"activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. >> welcome to "daybreak: australia." sophie: we're counting down to asia's major market opens. haidi: here are the top stories we are covering in the next hour. futures pointing to a lower open , the dollar holding steady but the yen slipping. investors are waiting, rba minutes are due out later.

and the view from the bay, china gives more details on an ambitious plan to challenge silicon valley. with u.s. markets off-line for the long weekend, stocks in the region look set for declines with autos likely in focus. european carmakers took a hit on prospect of u.s. terrorists. posted thel gauge biggest increase in more than two weeks on monday, led higher by chinese shares. we do have the rba meeting minutes and futures pointing lower ahead of that, and more earnings do this tuesday. , let's this morning check in, high energy prices boosting earnings in 2018. we will see if there are more updates.

forapshot of what to look in a story. let's get the first word news. >> the e.u. chief brexit tootiator says they are open a permanent customs union with u.k., and that the relationship should be as broad an ambitious as possible. any differences in the negotiations are due to pragmatic issues, not dogma. also confirming the e.u. will not be open to talks on terms of the brexit deal. singapore is opening its wallet ahead of elections that could come this year. the government is addicting a inget deficit of .7% of gdp the year through march 2020. that compared with a surplus of riod.n the current pe also boosting spending on its aging population.

the government is desperate for cash to fund its populist program ahead of general election. the r.b.i. approved an interim event of about $4 billion come the second straight year of the bank has made an advance payment to the administration. programs to support rural communities. china has announced more details that sweeping plan to link hong kong and macau and create its version of silicon valley. saying the program will turn the bay area into an innovation hub. hsbc says the region will have 67 million residents and a trillion dollar economy. global news, 24 hours a day, on-air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. the world's biggest

miner, bhp, reports first-half results later today against a backdrop of rebounding commodities. it has been a very turbulent time for iron ore. >> it has, with bhp in particular. , andbig train derailment copper and iron ore prices were little softer as well. we're expecting an interim dividend of $.55. it comes during a time when margins were good, production was strong. one of the key questions is what are they going to do with the cash flow we are expecting, will they return to shareholders, or will we see some upgrades? i'm just keeping an eye out for oil surge as well. sophie mentioned earlier in the boosts check, expecting a

their from higher lng prices. they are negotiating with the government as well to finance projects there. plenty of other companies reporting. what else are we looking at? paul: one of the ones we've heard from is one of australia's superannuation giants. a bit of trivia for you, it stands for independent order of odd fellows, a very old company known as a secret society. they had a tough time in 2018 commission, they were taking action for failure to meet provincial standards. , 135 million.

we saw shares slide quite dramatically, you see on the chart, about 35% back in december when all this happened. we also heard from kohl's today, income of $738 million. some interesting news, they will continue to sell milk in australia at one dollar per liter, which is incredibly cheap . that has come under some criticism for hurting dairy farmers. its main rival has promised to start doing that. but kohl's will continue selling it. >> paul allen with a look ahead at a busy week of peak earnings here in australia. frome will be hearing peter who will join us after the company releases results. ahead, the sophisticated state actor launching the

cyberattack and at australian lawmakers. we will speak to a security analyst later this hour. sophie: up next, some insight on this interesting week for central banks. ceo bob michaels joins us next. this is bloomberg.

sophie: i'm sophie kamaruddin in hong kong. haidi: and i'm how the stroud-watts in sydney. mr. later onba today. the fed minutes out on wednesday and a plethora of policymakers and fed speakers this week. joins us here in sydney. appetite.t more risk

out whatg to work changed between the end of december and now for almost every central-bank we are watching. bob: i think a couple of things. first and foremost, a lot of equity markets dropped 4%. that is technically bear territory. prospect of recession increases quite a bit when you write your models. mechanism into financial conditions is something that shook the central banks. also when you look at inflation, inflation looked pretty moderate. in a growth slowdown with moderate inflation, why not take your foot off the brakes? haidi: clearly the markets are priced in, potentially going into longer, but in terms of you the balance sheet does, can see in terms of where the market is that, there's quite a bit of division nest to where the balance sheet runoff is. it's not as boring as watching paint dry come as much as they would have us imagine.

