>> a very good morning. i'm live in sydney where it stocks of just open for trade. asia." me to "daybreak our top stories this friday -- u.s. stocks rallied to cap their biggest monthly gain in three years. investors like in corporate earnings and the fed's dovish tilt. mark is also watching -- watching -- markets also watching trade talks in

washington. amazon continues to deliver that not quite at the pace as a year ago. a weaker outlook putting pressure on stocks after hours. >> let's get started with breaking news out of south korea. we are getting their latest cpi numbers. here on year, cpi rose but missing expectations and slowing from the previous month as well. we are seeing cpi decelerating here on rear. month on month also, prices falling 1.1%. the expectation was for a slowdown, was for a gain of 1.4%, but not this much. core also missing expectations. we are seeing this drag on inflation numbers because for the month of january, we are seeing oil prices remaining a little bit down relative to a year earlier, not to mention that we saw that 15% fuel tax cut which probably continued to

drag on headline inflation and is the government in south korea has also tried to control prices related to social welfare including health care and communications, so that has been a drag for prices around south korea. market expectations for be ok rate cuts rising given the headwinds in the global economy and we are seeing cpi really not even close to that 2% inflation target. of course, trade tensions a big story around the world. we will get south korea trade numbers as well. in the u.s., we saw a little more positive sentiment across u.s.-chinaas we saw trade negotiations wrap up in washington, d.c. the dow unchanged. the s&p 500 at an eight-week high. we saw communication and utilities leading the gains. nasdaq also gained to the highest level since september 3. we sought amazon, for example, after the close shares under pressure with revenue growth underwhelming. s&p futures unchanged at the

moment. let's see how we are tracking for asia. >> stocks are set to end the .eek mixed we do have the earnings daily continuing in asia. checking in a names reporting today including honda, mitsubishi motors, sony, educator. the opentake a look at in sydney, we do have stocks up .1% and among the movers we will be watching for, of course, we paris have been doing given the recent move in crude prices. do have these names on the lineup including to cana pharma, hitachi. flipping the board for a quick check on highlights for the eco-calendar, we will have a straley fourth quarter producer prices. home price data,

core logic, the price index coming in 1.2 percent lower on a month-to-month basis, extending the decline we saw in the previous month. we also got the latest caching pmi reading for china do later today and we will have india's internal budget on tap as well. we also will be keeping a close eye on health companies today given the deal with brookfield for that takeover. trump isent dispatching his top trade negotiators to beijing after two days of talks with chinese officials wrap up in washington. the president met the vice premier and said a deal could be done by the deadline. >> i think we can do it by march 1. can you get it down on paper by march 1? i don't know. i can say on march 1, the terror on china goes to 25% -- the tariff on china goes to 25%.

that's a big tariff. >> how do we interpret how much positivity or caution we should be taking away from this round talks? >> it is important to note that this round of talks was never really expected to be a talks? great rate through. before the talks, observers kind of look and said if there is an announcement of another meeting or a statement is released, those are good signs. potentially, progress could be being made, and we saw both today. president trump said two of his top trade negotiators will be going to china for talks. they also said that negotiations between china and the u.s. right now are pretty much continuously ongoing. the white house released a statement and president trump himself said that talks made tremendous progress, though he cautioned that does not mean a deal has been reached. indeed, looking at the statement the white house released and hearing from administration officials afterwards, it was hard to point to concrete ofdence of progress on some

the stickier issues. on some of these easier issues such as purchases of u.s. exports, china did commit to buy is a potential amount of soybeans, but on trickier things like ip theft, it is hard to see where progress is being made and those issues might still remain for later rounds of talks. increasedis mean tariffs coming in march, the threat has subsided? >> not quite. it leaves an avenue for progress to be made, but president trump himself said a deal has not yet been had and that if no deal is reached, that march 1 deadline still stands and he is still ready to raise tariffs on that $200 billion worth of chinese goods. as we heard also today, president trump saying he plans to meet with president xi jinping. that could be where some final deal is struck or some final way out of this impact is reached.

the president has often touted his relationship with president xi. there are avenues by which a deal could be reached, but the threat of tariffs still looms on the horizon. >> president trump dismissing a bipartisan plan, saying it would be a waste of time if it does not include border wall funding. are we headed for another shutdown? >> negotiators started this week trying to hash out legislation homelandd fund security. president trump has been demanding the legislation include funding for a border wall and democrats have said and keep saying there will be no funding for a border barrier or a border wall. possibility that both sides could reach some kind of compromise on some barrier potentially. democrats have floated the idea of potentially fencing or some such barrier that falls short of

a wall, but it's unclear if the president would accept that. trump himself has raised the prospect of doing and in run around congress with an emergency declaration if no agreement can be reached. as we heard, he said that negotiations are a waste of time if they do not include wall funding. impasse remains. negotiations set to continue at some point next week. quick greg sullivan continuing to follow this trade talk story. let's look at one of the big movers early in the aussie session. we are looking at the highest levels since mid last year for this stop. company is to be acquired by canada's brookfield in a $4 billion deal or 5.7 billion aussie dollar's. as part of that deal, health scope has entered into agreements to sell 22 properties for about 2.5 billion aussie

dollar's and lease them back as part of this agreement. the second largest private hospital operator in australia entering a deal with brookfield. >> thank you. latest rally in stocks added to the biggest january gain for stocks in three years. su keenan joins us with more. earnings were a key theme here. >> strategists said that was the focus of where the market has returned to and with stronger-than-expected earnings from so many major players, it certainly gave an impetus to end this january month as one of the biggest all-time gainers. what you see in addition to the dollar and bonds -- by the way, after the bell, it was reported u.s. treasuries . the s&p 500 info media sector is the biggest gainer.

