>> welcome to daybreak australia. i'm haidi stroud-watts in sydney. >> i'm sherry ahn. >> i'm sophie kamaruddin and hong kong. we are counting down to the asian market open. haidi: haidi: the stop stories we're covering. haidi:stocks set to rise as wall street surged to a 10 week i. the kiwi is down but the aussie is little change. trade records back in washington and signs of progress. as an trump is being briefed on

the top so far. scott morrison thousand to strengthen australia's borders following a debate on asylum-seekers last week. shery: let's get you started with a quick check of the market close in the u.s. on the friday session. there was brought optimism over the state of the u.s. economy, not to mention the market became more constructive on the u.s. china trade talks. we saw the s&p 500 at a 10 week i. closing at session highs. every sector in the green, being led by financials and energy stocks. wti rising to the highest level of this year. money managers turning bullish. that's increasing them by 10% last week. the highest level since august. you can see brought optimism across markets being held by u.s. consumer sentiment rebounding from a two-year low. let's see how we are shaping up for the a's a session. as the u.s. trading is on holiday for monday. >> that is the case as we set up

for the trade here and asia. after rising for a fifth week in six, asian stocks are set to decline on trade optimism, yet some caution does remain given that we are waiting on the u.s. auto tariffs and the u.s.-china trade set off continues to be felt in the region. on friday, hong kong's financial secretary or and of slowing growth. we are seeing blue related stocks as nvidia reported results on friday. there are earnings to watch out for in australia. for the new board real quick, we have more view on growth ahead. japanese machine orders expected to pick up 3%. thailand gdp did the predicted to be showing the economy regaining momentum. singapore delivering their budget for 2019 at 3:30 p.m. haidi: sophie kamaruddin with a

wrap up on the agenda. let's get to the first word news with ramy inocencio. >> the ecb admits a slowdown in the eurozone is significant as the bank changes its rate guidance as it is clear the situation is not temporary. it's is the extent of the weaknesses at the end of last year took policymakers by surprise, with italy sliding into a recession and germany only narrowly missing the same fate. the bank says global uncertainty is the main problem facing the eurozone economy. the sobering trade war dragged hong kong's growth down at the end of 2018 with exports showing almost zero expansion. financial secretary paul chan says fourth-quarter gdp growth was less than 1.5%. that is below the 2.9% seen in the september. area in hong kong has been hit hard by the trade war, with retail sales missing estimates in december. that is despite a surge from traffic from china.

theresa may is pleading with conservative party colleagues to unite behind her brexit deal. she prepares to go back to brussels for more talks. she goes amid more signs of stress triggered by the split from europe. stopegional airline flybmi flying and said brexit was to blame. airbus says a no deal would be catastrophic and pleas for a rethink on u.k. investments. astralia expected to finalize trade deal with the u.k. by the end of the year in the event of a no deal brexit. formal talks can't begin until march 29, but trade minister mingham said he would like to see negotiations completed by the end of this year. agreement inn january, and at boosting both brexit trade and ensuring products meet technical regulations. 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. inocencio. this is bloomberg.

shery: president trump is being briefed on the trade talks that wrapped in beijing last week and will resume later in washington. ros krasny joins us from d.c.. does it mean we are headed for the extension of that march 4 deadline? ros: that is certainly what we are hearing from some of the forces in the u.s. president trump is being flexible on not having that march deadline be as hard and fast as we thought a bit earlier in this process. there were talks last week in beijing as you mentioned and more talks coming up in washington this week. it feels like the exchange of ideas is running thick and fast. president trump met with all of and ap trade negotiators trade relators and economic aides on saturday. he is spending the weekend at his club in florida. everybody across the spectrum for him from the trade hawks like peter navarro to those who

are more free trade like wilbur ross and steve mnuchin, the treasury secretary, he certainly got a good rundown of what transpired in beijing last week and was able to plot his next move. we did hear from china's he said ithe -- xi, was important progress. mewasn't that interesting to that steven mnuchin and robert lighthizer had a meeting with xi while they were in beijing. i don't know if that was inspected, but they certainly met with the highest levels of officialdom. presidenttells be trump, he is the stock market president. he would like to see a deal to keep this momentum in the markets going. in the meantime, president trump's national emergency to fund his border wall. we knew this would be a drama that played out in the court. we're already seeing litigants lining up. ros: that's right.