three different levels us to where it would be. next areag to be the that we see? was our great frustration with the fed, they had these two very powerful policy tools. the balance sheet proved to be very effective premium how you could say that you just let it run on autopilot in the background, i think is completely naïve. we like that they have embraced the two tools and recognize they can use them, they can dow them up or down. i don't think it is as important what level they finally get to, we will know when we get there. just the fact that they are watching it and willing to pause at some point is important to us. thise: we haven't seen concerted dovish tilt of central bank since the first quarter of 2016, but the shift we are seeing as the global momentum is indicating that the economy is

theing by the most since global financial crisis. let the pool at chart to demonstrate the slowdown we are seeing in the e.u. zone, in the u.s. and china. when it comes to the e.u., will had some divergence, idiosyncratic factors are starting to fade, but officials are saying little changed at the outlook worsens. where do you stand when it comes to this outlook? we are very much in a growth slowdown. the problem with a growth slowdown is, you are hoping that you go into a soft landing, but as you are descending, you were never quite sure, and you always fear a hard landing. i think this is what the central bankers are looking at. you are right, the ecb governors are tripping over one another to become more dovish. they are throwing out things that they could do, which is to delay any neutralizing of rates

by raising them and perhaps long-term repod operation. to us, it makes a lot of sense. let's just cause and see if things on the fiscal side can improve, if there is some sort of compromise between the u.s. and china on trade, whether they u.k. and e.u. can compromise on brexit. those are the kinds of things that need to get worked out. what you don't need at this point in the cycle is the central banks increasing pressure on the markets are trying to normalize. on the u.s.-china trade deal, that could give asian junk bonds a boost. what is your outlook for the debt market in this region and where do you like some of those calls? bob: certainly, any kind of compromise between the u.s. and china on the trade front would be good for all the emerging economies, because ultimately, they are counterparties in trade

to boast the u.s. and china. they are suppliers to both economies. this has to be a reason seen such a dramatic slowdown in economic growth in the region. if you can get some sort of compromise, and china can go back to normal monetary policy, that should be good for the local bond markets. localdo like a lot of the asian bond markets. we think the currencies are a bit oversold. we think real yields are a bit high, and there is opportunity to make some attractive returns. haidi: i want to get your views on the u.s. treasury's go from here. this is an interesting time. we don't usually talk about it when the yield curve goes nowhere, but that is what we are seeing. taking a look at kind of unusual calm when it comes to the yield curve and the monthly change that we haven't really seen. one prediction is that it will

hit 10% or 4%. has that changed? bob: it has, and you have to appreciate that the federal reserve, which is going to pause youere, this is about what are going to get in yields. i don't know if the fed can raise rates once or twice more over 2019, but we do expect that in that environment, the tenure treasury will be dead at around 2.75% or 3%. for us as bond investors, that is great. we like a stable rate environment. haidi: sofi tukker somewhere the emerging market opportunities are come -- given that looks like we have list of urgent policy. bob: that is true, a lot of what has driven the dollar higher has been the growth and interest rate differentials. we should see a pause in that

with u.s. growth slowing down more toward trend level and the fed about to cause. i don't think that necessarily means the dollar is going to selloff. we hear a lot from commentators that the dollar has peaked and should come down. there is still a very big deal advantage in the u.s. bond market, relative to other markets. it may just support the dollar in here and you may not get much movement through the course of the year. where in the asian em space are you seeing some opportunity? with theolitical risk elections in india, thailand, and indonesia. where is it attractive? bob: we are looking at some of the markets where you have high real yield. indonesia would be one. you have to take a look at india because the r.b.i. has begun to lower rates. in environment are you do get high real yield, and there is

some interest by the central banks to support the economy, with some sort of trade agreement, those markets should generate the best returns. of risingd our risk in asia's bond market given the faltering growth, but when it comes to corporate credit, any yourcular area or sectors finding attractive as the year wears on? bob: for us, when we look at corporate credit, we have been of course concerned about the amount of deleveraging that the pboc has tried to force through the system over the last several years. as the pboc now has approached the market with the reserve ratio requirement, rate cuts, maybe that will do something on a rates. that should help to provide support for the local corporate bond market.

we will take a look at financial institutions again and some of the industrial manufacturers. probably bit early to look at the property companies again. has the selloff gone far enough for there to be attractiveness? bob: we think so. if we look at u.s. and european high-yield markets, where u.s. high-yield credit spreads went from 350 basis points to 550 basis points, you can retrace some of that, but the fault -- default rates are exceedingly low. just over 2%. we are at the point in the year where two of the largest constituents will fall out of the default statistics. so default rate should drop to about 1%. they are being compensated in the u.s. high-yield market at 430 basis points. when you look at fourth-quarter corporate earnings, we've had about 80% of u.s. companies report. earnings were up about 14%.

