>> a very good morning, i'm haidi stroud-watts in sydney where australian markets have just opened for trade. >> am shery ahn. >> and am sophie kamaruddin in hong kong. welcome to "daybreak: asia." haidi: our top stories this dovish and's becomes the theme of the day. asia-pacific stocks are set to follow wall street higher. to the cloud seems to

be paying off. and facebook source after earnings topped the highs estimate. will be joined i coo sheryl sandberg and just about 20 minutes. so the: and breaking news out of south korea. month on month, disappointing, industrial production to fall about .2%, so it is a big miss. reduction year on year is rising 1.6%, which is a beat of estimates for the month of december. we had to keep in mind that industrial production figures in south korea month on month are pretty volatile. in november we saw it fall, affected i demand for dram memory chips and a slowdown in smart phone sales. right now month on month in and the issueng,

right now is what will happen to manufacturing as we see more concerns over trade tensions between the u.s. and china. south korea exports disappointing and plunging 15%. take a look at what markets did here in the u.s.. the focus on trade negotiations in d.c., but it was mostly to do with the fat and a very dovish turn. 1.8%, higher for second session. the s&p 500 at an eight week i and the nasdaq gained more than 2%. s&p futures unchanged at the moment. let's see how we are setting up for asian now. weare starting -- sophie: are starting thursday on a positive note. ,ome of the early performers

gaining 5% this morning. towill be watching reaction nissan with his first lumpen auto sell since 2009. there are several earnings updates from japan that we will be keeping an eye on. ,esults from lg electronics reporting profits that missed estimates. the big highlight is samsung, expected to post its first quarterly drop in two years. japan and output from south korea out this morning. we will look at australia's private sector credit data for december. chinese pmi numbers for january and a read on the taiwanese economy. fortescue, moves in the stock up 2.4%, extending the rally we've seen the last five days. was raised with a

higher price target and we're seeing gains on the back of its production update. in atre shipments coming the earlier guidance of up to 173 million tons, the highest investors are likely to see from fortescue. reservehe federal confirmed a major pivot from its messaging in december, saying it will be patient on future rate moves. also signaling flexibility on reducing its balance sheet. kathleen hays has a look at what the fed said and what it means. jay powell falling it up later. we were looking for signaling, but this meeting was perhaps whatmore significant than we had anticipated. kathleen: it certainly did not disappoint. those of us who watch the fed closely new it would be nothing about a rate hike, obviously.

what would they tell us on january 30 that was so different from december 19 when the hike the key rate and signal more rate hikes this year? changeslly did make since then, saying they could be patient on policy for this over and over. this time it was in the prepared remarks. and importantly, the reference to further gradual rate hikes that has been in the policy statement for months and months if not years and years. importantly, let's listen to what jay powell said about where the fed is now and what it all means. grace we are now facing a somewhat contradictory picture alongside growing evidence of crosscurrents. at such times, common sense risk management suggests patiently awaiting greater clarity, an

approach that has served policymakers well in the past. kathleen: still pretty confident on the u.s. economy. he said the next move depends entirely on the data. importantly on the balance sheet, the fed took time to claim where they are and where they are heading within you balance sheet statement, not just the monetary policy statement. where they said they are prepared to just the balance sheet run off if necessitated. jay powell said they need to be more transparent and show more clarity about this now. i think they did that today. was asked more than once if they are possessing patients because they want to stop the market selloff. what did he say to that? kathleen: he did not exactly say absolutely not. is ond our entire focus employment and pricing,

inflation, not on the markets. he also put it in the context of financial conditions. financial conditions change when you have a stock market selloff or something like that. it can affect the macro economy. here is what he said on that. most thingsreact to that happened in the financial markets. when we see a sustained change in financial conditions, that is something that has to play into our thinking. our policy works through changing financial conditions. it is the essence of what we do. had president trump not been bashing fed so much prior to that meeting, they may have had more leeway to save the -- maybe we will pause. just imagine if the fed had not hike the key rate, would anybody be saying the fed did the right thing? no, that would be saying he

caved into president trump. it is clear now the fed is on the same page with the market. agree with jay powell, they are just trying to do what is right for the economy, but clearly the debate will continue. shery: kathleen hays, thank you so much. let's turn to scandals and policy issues, could you keep facebook revenues down in the last quarter? they resolved to be even the highest analyst estimates. what drove the earnings? sara: when you look at facebook, he needs consider that they just and an immense size network therefore the power and money that comes with that. advertisers don't have a big alternative for where they can reach that many users with that much detailed information. users don't really have another

place to go where all their friends are, so all that makes for an extremely powerful business, despite the criticism and the scandals we have seen come to bear for the company, not to mention the regulatory scrutiny that will ramp up this year. haidi: in terms of the progress there making on instagram might his asian push, did we get any kind of breakdown or update on that? sarah: they need to make money outside the main news feed. users on that metric have stagnated in certain markets in the u.s. and europe where they have their most expensive advertising budgets. but they will have to do is make a lot more money off stories. a big number they put out, instagram now has 500 million people using stories but they need to figure out how to move advertisers into that new medium. will -- they will have to

train advertisers about the new medium, posts that disappear after 24 hours. it will be an interesting evolution for their business. actually stop to actually reporting the number of users of facebook, the court at has reached a saturation -- the core saturationched a point, so they are just going to report the overall users. it will mask some of the difficulties. haidi: as you see advertisers theinvestors rush aside privacy scandal, they are still struggling on that front. they're going head to head with collection of data.

sarah: everything runs on those inside facebook, all the beta testing as well as a lot of their internal apps for transportation and basic things about the business. so it has been a difficult day at facebook headquarters today. they are currently in negotiations with apple to try to solve it, but it is unclear if they will be able to make any progress on that front. haidi: sarah with the latest on facebook. we will speak to sheryl sandberg in just a few minutes. don't miss that. subscribers can follow the earnings call right here. protestersnese scuffle with security in washington as the team that their hotel to start new trade talks. group said they come from

shanghai and accuse president xi and his government of repression. they have until march 1 to reach a deal. the president is expected to meet the vice premier this week. president trump has lashed out at his own intelligence chief. his tweets come as members of u.s. naturals -- national security contradicted his tweets about tehran and north korea. he wrote that testing rockets is the only thing holding it back in a quest economy. anonymous sources tell us that you is prepared to take the brexit drama to a last-minute, high-stakes summit rather than bow to new u.k. demands. theresa may about -- wants to reopen negotiations. the diplomats say no more concessions will be made before the prime minister takes another brexit vote -- brexit vote in

