification and enforcement. what china puts on the table that may satisfy those demands will be of interest. at the end of these days of talks, we expect both sides to go to their respective presidents. it will be a lot of focus on president trump, who seems to become between the china talks on one side, concerned of a jittery markets on the other.

the countdown for the deadline on march 1 is much underway. if they don't get any kind of deal, you could see tariffs being ramped up. the consensus is you get some kind of continuation of the freeze on the retaliatory tariffs and they continue to talk. we will see if we get more movement in washington this week. investigations are supposed to start on trumps tariffs. this is something else in the works, right? tom: it's another layer in the complicatedhe relation -- in the increasingly complicated relations between the u.s. and china. they are going to start investigating on the same week we have these u.s./china trade talks. this is on a complaint from china that the u.s. has abused the wto rules, or should enforce the same level of tariffs on all members of the wto.

china says the u.s. has not done that by imposing these tariffs on chinese goods. the u.s. has argued they have done this in retaliation to unfair property abuse -- intellectual property abuse by china, which they say falls out of the agreement of the wto. tariffsr -- president trump doesn't take a fond attitude to thewto. this investigation unlikely to change the view. they are holding back on appointing judges. there's a backlog of cases lost against the u.s. administration at the wto. the u.s. is holding back on signing off on new judges. it is not expected to be resolved soon. ramy: between china and canada, another push. the canadian ambassador has resigned. what are the details? canadian mccullum, the ambassador in china, resigned on friday night. premier justin trudeau accepting his resignation. he made comments seen as

controversial around the case of the ceo of hawai. john mccullum said he thought she had a strong case. they have been working hard to make sure the case is not politicize. his comments were seen as unhelpful. he has resigned. this comes at a time of increased tension between canada and china. a very fragile mood between these countries. two canadians being held in beijing, another given the death penalty. all cases seen as a form of retaliation by beijing. an interlock.ng the officials on the ground look and navigate this seems important. there's a tough task. ramy: more fallout and headlines you don't often see everyday, especially between chinese canadian relations. the world's three major economic

engines are showing signs of fatigue. in the coming days, a chance to see how tired the u.s., europe, and asia really are. asiang us from tokyo is across assets managing editor chris hansen. the us through some of highlights out of the u.s. that investors need to know. clearly for markets, the big focus points will be the u.s./china trade talks, and signals from the federal reserve chairman jerome powell on wednesday after the fed policy meeting about the outlook for fed policy. as you indicate, we have critical economic data. from the u.s., keep in mind that because of the government shutdown, there has been official data for some weeks. we are going to start to get some important numbers. on wednesday, we get gdp for the

fourth quarter. coming in at about 2.6%. down a little bit from the three that we saw in the third quarter. crucially, we get on friday two very important indicators. one of the payroll reports. u.s. jobs are seeing growing about 175,000 in december -- in january. that's enough to keep the unemployment rate at about 3.9%, according to a consensus forecast. we also get the very important ism manufacturing pmi. remember,ou may came down significantly four points plus. it is seen holding in at around 54 the summer of. -- this time around. that is important for investors to keep an eye on. haidi: what are we watching in terms of data points in this part of the world?

in asia, we have the china pmi. it will be critical. that's seen coming down a little bit more. that looked pretty bad last month, with a 49 handle indicating contractions. that will be a key one. a number of people are looking at prospects for earnings in china to start coming down. that will affect the stock and credit markets. we get an indication on earnings this morning. bottom of the hour with industrial profits. another one from asia to keep an eye on is japan industrial production. now when is anticipated to show a bit of a bounceback. in theanese economy third quarter, the industrial production figure for december will give us some indication of a bounceback the economy had in

asia's second-largest economy. haidi: asia across assets managing editor chris anstey. the chairman of china's largest lender is set to become the largest top securities watchdog. we look at what the appointment means for chinese efforts to internationalize its financial system. next, as u.s. and chinese negotiators gather in washington and the fed prepares for its rate call, we look at the big market moving meetings this week. this is bloomberg.