facebook and twitter are two of the main reasons. facebook blew it out continuing to follow through with great gains. twitter as well. dupont and paypal are two stocks that show you earnings again were the dominating trade factor. paypal missed the midpoint in their guidance. down two point plunged after giving a profit warning, expecting to see profit fall under a slowdown in china and european growth. that normally would shake the market, but it did not as the strong earnings double in the day. let's go to the next board. what you see is ge, a huge gainer. ge's ceo causing the stock to .oar the most since 2009 charter communications' biggest gain ever as they blew out expectations in terms of the internet business accelerating the fourth quarter, broadband coming in a lot tinager-than-expected and

clout-related stocks really benefiting. after hours, amazon sales started talking analyst estimates. other news is causing the stock to drop in the after-hours. symantec coming on strong with fourth quarter earnings. we have more later in the show. >> let's move to commodities because oil saw a little bit of pressure in the last session but did see a big january jumped. >> this is one of the biggest .umps we have seen in a while let's talk also about gold. the fed signaled it is done raising interest rates least for , and quickly, nickel,

longest string of monthly gains in a wild. >> as we've been talking about come the best january in three years. about anz, the chip stock. this was a badly beaten up sector. we have seen chip stocks coming on strong. these are the one-month gains. look at that -- up 32%. , two of and netflix these faang cohorts, and a lot of them, a strong bounce back from severe declines, and goldman surprisingly right up there with boeing and other strong leader's so far this year and that is despite heavy legal pressure hanging over the stock right now. >> let's get you to first word news in san francisco. >> president trump said

bipartisan plans to avoid a government shutdown would be a waste of time if it does not include plans for a border wall. speaker pelosi has indicated she measures along the border with mexico but not a border wall. three european nations have launched a special vehicle to help companies trade with iran. the salvage the 2015 nuclear accord in defiance of president trump. germany, france, and the u.k. said the institution acts as a buffer preventing direct financial interaction and therefore sidestepping u.s. restrictions. the trump administration threatened consequences to firms working with iran. the wave of chinese companies warning on earnings is turning into a flood with no industry or sector spared. thursday was the deadline for firms to disclose results and forecasts.

about 15% of companies that have issued guidance say they will post a loss. the latest warning signs for global trade amid u.s.-china tensions and waning demand for smartphones. ap demanded 1.25% compared to year earlier. the bloomberg survey had been expecting growth of two point 1%. it was taiwan's slowest expansion since 2016. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts from more than 120 countries. >> thank you. coming up, we speak to the former u.s. ambassador to china and get his take on the meeting between president trump and the chinese vice premier. >> just ahead, we will delve .nto tech earnings this is bloomberg. i ♪

>> this is "daybreak: asia." amazon's fourth-quarter results revealed a weak outlook meeting the stock is under pressure in late trade. our bloomberg technology reporter joins us from seattle. what did you make of these numbers? the second consecutive quarter with a have come in a little bit below wall street estimates in their guidance, and that has investors a little bit nervous. >> soccer about the currency effect as being one of the issues at play. will that be a headwind when it comes to international revenue, which also saw a slowdown as well? >> they forecast another currency dipped and sent absence that, they would be close to the in theirtimates

guidance. there are still some currency headwinds out there. >> what about business in the cloud? >> still growing, still growing fast. it has been a driver for amazon for quite a wild. another thing worth highlighting is their advertising business, their new higher-margin stuff is growing pretty quickly, but it has not been enough to take investors' eyes off of that weaker guidance. >> growth seemed to be coming from outside the u.s. where subscription fees are lower. how problematic is that? >> it is unclear. subscription services is another area that has investors arching their eyebrows. there were some changes in how amazon recognizes prime subscription revenues. unclear what that change means for the health of their prime sort of key tois encouraging people to shop on amazon. >> thank you. financialg in tigris partners cio. give us your key takeaway from

the amazon report. >> another good quarter. they had record growth this holiday season, record number of people signed up for amazon prime. recordw -- they sold a amount of alexa audio interfaces, and i think they had a number of things that i think can drive growth and i think for than the next big thing is going to be health care. >> investors do not seem to like it, though. after hours falling. what is the problem? >> i think they're giving conservative guidance, but we saw that with apple. they gave conservative guidance, the stock sold off, they beat reports. there's a still a lot of uncertainty in the world, and a lot of crazy things going on as far as trade, so better to be conservative and beat -- underpromise and overdeliver, and i think that is what we will see. >> manage expectations. i want to throw up this chart.

pretty general of the size of the decline in revenue growth. but was just saying this is the third quarter we have seen revenue growth come down. international revenue also slowed. we have the stronger dollar impact. is that expected to be a theme that continues throughout the course of the year? is this domestic or regional competition coming into play here as well? to cuthe fed is on hold rates, i think we could see the dollar weakened, which will help them a little bit. however, global growth has been a little bit slower for amazon than it has been for u.s. growth, but i think eventually, global growth will be accelerating, but i think they continue to go in new areas like their entry into advertising , which they are able to use their customers' buying patterns to create valuable information to help advertisers

better target their customers. >> is the work over four u.s. tech? we have seen even in the most recent trading session u.s. tech being segment leaders, if you will, in the stock rally at the start of the year. are some of the headwinds we had last year behind us given that we are still looking for a resolution when it comes to things like trade? willthink that tech continue to grow. tech drives the u.s. and global economy. it creates lower costs. it helps people, businesses run more efficiently, so i think we still have a long runway for technology growth. >> tesla has been under pressure . they had a mixed bag. how do you think about the stock and its valuation at this moment? >> i like the car and the ceo

and the company. unfortunately, these stock has been hard to buy or recommend to clients. i think there is the issue of , which is an issue for the company. there is still incredible demand for the car. more electric cars coming on the market will help them because overall everybody will just sell more electric cars, so i think the company has its fits and starts as far as continuing to ramp up production, but usually with the stock trades in the 262 280 range, it has been a buy, and somehow good news tends to come with a stock trades into 220 two 200 40 range. >> you mentioned apple. they have done well this week. investors seemed to like what they saw. do you find potential in the -- the apple ecosystem?

>> they now have 900 million iphone users they continue to sell services to. they are working on a model that will help. it really will be more of a leasing program for the phones that will increase people's renewal cycle and increase people's service cycle, so i of room.o has a lot apple is also extremely cheap. i have a lot of cash. they will continue to buy stock, even though they did it at a lower level of spec this quarter. wasn't an almost existential cap crisis -- in anntial -- apple was almost existential type crisis at the end of last year. >> i think it is a key driver in the transition of hardware to services, but the trade situation in china has caused a

little bit of a headwind for and from the news that came out from today's trade meeting, i think we will see an eventual resolution to this trade war with china, which will in turn help apple. >> always great talking to you. you can get to our past interviews diving into and of the securities functions we talked about. if you have any questions, that is the key there, lower part of your screen on the left side. this is bloomberg. ♪

>> let's get you a quick check of the latest business headlines. apple is said to be taking action against google for

breaking his rules. they cannot test versions of apps under creation or use internal apps linked to transportation and food. the move is similar to one apple facebook week against for breaking development rules. >> singapore is throwing beleaguered huawei a rare bone saying domestic operators can decide for themselves on buying its technology. regulators said they encouraged supplier diversity and although they did not mention huawei by name, they responded to questions about the company. the u.s. a closes huawei of espionage and once global allies to cut ties. backed hong kong airlines is being sued. the carrier's parent has million last year. the debt was due in december,

but the company had it only enough over to cover interest. next, top u.s. trade officials are headed to china for more high-level talks. we will discuss with a former ambassador. this is bloomberg. ♪