parliament. a new political party in thailand seem supportive of the military backed government. the army seized power after weeks of violent unrest. the election is set for march 24. 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'm selina wang. this is bloomberg. ahead, we will speak to the facebook coo, sheryl sandberg, and about 10 minutes. don't miss that. haidi: and trade talks he can often washington but there is little indication that beijing will bow to washington's demands. peter gives us his view, next. this is bloomberg. ♪

shery: this is daybreak asia. i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. delegates have wound up third day of trade talks. our next guest has been studying the dispute between washington and beijing. peter is in the studio very great to have you on with us. the low-fat -- low hanging fruit has largely been picked. leave the it potential for global trade for some sort of medium-term success, if you will? peter: the core issue is economic policy and the central government in china is picking the winners and losers and crowding out the private sector

and crowding out the foreign competition. so for the trade negotiations to work, a mutually beneficial outcome is what both sides need to reach in order to get to at least a framework by the end of this week. steve mnuchin said enforcement will be a key topic in the china trade talks. does it complicate matters? fore making a case enforceable agreements. that's what the heart of the matter is. for years we've had china making promises of doing things differently, but they haven't been held to task. we have not had the mechanisms to hold them to task. having a written agreement is one way to hold them to task. shery: what about the fact that we saw these criminal charges against huawei, does he give you

a signal that perhaps the u.s. issuesally push harder at china, more structural issues ? peter: the events surrounding this one particular company, the optics of it are beneficial for the trade talks. keep in mind that the investigation began several years ago and it happened in a different branch of the government, in the judiciary and not the executive branch. haidi: it is difficult, in as the u.s. might say the huawei issue, it's separate to the trade negotiations. were talking that china's largest tech company, and international check in and has been backed by beijing. it's hard to get around the optics at this for help beijing can put it to the side in these talks. if we were to take

anything and just put aside the one particular company here, what the issue at hand is is that there have been intellectual-property issues, there have been ,ntellectual-property concerns that is a concern that brought the trump administration to and getts investigation us to the point where we are today with these trade negotiations. so we are addressing the symptoms. implicationsre the for not just trade flows but also investment decisions around the world? there are concerns we have expectingen -- were china pmi's to continue to show contractions. were seeing various indicators suggesting the front loading is over and were starting to see decisions being made on the basis of a longer term than

short-term trade. is that concerning in terms of how quickly companies can react to changes in the trade scenario? peter: we are definitely seeing the uncertainty play out in slower business investments, and weaker pmi data. the question for ceos and for the markets is how quickly can we get to a framework that sets the path toward the escalating the trade issues. once we get to a path toward de-escalation, we can get more clarity around the path for what it trade deal looks like. that's when we will see confidence built back up and investment activity go back up. will it be enough to prop up the economy which is slowing down for an eighth consecutive month? peter: we cannot dismiss that we

are talking about hundreds of millions of dollars of stimulus that has already been introduced. what we are seeing different today versus 2009 in 2010 is that the stimulus is very targeted toward the private sector versus enterprises. it is intentional. the real question is, will the stimulus take hold and will it flow through the economy? that is something we are closely watching. shery: numeral get china, you look at the structural issues. are you seeing a real effort coming from policymakers to address these problems within the chinese economy? peter: even this week, there was an announcement that in march, congress is supposed to vote on some legislation that would criminalize intellectual-property theft, so it has a mechanism for that. we have seen some goodwill efforts where a u.s. financial

firms is entering into the market as a wholly-owned subsidiary that can rate the bonds in the bond market. so the issues the administration has been bringing up, policymakers and china have not been responding. shery: great to have you with us, peter. you can get a roundup of the stories you need to know to get your day going in today's edition of "daybreak: asia." on mobile.vailable you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪

shery: this is "daybreak: asia." haidi: i'm haidi stroud-watts in sydney. a quick check of the latest business flash headlines.

qualcomm gave a sales forecast in line with analyst estimates, indicating the next generation 5g wireless is helping offset declining smartphone demand. it compared with a gloomy forecast from rivals intel and nvidia. compared to average estimates of $.78 a share. shery: boeing source the most in 18 months. cracking $100 billion of sales for the first time. shares were further lifted by the company's forecast that the best is yet to come. it's as revenue, earnings, cash are all set to rise this year, building on fourth quarter results that beat estimates. boeing and airbus are flying on record demand for planes. haidi: the grounding of some aircrafts and cancellation of carrierghts, the indian said it is temporary.

it is struggling with debt and is talking to lenders. creditors are said to be considering swapping part of their loans into equity. shery: tesla reporting earnings and after-hours rose and fell. investors digesting all the numbers. it was really a mixed bag here. we are seeing the share price go up and down, as you mentioned. elon musk is on the earnings call right now. his goal is to convince investors to say, listen, production profitability have not the. looking at the numbers, that seems to be the case. you can see it is in the , let me, so clearly walk you through the ways we're looking at. tesla has said it will restructure in the first quarter and it will be cutting costs by $400 million annually. tesla also seeing deliveries in

north america lower quarter on quarter and the fourth quarter customer deposits are less than the third quarter but that is coming in the prize, at $800 million. there are some positive, free cash flow in every quarter is what they are seeing beyond the first quarter. that is amazing after seeing negative cash flow every quarter since tesla has been in existence. looking ahead to china, elon musk did weigh in on that and he says the factory is coming up fast. >> i do feel quite confident at this point, at least for the factors that are in our control for the end of the year. to get tod allow us the 10,000 vehicles, or we are

close to it by the end of the year. ramy: he is the side -- decidedly a little more relaxed. sometimes on earnings calls he can be quite excited. he is saying that for the first quarter, he does see some optimism but he does not see profit come in by a lot. the earnings call continues, but in terms of the overall growth trajectory, even though it's a miss in terms of earnings, analysts are saying if you're in the long game for this, the future is autonomous and electric, and that is where tesla is. let's get back to facebook, soaring in extended trading after revenue beat the highest estimates, showing is weathering scrutiny after series of privacy scandals. we head over to facebook's headquarters in menlo park, california, where sheryl sandberg is with emily chang.

emily: thanks so much for being here, it's good to have you. the board,ross record profit, you have rick celebrated user growth in europe, daily active users in north america. where you see most of the new growth coming from? sheryl: we had a strong quarter and it was in into a really important, challenging year or facebook. peoplehave 2.7 billion using at least one of our services every month. that's facebook, instagram, whatsapp, messenger. importantly, facebook is growing. we have to .3 billion users on a monthly basis, with 66% coming back every day. one of the questions people have right now is, we are making such big investments in safety and security. we have so much work to do to protect people on our platform.