we know that a couple of environmental groups and public interest groups have already sued. the lawsuits are in. we expect california to follow suit on monday. the attorney general said today that he would be filing almost immediately. willoks like other states be joining. new mexico, oregon and minnesota among them. hard decisionsme to make. republicans in congress, especially, about feeding the power of the purse, that constitutionally is the power of the purse, it is an given to the president. a lot of republican lawmakers are uncomfortable today, wanted to support president trump and the national emergency but at the same time, being asked some what- hard questions about will happen if there is a democratic president and he or a national emergency on gun control or health care or something else?

in the next few weeks, they will very likely be a resolution both -- over the national emergency, which the president will likely veto, and more likely there will not be enough support in the senate to override the veto so we are back at square one. shery: there is another domestic drama unfolding at the moment. we have heard reports that rod rosenstein once considered secretly recording the president. now we have two witnesses that are backing that. ros: very interesting. we here at bloomberg have got access to these witness statements from closed-door hearings from a couple of house committees last year. we were able to sift through and read the testimony. fbie two lawyers from the backed up the assertion that rod

rosenstein, the deputy attorney general, has been willing and the early months of the troubled administration to wear a wire, to take the president -- tape the president. there is outrage in congress from senators from both sides of the aisle. hearingsly that some will transpire. one interesting coming up later today, the former deputy of the fbi who was fired by trump has a new book coming out. he is going on tv tonight to talk about it. there could be some interesting revelations from him, just about the early days of the trump administration. the early days of the probe into russian involvement in the election and at a link to president trump's campaign. a lot about to be written about that. haidi: ros krasny in washington. the latest out of d.c. hong kong takes a hit as a trade

war hurts exports. we will look at what else is weighing on the economy. ohery: up next, woodside ce peter coleman joins us to discuss earnings. this is bloomberg. ♪ haidi: it is monday morning and

we're catching down -- counting down to the start of trading in sydney. we're expecting a pop at the open. but the 10th of 1% after stocks on friday in the u.s. surging to a 10 week five. -- hi. some positive rhetoric on the state of u.s. china trade negotiations, which are set to continue this week. a third straight week of gains. are closed for president's day on monday. i'm haidi stroud-watts in sydney. in newi'm shery ahn york. let's get a quick check of the business flash headlines. deutsche bank's top investor continues to cut its stake.

they sold about 27 million shares as it prepares to abandon one of the most high profile purchases. the shares was told and up to 16 euros, far above current market prices because h&a hedged its investment with put options. 72 onank closed at 7. friday. to create a plan bank is going through. hscbc said it was planning to invest seven and a half billion dollars in a new operation. bank has been censured by the r.b.i. for selectively revealing a confidential report that triggered a 30% surge in shares last week. at the.i. assessment

divide several regulatory lapses, with the bank criticized for "a delivered attempt to has had noes bank divergences in the last year which caused the stocks to jump. petroleum reported a 28% rise in for your profit after wrapping up l and j profit. strong cash flow is also boosting its final dividend. oleman has declared this year the deal of the deal. the gear of the deal for 2019. what you looking at in particular? 42019, we have a number of deals. it's the commercial deals ourselves and dealing with our partners in the northwest shelf. we have two big projects in china. one is going to come for the north of australia. the other is the scarborough project.