>> you are watching daybreak asia. president trump says trade talks with china are going well, but there will be no final deal until he meets with xi jinping at a date yet to be set. he told reporters that in two daysrogress of discussions does not mean there is an agreement. the washington negotiations of the highest level since the two presidents net and announced a tariff truce that expires next month. got a new trade deal with china. i think it will happen -- something will happen, but it's a very big deal. if it does happen, it will be by far the largest trade deal ever

made. bya u.s. refiner acquired venezuela -- sickos venezuela's crown jewel in the u.s. but caught in sanctions against the maduro government. it says it has no current intention of entering insolvency proceedings in that last year saw some of its strongest earnings in a decade. top executives from nissan and renault have met for the first time since carlos ghosn was arrested and forced out. he's fighting financial charges in japan and says he was toppled in a plot by nissan leaders trying to prevent deeper integration with renault. investments in the british auto industry plunged last year as .hey delayed updates

nissan has put wage talks on hold. india heads toward an interim budget later friday. the official date grew new the fastest pace ever in the year ending march 2017 despite the unprecedented cash ban imposed during that the word. gdp expanded a revised 8.2%, surprising critics, who said the decision to withdraw 8.6% of the --rency would trigger am trigger a cash crunch, hurting jobs and growth. this is bloomberg. >> thank you. new zealand and australia trading at the moment. let's see how they are doing. sophie kamaruddin has check the markets. >> focusing on sydney, we do have stocks gaining .2%. materials and consumer

discretionary stocks leading gains. the aussie dollar is holding on to overnight gains. the biggest weekly advance in three on sliding treasury yields and bonds are gaining for the first time in four days. health scope rising to a may 2018 high after it agreed to a takeover offer the visiting a 40% premium to its closing price on october 22. among the laggards, we have independence group falling after the stock was cut at macquarrie. giving a.p. capital as well, the stock fluctuating. the in the spotlight after australian's reported a breakdown in fees reported from zombie pension accounts.

investors will be waiting to see if criminal charges may be recommended against banking executives or if there will be a call for lenders to be broken up. cut, morgan stanley has westpac to underweight. >> two days of trade talks in washington wrapped up with some signs of optimism but very few details. meeting with the vice premier, president trump said that progress has been made but that there would be no deal until he meets with xi jinping himself. >> we have made tremendous progress. that does not mean we have a deal, but i can say there is a tremendous relationship. >> let's bring in a former u.s. ambassador to china and senior advisor. he was also commerce secretary under president obama. great to have you and your

unique view on how this is playing out. if we assume that over the next weeks or months, perhaps we get an extension of the terror of detente, maybe kicking the can down the road, i'm curious as to how you feel about this combative strategic competition plays out. >> certainly come to the president's report is good news. of course, we need to see details, but the most important thing is to stop this trade war. aree dueling tariffs hurting producers and consumers on both sides of the pacific and ramifications for the chinese economy, the u.s. economy, and ultimately the world economy -- i do not think we should expect all the issues to be solved. i would be surprised if some of the tariffs remain in place, perhaps at a reduced level, as a way to make sure beijing follows through on whatever commitments they make. we have already seen progress from beijing opening up more

markets to foreign investment and possibly i think the lesseningwill include the requirement for reducing the requirements that foreign firms cannot own more than 50% of an industry or an investment have less thaney 50% ownership in an investment, they have to have a local partner and when they have to have a local partner, that is in you get a lot of the transfers of technology. i think a lot of these things will be solved and china will say they will buy more american goods or services or agricultural products, but, obviously, there are some long-standing issues about enforcement of intellectual property, patent and trademark infringement. china is trying to work on beefing up their legal system. it is not going to happen overnight. they are trying to copy is many things as they can from the american legal system with the help of american judges and lawyers, but the progress cannot be expected to be overnight.

we cannot expect instant results, but let's hope this , the beginnings of it, can enable the countries to focus on collaboration on so many of the other issues confronting the world where u.s. and china cooperation are fundamental and key to the solution of those issues. just pulling back from the brink is a start. you were one of those calling for the release of the canadians detained in china. you have said that it is .ventually retaliation do you feel like we are escalating in terms of a tit-for-tat? even in terms of criminal developments filed against huawei? >> we need to make sure we keep those issues separate. it was most important when the president made comments saying perhaps if there is a trade

agreement, he might be able to intervene in this legal case. and has cast suspicions clouds on the integrity of the american legal system. we have always prided ourselves on saying that our legal system is above politics, separated from politics, and when the president makes that statement, people all around the world and especially the people in china, think perhaps the prosecution or the indictment, the charges against the cfo of huawei were politically motivated. his comments were most unfortunate. we just need to make sure we keep those things completely separate. >> what about the way that beijing has responded and detained canadians? a canadianrd ambassador being vocal and fiery huawei allegations. is china missing a golden toortunity to demonstrate the international community that they are taking these claims quite seriously? >> i think china is taking these

claims very seriously, and they are very upset and concerned about it. they think it has been politicized or is politically motivated. unfortunately, canada is caught in the middle. long-standing law enforcement cooperation between united states, so when the united states says we have a warrant for the rest of this individual, any individual, canada normally complies, so they were proceeding in good faith, and then, of course, the president makes his comments about possibly intervening, and if this chinese believe is political, then perhaps they should detain some canadian citizens in retaliation, so that is how this thing has really snowballed and gotten out of control. >> you mentioned earlier how the reforms in china will take time, the negotiations will take time. there was a five-weak government

shutdown in the u.s. which affected the office of the u.s. trade representative and many other branches of the government as well. how well prepared is the trump administration to deal with very complex issues with china? >> i do not believe the shutdown affected the strategy, the preparation, or the negotiations with china over the trade disputes and all the other issues confronting us. staff at all the agencies people deemed essential were still reporting for duty, still carrying out their functions, and doing their work. would knowor, you from your time in beijing which was fairly eventful, it feels like even from then until now, there has been a deterioration in the trust deficit between the u.s. and china. do you think this will hinder good faith going forward, particularly with the number of trade hawks on that negotiating team? and the willingness or even