a lot of that could be due to have a accounted for tax reform. to us, what was interesting was topline growth was up 7%. you had revenue growth. that is something that was missing from the u.s. recovery over the last several years. week earningspast because that effect will start slowing down? but it should slow down, let's not forget that the largest part of the u.s. economy is the u.s. consumer. they account for about two thirds. haidi: are the indicators mixed, on the strength of the consumer? bob: i'm not sure they are mixed. unemployment is low. get weekly jobless claims, they are at a 50 year low. each gains have been going up just about 3%. the consumer has the leveraged a lot coming out of the financial crisis. i know the retail sales data

were a bit soft. it is hard to know how much of that was due to the government shutdown, just negative psychology. the consumer balance sheet actually looks great. sophie: returning to the asian junk-bond market, at least eight were cut toy bonds junk in 2018. do you see the risk of more being downgraded? bob: i think there is a real risk, as the rating agencies get asiantable with how the high-yield bond markets operate, how the investors look at them, through a default and workout process. what rights do investors have. i think there is a lot of fine-tuning to be done yet in that market. i would say from our perspective, we see a lot of interest in asian high-yield debt. when we think out over the next

10 years, we think this is the area of greatest credit creation, so we want to be in their and we want to help create some of the rules on how these companies get rated and how they get worked out. haidi: bob will be staying with us to talk about the rba, you think they gone a little too far. staying with us throughout the course of this hour. in florida, president trump is speaking to the venezuelan american community there. seeking peaceful change in venezuela, but all options remain open. nicolas maduro a cuban puppet in that space. we will get you updates on that. you're looking at live pictures of president trump coming off the stage after addressing that community of venezuelan americans on presidents day. much more to come, this is

bloomberg. ♪

sophie: i'm sophie kamaruddin in hong kong. haidi: i'm haidi stroud-watts in sydney. you're watching "daybreak: australia." investors are waiting the latest rba minutes in a couple of hours. the semiannual testimony to parliament later this week as well. are we expecting anything new or any more illumination from these minutes? >> we had obviously the statement two weeks ago, the governor announcing the next day it was going to neutral. haidi: so the bombshell is already dropped. >> what we will see if the fleshing out of this debate about consumption. whether were seeing a turning point in australia, rather it's the a blip that came out in gpa.

informatione any until fourth-quarter gdp comes out next month. i think we will see some discussion on that. central inill be what is going on. some interesting data out yesterday show chinese investment in australia has fallen quite drastically. it suggest there will not be much for house prices in the near future. it's a real question over whether that will impact household consumption, which accounts for half of gdp comes so it is obviously an important issue. it's kind of hard to see him again, it will be looking at domestic risk and what drove him to a neutral policy stance. relating to the meeting isweeks ago, how important the communication in the days ahead? >> it really is trying to look at what's going on through the rearview mirror. two weeks is a long time, and economics are everything.

wages, which is central to the rba's expectations that inflation will eventually rise. they're looking to see some traction from employment. thursday we have the labor negativemid all this news, hiring has remained strong. unemployment has been coming down and is what the rba has been cleaned to in saying the economy is doing ok. friday, we have the governor doing three hours of testimony before lawmakers. he will probably be reflecting on what that data showed as well. haidi: and this comes as the countdown to the may election. everybody has penciled in -- the interesting part is, research shows that when elections get tighter, businesses hunkered down and pull down the shutters and stop

investing. this election is perhaps more significant than others. it's good for investors in the stock market and property. if the government were to hold on, it would be insignificant for investors, but we could see some slowing in the economy. check: let's get a quick of the latest business flash headlines. honda to close its factory in and the industry is already reeling from job cuts and production. exported.s have been haidi: no more one dollars mill for aussie shoppers that will work today. upping the price of milk to support local dairy farmers and will pass on extra profit to

suppliers. australia's biggest supermarket chain has been under pressure from the government for driving down milk prices. local farmers already reeling from a record drought. coming up, if the rba will deviate. this is bloomberg. ♪

sydneyit is 9:30 a.m. in where markets open in 30 minutes. looking like a pretty slow start to the day. futures looking more or less flat. street,rs from wall closed on account of president's day. european shares following the rally we saw in asia. peter out going into the asian open proper. i'm haidi stroud-watts. sophie: i'm sophie kamaruddin in hong kong where it is 6:30 a.m. let's get the first word news. >> thanks. a new survey says the global slowdown has left growth at its weakest since the financial

crisis. a ubs model suggests expansion slowed to 2.1% at the end of last year, the worst since 2008. an early rating for the current quarter suggest a slight improvement, but there would need to be a dramatic change to reach the 2.2% change. eu banks, money managers and other financial traders based in the single market have won formal approval to use u.k. based houses in the event of a new deal brexit. the authority will recognize clearinghouses run by the london stock exchange, london metro exchange, and intercontinentalexchange if the u.k. leave the eu. brazil is banning a specific type of -- causing death and widespread environmental destruction. dams must bem decommissioned and removed by