we have some agreements on the northwest shelf. on equity styles. we have a project currently holding 75% of offshore. we would like to come down a little bit. we've a lot of interest globally and coming into australia. it is a great project. this will be the year of the deal for us. haidi: we've been talking to some people about a potential stock in scarborough. this is also the year when you bring in new partners? peter: it could be. a bunch of countries in the middle east have stated objectives about what they want to do with gas. i would say at the moment, with people ranging from the middle east, our normal partners, that are looking at the assets. a day to room. we showing people what the cost will look like. we are showing them what the resources will look like.

we expect during the end of this year, that we will start to close on some of those conversations. shery: you also announced a bump for dividend payouts. will you be maintaining those levels in the future? we will maintain our payout ratio. our current ratio on payouts on underlying profit is 80%. over time, that we are in the resources business, so linking it to profit is the best way for shareholders to share in the upside and ride some of the cycle with us. for us, we treat it up a little bit in the second half of last year as we closed at the end of the year. that was based on the strong cash flows we had. 2018.ring our budget was $75 -- $65. we look to the situation and we need to give it back to the shareholders. shery: there has been a fair bit of skepticism the last number of

years when it come to the quality of some of your assets, what would you think you are investors? -- say to your investors? peter: i would say, take heart. what we are showing now is that they are world-class assets. was oldthat commentary commentary. it was based on old data. we are now receiving new data. an important part of that is rep costs. we are pleased to see that the numbers we are seeing are within the control estimates that we have shown shareholders. we have shareholders some estimates. those estimates are holding solid. by this time next year, or by the end of 2019, we will have fully rep lump-sum contracts on that and we will be able to lock prices in.

it is a good time to be in the market from a cost point of view. we are pushing forward on that. i would say to investors, take heart and what we are seeing at the moment. we're on the right track and have the right projects. haidi: how do you see the lng market evolving, particularly in asia? you see the major catalyst to be? peter: a couple of things happening in the lng market. fundamentally, the market is changing. it is changing in a way i didn't predict. seeing some toward large traditional players in a market take positions where they are becoming buyers a product themselves, so that they can then have a say in where the gas goes. that is a big change in the way the market dynamic is working. we continue to expect to see growth out of china and also developing countries like bangladesh and so forth. you've seen a lot of growth in europe. there's a lot around what is

happening with gronigen, and northstream 2 and so forth. the demand is there. what i can't tell is what is going to peek at any one time. very strong demand. china is not finished by any way, shape or form. what we are seeing in china is limited to a small, regional geographic area of china and it is trying -- as it continues to expand its footprint and gas, we expect that to continue to grow. it's shaping up to be a busy few years for forward sides. we have the project in senegal and myanmar. you nearing investment decisions and final go-ahead's for any of these projects, potentially this year? in terms of your tenure, would you be around to see it to the end? peter: the short answer is, yes we are.

we have already lined them up. we are meeting promises we have made shareholders. we will have infield oil projects this year. we expect it to come down from singapore early second quarter and go back on station. on senegal, that will come through this year. it will be early second half. we are getting approvals through government at the moment. we know the cost structure is. early next year, we have scarborough and either toward the end of next year, early 2021, we will be to brows. these are significant projects. whereally in context of we are today and what our growth might look like in the future, it sets us up from being an lng our equity doubling lng production by 2027. you can see we are on the threshold of making those decisions. the next 18 months or two years

is important. with my tenure, i have given commitment to the board that i will see this through at least through the beginning of scarborough. towill talk about it then as what the right timing is for me to move. there is a time for ceos at some point to hand over to a team. we have refreshed our team this year. we have the right people on board. i'm looking for to working with them. shery: let me go back to your point on china. we are seeing this trade war unfold between china and the u.s.. benefit ift could china looking's -- if america starts looking for alternative lng choices, are you expecting any upside from this? "bloomberg businessweek it's -- peter: it's hard to predict upside. it takes some competition of the market. there are still some growth projects in the u.s., the gold coast era -- area.