can we do that are growing our community and building our business? i think this quarter shows we can do both. we still have a lot of hard work to do across the board, but i think we are making progress. emily: there was an incident where was revealed that facebook had a tool that was collecting data from users, including teenagers, in exchange for payment. apple has shut down your internal apps, and our sources are telling us that employees are panicking. how do you triage? this sheryl: i want to be clear on what this is. there is nothing secret about it. they were innew it. a majority was adults, not teens. even apple has punished you. sheryl: it was violating the terms come and that obviously

never want to do. it has been a pretty productive day at facebook, for people are continuing to do good work. emily: for a lot of people, this is sort of a " not again" moment. why should people trust facebook? sheryl: i want to be clear what this is. what matters is that people know how their information is being used. in this particular case, the people knew -- using the research app new they were in it and knew how the information is being used. but you are right, it has been a challenging time for facebook. we need to earn back people's trust. inner the things you saw core is how much we are investing in safety and security. expenses are massively up, we have changed our profitability because we want to take the hard steps to protect people on the platform, and you see us doing that. you see what has that what

happens in elections around the world. decreasing the distribution of fake news. these are hard and ongoing problems but we are determined to do the hard work and keep doing it. what are you preparing for? working closely with the ftc and regulators around the world. we are preparing to continue to make the investments in safety and security. on the earnings call, mark said it was a top priority for the company. , butve a lot of work to do we are making really good progress in a lot of areas and we will continue to work hard. we are also continuing to build great products. this quarter shows that people are continuing to use facebook and are different products around the world. we will continue to make important investments. one of the things i'm proud of is we are making massive investments in capex and in

renewable energy. by next year we will be 100% renewable in all of our operations including our data centers. broadly, the cfo said revenue growth is going to slow down. you promised to make changes and fix the problems that people perceive. you said you welcome regulation. how do you convince investors that facebook will continue to grow rapidly with all of that as well? sheryl: our numbers are public. we are still a fast-growing company by any stretch and we will continue to make the investments to prevent harm, to build great products people want to use, and invest in the future. our focus is continuing to do all of that. i think people wonder if we can do it all at once. i think this quarter shows that we can, and we will. emily: mark said he wants to decentralize power. we know you're working on

merging the backend of messenger, whatsapp, and instagram. there's a concern that probably see will be, must in that process. why do that? sheryl: our focus is always what people want. they want messaging that is simple, reliable, and private. we are working on ways to make it easier to find your friends and family throughout the it, we, but as we do will make very careful decisions with people's privacy and communicate clearly. these are very early conversations and we still have a lot of hard work to do. emily: thank you for having us at facebook headquarters today. back to you guys. haidi: thank you so much. breaking news from samsung, reporting earnings. stephen engle is watching that for us. what do the numbers look like? >> it's a big miss on net income for samsung electronics.

estimates, the estimate was for 10 point 25 trillion won. a significant miss on net income. the operating income came in line with her limitary earnings earlier this month of 10.8 trillion want. again come the weakness in prices is really what is hurting samsung electronics. overall guidance come they expect overall annual earnings to decline in 2019. however, they expected improvement from the second half on memory recovery in dram. the headlines here, net income , 8.5 3 by a large amount trillion won. the biggest source of income of course is the ram chips.

it's also coming at a time of falling sales of galaxy smartphones and iphone screens. sam song also makes -- samsung makes components for iphone. capre expecting the first continual decline in dram prices after the fall in 2018. it is combined with sluggish demand coming for smartphones across the industry from apple to samsung. keep in mind new products from samsung are expected to be a little bit delayed with the new 5g galaxy 10 coming in the first half. and lest we have spoken to do not necessarily expect that to offset the weakness we are seeing in dram. whether they will cut capital expenditures, we've heard from the two other major players in the memory space. ity are cutting capex to

alleviate concerns about oversupply in memory. we did get it when he 7% cut in 2018 from samsung. we expect them to also address the issues in overcapacity going forward. haidi: an interesting take on bloomberg intelligence saying forstors may be forgiving samsung this quarter. what is the logic behind that? bloombergo into the terminal and you can follow that why investors have been a little bit optimistic after what was a ski slope downward in 2018 that coincided with the dram price fall. the msci asia-pacific index rallying as well as samsung rally on optimism that they are addressing those oversupply concerns. shery: we have breaking news,

the musk just announcing tesla cfo will be retiring. after hours, tesla stock is really taken a hit right now. ofhad seen a mixed bag out fourth-quarter earnings for tesla, missing on eps estimates. now the biggest news of the day right now, elon musk saying the cfo is retiring. he has not been in the job that long, he was cfo as of 2018. now hearing that their cfo is retiring. the stock after hours trading down more than 3%. we will bring you more details as we get them. let's get to the first word news with selina wang. ask the federal reserve said it will remain patient on rate moves and signal flexibility on reducing the balance sheet in what is seen as a substantial pivot.

they will determine any adjustments policy to support a strong labor market and inflation your 2%. also saying it would adjust strategy in light of changing developments. >> we are facing a somewhat contradictory picture of macroeconomic performance. at such times, common sense risk management suggests patiently awaiting greater clarity, and approach that serves policymakers well in the past. >> japan's top currency official has said there is opposition to including an fx clause. washington's negotiating objectives doesn't go with existing agreements. japan is permitted to intervene in the currency market at times of extreme volatility. right doesn't feel quite linking the yen and trade in a

policy context. the link has been severed. in fact, japan's trade volumes have remained flat in the past decade, despite significant movements in dollar yen rates. >> eurozone confidence is extending its worst run in a forde as germany/forecast 2019. it helped push sentiment down to its lowest in two years. the euro area is the weak spot of the world economy and when the imf cut global forecast this month, germany and italy had the biggest downward revisions. the roles top producers aiming to boost output after two years of cuts. on the basis of analyst forecasts that say demand for uranium will exceed supply by 2022. agout production two years

with prices under pressure since the fukushima disaster in 2011. missedng retail sales estimates in december as china's slowdown hit consumers and cross-border visitors failed to spend heavily. value rose .10% last month compared to the meeting estimate of 1.4% gains. with the completion of you transport things between hong kong and china, spending has slowed. 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'm selina wang. this is bloomberg. haidi: let's look at how aussie markets are faring in the early part of the session. sophie: aussie stocks gaining .4%, led higher by take an energy shares. they could be looking at a fourth straight weekly expansion. jumped to a march 2017