ability of china to be able to push through difficult painful restructure -- restructuring reforms that they talked about for years but have not been able to do in order to stick to their gdp target? >> that is why these talks are very crucial and very important. that is why we cannot expect all the demands of the united dates to be met by china. progress will be slow and perhaps these will be beginning steps and there will be further negotiations and discussions over some of the issues that separate china and the united states. how do you enforce intellectual property? how do you before fewer legal system within china? how do you improve your patent system within china? howof course, things like you bring more foreign investment into china? these things will not happen overnight, but the united states perhaps will be looking for meaningful measures, first steps, and perhaps keeping some

of the tariffs, perhaps even at a reduced rate, in place as a way of guaranteeing an incentivizing the chinese to follow through on their promises. >> how much domestic pressure do you think there is actually on xi jinping? we talked about his summer of malcontent in terms of a great deal about happiness -- of .nhappiness across the populace is this a leader who has consolidated and is looking stronger than ever going into these trade negotiations? >> he certainly has consolidated his power and prestige. he has the support of the people, and the country is very much nationalistic and offended by some of the moves of the united states, so in some ways, the country is rallying around chinese leaders and pushing back and resisting what has happened from america, including boycotts

-- proposals to boycott some american goods. nonetheless, the economy of china is slowing. the tariffs are hurting chinese companies along with u.s. companies, so there are incentives on both sides to try to reach an agreement, to roll back some of these tariffs, and 's ensure the growth of china economy can continue as well as the united states. the united states needs a strong chinese economy, with people working, with money in their pockets. there is a bigger appetite for made in usa goods and services, from beef and pork to soybeans to airplanes to cosmetics and so forth. at the same time, america needs , andong chinese economy the chinese need a strong u.s. economy because the more americans that are working and the more money they have in their pockets, the more items they buy at our department stores, over the internet, with

so many of those things made in china. the chinese workers, the chinese government needs a strong u.s. economy. inboth need strong economies each other's countries. that, of course, will benefit the world. if the world feels the chinese economy is slowing down, that affects the european economy and the slowdown of the european economy affect purchases of chinese goods, purchases of american goods, and that hurts workers and companies around the world. >> we know the commerce department is expected to release a report on potential auto tariffs under section 232. steel andg on top of aluminum tariffs that are already in place on u.s. allies. how does this impact the u.s. standing on the global stage? >> it does not help. whatever complaints the united states had about chinese steel presidentum under obama as terrorist were raised on those goods and the amount of steel coming from china has

dropped dramatically, why then in post tariffs on steel and aluminum coming from canada, australia, japan, korea, the eu? how is that really important for our national security? again, so many american manufacturers use the steel and aluminum products as components in the products they make and they have to pass on these increased costs to their customers, which then makes that american product less competitive against their competitors in america or around the world, and that is hurting american companies. think we have legitimate concerns about some of these issues with china and other tariffss, but using should be the last resort and is not the most effective way of to resolve these issues. >> always great having your insight. thank you so much. still ahead, apple puts pressure on its rivals over user privacy.

we will look at how it is cracking down next. this is bloomberg. ♪

"daybreak: asia." more earnings now. strong results in the fourth quarter thanks to fried chicken young -- yum china delivers strong results in the fourth quarter thanks to fried chicken. >> if only it could be that easy around the world. that really is the case here. with eps.- yum the estimate was for nine cents. after-hours trading, it is up. we will see how this turns out in the u.s. friday. that could be a five-month high if that is near $38 a share. we were actually expecting something in the negatives. turns out it was in the

positives, of 2%, and that was, of course, thanks to fried chicken. kfc coming in with eps. the estimate was, comp sales at. the estimate was for just 0.8 percent, and this was not just because of fried chicken. this was actually because of a bunch of other things. breakfast. also deliveries, also discounts and some localization in terms of milk, t. all this coming together to make that really large beat. as for pizza, comparable sales were down 4%. the expectation was on the order of three point 8%. still a contraction, but this is worse than expected. on that side of the company, folks are saying they are doing a lot of discounts and a lot of deliveries, but it's just not helping. pizzaight have hit peak potentially. the company talking about market softness. what does that mean alluding to

the chinese slowdown? they did say they are prepared especially with the growth we are seeing in same-store sales and fried chicken. .> peak pizza very sad time indeed. jumped the most in him was the decade despite earnings missing. >> endings did miss but revenue beat by about one billion dollars. we saw the share price really take off after earnings came out earlier this morning. one really interesting thing, though, was with the debt pile. the debt is actually standing at about 100 billion dollars. huge, obviously. investors were hoping ge would address that, and they did in spades. hop into the bloomberg terminal into the gtb library. looking at debt, we saw it hit a bottom in november earlier than equity, but look at these spikes in stocks as well as in bonds. bond.s the most active

the cfo says they do not expect to issue new debt until the year 2021. take a listen. >> in 2019 and 2020, ge capital will pay down 25 billion dollars is scheduled debt maturities and continue to contribute about $2 capital to year of insurance businesses, as previously disclosed. we now do not expect to issue new debt until 2021. >> that is a great engine of optimism, but one injured on the pessimistic side is the ge power capital to insurance businesses,division. they have $872 million for an operating loss and a cash burden of $2.7 billion. ge capital also reporting weakness -- $177 million for a conspicuously absent,

ge's endings. they did not give any guidance. that still leaves a lot of questions on the table. that said, that debt pile is something investors are happy about. apple is said to have pulled key at development tools from google after deciding alphabet broke rules. the action is similar to action taken against facebook on wednesday. we are talking about the action pretty facebook is being unprecedented. it is looking like a pattern. is apple trying to burnish its reputation as coming down hard on privacy regulations? >> at think there's a few things happening. one is that there was a flaw in apple's facetime service earlier this week that basically allowed anyone to eavesdrop on another person's call using iphones. this is basically a very big , really to that clamping down on facebook and google. in another sense, this is apple

wielding its power like they really have not before. google and facebook are two of its biggest competitors, and they rely on iphones or at least a portion of employees on iphones to conduct daily business and they also rely on iphones to distribute their applications. this is apple showing it has the ability to basically ground two of its competitors to a halt in some respects just because they violated their agreements on the privacy front. where there repercussions for consumer a risk that it could cause them to turn away from the ios system? >> are highly doubt if there was any retaliation on the part of the consumer. i highly doubt this will impact them. give facebook back its certificate. it has been 24 hours since they

took them away. now it is back. they will be able to get systems up and running by tomorrow if not later tonight. .here is a fix long-term if the issue had dragged out for weeks, it would have delayed versions of apps like instagram and the main version of facebook coming out, but apple realizes that, too, and they did not want to mess with that because if consumers are not able to get the new apps they want on the app store, they will turn to competitors and apple is not going to let that happen. >> thank you so much for that update. world's largest pension fund is set to report results for 2018 and the global equity major role.play a the bloomberg team leader for major equities is here and we're talking about japan's government pension investment fund. what should we expect? last quarter's