2021. owners have until this august. the dam burst last month, killing at least 169 people. italy has web vote in supported unity with political leaders by backing immunity from prosecution for the leader. five supporters were asked whether he should face charges related to his refusal to let a migrant ship dock in italy last year. with0 people voted online 59% in favor of keeping his immunity. global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. sophie: thank you. let's check on how markets are shaping up for tuesday's session in asia. asian stocks looking to brace for a down day.

aussie futures looking at little change with the more earnings to react to. upgradests, expecting with minor earnings. and other sectors like construction and retailing given the declines we have seen in home prices. other stocks to watch. bhb on the radar with results do after the market closes. analysts are not expecting another share buyback. keep oil in focus with the results today. chicken and other companies with results out this morning. coles says it will not be paying interim dividend and the supermarket operator has said it will not follow woolworths. ioos reported first-half numbers are the regulatory and operational challenges facing the wealth manager. the firm has said it will incur 20 to 30 million australian dollars in costs.

haidi: carmakers bracing for potential auto tariffs. the commerce department has delivered its report on whether it should classify a threat to national security. what do we know about this report? it comes as a bit of a debt as we had cautious optimism over the straight talk between china and the u.s.. >> that is quite right. i think right now, we are waiting to see what's actually in this recommendation. the report dropped and it aopped in the form of about three line statement from the commerce department that said we submitted the report. they did not say what was in the report, what the recommendation was. they did not say that bmw is produced in south carolina or for cities bentz in alabama -- mercedes-benz in alabama are a threat to national security. we are still waiting to see what

exactly the president is going to do. he has about a month to figure out what he is going to do. so far, the president indicated this is a leverage threat right now. widespread disagreement on whether the u.s. will actually act on this. it is a thing he is being advised strongly by his european allies and counterparts to not do. we're waiting for the president to make an up down on this. sophie: president trump wrapping up a speech in miami with a strong message to venezuela. what did he say? derek: it is interesting. president trump went to the very heart of the venezuelan ex-pat community in miami, which is home to the largest cuban ex-pat community in the u.s. he basically declared it is a new day in latin america. trump said in a headline i sent before coming on here, trump seeks peaceful change in

venezuela, but all options are open. all options are open. that is a really interesting line from this president. he went out there with a very clear message for the venezuelan military. he said you have a choice right now. your choice is you can back juan guaido, the leader of the national assembly, or, or you can keep backing maduro. if you back guaido, neither of us want retribution. let the humanitarian aid in. that is great. if you don't, he said consequences are coming. he did not outline what those consequences are, but he said you cannot hide from it. he said a new day is coming to latin america. a new day is coming to venezuela. it was a very strong speech from the president. it was delivered in the very beating heart of the venezuelan ex-pat community in the u.s.

which wants nothing more than regime change in their former country. the location of this was intentional. the remarks were intentional. it was a very, very strongly worded statement and people should take no doubt as to what this president was meaning when he was talking to nicolas maduro and to the united states and to the world. sophie: thank you so much for that. derek in singapore. turning now to china which is announced new details for its plans and the challenge to silicon valley. wanting to tie hong kong and macau to the mainland with global aspirations. tom mackenzie has the story in beijing. what more do we know about this? tom: this is a sweeping plan. it is all about integrating hong kong and macau with the cities in the mainland. it is about integration not just a long the terms of

infrastructure and transporting, but also in terms of trade, finance and technology. it is a very ambitious plan. a big part of this is to raise the role of the yuan internationally. you will have yuan denominated bonds allowed to be issued by some of the companies within this jurisdiction. it is also about promoting innovation and technology. as the trade tensions continue and the focus is on huawei and the u.s. push against huawei, there is a reminder that china remains committed to the technology ambitions. in terms of numbers, it is pretty significant. about 67 million. this would be a $1 trillion economy that would be the fourth largest global exporter above japan if it is a single entity. haidi: there will be different roles for hong kong, macau and shenzhen. hong kong is additional