♪ haidi: this is "daybreak: asia." i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. asian stocks faced modest gains this monday. that's ahead of a crucial week for global trade and fed policy. let's discuss that with kathryn

young in hong kong. great to have you with us. a look ahead to what's on the docket for asia, there's a lot. china pmi's are coming out. south korea and japan eco-data. we have u.s./china trade. what is the biggest concern? potentially the biggest hope for you that something can change? the trade in terms of related issue short-term, there is probably a higher probability that we will see some kind of resolution. long-term, there will be this overhang. in terms of this new relationship we have seen over the past couple of years between the americans and chinese. this will weigh on the macro environment in china, coupled with the deleveraging situation. we expect to see relatively soft data, especially during the first half of this year. ramy: with china cpi, we expect theo go down to 49.3 from

49.4. in terms of what china might be able to do even further, we've already been talking about the temporary facility. one of the most recent surprises. looking ahead, what are you foreseeing, at least in the near future? catherine: between 2008 to current time, when we look at the stimulus cycles, they have been shorter. the package itself, or the policies that are monetary or fiscal, need to be bigger. we don't want to see a big policy like during the global financial crisis, given inflation and the outstanding debt situation. just what kind of policy, whether it's tax related, easing in terms of monetary policy. to throw out this shot taking a look at the variation in which the economy sees a slowdown.

manufacturing, materials, they have been a greater slowdown. we see in the yellow line, the treasuries. the services sector is still looking robust. perhaps not as strong a pace of growth the government would like. does that extend to more optimism when it comes to new economy stock names? perhaps consumer names that were pretty badly be in down going into last year? catherine: they are what we call fallen angels. there are a number of opportunities in the market. whether its consumer related or tech related, given the share price dropped and the earnings visibility going forward. support that the government is looking to implement, given domestic weaknesses we have seen sentiment was, it's really to underpin the private sector. the private sector has contributed around 60% profit employment. that's where we are likely to see the policies being targeted. a lot of new economy aims. the old economy names.

especially those names that are high dividend pays that focus debt. the focus will focus on federal term this year. haidi: you have a government in china facing the double whammy of a structural slowdown that was taking place due to domestic factors, and also overlaid with the uncertainty of a trade war. does this market a potential negative and longer-term impact from businesses and consumers? is it something investors should be concerned with? catherine: we have seen this weakness in ag. it came from inflection points, headwinds from u.s. trade related issues. in the first half of last year, the liquidity environment was too tight. the cost was too high. spending, they were not reinvesting in businesses. that's why we need to see a quality shifts, in terms of being more supportive. when you look at the capital being accumulated in china, a lot is being rotated into money market funds.

when we look at offshore investments in china, about $5 billion went to the northbound trading market last week. in terms of the demand for valuation, we are likely to see some kind of rebound. at this point in time, it's probably too early to say. it will happen imminently. ramy: talk about your concerns regarding monetary easing as it seems now and how it could expand over the course of this year through the lens of capital outflows. we were talking about this one year ago, the fear. it seems a lot of folks are talking about this now. catherine: only a couple of years ago, the chinese government was focusing and trying to stem them. this will have implications for the army, it will have implications for the easing policies. what is key for the government. to pump upis sentiment across the board, whether it's consumption, in mentor he -- inventory,

companies reinvesting in businesses. there are enough tools for the government to use. they have made it clear that they are very supportive from a physical perspective, as well as a monetary perspective. ramy: one thing that is helpful is the fact that the fed is on a kind of pause. looking at the world interest rate probability function, it's a 0.5% chance for this policy meeting. how is that impacting the em space as investors look to some opportunity? let's expand it beyond china. expectations of appreciating u.s. dollar, the fed hikes, it bodes well for emerging markets. what we are seeing -- it feels like a pattern in the market, in terms of stock prices and flows. generally speaking, people are markets such and as china. across asia, we have a number of

elections coming up. that's something to watch carefully. generally speaking, you still have the earnings opportunity. earnings are coming down across the region with each attractive -- attractive valuations. it bodes well. haidi: what, in particular, in asia would you be looking at? we saw asian stocks performed exceptionally well last week. expiration -- on the expectation the elections will happen, you kind of assume we see dollar weakness going into the rest of this year. the fed is pretty much on hold. what do you think will be the most opportunistic sections of asia at the moment? catherine: it's a bit of a loss long cousin, no potential being focused on it. valuations generally across the board looking attractive. you have good indicators, in terms of consumption and sentiment. that's an opportunity.