results. if you think back to what happened back then, there's this massive selloff that happened in the summer. for that quarter alone, both those gauges fell around 17% to 18% each, so that will have a huge impact on the gps -- gpis results when they report later today. they have a strategy of accumulating stocks and paring down on bonds so it is not going to be a pretty number when it comes out today. >> if these very large pension funds report such losses, should we be worried right now? >> there's two ways of looking at this. one is that these pension funds, you tend to have a long-term performance. you're looking at it from a longer-term and this might be just one bad quarter considering what has happened, but at the same time, you still have

ongoing tensions between the u.s. and china on trade talks and that obviously had a huge impact on the stock market. we will really have to see what geopolitical concerns before people should really start getting concerned. forhat is the outlook then the rest of the year? >> i think it is really going to come down to what we see in the market. gpis hard to say how the is going to perform. it depends what happens this quarter and what happens with trade talks. you have that march deadline for talks between china and the u.s. as well. that will play a huge part. earnings season will come into play as well. there's a lot of things to keep in mind going forward for this year. .> thank you so much bloomberg's team leader for asian equities. let's take a look at what we are setting up for. sophie kamaruddin is in hong kong. futures in look at

japan, we could be looking at a muted session, but overall, we could see cheer this friday. we will be gauging reactions to earnings from several companies. we take a look at the earnings lineup, the biggest quarterly drop in a decade citing trade was and we do see financial incomes tank. nintendo delivered strong results but china being taken up by that cut to the forecast. we will be watching korean shipbuilders after the largest ship holding shareholder signed a conditional in the year -- for a takeover. as you said, lots of earnings to look out for on the lineup today. he will have the likes of honda on decatur pharmaceuticals the lineup today. >> let's take a look at the

markets that are trading across the region. we are seeing australia were trading is under way. we see a little bit of upside, just .3% higher. futures looking a little positive when japan and seoul, online as well. ♪

haidi: from sydney, where markets just opened for trade. sophie: welcome to daybreak: asia. >> our top stories this friday, asia-pacific markets face a muted start. u.s. stocks cap their biggest monthly gain in three years. investors are watching the trade talks. president trump says there will be no final deal until he meets president xi jinping.

china playing into the mix with another check of the economy's health, expected to confirm the deepening slowdown. >> we are getting the latest read in terms of these latest trade headwinds. iseal bellwether of demand exports. the 7% weer than were looking for. also nottion of 1.7%, as bad as the contraction of -- a trade balance of 1.34 alien dollars -- $13.4 billion. oil product shipments as well. south korea's trade ministry --ects exports to we saw toward the end of last when it comesline

to semiconductor exports coming from south korea. the first 20 days we saw a decline. this is playing into the risk of the trade war as well as the slowdown in china and some of the cyclical issues facing major industries like semiconductors in south korea. still a contraction when it comes to export and import in south korea, but not as bad as expected for january. get into thee we lunar new year holiday, a q uiet time next week in asia. this chart illustrates january was a not too shabby month for the asian region. the best january in seven years for emerging-market equities. month,e do enter a new

there are the same concerns that remain. how stocks are faring across the inion, a gain in cash trade tokyo and seoul. the costly is gaining -- kospi is gaining ground. wereoncerns around exports already flagged by officials. we do have all the shares up -- auzzie shares up, while financials are under pressure in sydney ahead of monday's report into banking misconduct in australia. >> let's get to first word news. >> president trump says a bipartisan plan to avoid a government shutdown would be "a waste of time" if it doesn't

include funds for his border wall. nancy pelosi hinted she is open to new measures, but not a physical law. the president is considering threatening a national emergency to bypass congress. investment in the british auto industry plunged last year as carmakers delayed upgrades over concerns of a new deal brexit. spending tumbled 46%, the equivalent of $769 million. jaguar land rover is cutting millions of jobs, while nissan has put wage talks on hold. top executives from nissan and renault that for the first time since carlos ghosn was forced out. they met at the dutch holding company that oversees their alliance. ghosn is facing financial charges in japan and says he was toppled by nissan leaders trying

to avoid integration with renault. three european nations launched a special vehicle to help companies trade with iran, in defiance of president trump. germany, france, and the u.k. says it acts as a buffer preventing direct financial interaction and therefore sidestepping u.s. restrictions. president trump has warned consequences for firms working with iran. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. is bloomberg. shery: president trump says progress has been made in trade premiereeting the vice trade negotiator. he claims he has received a beautiful letter from resident xi jinping, hoping the two keep in close contact. let's cross to hong kong. the key question is what sort of

deal? wesident trump has said either get a big deal with china, or we postpone it. : four weeks today is the deadline of march 1, which would be a friday. this is a lot of horsetrading to be done. donald trump will not lay his cards on the table. reporterslot of the who attended the press conference in the oval office asatching their heads as far what progress has been made other than the two gentlemen seeming very polite to each other. donald trump talked about a warm mood. even liu hu speaking in english.

there was a misunderstanding when donald trump mentioned china will be volume 500 metric tons of soybeans. liu hu thought donald trump meant per day. what he meant was today, he is doing it today separate from any kind of deal. there was a misunderstanding, but it shows the two sides are developing a relationship and xi jinping and donald trump will meet perhaps twice. it shows there is some sort of progress. we just don't know where the progress is coming. the u.s. trade representative says our background negotiations are about the structural issues. these are the ipr protection issues, state subsidies. these are the tough issues. beingkept talking about

enforceable. liu hu hopes to accelerate the 90 day truth period for a deal. could we see president trump meeting with president xi soon? stephen: it could happen. the schedules are tight. the lunar new year holiday is coming up next week. then you have the national people's congress in beijing march 4. that lasts about 10 days. you have trump's potential meeting with kim jong-un coming up at the end of february. there is a very narrow window as far as when these two gentlemen can meet. they can make it happen. it could be the beginning of march or after the meetings expected to happen in vietnam between trump and kim. or it could be toward the end of march. at the end ofd

march this year. trump could go there. it is likely they will meet, because trump likes to meet face-to-face with the directly to. i would bet a meeting would happen. >> we were just talking to the former ambassador to china from the u.s. he does not feel like his strength as a leader is being questioned by the trade headwinds. is that the view you get, that the general population in china is rallying around the leadership on how this trade war has been handled? stephen: i think the general population is supportive of president xi jinping. sure there was an open letter written by some people in china perhaps xi- saying jinping is taking too strident a