financial gateway. what does that look like in terms of its role in the greater bay area? tom: you won't be surprised to hear that hong kong will be the beating financial heart of this area. it will also be focused on trade. hong kong will be driving the trade to the greater area. macau will be in international tourism hub. but it will also be a place where you can do some yuan clearing for portuguese speaking countries, primarily brazil. shenzhen will be the technology driving heart of this area. guangzhou will be the administrative center. that is the plan that brings the cds together -- cities together. sophie: the plan has not been welcomed by everyone. tom: no, absolutely. you have seen already protests in hong kong by democracy activists about the high-speed rail link. concerns in hong kong that this plan will closely -- more closely integrate hong kong into the chinese mainland and further

erode the autonomy that hong kong has, the legal autonomy or political economy -- autonomy. we have seen some measures by the chinese mainland to chip away from that. that is the concern. there are also some logistical and practical concerns about how realistically you integrate very different systems, different legal and financial systems in hong kong with those in the mainland as well. haidi: tom mackenzie there in beijing. australia investigates a hack on its parliamentary systems and says a state actor was involved. details just ahead. this is bloomberg. ♪

haidi: i'm haidi stroud-watts in sydney. sophie: i'm sophie kamaruddin in hong kong. new zealand's prime minister said thigns are still rosy with

china as she is facing pressure from opposition lawmakers that says ties could deteriorate after the government says it has major security concerns about letting huawei enter new zealand's 5g networks. matthew joins us now. are there any signs that china might be retaliating against new zealand over huawei? well, all of this started earlier this month with new zealand, shanghai was forced to return midflight because it did not have the right paperwork to land. it seemed relatively innocuous at the time, but within days, there were signs that china was perhaps a little unhappy with new zealand. urismw the launch of to postponed in wellington because chinese officials could not make it. complaining about having trouble clearing into china.

of course, the prime minister's visit to beijing, which has been on the table for quite some time, remains in limbo. apparently because of scheduling issues. while each of it seems relatively trivial, you put it all together, it seems like china is trying to send new zealand a message. the opposition was ready to pounce on that. haidi: in the broader context of china's economic relationship with new zealand, how reliant is new zealand on trade with china? matthew: very reliant. china has become new zealand's largest trading partner. takes ays a lot, quarter of all of the goods exports. the surge in chinese tourist numbers in new zealand has helped make tourism our largest

exporter. any tearing of the relationship could have significant economic consequences for new zealand. sophie: with those economic ties, what is the new zealand government saying about its diplomatic relationship with china? matthew: ardern has fought quite forcibly about these claims about the deterioration in the relationship. she says the relationship, while complex, remains strong. she accuses the opposition up fear mongering and misinformation. she says there is nothing to see here. i think there will be quite a lot of scrutiny on this relationship for some time to come. sophie: our wellington bureau chief matthew brockett in this latest chatter. you can get a roundup of the stories you need to know on this edition of daybreak. it is right there on the mobile on the bloomberg anywhere app.

you just get the news on the industries and assets that you care about. this is bloomberg. ♪

sophie: i'm sophie kamaruddin in hong kong. haidi: i'm haidi stroud-watts in sydney. a quick check of the latest business flash headlines. struggling maybe one step closer to rescuing delta, pumping $450 million. a group of investors are evaluating the financial needs of a revamp after what would be its second bankruptcy in a decade. the plan will be discussed by delta and easyjet which could see a total injection of $1 billion. sophie: jet airways is selling a majority stake, about one u.s. sent, as part of a bailout plan.

controlling shareholders after the deal on thursday. jet is india's biggest full-service airline and 24% owned. the airbout 14% of traffic market. haidi: norwegian air travel dive to a seven-year low after offering low prices. far below friday's closing price of 97 krone. that sent shares down as much as 16%. it gives the carrier some breathing space after the british airways owner walked away last month. sophie: the australian scott prime minister is blaming a sophisticated state actor for the hacking of its parliament, raising concerns of foreign meddling weeks before a general election. joins usr analyst tom now. great to have you with us. the elephant in the room, no one

is actually coming out and saying, identifying who the top suspect is, but there is a lot given the history we have seen from chinese governments or pseudo-governments meddling. tom: i think it is probably likely it is the chinese. the australian government does not want to say that because probably they worry about repercussions, but they are not 100% sure anyway. it would be a big call so early on. they only announced it a couple of days ago. they have gone on the front foot in telling the public early. they would not at least have a complete picture where they have done all the work they need to do to actually be sure. but, probably the chinese, yes. motivation, is there the capability of china to do so and i am wondering what they are after?