even though we see issues in china, we remember a positive china, well-positioned in the space. we do not over way chinese equities. much, thank you so catherine young, fidelity international investment director joining us out of hong kong. you can get a roundup of the stories you need to know to get your monday morning going in this edition of daybreak worried number of subscribers can go to the terminal. this is bloomberg. ♪

haidi: this is "daybreak: asia." i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. let's get a check of the bloomberg business flash headlines. apple supplier foxconn is reported to be slashing thousands of seasonal jobs early slows.ne demand

the financial times says 50,000 people have been let go since october at foxconn's top factory in china. that scale of cuts is not necessarily deeper than previous years. contract workers are usually let go as iphone demand slows after the holiday period. haidi: france says the new chairman of should also head the board of nissan. president macron called prime minister shinzo abe to perform -- recommend him and asked for the quick release. the nissan mitsubishi alliance had more cars than volkswagen arteaga. he is popular for are seeing -- overseeing the partnership. ramy: chinese apple supplier has moved manufacturing to indonesia because of u.s. tariffs on china. it's almost considering further diversification to vietnam and india to mitigate rising costs in china. the overseer says it's unlikely to ramp up production in those

countries this year, as it will take several months to build new facilities. coming up next, opec cuts and political turmoil in venezuela. this complicates things. ♪

su: you are watching daybreak asia. i am su keenan. people are still missing in the latest disaster to hit brazil's mining industry. , after a similar incident three years ago. rising water levels at another dam in the area prompted further evacuations. their stocks fell in new york while bonds due in 2022 fell to the lowest in 2017. the trade war is becoming more complicated with the world trade organization opening an investigation into president trump's tariffs on chinese

goods. it is asking whether the duties breach of the requirement wto members must give equal numbers as beijing is asserting. -- embers as additional duties are due in march. europe will defy president trump with a special purpose vehicle. this will allow trade with iran despite u.s. sanctions. europe wanted to keep iran in the 2050 nuclear agreement. this vehicle would stand between businesses and iran with no direct transfer of funds between the two and it would protect companies and circumvent u.s. punishment. -- finance financer minister in india will meet with public and private banks. they say the reserve bank governor is likely to attend the talks which are expected to

cover sour loans, nonperforming assets and general financial performance in the face of $200 billion of bad debt. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: let's get a check on how asian markets are faring. sophie kamaruddin. gmm,e: looking at the asian stocks are mixed after a three-week advantage. the nikkei is resuming losses and the kospi gaining steam after opening higher with consumer staples and energy stocks offsetting the rise of health care. and trying to reach 109 for the retail anda week of outfit -- industrial output data. i want to highlight the ringgit, building on friday gains.

it could be set for a second -- friday's gains. it could be set for a second week of gains. malaysia' bank is expecteds to stay on hold. and the economic affairs minister confirmed malaysia will terminate a $20 billion china backed rail project because the cost agreed to by the previous government is too high. hyundai heavy is on the rise, dining 5% this morning on news subsidiary oil -- claiming 5% is morning on news subsidiary oil will sell to aramco as part of the refinery spree in asia. lg sliding and both companies with fourth-quarter earnings that missed estimates. cut to neutrals at macquarie. a two day rise in tokyo, measure suki -- to

high oil prices dented demand for autos in india. the medical services provider here missed estimates but didn't take it is -- [indiscernible] haidi: political turmoil in venezuela and temporary and to the shutdown in washington giving oil a boost but enough to reverse losses from the first of the year. there are concerns about u.s. production and global growth. let's discuss the prospects for oil with the ge founder and chairman joining us. great to have you. let's talk about venezuela because we had a step back in terms of the level of tensions we saw in the latter part of last week. do you anticipate the u.s. sanctions could be a problem, and how much does this complicated the opec mandate?

500,000.s. imports barrels a day. [indiscernible] because of the quality issues, it can't easily find markets outside. it is very heavy, the oil, and energyfficult to find markets. if this goes on to 300,000 barrels a day, we must member the oil market is flush with inventory. -- remember the oil market is flush with inventory. this doesn't impact supply or demand but sentiment. it seems the u.s. would be more interested in finding a way to rather opposition leader than the government. discussion now is now on the back page. haidi: on the back burner. , in that mean the u.s.

particular u.s. shale, have a more outsized impact on where the market goes next? >> u.s. shale producers are producing maximum that they can. everybody produces maximum at any point in time because they are export producers and need the income. the impact on the market can be seen by how much inventory is in the market. we are flush with inventory. four or five months of corporate cutbacks. so 300,000 barrels a day doesn't make a big impact. ramy: i will jump in here. to show the viewers what is happening with the wti. 50 dayroken above the average and moving to a two-month high. i am curious your perspective on

where you think prices are going from here. fereidun: the direction is clear opec and non-opec agreed to remove 1.8 million barrels a day starting this month. so for the jury is out whether they are complying or not. if everybody complies, within three months we are at the balance. to $65 wti and $70 for brent. if they don't comply fully it would take an additional two or three months. somehow by the middle of the year we would be at the level of $60 to $70 for brent and to $65 for wti. the trend is set. supply and demand will come into balance either three months or six months. brent is trading right now