they are being limited at this point because we are not able to access china and any meaningful way. it does play as an advantage for australia. that is why we are working hard. were ainto 2018, we little bit behind some of these projects. today, we are equal with them. k by the end of this year, well in front. a lot of that place to that. with a long and deep relationship with china already. it's not about us establishing new markets. it's about working with old friendships and all relationships and continuing to grow those. that is particularly important in the asian context where it is not just about doing a deal, but who will be there for you. who want to be the respect you need? productupplying a vital for these societies. it is not just about industry. it's a product that keeps you warm in the winter. it's a fuel they use for cooking.

it is a fuel they are using and transportation's. it's critical. haidi: 20 seconds. if we have a change of government, come may, does that change your strategy echo -- strategy echo -- strategy? peter: no it doesn't. we have looked to stability in both instances. we have enough uncertainty in the world. i'm enough uncertainty with the projects and global politics and pricing. what we need to do is focus on getting stability in australia around the fiscal turns and tax arrangements and environment and industrial relations. anything the government can do to give us a stable platform will be good for our industry. haidi: thank you for joining us. peter coleman, ceo and managing director of woodside petroleum. plenty more to come on " daybreak:australia." this is bloomberg. ♪ haidi: this chilean prime

minister has vowed to tighten border protection. this comes after his government was defeated last week when lawmakers voted to allow doctors a greater say on the medical evacuation of asylum-seekers. johnson, editor of australia and new zealand. some tough talk. >> this follows on from the historic defeat on the floor of the house last week, when labor join forces with the greens and independent lawmakers to force through this law that would allow sick asylum-seekers being be many back for emergency make -- medical treatment. scott morrison recorded a video message this weekend, directly andessing the smugglers asylum-seekers, warning them that he would continue to send back their boats and he would be ramping up protection to stop

what he anticipates will be an increase in that people-smuggler trade. he labour party says this is just rhetoric. how is the issue playing out among the electorate? ed: it is resonating. a poll released this morning shows that the government has received quite a bounce. it has gone trailing -- from trailing labour by eight points, to just a two point cap -- gap, now on 51-49. it will embolden scott morrison's government to keep hammering home the message of immigration and border protection before elections in may. shery: bloombergs ed johnson. that is the managing editor for australia and new zealand. coming up next, hong kong's growth is halved as the trade work drags on exports.

we will have more on the u.s. china spat next. this is bloomberg. ♪

haidi: 9:30 in sydney, markets looking to open. getting a positive lead from wall street with the s&p with a third straight weekly gain with optimism over the u.s. consumer and progress in the u.s.-china trade talks continuing into a new week. york. it is 5:30 in new you are watching daybreak australia. let's get to first word news. ramy: president trump is being briefed on trade talks with china as the two sides resume negotiations in washington. he tweeted progress is being made, having earlier indicated he might postpone new tariffs if that is close.

meeting with stephen mnuchin and robert lighthizer, who led last week's talks in beijing. german chancellor angela merkel has used munich's security conference to defend multilateral institutions, fromng a standing ovation delegates. she took american protectionism to task, quote -- calling for cooperation to continue. mike pence drew a muted response as he touted american leadership and singled out chinese telco huawei. >> the united states has been and otheruawei chinese telecom companies. that touches data their equipment. we must protect our critical telecom infrastructure. ramy: the u.k. government concluded it can mitigate risks from using huawei equipment and

the five g network according to a report in the financial times. erickson denied claims that restrictions on huawei products could see europe fall behind in the communications race. they have been backed by their finnish rival nokia saying they are already building five g networks. and japan briefly considered canceling trade talks with the u.k. this week after receiving a letter from london deemed offensive. they say the former secretary and trade secretary wrote time is of the essence in reaching a post-brexit deal. the they percent japanese officials think the letter reflects an increasingly high-handed approach by london. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ramy inocencio. this is bloomberg. shery: we could be heading for gains in asia and sense of