high. the aussie dollar holding onto overnight gains. flipping the board to check in on stocks in sydney, if you climbing to an october high after listing is guidance as rising for six straight day. it had a record second-quarter production update. fortescue rising to a 2017 high after boosting output in the second quarter. checking in on the laggards in sydney, one stock cut to sell at deutsche bank, and qantas mostng for -- lagging the on wednesday. janice henderson extending company closing its

australian and refund after finding it challenging to build assets under management. shery: let's look at apple, jumping the most in almost five years after backing up a strong earnings report with plans to launch iphones with the more powerful 3-d camera to push into augmented reality. us how the 3-d camera would work. mark: the camera would improve augmented reality, giving the camera a deeper field of view, improve lowlight performance, and you're able to take a picture and reconstruct 3-d environments around you. it would be quite a big upgrade for the iphone. this is becoming around 2020 when they are also planning a less ambitious upgrade for 2019. were wellle results

received. to be a keyg upgrade driver for future versions of the iphone but it will enable you types of hardware product such as glasses or a headset that would fill out some of the revenues apple is iphoness demand for wane and if people look for a new type of device to buy, and as people upgrade their iphones in fewer numbers and hold on to their devices for longer times. shery: we have seen some breakout categories for apple more towards services or even wearables. tell us about those other segments that can offset the weakness in handsets. two categories of standing out recently, both you mentioned , one is the wearables category that includes headphones as well as the apple watch. and some other products like the home ecosystem

and accessories for that one. the other one is services. they have not really come out servicesnew apple made in 3-5 years. apple pay was a 2014 launch, apple music was 2014. they really need to ramp up on that. they are planning to major new services. a news magazine subscription service, you can buy bundles of magazines. those will continue to drive growth in the services segment, but it is likely that whatever augmented reality and virtual reality headset is released will be part of the wearables category and contribute to growth there. seeing newre now headlines that apple -- and apple hardware engineer was charged with stealing secrets for chinese company. what do we know at this point?

mark: this is the second time in the past six months that an apple engineer has been charged the taking information from card program and taking it to a chinese developer. it will be interesting to see if this is a coordinated effort art that is just a coincidence. shery: thank you so much, our bloomberg tech reporter joining us from los angeles. thei: breaking news, beleaguered flagship carrier has seen many assets disposed, experiencing a cash crunch and seeing a possible net loss for 2018, citing steel prices and asset disposal is the reason for that. 70%es have fallen more than since the 2015 p.

the parent group has been facing growing concerns and increasing pressures over its mounting debt as the chinese government cracked down on outbound investments. plane to borrow from a group of flinders to cover these expenses, including fuel, maintenance, and landing fees. recently we heard they are looking at potential investors to start selling dollar denominated bonds. the latest saying a possible net loss of 500 million won for 2018. better moves -- better news for alibaba, with better than expected quarterly results. we will break down those numbers next. this is bloomberg. ♪

shery: this is "daybreak: asia." haidi: i'm haidi stroud-watts in

sydney. 41% riseosted a importantly revenue. he was able to offset slowing online sales by expanding into cloud computing and entertainment. eric wen joins us. investors read the sovereign leave as it came on the end of the day when we saw 20 chinese profites issue dire warnings. overlooking and a peak for alibaba, in terms of some of these numbers at the lowest in three or four years? it is typically a strong december quarter. think it is in line with expectations. the expectation is the worst days are behind us. everyone is expecting the launch program that we saw delay

last september. i think is delayed, but it is what is the news behind the stock. haidi: we're seeing that strengthen the shift or cloud computing, but lots of talk about internationalization for this company. have you seen progress being made in terms of picking up assets the way it has done domestically in china with some of the other sources of revenue? do you see it being replicated as expands across the rest of asia? eric: yes. there is meaningful growth for alibaba. company, some of the new

businesses are growing at a slower rate, and digital media is also slowing down, but at the core part ofe business is growing with healthy profit margins. investors are expecting that after this time of rationalization, alibaba will be able to resume higher growth in the second half of 2019. shery: so we heard the ceo talk about being a bit more optimistic because he sees growth areas offsetting some of the weakness, but he did talk about china's economy facing some uncertainty. chinaoes e-commerce in look like at this point, and what is the expectation for 2019? are not so pessimistic on consumption in 2019. certainly the trade wars and the

business confidence issues or hitting the business sector really hard. but the reason we argue that the consumer sector will be relatively resilient, two reasons. where retailear had a high basis. following twod years in the real estate market. a second reason is because of the rise of consumer finance companies in 2018. that makes 2018 cost comparable. 2019, the retail picture will be more normalized. therefore it will help the growth rate on the retail front. in the second half, the government's tax cut should also kick in to help. companies -- the

whole sector is going to deliver better than expected results in this quarter. shery: how does that bode for the online payment platforms operating in china? think mobile payment is one factor. helping people to consume more and more frequently, so that help retailfurther growth this year. shery: alibaba also testing some you recommendations, do we have at this point any idea how that will impact their business? eric: i think this is what the has expected.

last quarter when it was delayed, it's always good to remember that alibaba is not business.onomy driven for every amount of transaction it handles, it charges more. we firstprogram mention in the beginning of last year, 2018. really it is borrowing the social media we first mention in the beginning of last year, the concept that allows merchants to bid for what is being shown on the shoppers mobile screen. that relies more on an algorithm . if you match the shopping interest with merchants more intelligently, that is what we think is going to be a real

kicker in topline growth, in profitable topline growth in 2019. , thank you son much. we have breaking numbers out of japan. haidi: month on month, then our contracting just .10%, better than estimates of contraction of .5%. potentially ag at contraction of 2.3% in industrial reduction. we had the natural disaster driven rebound late last year, and reading some indications of theckup, according to ministry of economy and trade. november data pointing to a little bit more of a pickup there. sophie: we are setting up for

positive sessions in tokyo in seoul. the yen is staying near a two-week high. a heavy earnings day, samsung among the highlights, with profit missing estimates. costco managed to deliver despite weaker global outlook. and were keeping an eye on nissan after its first auto sales slump since 2009. so it is a busy day ahead. in australia, shares extending gains for a second day that higher by tech and energy. production updates from fortescue, it's dinning its rally after we saw goldman upgrade the -- extending its rally after goldman upgraded the stock. reaching $86 a ton come after hitting a march 2017 high. quite a few things to keep an eye on in this session in asia

this thursday morning. that is the rap as we head into the open in tokyo and seoul. any more to come, next on bloomberg daybreak. ♪

this isn't just any moving day. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving...

simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. haidi: very good morning. asian markets have just opened for trade. shery: good evening from new york. sophie: i am sophie kamaruddin in hong kong. welcome to daybreak asia. haidi: our top stories this thursday, the fed has flexibly as dovishness becomes the tone of the day. samsung is want to watch as fourth-quarter profits miss expectations. another sign of weak demand for memory chips.

shery: investors await new data from china. activity is expected to have slowed again this month. let's take a look at how we are setting up in terms of the first few minutes of trading in tokyo. we have a pretty good tailwind from wall street as we had positive earnings and then reiterated by the fed going nowhere fast when it comes to its tightening regime. sophie: we have those themes going into the session in asia this thursday. also bracing for a super busy day on the earnings front. facebook, tesla, alibaba reporting overnight. in japan there will be reports from nintendo and others. from korea, samsung is the highlight. onare reasoning -- relating other results. the open, the nikkei rising, the yen holds near a two-week

high. investors in japan and korea will have industrial output figures to collect as well. switching the board to check in on samsung shares, which are moving at the start, gaining .3% this morning in seoul. this, after we got an earnings update profits missed as chip demand is sliding. earnings improved from the second half on memory recovery. shery: let's now to the first word news with selina wang. a: anti-chinese protesters scuffled in washington as they left the hotel. they come from shanghai and a bruise president xi and the government of repression could besides have until march thirst -- march 1 to reach a deal.

he is expected to be the vice premier this week. anonymous sources in brussels say the european union is prepared to take the brexit drama to a last-minute high-stakes summit rather than bow to new u.k. demands. theresa may wants to reopen negotiations despite the eu saying there can be no more talks. diplomats also say no more concessions will be made before the prime minister faces another brexit vote in parliament february 14. eurozone confidence is extending is worth run -- worst run in a decade. growth will be 1% at best this year, the least since 2013. that pushed sentiment to its lowest in two years. the euro area is a weak spot of the world economy. germany and italy have the biggest downward revision. salesong missed retail missed estimates in december as china slowdown hit consumers and visitors failed to spend heavily.

value rose 1/10 of 1% last month compared with the median estimate of 1.4% gain. risen with the completion of new transport links between hong kong and china but spending has slowed. atsident trump slashed out his own intelligence chief about the threat posed by iran. this comes as members of the u.s. national security contradicted his claims about north korea and tehran. are testingey rockets and the only thing holding it back is a crashing economy. he added the intelligence chief should go back to school. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm selina wang. this is bloomberg. haidi: the federal reserve's new watchword is patients. -- patience. also signaling flexibility on the balance sheet.

let's break it all down now with kathleen hays in new york. kathleen, we were anticipating some significant signaling, but certainly the fed is not disappoint. kathleen: this was the meeting message heard around the world. i have seen a number of references to christmas in january. the economy, slowing down rate hikes. it has definitely been made official on january 30. enshrining things they said earlier, it will be patient on rate hikes. let's listen to jay powell. contradictoryng a picture of generally strong u.s. macroeconomic performance alongside growing evidence -- at such times, common sense risk suggests patients.

let's look at some other things in the policy statement that were underscored by jay powell. yes, he removed the word patience in reference to future rate hikes and removed the phrase, we plan on further rate hikes entirely. that has been in there for the last three years. he got a phrase saying the risks for outlook were balanced entirely. decided global pressures, inflection has reason for this. on the balance sheet, markets were so nervous. for the first time ever they had a balance sheet statement, basically reiterating what they said about a plan but they said they are -- jay powell said they need to be transparent. at least the fed is telling us

we are thinking about it. shery: this was a pretty tricky meeting for the fed. we did not have the full picture when it came to economic data given that we had 35 days of a government shutdown. the white seeing house is preparing funds for an emergency wall fund -- plan. even though congress is talking. even after we see the february 15 deadline pass we could be headed for more chaos in washington dc. how is all of this modeling the economic picture for the u.s.? they do not have complete economic data. but to underscore kathleen's point, what is just as breathtaking is this pivot was done without the system's economic forecasts which come every quarter and without any of the famous dots. where used to a situation where dramatic shifts in stance have accompanied those quarterly

statements. you talked earlier about the fed going nowhere fast. this is dramatic. we have gone from a situation theirfurther hikes were preferred stance to one where a policy could just as easily turn into an easing. shery: kathleen, of course we have seen this, the first press conference from jay powell and what could be a different communications strategy altogether for the fed. this ups the prospects we could see more gaffes along the way and more policy mistakes just because they are out there so much more. kathleen: i think you could look at it a different way. so far a lot of people do not like that they hiked key rates in december. they said maybe the president gave them no choice. if they had not hiked everyone would've said they caved to trump. but by communicating more, maybe more volatility of people have an ideally -- an idea of where the fed is now.

they don't have to wait. too.ure you heard this, depends entirely on the economic -- the next move depends entirely on economic data. it changes the economic outlook. i'm a fan of having more press conferences. i think it will illuminate gaffes, not make them work. haidi: the emerging markets are going to love this. dan: and rightly so. what is really interesting is for all the efforts jay powell took to inject balance into this description of the u.s. economy, what i think this is really about is china's economy. paragraphk at the key the fed has reorganized use of the word global. it is gone from in the december statement being a monitoring of global economic and financial conditions, to almost a justifying cause for the change in stance today.

the principal cause of economic weakness in the world today is the slowdown in china and how that is reverberating through manufacturing, markets, all panoply of things. so, if you are a country like indonesia, which hiked a lot last year in response to the fed, this is mana from heaven. does that then take some of the criticism away from -- a lot of people are saying look at the statement today, the remarks that came through. you have to look at this as some kind of capitulation to the markets. is this at least partially reaction to the stock market volatility? kathleen: i will go first. i have watched the fed for a long time. when markets moved and move dramatically, it affects the outlook. the fed has to respond. as powell put it, i have to support the stock market, not let it drop.