$61.37.-- mercury a also said seven dollars there. when do we think we get their? fereidun: the earliest is april. the latest would be september. the direction is set. if opec continues to cut production, either fully or halfheartedly it will take three to six months to bring the market into balance. haidi: i am looking at the numbers when it comes to oil bulls getting bolder in terms of the bets they are putting ongoing long oil wages and on increasing brent prices, up 70% in the past week. that is the biggest since -- 17% in the past week. that is the biggest since august. it was also a week we had the imf downgraded expectations of

global growth. we have a great deal of uncertainty with the u.s.-china trade situation and a domestic slowdown eating into demand. fereidun: i don't think so. we are at the level demand growth this year -- they cannot go below 3 million barrels per day. the high and would be 5 million per day, so we are lower -- end would be 5 million per day, so we are lower. the fundamental of the oil market is stronger, so if you want to make that's on the upside [indiscernible] is it fair to say the market is giving credibility to opec now? fereidun: opec is always in some

winning. every time there is -- ends up winning. opec's strength is when the market is poor. when in the market is doing well, opec doesn't have to play. they have made an impact. the question is what will trump do with iran's waivers at the end of april? reduce, increase? uncertainty from the u.s., because of trump's actions, are the most difficult for opec. trump has emerged as one of the most important factors in the oil market. so a factor we never had before in balancing the market. sge -- fge founder joining us. japan display says it sees its fiscal year net situation as

severe. they are responding to reports they will post a net loss this year for the full fiscal year. that is a report coming out a few days ago from the human very -- from this newspaper, saying japan would post a loss. they say they are finalizing earnings results. they have been on the downturn. one other interesting thing, in its relationship to apple, to 10 -- japan display gets 15% of its revenue -- that is according to this. we know the pessimism with apple, so this doesn't come as much of a surprise except for "severe" japan display is discussing. haidi: looking at apple earnings, other tech earnings this week. let's get more on oil because one of the largest and most aggressive oil traders must $700 million last year after being

wrongfooted by volatile markets. this is one of the biggest commodity traders in the last decade. let's go to singapore and our energy reporter. sinopec's trading arm. how does this characterize trading off? as you said, it is the trading arm, and they have been getting into an aggressive, merchant trader role. as china look at restrictions on importing u.s. oil, univac would buy it and then sell it to other global players. so it was acting less as a crude by or for china and more of a global trader. this is a rude wake-up call. the chinese government suspended two of the top employees. they were misjudging

hedging techniques and now it looks like there telling oil traders to be more careful and there will be severe repercussions for bad oil trading techniques used in the future. ramy: how significant is unip ec in the entire market? reporter: it is 5 million euros a day, 5% of this -- million barrels a day, 5% in this market. it is a big player. you go to oil conferences and here in china, you will see their suspended president and other executives. they cast a very large shadow here and in it -- globally and in china. ramy: what about volatile energy markets resort

we have seen the immediate response that the government has come out through sinopec and saying they are going to look at a lot more carefully at trading principles aremake sure the traders acting more appropriately when they take on risk to make sure something doesn't happen again. thank you for that. our energy reporter in singapore. bloombergrossing the for more development in the result story. the chairman has resigned at a request that is imperative from the u.s. treasury's office of foreign assets, needing to leave the office of chairman and director as one of the progress -- the prerequisites. it follows u.s. treasury department on sunday at listing -- lifting the sanctions on these affirmed tied to the

russian tycoon. watching the reaction with the global aluminum market and rusal. the man has tendered his resignation, taking effect from january 26 and also to note that another man has tended his resignation as an independent nonexecutive director. interesting john pierre thomas has only been in the top job since the first of january this year and it follows on the treasury department listing those sanctions on resolve -- on rusal and the others. this banking manager has been tasked with opening china's financial system. we will get more from the new head of the security watchdog. this is bloomberg. ♪ og. this is bloomberg. ♪

amy: this is "daybreak asia." i am ramy inocencio. haidi: i am haidi stroud-watts. nine and theiant e austrian producer will pair of around 5.8 billion dollars for a combined 35% stake in abu dhabi's state oil company. the deal valued at $19.3 billion. they say it is one of the biggest ever refinery transactions and reflects the scale, quality and potential of the refining assets. >> [indiscernible] a great deal of value. we bring very sophisticated technical expertise. expertise,eration helping us drive efficiencies across our refining business. ramy: deutsche bank has secured additional investment from qatar as it seems -- it seeks to shore