losses as the s&p 500 jumped to a 10 week high. stocks are ready for a positive start to the week. sydney futures are at a four-month high. looking at stocks in australia we have corporate updates to rejecting -- to react to this monday. cash earnings up to bite -- $2 billion australian, falling an increase -- that is on the board. westpac in focus along with and sell, which has tightened its guidance on expected improvement in the second half. this one sees a modern -- moderate pickup and another has -- $195 million australian. the company doesn't see the second half as strong as the first half on seasonality. looking at other stocks to watch, looking at smart group after its result -- first half

income of $76 million, and looking ahead the group sees slowing. we have results do this monday and coca-cola on the radar as we bidding for its unit. offershe wide range of and the uncertainty with the outcome of the process, the company is likely to report impairment of the asset. let's take a look at what we are looking at with trading underway. this rally in equities is reaching a crucial juncture. what does history tell us now? are 18% up from the post-christmas rally in the s&p 500 but it has been a broad-based global rally.

looking back into history on that valuation element is, of course valuation is no great tool for market timing but tells us a lot about where the resistance is to buying to take the rally higher. this is a great chart that shows us 2800 level starts to get a great -- a tricky test, looking back at yellow circles highlighting 2018 highs. 16.5 times forward earnings and that is the time people think, especially when we are talking about cloudy earnings outlook, is that going to be enough for component of the multiple, will that be enough to warrant the incremental buyer of equities? they could be investors themselves, given the extent of the rally, there is a lot of people thinking maybe we need something else, fresh capitalists to take us further in the equity rally. a lot of this rally has been

premised on the dovish tilt of the central bank and central banks globally. there is increasing optimism we get trade resolutions. as we start this week it is unclear to see we are going to get any fundamental developments that would allow us to push on. it is a tricky time when u.s. markets close on monday. we are expecting asian markets to do well monday but maybe an absence of any big news to really spur the rally on. at one stocklook fund struggling under a new leadership after its billionaire cofounder stood down a ceo last year. what is going on? adam: this is platinum asset management, well-known global equities house based in sydney that over the past 25 years has had a very good international equities fund that has done great, outperformed its inch mark, very handsomely over that time. since the ceo stepped down last

year in his cofounder of the firm, andrew clifford took over, it is a different story. the timing has been tricky. analysts are bearish on the company. more bearish on this asset management that any other asset manager in the world. the outflows continue to kind of come out and the stock price itself is down 36% since clifford was announced as the new ceo. it is a tricky time for the equities manager. they are trying to essentially stick the way of investing, the value investing style they have done, that they have had in place for 20 plus years. it served them well in the past. in a sense this is a microcosm of the tough place both value investing in a -- as a whole is in but also the active

management side of equities business as we continue to see more and more money filing into passive blows and out of active management. it is a tricky place for platinum at the moment, but they are hoping over the long-term they can turn things around. shery: thank you so much. that was our global editor. you can find his charts on the gtv library, gtv on your terminal. hong kong has fallen victim to the u.s.-china trade war with economic growth slumping at the end of last year as exports stagnated. tom mackenzie joins us. the trade friction is starting to bite in the fourth quarter. really starting to take a toll. according to this blog post by the head of the finance department in hong kong, suggesting or saying growth fell to 1.5% in the fourth quarter, that was down from 2.9% in the

third quarter. he said exports were pretty much zero. it was pretty much flat at the end of last year. we had a drop in retail sales as well despite a pickup in numbers of visitors from the mainland. tradesaying now the tit-for-tat between the u.s. and china of course really starting to be felt in hong kong. we are expecting to get some forecasts for 2019 growth from him and his team at some point. the projections now looking at --8, full-year growth four-year growth at 3%. it is starting to have an impact. it is interesting that it contrasts with january numbers from china that saw a surprise pickup in exports which could have seasonal effects. j haidi: what are looking at with auto sales data expected out later? there is a big focus on