this said ben bernanke ann dowd greenspan did it. i'm interested to hear what dan said about this because he has also been on the fed watch for some time. dan: it is interesting, i sense that markets have gone in the last two years in the fed's view from well, what are they telling us as a signal to the underlying market outlook two markets being effected in and of themselves. it is hard not to see this as a capitulation, but a capitulation to what? i think the movement around the use of the word global in the statement is at least as important as the acknowledgment of market, if not privacy, that market significance. shery: thank you so much. great to have you. seoul.ers right now in let's turn to sophie with the latest. jumping as much

as 22%, the biggest jump on record. just abouts rising 8% so far. we have this jump following a someone is seeking to buy them. samsung is gaining ground. realized, it would be positive for samsung with competition among the three biggest players. in a: let's not bring portfolio manager from hong kong. we saw a more dovish fed. does this give more leeway for the pboc and china in terms of policy? >> well, it is very good for asia. a year ago i have been worried

that rising rates would be very bad for asia, especially places like southeast asia will be forced to raise rates in response but it looks like that will not be necessary. i was a real rates here in asia are still positive on the home and that leaves room for central-bank to cut rates. asia is one of the only places in the world today where they have the potential to cut rates while everyone else is tightening policy. haidi: lots of companies right now focus on china, they are really concerned about an economic slowdown there. tons of companies coming out and talking about the chinese economy. this chart on the bloomberg showing chinese consumption trends and income growth trends as well. what we're seeing is income growth is seriously outpacing consumption growth. what does this spell in terms of the future of the chinese economy when you are seeing income is growing but not willing to expend as much as that pace of growth? ofc: well, we're sort

experiencing a paradox of thrift, which is the say both companies and consumers in china has decided to thousand 19 will be tougher than 2018 so they are pulling back in discretionary spending. if everyone does that at the same time it can create a sofa feeling processing. -- self-fulfilling prophecy. money.ve to spend the somehow confidence news to be revived for folks to start moving in the right direction. otherwise you could have a scenario where the self fulfilling prophecy of people pulling back becomes a problem for the economy. haidi: i want to throw up this chart that looks at the different manufacturing, nonmanufacturing services. and we have seen nonmanufacturing, part of which is the services gauge, still remaining pretty robust. that is the line in turquoise.

perhaps rebalancing not as strong as what the government would have liked. manufacturing we get later today, that the emi expected to continue to stay in contractionary territory. in the yellow, the frontloading of export orders fade as tariffs kick in. if you look at retail sales as perhaps not a complete reflection of consumption demand in china, how does that affect your allocation of stocks? does that still mean some of the that lapsed names towards the end of last year are set for a bit of a revival this year? eric: i think so. it is very important to note that markets usually discount things about six months in advance. the fact that markets out here have collapsed over the last six months basically was in anticipation of the news we're seeing today. looking forward from today's starting point we have to ask what things look like this summer, six months out. i think six months from now some

stimulus the government has done will take effect. better visibility on the trade issues. and we will be passed the upcoming earnings season during which time i think a lot of companies will reset expectations lower. if you believe stocks over the next month months will be driven by the endpoint six months from now, i think we have a good set up, particularly with valuations out here very low. haidi: are there emerging markets, given we have so much clarity of the dovish intent of the fed today and we have weakness in the u.s. dollar, does that suggest that for the rest of the year dollar weakness is a thing we will be looking out for? emerging markets really having the opportunity to spread their wings and rally. eric: that is the consensus. i do not spend a lot of time trying to predict what the fed will do. what we do have is an armory of analysts going company by company assessing the earnings impact of things at the trade war and decide once we have got

earnings reflect some negative things going on, are the stock still cheap. in more and more cases we are finding they are. if you have a one-year horizon, entry points are attractive. right now it looks like the fed will stop hiking. that means a weaker dollar and that lows be good for asia. -- always be good for asia. haidi: eric, thank you so much for joining us. still ahead, china releases the rules for its much-anticipated new trading venue for tech stocks. shery: next, samsung earnings missed estimates. we will go through the numbers. this is bloomberg. ♪ ♪

haidi: this is daybreak asia. slowing demand for smartphones is hurting samsung, which posted fourth-quarter office below estimates.

net income also fell short of forecasts. let's look at this. samsung shares higher despite the miss. why? >> i think the thinking of the chips is this downturn in was more severe than expected. prices plunged faster. thinking is maybe that would help suppliers cut their supply. already a pledge to cut spending by 40%. the thinking is samsung may follow. we shall wait and see from the earnings call. shery: do we have any idea when the price will bottom out? it willfirst quarter

definitely continue to decline, given that the man is not picking up. second quarter, they may see demand recovery but keep in mind is higher than normal. it takes time for the inventory -- there will not be any bottoming until second quarter. haidi: we are also expecting the galaxy s10 to be released in february. will that be enough to make a substantial impact on earnings and demand? anthea: it will be priced as a premium because based on the materials that require it, the thinking is demand may not be as strong as other models. prices might scare customers away. survey,g to most of the

most consumers are not sure why they need a 5g phone yet. it takes a lot of marketing to convince consumers to get one of them. forecast, not only 1% of the market. momentum will not be strong enough to revive it unfortunately. oversupply about the and overinvestment? they said they will be cutting back on investments. is that something that samsung is expected to do? anthea: our expectation is samsung will follow because last year they already cut. in terms of memory, they would probably want to remain in the market. they are quite happy with the

market share for now. not see why samsung will not be happy with just keeping the market share stable and keeping prices more stable so they get that margin as before. haidi: we appreciate your time. taking us through those samsung earnings. it was a bad week, but still shares reacting fairly positively in the early seoul session. you can get a roundup in today's edition of daybreak. bloomberg subscribers can go to your terminal to get a wrap on the fed announcement. it is also available on the mobile in the bloomberg anywhere app. you can customize settings for you -- this is bloomberg. ♪

haidi: this is daybreak asia. check ofat study quick

the latest business flash headlines. wynn resorts jumped after stronger-than-expected sales growth. macau is heading for a slump. fourth-quarter revenue rose far above7 billion, the forecast $1.6 billion. analysts were predicting a small decline in gaming revenue. they said pessimism is overblown. haidi: tesla fell in late trading after earnings fell. $1.93 a net income was share. tesla's earnings are coming under pressure as they roll out cheaper versions of the model three. production in europe and china began this month. this point i am optimistic of being profitable in q1. not by a lot, but i am

optimistic about being profitable in q1. and for all quarters going forward. boeing sort the most in 18 months after reporting a record cash pile last year and cracking $100 billion in sales for the fourth time. shares were further lifted by forecasts that the best is yet to come. revenue earnings and cash are all set to rise this year. building on fourth-quarter results that beat estimates. boeing and airbus are flying on record a man's. -- demands. haidi: next, the prospects for hong kong and chinese property markets in the face of a slowing chinese economy. this is bloomberg. ♪

selina: you are watching daybreak asia. the federal reserve says it will remain patience on great news and signal flexibility in what is seen as a substantial pivot away from higher borrowing costs. anyill also determine adjustment to policy to support a strong labor market and inflation grew 2%. it also says it will adjust strategy in light of changing developments. >> we are now facing a somewhat contradictory picture. is somewhat strong u.s. macroeconomic performance alongside growing evidence of crosscurrents. at such time common sense risk management suggests patiently awaiting greater clarity, an

approach which has served policymakers well in the past. selina: lyf and juno usa want to block a rule setting a minimum wage for drivers. a $17.22 one hour in december. on minimum wage takes effect friday. lyft says it will raise prices, lower earnings, and undermine competition. foxconn is considering scaling back or even abandoning plans to make cutting-edge displays at a new plant in wisconsin. they are rethinking strategy because of the high cost of manufacturing in the u.s. and may now use the site for engineering and research. foxconn was hailed by president trump for promising to create 13,000 new jobs at the wisconsin plant. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm selina wang. this is bloomberg.