tone with the united states and has misplayed his hand. there is a lot of support domestically. keep in mind the mouthpiece is controlled by the communist party, the judiciary, the messaging is controlled by the communist party. we hear the population is behind xi jinping on the contentious issue of huawei. the general mood is in china that the united states is trying to limit china's rise and its m ade in china 2025 campaign. that is playing out in the domestic narrative and china. >> our chief north asian correspondent stephen engle. coming up next, the indian government is preparing to present an election budget. we have a preview later. >> as chinese and em stocks surge to the best levels in seven years, we wonder how much

longer they can continue. this is bloomberg. ♪

>> this is "daybreak: asia." haidi: the risk rally has also fed through to asia with china and emerging markets having their best january in about seven years. we will see how far this can run. a dovish fed tilt feeds through to a duller environment, it looks to be setting up for quite a year and emerging markets. >> yes, we have been highlighting u.s. dollar weakness as a key factor for emerging markets going forward. we have seen the results so far. the jay powell speech at the start of february.

we now know how far it can support the financial markets, especially outside the u.s.. assuming there is no further hiccup in fed communication, we can really see the rally continue in the remainder of the year. it could be a start for emerging markets provided there is no mistake by the fed going forward. >> iti s not just the fed. as you look at the korean bond markets on the shorter end, that suggests bond investors seeing the bank of korea going for a cut. china mayuggesting wholesale cut interest rates as opposed to its stealth tweaking of monetary policy. is an easier monetary policy environment priced in for asia

this year? homin: again, the key shift in market sentiment is that fundamentals are taking a backseat and liquidity again is taking the front seat. as you said, central banks in asia have their mindful of policy in the u.s.. when the u.s. fed makes the job easier, it is good news for central banks and the markets. the pricing the bond markets in korea and china, we will have to see how they adjust their policy over the course of the year. it does make sense that they become more patient as the fed has become more patient. >> markets really reacting to the fed commentary. this chart showing what markets have done globally in the month of january, really rising more than 7%, which is much higher

than the average for the past five years, which has been a decline of about 0.8%. is there an expectation the markets are getting ahead of themselves, as when you said earlier, we don't know if there could be a fed policy mistake, and on the trade front we have not seen anything concrete out of the u.s.-china talks. homin: you are right. although there has been a shift in the language at the fed, we would argue that the communication framework is not perfect yet. for instance, we believe dot plots add a lot of confusion and chaos to the market outlook. we believe it is ideal to get is of it, actually the fed sticking to it. march in the dot plots.

you still have issues in communication, which remains a risk. i think the language was quite dovish. the fed has taken some cues from the markets. the risk of policy makers at the fed trying to reverse this again, especially in light of the language volatility in fourth quarter last year, we would say the risk is lower. if they can mind, keep expectations stable on rates for the emerging markets, simply given the scale of their underperformance in the past 5, 7 years, the upside potential this still there. if there is positive noise from u.s.-china trade relations, for which we expect at least some sort of cease-fire before march, we think the outlook is still pretty good.

markets can go a lot further. >> we just showed your top trade ideas for our viewers. one. caught my eyes was a shares. how does this play into the expectation of more fiscal credit easing from policymakers in china? homin: well, if do like china, obviously it is a market to look at. they had a fairly dreadful year last year. there is potential for rebound. policy has been shifting more toward growth support after a very strong focus on financial stability. when you have the combination of potential inflows motivated by more easier said policy -- fed policy, and a chinese shift toward stimulus, we think it could be an interesting market for the rest of the year. that is why we highlight that

market, provided the trade issue is handled, at least to a degree. >> thank you so much for your time, lombard odier macro strategist homin lee. you can get your top stories in our condition of daybreak. a potential meeting between president trump and president xi jinping soon. and on your terminal the bloomberg anywhere app. this is bloomberg. ♪

>> some breaking news crossing the bloomberg. the u.s. announcing a suspension for its part in the inf, or intermediate range nuclear forces treaty on friday, this according to a report from cnn. the u.s.'s expected to halt its participation in the inf treaty with russia. this does not come as an

entirely unexpected development. this after last ditch talks with russia failed. trump has said he has planned to pull the u.s. out of this 1987 treaty with russia. in terms of the timing, the suspension would go for six months. the idea that during that time, russia could come back into the fray in terms of compliance and the united states would not permanently withdraw. th idea is thate the termination of this treaty would revive a nuclear arms race in europe and a potentially worse one in asia as well. >> what is interesting on this inf treaty is the stance of china. there was criticism in the trump administration that because of this treaty, the u.s. was constrained to develop its own midrange missiles, while beijing had free reign. an interesting timing for this

announcement. let's get a quick check of the business flash headlines. australia-based health scope for to canada's company $4.1 billion. the second largest hospital operator in australia. shareholders will be entitled to receive total value of $2.50 auzzie per share. >> singapore is throwing huawei a bone, saying domestic operators can decide for themselves to buy their technology. regulators say they encourage supply diversity, and while they did not mention huawei by name, they prefer to singapore's stance on the company. >> apple is said to be taking action against google for breaking its rules. sources saying google stuff can no longer use -- staff can no

longer use operations on the mobile system. they can no longer test apps under creation and links to transportation and food. the move is similar to one apple took against facebook for breaking development rules. >> two of the world's biggest shipbuilders planning to build forces to defend the industry from an increasingly ambitious china. it has entered a conditional agreement. joining us with more details is our senior analyst when it comes to asian transportation. it has been a torrid few years. consolidation has always been in the cards. is that what is coming into play now? sector is a very critical sector. over the last few years, it has been very horrendous. we were expecting this.

late last year, we highlighted the prospects. the korea top three b comes the korea top two. when you look at the combined entity, this is a perfect counter to the rise of chinese shipyards over the last decade. southw does the china- korea rivalry play out from here? madethink the chinese have their ambitions clear. they want to target the big oil tankers, the big shipment. for korea, it establishes their dominance. they maintain leadership in the sector. demand, i think they will be able to maintain leadership. >> we have seen this industrywide slump in orders. what is driving that? think if you look at the

tot year, 2018, we saw close $10 billion in supporters. is the chinese demand, but the south korean ship yards are benefiting. that should bode well for 2019 earnings. >> are we expecting more consolidation now in the industry? -- afterk the chinese this and korea, we don't expect any more. be a major big one and not too many expectations in terms of other consolidation. >> thank you so much for that, bloomberg senior analyst of asian transportation. we are seeing the nikkei in a

positive territory. most markets in asia in the green. the japanese yen holding at around 108. the kospi gaining 0.5%. more favorable trade data coming up. exports falling, but not as much as expected. asx 200 up 1/10 of 1%. we saw more pressure for the aussie dollar. we are now holding at $.72. >> the dollar was really mixed. a resounding call from this dovish tilt from the fed, we will see dollar weakness. dollar-yen holding level as we try to get more details on how these trade negotiations have played out in washington. we are watching how the yuan trades in this session. the official numbers were not terribly bad, but still in

contractionary territory. the south korean trade numbers seeing declines, but also not as bad as expected. the won gaining back some of that earlier strength. ♪