that for the month of january given we saw last year the first decline in auto sales in china for almost more than three decades. the largest auto market in the world, there is a lot of focus on the impact of slow down, what it could mean for gdp, auto sales, the market is 5% of china's gdp. we will look at what the numbers tell us. whether or not it leads to additional stimulus measures or more trying to spur, whether it is tax cuts or other measures. tom mackenzie there. looking ahead to the continuation of trade talks in washington. looking at what could affect results in the mining sector next. this is bloomberg. ♪ oomberg. ♪

haidi: i am haidi stroud-watts. shery: i am shery ahn. investors are eyeing some big earnings in the commodities sector this week. the world's largest minor bhp and oil surge report tuesday while fortescue and santos received that release results wednesday and thursday, let's bring in david stringer. what are investors going to focus on? we are going to hear this week from some of the biggest miners. bhp, the biggest of all, purports -- reports next week. we have some out of london. arebackdrop is they producing strong margins, prices are good, demand is strong. we will see that translate into a set of really healthy profit numbers. the thing investors want to know is where is the excess cash

going? how much will be headed back in shareholder returns and how much is going on project spending? we are starting to see a rise in capital allocations and projects. with bhp last month they finalized 10.5 alien dollars of shareholder returns. the scope is for more. couldrie group says they do another 10 billion. it is a question of when that happens if they are announcing this week or later in the year full-year earnings. glencore people expecting with their a buyback results. investors will certainly be looking at potential returns of new investments. they will look at how much supply could be added to various markets and disrupt some price action. one of the other questions is how much and to what extent are executives concerned are preparing for a showdown -- a

slowdown in china's economy? pmi, people steel want to know how much are they worried about what is the top commodities market and how are they adjusting plans to cope with a slower china? haidi: on the supply side are we going to hear more about the month's mineast disaster in brazil, as to which has the capacity to fill that gap? that will be an interesting thing to watch. we will hear from bhp, fortescue , big suppliers can we will hear from rio tinto. all of those miners, rio tinto is the one with the most capacity to add more supply, but there is no real indication that that is going to happen. miners are very capable about husband the the that's husbanding the supply and

demand balance. abouty are very cautious husbanding the supply and demand balance. we will see how they build out capacity. don't forget investors have got to be looking for potential ramifications from the brazilian disaster. they will want to hear from the companies, what are they doing to address potential failures and really industrywide what the response is going to be and what that will cost to make sure there aren't similar failures out in the future. haidi: our senior reporter david stringer there. let's bring in daniel hynes. very good morning. before we get to the supply side of things, is there going to be -- are there going to be more conversations about what the miners can do? it is like technology bridging the safety gap. is there a concern for investors?

>> i think so. mining companies need to heed a certain license. the enforcement environment is different from what it used to be. this raises questions about how or where they are allowed to operate. they need to take it seriously. haidi: the caution some of the big miners have taken when it comes to lifting output to address a one-time idiosyncratic event. i want to throw out this chart that came from a report from a chinese filmmaking group that that the market in terms of pricing for iron ore has overreacted to the extent of the prices. is that the view you take? daniel: it is hard to quantify how much we will lose in this situation. until we know, it is hard to say how much the price needs to rise to incentivize new supply into the market. for me, the numbers are big, the

potential loss in brazil and the loss -- the risks escalate. than $100price higher a ton to incentivize the flexible chinese domestic output which has been falling for quite some time. there were comments from a major domestic producer over the weekend about the miners they are struggling to increase output because of the stringent environmental regulations in place. shery: iron ore places -- prices are pushing into higher territory. we have been really in that since we reached a record high earlier this month. how big is the risk of supply disruption and how will business support prices going forward in 2019? daniel: clearly the industry has been operating close to maximum

capacity more than it has for quite some time. that results in these types of spikes if we see supply disruptions. no one can predict what will happen but clearly the industry is under the microscope. that is going to elicit some other reviews. that will keep the market edgy. that is going to keep some pressure on prices. until we really know, i suppose the quantity of losses, then the market will be volatile. shery: on the demand side we have seen china's commodity imports last month stronger-than-expected. will this trend last or was it seasonality given it was ahead of the lunar new year holidays? daniel: there was restocking effort, but i do think the stimulus measures that the authorities announced late last year are starting to finally