let's turn to sophie in hong kong for a check of the markets. sophie: along with the fed's dovish turn we have a raft of earnings to digest. asian stocks continuing the rally we saw on wall street. tech stocks are finding support from better-than-expected results from facebook and alibaba. cars markets also getting a lift from the weaker dollar. the yen trading your a two-week high. yuan at its strongest level since december 4. the aussie adding new year to date high despite the iron or rally stalling this morning. .2%,iwi dollar jumping firming up after the s&p lifted the ratings outlook to positive. let's check in on some stock movers across the region. in japan you are seeing jdk rising the most since november 2016. the company posted an increase in nine-month profits.

we also have nec jumping after third-quarter results came in better than expected. grew 11% year on year. it is rising despite the missing fourth-quarter profits. the company announced a 100 billion yuan share buyback. korean shipbuilders on the move after reports day will shipbuilding -- securities cautions that uncertainty remains over how sixations due to undelivered vessels. haidi: how -- despite seeing profit plunge last year. optimistic on fortunes over concerns of a slowdown in china and volatility -- volatile home

prices. when we spoke to you in singapore at the new economy for in in november -- forum november you said you thought it was cyclical. do you see this bottoming? what is your expectation? >> hong kong should do ok as long as china does fine. including the real estate market. i know it is down a little bit but it is just a cyclical thing. haidi: as long as china does fine. that is a big if. are you concerned we are seeing's lines -- seeing signs of a slowdown in consumption, particularly when it comes to retail properties? ronnie: statistics show some slowdown but certainly our result does not show it at all. because we are not a property selling company. we are basically a high-end

retail and office investment company. and what i see is that the luxury sector is doing very well. result.saw the lvmh they had been rising strongly in china. we expect other people in a similar position as i am have the same result. so, it is a by fugacious of the market. overall the market may be moving sideways but the luxury market is certainly rising up very well. that mean you expect further good performance from the leasing market this year in 2019 in china? ronnie: 2019 will be fine for us. but 2020 will be fantastic. 2019 is because we have a lot of properties that are under refurbishment. and we did one in shanghai, went up the first share 20%.

the second year we went up still 12%. i think we will see the same thing in shanghai. we have about 8 million square feet of space coming on stream within the next 12 to 24 months. they will certainly bring a lot of revenue and eventually profit as well. shery: how much will your business be helped by potentially easier policies coming from the chinese government, not to mention eventually more dovish federal reserve? they are think of that doing the right thing to stimulate consumption on the part of the average man on the street. tax by virtuenal of raising exemption and so forth. lowering-- and tariffs for imports. all of these are helping the economy, particularly consumption, in high-end

consumption. onnie, we heard overnight a resoundingly dovish fed essentially expected to stay on hold for this year and possibly beyond. a strong tailwind for you that interest rates will stay where they are or perhaps even come lower? ronnie: for my company it does not matter too much, but i think for business in general that must be good news. there are a lot of uncertainties out there. i think easing the rate rise is good for everybody. in terms of your plan for further investment this year, your company has plans to invest more when it comes to new projects for second-tier cities in china. do any of these plans perhaps investment ing residential properties? ronnie: it is really very limited. it is the highest end for each

city as part of the project, mainly centering on a shopping center and in many cases high-rise offices. in rare cases even hotels. in the residential part of it, is just part of the total project. those properties must sell for a very high price relative to the rest of the city because it is right next to the best shopping center and the most prestigious office high-rise. so i think those residential's should do fine. the rest of the overall market will be up and down. shery: we have a viewer question on the bloomberg right now. they are asking how you are working with online companies and what is your strategy given that chinese younger, high-end consumers like to shop online. will that affect your mall business, given that you are actually dealing with a brick and mortar? ronnie: right. question that the economics is rising very fast --

e-commerce is rising very fast. they had been strong now for 20 years. whereas ithe west, is almost like a new phenomenon in like -- in that they were too dependent on brick-and-mortar. in china we have lived with e-commerce for 20 years. equilibrium eventually has to be arrived at for a particular market and a particular segment of the products. in china overall we have arrived at that equilibrium point away ahead of that in the united states. so, do not apply what is happening in the u.s. or australia to china. china is way more advanced in this regard, not to mention that we unit luxury sector, we are not affected much at all. if you are selling tennis shoes, certainly would be affected. for us, the higher-end shopping centers, five stars, there is really no affect on us. shery: i want to get your views

on where hong kong prices go. do you see opportunities for adding to your land bank? ronnie: we have not been -- through other channels we ever plunged a little bit, although that is no longer the main focus of our business, that is residential development in hong kong. that said, hong kong market in the long run should be fine. i don't know about the next month. factverall, consider the that we have so limited supply. consider the fact that so many in mainland hong kong -- china like to come to hong kong to buy properties. i think the hong kong residential market in the long haul is still a good thing to bet on. shery: great talking to you. ronnie chan joining us from

hong kong. we have news. latest fourth-quarter profits missing estimates coming in at 225 point -- fourth-quarter sales also missing, coming in 4.3 5 trillion yuan. the expectation was for numbers above 4.4 trillion yuan. telecom coming in at 920.2 billion yuan. south korea has been dealing with demand. in investments within the domestic economy. we're seeing the sk telecom price reversing and gaining 2/10 of 1% despite the fourth quarter miss. coming up next, the u.s. and china have resumed the trade talks in washington but investors are not optimistic. we will discuss. this is bloomberg. ♪

haidi: this is daybreak asia. and china have resumed high-level trade talks in washington but there is little indication that a breakthrough will be reached. all this coming at a time when the chinese economy seems to be slowing down and after a market rout of $2.3 trillion in chinese equities last year. let's bring in our chief agent economics correspondent for the latest. we are expect during -- expecting pmi later. we saw the first contraction in 2.5 years. are we expecting any kind of improvements in those numbers this morning? >> i think pressure remains on the manufacturing sector. we have seen in recent months downward pressure on industrial profits. prices headed in the wrong

direction. both the official and private sector gauges in manufacturing slipping into contractionary territory. export data is showing signs of softness. remains somewhat under pressure. we know this is a reason why china is probably keen to push for some kind of deal or truce in their trade talks with the u.s. given the broader backdrop of what is happening in the world economy. this: how significant is foreign investment law that is being drafted? enda: it depends i you want to look at it. optimistic say when you see changes like this it's an incremental way to show china is inching forward. it is doing more to protect foreign business. is doing more to allow private competition. when you look at the rule changes there talking about four i.p. protection, foreign investment.