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>> you are watching "daybreak: asia." president trump says trade talks with china are going well, but there will be no final deal until he meets xi jinping at a date yet to be set. he says the tremendous progress in discussions does not mean there is an agreement. the negotiations at the highest levels since the two leaders met in december and tariffed a tarrif tr -- truce. president trump: i think something will happen, but it is a very big deal. if it does happen, it will be by far the largest traded deal ever made. >> a refinery from venezuela

weighing its options that may include bankruptcy. chapter 11 is not high on the list. venezuela's crown jewel in the u.s. is caught in sanctions against the maduro government. it says it has no intention of entering insolvency proceedings and last year's also this strongest earnings in a decade. prophecy values in australia's cities driving housing prices back to levels seen in october 2017. a falloff last month of 1.3% in sydney and 1.6% in melbourne. longer-term declines signal 2019 could be another rough year for the property market. the wave of chinese companies warning on earnings is turning into a flood, with no industry spared. thursday was the deadline to disclose forecasts. more than 400 state their 2018

performance worsened. companies0 mainland issuing guidance, about 15% say they will post a loss. india heads toward an interim budget with official data showing the economy grew at the fastest pace since march 2017. that was despite the unprecedented cash ban. gdp extended a revised 2.8%, itprising critics who said would trigger a cash crunch, hurting jobs and growth. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. sophie: i'll take it from there, but let's look at how asian markets are shaping up in hong kong. rallycks extending its

into a new month, even as the same concerns remain. we had rapid pmi data showing weaker growth. we have korean export growth also under pressure. you have the kospi climbing to october highs. asx 200 resuming gains. 6/10ths of 1%.up looking at some stock movers in tokyo, one soaring despite the drop in chinese sales. it plans a stock split effective april 1. one of the highest boosts to the nikkei 225, even after cutting its profit outlook for a second time as machine orders from china weakened. that it will team up with intent down -- with nintendo to

release ios games. that is not helping nintendo shares, falling 6%. aird quarters results, assigned that the switch console is struggling. investors are giving the thumbs down to nomura, falling as much trade woes.ing sliding.nancial >> let's take a deeper look into the japanese bank earnings. with rock-bottom interest rates in japan, i would not be surprised they are feeling the pressure on their lending profits. give us the key takeaways here. >> for the megabanks that

purported,their profit fell due to lending inclined -- lending income declining. interest margins shrank again. it is more concerning for the megabanks, they had declining benefits from their gains on sales of stocks because of the market rout last quarter. they booked lower gains from those. credit costs were just starting to tick up. they have been benefiting from loan provisions in recent quarters. those benefits are starting to wane. coupled with the lending income slump, it is pretty disappointing for the megabanks. however they are still on track to achieve their full year profit goals. not great, but not disastrous either. longat are we seeing on

performing loans? we have seen mizuho lending more overseas. that could affect their asset quality. >> the banks have no choice but to lend more abroad where the returns are higher. that carries more risk as well. that is something to look out for going forward. it was mentioned some of their overseas lending quality is starting to deteriorate. perhaps the bigger topic from yesterday's earnings was with nomura, if you want to talk about that. nomura is the biggest story of the day on japanese financial stocks, down after a huge loss yesterday. the outlook for nomura is not looking good. it wasn't just this goodwill write-down that gave that results -- bad results.

the wholesale retail revenues fell. they suffered on the fixed income side. the stock market slump kept japanese investors on the sidelines, even after they overwrote the record ipo from softbank. nomura is facing tough decisions going forward. is cfo indicated the ceo going to do a review of all of its businesses over the spring and will come up with the results of those in april or may. we are expecting to see pretty big cuts, probably abroad. they will have to look at their european businesses, which traditionally has been the worst-performing. we will have to see the outcome of that review and what nomura is going to do about the situation. sincerst annual net loss the global financial crisis.

things are not looking good for nomura. >> our asian finance editor russell ward joining us in tokyo . trump officials going back after trade talks wrapped up in washington. welcoming liu hu, president trump said progress has been made, but there will be no deal until he meets president xi jinping. president trump: we have to get this put on paper at some point if we agree. there are some points we don't agree to yet, but i think we will agree. i think when president xi and myself meet, every point will be a great to. -- be agreed to. >> represents 900 companies in china. thank you so much for joining us. let's discuss what we can expect until march 1. president trump saying he will be leaving nothing unresolved on

the table. he wants to do a complete deal. what are the chances we are going to get that before march 1? >> it is very challenging. if you want to have a complete deal, you can look at the trade obstacles across different industries and deal with each one specifically would be impossible in a short time. you might have a framework and agreed upon principles. it is very encouraging to us that the two governments have felt these negotiations have been so constructive that they are committed to continuing discussions. it would have been possible for the discussions to have broken off. both sides feel they are constructive, so that is encouraging. we don't know what has been agreed to. we also don't know how easy and smooth it would be to implement

this agreement. we had a lot of questions, even though we feel encouraged by the progress to date. >> we have seen moves coming out of china in trying to protect intellectual property, new laws going into place back in december, also a new foreign investment law protecting the ip of overseas companies. is this pressure coming from the u.s. making a difference? day, thehe end of the chinese government has recognized america and other foreign companies have been rather discouraged and disheartened by some of the practices of the chinese government over the past years. the fundamental problem is the difference in the economic systems. the chinese government identified a whole range of industries that are strategically important and are going to be the keystones of

highly competitive economies in the future. they have decided they want to use all the resources of the ensure the chinese will become world leaders. states a result of the computing in the market. that has been a fundamental concern. that is what we are talking about. it is how to ensure that companies can compete against chinese companies on a more market basis, rather than with state support. >> we spoke earlier with a former commerce secretary, but also in this context the former ambassador to china. he was managing expectations about what we can hope to come out of this latest round of trade talks. take a listen if you will.