come through. we saw late last week as well the money supply growth numbers that were relatively strong in january, better than expected. seems like those measures are coming through and we will see support commodity demand. it isn't a widespread sort of regulated throw of money at the market. we are seeing very focused measures being put in place. that will keep the economy well supported but not let it overheat which has been concern for investors for some time. it is not going to be a long-term issue. the markets will have to delve with the issues around slowing economic growth in china your that is why producers are still cautious about adding supply. all they can really look at is the economic trend. that still looks like it is going down. of the u.s.he path dollar changed your outlook for

commodity? daniel: i suppose that sudden halt we saw early this year and that appreciation has benefited commodity markets. the supply-side issues, they are have it -- they have overridden that anyway. the u.s. dollar wouldn't hold in some of those rallies. but from a macro perspective it helps. haidi: as always, thank you. daniel hynes in sydney. you can get a roundup of the stories you need to get your day going. for bloomberg subscribers, go to dayb on your terminal and also on your mobile in the bloomberg anywhere app. you can customize settings so you only get news on industries you care about. this is bloomberg. ♪ ♪

stroud-wattsaidi in sydney. shery: i am shery ahn.

let's get a check of business flash headlines. japan's nikkei newspaper said nissans governance committee may recommend the carmaker to point -- a point in independent director to oversee meetings. the chairman would still be the coordinator.er -- this is three months since the arrest of carlos ghosn. haidi: a u.k. supermarket chain has hired baincapital unit to work with integration with walmart. they will rule soon on the merger that they say would create $640 million in savings. the authority has seen one of the loss of take u.k. chains could push up prices. shery: citigroup is said to be in talks with a tower in the canary wharf. 25 canadato buy

square from agc equity partners with a price tag at 1.2 billion pounds. london's office market has remained buoyant despite the broader economic slowdown ahead of brexit next month. we are getting breaking lines, earnings crossing dbs, the singapore-based lender. fourth-quarter income $1.3 billion sing. that is shy of the estimate. nonperforming loans ratio at 1.5%. the net interest margin 1.87%, less quarter on quarter. at $2.33 billion sing, just shy of the estimate.

some earnings coming through from dbs, one to watch in singapore. let's look at the market in australia. sophie kamaruddin in hong kong. gaugingwe will be reaction to result from australian companies can we have futures trading at a four-month high. i want to highlight afp which we are watching this morning we had the stock falling to a record low friday, seeing the worst today drop since october 2018. the stock could move after amp acknowledged the impact of venue government super valuation bill costing $10 billion australian this year and 2020, a 30 million dollars australian it. there could be some changes. the stock was downgraded to j.p. morgan to neutral on the back of that. shery: coming up on daybreak asia, peterson institute senior fellow jacob kierkegaard joins

us to discuss the latest on trade talks and geopolitics. we have heard about progress on those trade talks in beijing and the talks will resume in washington this week. there have been claims with progress with few public details. we will have that interview coming up. haidi: that is not a done deal yet. that is a must it for daybreak australia, but trading in new zealand is getting underway. just a few minutes out from the staggered open for looking at the faring, very positive handover from wall street, the s&p jumping to a 10 week high. all sectors with a broad-based value. he was markets closed for present -- u.s. markets closed for president's day. there are indications we could get a pop in sydney starting in the next few minutes. aussie dollar 71.39, getting a session.he previous

some optimism that we will have consensus at least with u.s.-china trade leading in the asia session. this is bloomberg. ♪

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stroud-wattsaidi in sydney. markets have opened for a trade. -- opened for trade. shery: i am shery ahn. sophie: i am sophie kamaruddin. welcome to daybreak asia. ♪ haidi: these are our top stories. wall street stocks surged to a 10 week high. the yen is unchanged. the trade situation back to washington amid signs of progress. president trump is being briefed on the talks so far.