certainly there is a number of countries that have the capability to conduct these kinds of attacks. off the top of my head, you would think of china, iran, north korea, and also some of the western countries like the u.k. and the u.s. the western allies of australia don't have the motive to conduct that kind of operation. other countries that are left, probably only the chinese have really strong interest in the australian region to conduct that kind of operation. not only did they hack the australian parliamentary network, but they also hacked three of our political parties, labour, liberal and the national party. my first guess would they will be after the insight of the personalities and positions and

what people really think about different issues. that would be for sure. then, perhaps they might also be after information they could use to coerce or possibly even blackmail people. a third possibility is they would be after some of the political databases that parties have on voters. that kind of personal information. so, some of that is for sure and some of that is a possibility. it's not clear yet what they were really after. could this perhaps be part of plans to interfere with the australian election that is coming up? tom: it is certainly a possibility. in the u.s. 2016 president election, one of the more effective things the russians did was hack into the democratic national convention and hack

some of the campaign emails. they released those strategically to try to influence the election. that is still a possibility. at this point, the government does not know enough to know what has been taken. it is only as it is released we will see if that were actually to take place. i think that is definitely a possibility. there are probably a couple of things the government could do to try to mitigate that risk and one of those might be to come up with an agreement amongst the various political parties not to use hacked materials for political advantage. it is very late in the election cycle to come up with that agreement, but i think that would be a positive step they could take, given this hack has taken place. sophie: given the vulnerabilities to cyberattacks, we have seen more in recent years, where does this but the australian government when it comes to putting in place stricter regulations around

cybersecurity or other types of measures? think there has been a long debate about regulation inside the security, because it is clear that often regulation is not that effective of solving the problem. and does not actually improve cybersecurity. i think there needs to be renewed focus on regulations that actually results in improved security. part of the problem, i think, is that the whole field has had a long period where people have simply not talked about it. where it is not possible for people and companies and the whole industry to learn from previous failures. i think this is a good step by the government to go on the front foot and announced it has happened. it allows the whole economy and australian population to

understand there is a real threat out there and these things happen. hopefully, we will learn more about how it happens so everyone can better prepare themselves. haidi: tom, there is no doubt, i think, looking at your research that this is a state-sponsored operation ande it is becoming more common. i'm wondering how you think national champion type companies like huawei fit into this and do you think the australian government and other governments we have seen will put a ban on companies like this, if that is the right approach to take? tom: so, really, the concerns around huawei stems from its -- the environment it is in. basically, the chinese communist party has made clear its number one absolute priority is internal security. the problem with that is that if

there is a tension between huawei selling products overseas and internal security, western governments worry that the communist party will force huawei to do something that would be bad for our governments but good for the chinese government. that means it is very difficult to put huawei at the center of our critical national infrastructure which is what our 5g and telecommunication networks could be. that is the dilemma that is caused or we face when dealing with huawei. we need to really decide -- there have been two approaches. the us reeling government has decided to ban huawei. the u.k. government decided they could manage the risk with rigorous testing programs. personally, i'm a fan of the australian view because the british program has been going on for eight years and they are

not particularly happy with the level of assurance they are providing themselves. haidi: thank you so much for joining us, tom uren. joining us out of cambera. some earnings breaking's across the bloomberg. 8.5dends coming in at cents. we have also look at the income for the full year, 4.3% below the average analyst estimate. than the income lesser estimate of $352.7 million. full-year revenue at $5.54 billion, on par with what was expected in that range. the company saying cash flow was a vision to pay off debt and future dividends and to fund the expansion. we are seeing lower oil and lng prices weighing on the final number, despite higher production numbers out of oil

search. we will be speaking with the oil search managing director peter botten to get his views on the results and whether it is getting closer to being finalized. 2:15 in sydney, 11:15 in hong kong. this is bloomberg. ♪

haidi: very good warning. australian markets have just opened for trade. sophie: i'm sophie kamaruddin in hong kong. welcome to daybreak asia. ♪ haidi: the top stories this tuesday. futures pointing to a lower asia, with auto stocks particularly in focus. the dollar holding steady but the yen slipping. investors looking at global central banks. preparing for its semiannual testimony. the view from the bay.