of course there are those who will equally say all of these are piecemeal measures that do not amount to game changers, per say. china has a long way to go before it can truly be considered a wide-open economy in a way some of its peers are. this goes back to trade talks. the question will be whether or givene u.s. accepts them, the fatigue and whether the u.s. can be sure china will deliver rather than renege on past agreements. say there is a trust deficit. enda in hong kong. china is trying to make it easier for new tech companies to go public in china rather than heading to hong kong or new york. published new has

draft rules for a much-anticipated new trading venue for tech stocks. our china correspondent joins us from beijing. what steps keep this apart from similar exchanges? >> this tech board will pilot home budget measures. some have been discussed for years. the main one is this will be a registration-based board. be caveat being there will be not everyone being able to register and be listed. be much more streamlined from the current approval-based process. they have also basically removed amits from the price ban share can increase or decrease on the first day of trading. then for dates thereafter. the firstfor 30 -- five days there are no limits than afterwards a 20% price band. this compares with current limits of 44% increase on the first day followed by 10%

increases or drops thereafter. they are going to let profitable firms, no profit history, list. also those with dual class voting structures. on the more restrictive side i think there are quite long periods for sponsoring and brokerages. that will be two years. for senior management, three years. last year they were meant to be the first company to issue cdr's, and that was put on ice. the we have any more idea when this will be introduced? lucille: we have not heard much about cdr's recently. one reason may be the focus has been so much on the tech board since it was announced in november of last year. we have already seen draft rules out and it is not been three months. thesethat there are

variables, companies can lift on this exchange. it may solve some problems that cdr's were meant to solve and it could be a venue where cdr's are listed in the future. shery: there is a potential boon for local brokerages. tell us about that. lucille: according to bloomberg data we basically have seen chinese listed securities firms gain about 7% this year compared to 34% drop last year. due toct some of this is the anticipation for business from this new tech board. of course we only have preliminary estimates now. so for example analysts at cicc before the draft was released said perhaps 150 firms would be listed this year. so, a lot of anticipation for this firm. given we did not have a start it

yet, that would be quite a large amount of firms listed. shery: lucille, thank you so much. coming up, south korea is pushing to address gender inequality at the highest level with a radical new bill. live from seoul next. this is bloomberg. ♪

shery: this is daybreak asia.

haidi: let's get you a quick check of the latest business flash headlines. a strong holiday shopping season was enough to save the day for visa. customers spend $2.2 trillion on visa cards, a 7% rise from the year earlier. that helped earnings go over $1.30. visa reaffirmed for your forecasts and authorize and $8.5 billion share buyback. is cutting says it 10% of global accounts as it looks for new ways to save money and simplify structure. it says most of the cuts will happen this year, saving the makeup company about $97 million. avon is facing new challenges in an increasingly competitive beauty space. haidi: qualcomm give a sales forecast in line with analysts estimates indicating the move to 5g is helping offset declining

cell phone demand. second-quarter revenue up to $5.2 billion compared with gloomy forecasts from rivals intel and nvidia. it should be 65 to $.75 per share compared to an average of estimate of $.78. shery: south korea is for gender equality at the highest level. a radical new proposal introduced last week seeks to fill half the national assembly with women compared with just 70% now. -- 17% now. what does this draft law say? i am seeing this could actually involve fines. >> that is right. lawmaker from democratic party wants to push for is to make sure all the female politicians that want to run for office get the opportunity that they do get, which currently is not the status quo. they do not get the endorsement from their parties that their

male counterparts get. so this lawmaker wants to make sure that women have the equal opportunity that their male counterparts get to run for office. shery: can this bill passed? -- pass? of lawmakers think the chances are quite weak because sentiment around feminism and the idea of equal opportunity for women in general in the south korean society. you can tell by the way the bill has stirred up controversy among men in particular that are in opposition to giving women equal opportunity, calling it reverse sexism. that is pretty much the definition of privilege. when you take it away it feels like you are losing something when you are giving other people more power. implicationsre the for president moon jae-in? jihye: the biggest point here is

that moon jae-in's supporters range,the 20 to 30 age among men in particular, has dropped drastically since 2017. it was 80% in 2017 and fell to a low of 29% december 2018. ais could be a contingent, controversial point for supporters of moon jae-in, especially among the men, if this bill gets passed. a lot of people are saying moon jae-in could lose even more supporters if he endorses this bill. haidi: always great to have you. for more on what to watch in markets later today let's check in with sophie in hong kong. will befrom taiwan watching for the afternoon update on gdp. also watching mediatech. the stock was updated.

fourth-quarter gross margin was a bright spot. watching reaction to taiwan listing its rates for 2019. offshore wind power. project developments pushed back. after china released draft rules for a new tech-focused exchange to make it easier for new economy firms to go public. switching the board we have plenty of updates from china eastern and china southern. expecting softer earnings. expecting 2018 income to fall 55%. new china life sees a 50% rise in 2018 net income. haidi: sophie kamaruddin in on the market. before we hand it over to bloomberg markets: asia, hong kong and shanghai, this is how markets are faring. given strong tailwind from wall street over positive earnings. reinforced with a positive of this message -- positive done this message --

we are still seeing materials in mines gaining in the australian session. prices went soaring. shery: futures right now. you mentioned the dovish fed. could take markets higher although futures in singapore were down at the moment. futures in malaysia looking higher. that is it from daybreak asia. markets coverage continues as we look ahead to the start of trading in hong kong, shanghai. haidi: stand by for bloomberg markets china open. this is bloomberg. ♪ this is bloomberg. ♪

ramy: not talk a.m. in shanghai. -- tone of the day. slightly following wall street higher. e: samsung among the gains, and. imminentors await the data from china. it is expected to slow down yet again.