>> progress cannot be expected to be overnight. we cannot expect instant results. ope the beginnings of this trade agreement can enable the countries to focus on collaboration on so many of the other issues confronting the world where both u.s. and china cooperation are key to the solution of those issues. >> the takeaway is it is important in itself to come away from the brink of a straight up tariff war. pause has been hit on that. he and many others are pressing for structural changes to be privatized. when the low hanging fruit has been picked, how difficult is it going to be to get to the same doable real enforceable change out of beijing? >> if you judge based on

history, you would think that would be extremely difficult. for any industrial policy, the chinese may have 10 different measures to ensure their company succeeds. we talk about technology transfer, equity caps, standards, tariffs, administrative discretion -- there are all kinds of tools the government can use. in the past we may have addressed one or two of them, but there are eight that achieves the goal of the chinese government. to persuade them that they should move away from those systems in meaningful ways is a heavy lift. first of all, they feel it is in their best interest to change. then we need to see those changes actually take place. the history has been where the government has not moved unless it felt it is in its own interest to do so. i feel like it is quite an if chinaurney to see

will make these changes at the current time. ,> how complicated is huawei given it is a national chinese player. the concerns about intellectual hinaerty, made in c 2025 is a concern over the supremacy of beijing when it comes to global tech. >> i think you raised an important point. between our two countries, we have economic issues. in addition, we have national security issues. that is a sense that each country has legitimate concerns, but how you protect those concerns when sensitive technologies permeate the entire economy -- this is new policy challenges further two -- for th e two governments to deal with.

there is uncertainty in the chinese and american community about how you should plan your business going forward. thirdly, law enforcement. there is a feeling amongst law enforcement agencies in the united states that they have not held chinese companies accountable for the conduct we would see in violation of our laws. economic policy, national security policy, and law enforcement policy. you have to keep them separate, or else you cannot untie the knot. it is important to us in the business community that law enforcement, going after huawei for alleged violations of u.s. law, that that not be mixed in with trade negotiations. we need to keep them separate. >> secretary ross mentioned those will be separate. tim, one more thing.

we heard from at least 20 chinese companies warnings of earnings lagging expectations. how concerned are new members about a chinese economic slowdown? the forecastround, of world bank, imf, some of the major investment banks all are forecasting 6.3% for the new year. it does not feel that way on the ground. it feels there is more uncertainty. i think everyone will be relieved if our governments can develop new rules of engagement on law enforcement, on national security, so we have a predictable business environment. >> tim, great talking to you. amcham china chairman joining us from washington. india's government launches an

interim budget. we discuss the implications. this is bloomberg. ♪

>> this is "daybreak: asia." shery: the indian government will present an interim budget in parliament a few hours from now. being an election year, traditionally know new policies -- no new policies are announced. key defeats and growing rural financial distress could force the modi administration to dig deep for support, something that worries economists and investors. >> the world's largest democracy is in an election year. the current government presents a spending plan for more than one billion people. an election-year budget is traditionally uneventful, with

governments opting to let the next administration announced the full plan. this year prime minister narendra modi is under pressure to splash cash, that after election defeats last year. his bjp lost control of three crucial north indian states, the region that prompted him to a landslide victory in 2014. in these crucial few weeks, modi will need to win over parts of the indian electorate threatening to desert him, small business owners, the salaried middle class, and farmers. a bloomberg survey says the prime minister may borrow $90 billion for the next fiscal year. that means that sales -- debt sales will touch record levels. expected tont is miss its goal for the second year in a row. >> our next guest expects the

government's fiscal position to weaken next year. great to have you. what are you looking for in this budget? what are you most concerned about in the political nature of this budget? >> great to join you guys. i think the big thing is usually an interim budget where the government just presents something for the four months, because the full budget will happen in july, is not something focused upon. this budget is special. key state elections have been lost. there is concern around farm distress, small and medium enterprises. everyone is looking out for what kind of schemes will support these sectors in the election. where does financing for this come from? it is more important than a

budget of this like would. >> do you expect record borrowing? targetexpect the deficit to be breached? will ber fiscally, 2019 concluded in march of 2019, i am looking for 3.5% of gdp deficit. on the face of it, this is not a strong slippage. it is a mild slippage. by disinvestment targets. they are undershooting. they are not on track. india's investors are under fiscal consolidation. i am projecting a consolidation,

another consultant a television -- another projected consolidation. ambitiousthink revenue targets might not be met . >> the president's budget did not contain any mention of the farm package. what can we expect for the market to be watching out for today? >> i do think there would be focus on some kind of agriculture/farm package. income transfers are being talked about. it is a narrow -- giving some income,farming support they're redirected and targeted. that would be watched out for. also for our small and medium sector enterprises, what kind of release packages, through.

expecting -- how are we expecting the rupee to react, and oil prices, given the volatility there? >> the markets have already been nervous about this slippage give n the way the populist slant has happened. capital expenditure has slowed already. that will likely continue with the rest of the fiscal year. markets are beginning to price that in. rupeei would expect the to get some reprieve. more importantly, i acting the rbi -- i am expecting the rbi to cut rates. that will lead to growth.

with theobal market -- data we are seeing coming out of china, some other parts of the world, it does seem unlikely that oil will be a concern for india or the global economy this year. >> thank you so much for your time. have a special live coverage of today's indian budget from 1:00 p.m. hong kong time with political and market analysis in the lead up to the finance minister's address to parliament. let's get to sophie in hong kong. sophie: we will be gauging reaction in chinese agri and me at players as they plan to purchase more u.s. soy.

chinese white liquor makers are on the board. halt report foxconn will plans for six months. malaysia markets closed today for a public holiday. todi: before we hand it over bloomberg markets: china open, we are seeing less positivity across the region than we had. the stellar u.s. rally extended into the previous session. australian shares trading pretty flat. delegation is giving these headlines when it comes to the trade talks, that the talks are candid, specific, and

important progress has been made. just adding to the positivity we had from the impromptu white house press conference with president trump earlier. >> check out those futures, because we are seeing u.s. futures getting higher by 2/10 of 1%. malaysia also looking higher by four times of 1%. -- 4/10th of 1%. the offshore yuan has been higher in the past coming days. much more coming up. this is bloomberg. ♪

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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. >> china dominates over the next 60 minutes or so with a check on the economy, which is expected to confirm this slowdown. >> that is hitting japan as well. the economy sees big banks and manufacturers facing weaker earnings. >> investors are watching trade talks. trump says there is progress, but no final deal until he meets xi jinping. ♪