up investment business. they will speak with the royal family and senior politicians. deutsche shares have already hal ved in the past year. they want to engineer a merger with commerzbank. suntory is worried about weakening consumer confidence in china. they say the trade war is weighing on business. he expects beijing to make concessions but doesn't think demand will bounce back quickly. he said japan needs to boost private investment and not rely on monetary or fiscal stimulus. >> the momentum in consumption in china has been slipping off. we have a restaurant business in shanghai. it is more or less premium. [indiscernible] comparing with the last year's 10%. 10% down.ar is chinese consumption lost

confidence, so all confidence is somewhere gone in china. i am so worried about that. ramy: china has named yi huiman the name of the -- the new securities regulator. he recently chaired china's nowest lender icbc and will be at the forefront of opening the financial system to overseas firms. let's go to our china financial reporter. tell us more about him. sure, he is someone who has made his career at the industrial commercial bank of china, the largest lender by assets in the world. he joined as a 20-year-old and was there for 34 years. climbing through the runs, , makingt -- the rungs it to german. he is a grassroots banker. he didn't go to a famous college but worked his way up. it is not unusual for bankers to

be leading the china securities regulator. his predecessor came from the china.tural bank of for someone who spent their entire career at a commercial bank in china to assume this role is unprecedented. ramy: a long time. we also from the vice chair at davos. the licenses for foreign ownership would actually accelerated. will that be a focus for yi? lucille: the vice chairman did say that. he expected more approvals to be announced in six months. he didn't give any names we know . nomura and j.p. morgan put in applications for the majority ventures the security here. this is going to be something on the to do list. there is a number of things that have been started and are in the openingsbut financial

is on top of the list. haidi: and the stock market stability given we have had fairly bearish sentiment when it comes to chinese equity markets for the last little while. what are the major ambitions or priorities for him? lucille: people are excited about him. his name is auspicious in china. where he came from, the bank is read. china whenwhich in the stocks go up, the color is red. people are optimistic. these things are in the process of happening. we are expecting the new tech board in shanghai to highlight registration-based ipo's and expecting this any day now. i could be one of the major announcements under yi. we are also expecting the shanghai lending connect which

was supposed to be launched last year but has been delayed. that could be something to watch for. further inclusion of stocks and chinese stocks and bonds, global indexes. lot tof his plate and a watch for. haidi: our china financial regulator reporter lucile liu there. you can check us out on tv . you can look at any of the securities on the functions we talk about. you can also be a part of the conversation and send us instant messages during our shows. check it out. it is tv on the bloomberg. this is bloomberg. ♪ bloomberg. ♪

this is "daybreak asia." i am haidi stroud-watts. ramy: i am ramy inocencio your let's go over to sophie kamaruddin -- ramy inocencio. let's go over to sophie kamaruddin for more to watch. sophie: looking at u.s. aluminum stocks, the u.s. lifting sanctions on rusal. one of the prerequisites was the resignation of the chairman. also watching see rrc -- watching crrc after a fresh package from siemens with this

merger. regulars have been under pressure to allow the deal to go through to take on competition from china. also looking at wh group after they announced they are restructuring their business and a $6 billion shares deal to streamline operations. and look at this point, side -- look in fivet years. analysts are speaking desk sticking to their loss -- analysts are sticking to their expectations. haidi: looking at trading under way, not in australia. it is a public holiday. it is the australia day long weekend. looking at downside trading in tokyo, the nikkei 225 giving back gains from the friday session. the kospi hanging on to gains, a big week ahead with her britain earnings. samsung not the least, apple,

alibaba playing into the china trade story. new zealand is up .1%. not seeing that overly optimistic tone despite eisai of relief -- a sigh of relief in the u.s. with the temporary solution to the government shutdown. ramy: looking at futures, it looks to be greener than active trading. looking at singapore, taiwan and malaysia, futures up across the white 4%.s much as markets coverage continues as we look ahead to the start of trade in shanghai and hong kong. this is bloomberg. ♪ g. ♪

rishaad: 9:00 a.m. in hong kong. this is "bloomberg markets: china open." yvonne: the tariff takes a twist. wants to know if president trump's duties reach equality. jeanette: from london, they say theresa may is rolling out a note gilbert's it. she has told her cabinet, but does not want to make the decision public. loss was posted. $700 million shortfall. ♪