haidi: a very good morning. i am haidi stroud-watts in sydney, where australian markets have opened. ramy: i am ramy inocencio in new york. sophie: and i am sophie kamaruddin in hong kong. welcome to daybreak asia. our top story this monday, tariffs are on hold. president trump says he is delaying additional duties on chinese goods that were due on friday. theresa may seeks more concessions on brexit as she

delays the vote again, but she insists the split can happen by march 29. and a second summit meeting, the white house praising china for its support. ramy: let's get a quick reminder of how u.s. stocks ended on friday. the dow and s&p 500, this is the best they had in the past week. bestnasdaq up, that is its in nearly the past two weeks. since we just got those headlines regarding the delay of those tariffs on the u.s. from china, we can see s&p active futures up by nearly .4%. we have been seeing some optimism over the weekend with ,he u.s. and china trade talks the chinese delegation extending their time in washington, d.c.. now we are seeing this seems to be paying off. >> that could be paying off. the aussie dollar gaining ground on trump's tweet there will be a

delay to the increase in tariffs. this sentiment could give asian stocks what they need to continue the climb we saw on friday. 200 gaining .2% so far this morning. we do have quite a number of themes, earnings chief among them. take a look at the asx 200, up .2%, one of the biggest gainers so far this morning is this one, gaining nearly 18%. this as the tech player saw full-year profit beating the highest estimate and boosting its final dividend per share. shares up 18% this morning. also seeing a pop for bluescope posting a 42%fter rise in first-half profit. steel prices providing support for the company.

aso seeing moves in brambles the company has agreed to sell its plastics unit and a unit of the abu dhabi investment authority for an enterprise value of $2.5 billion, with most proceeds returned to shareholders. the deal with bramble expected to close in the second quarter. lastly, pulling up the board for after pay touch, that stock gaining 13.6% this morning. this as we get reaction to australia releasing a senate report about the financial sector. haidi: let's get you to first word news in new york. andwe start with the u.k. theresa may, who has delayed a parliamentary vote on a brexit deal but says it will happen by march 12, a little more than two weeks before the u.k. is due to leave the european union. she is in egypt for the eu-arab nation summit and will attempt

to win concessions for her deal. some eu officials say brexit delayed by as much as 21 months if no agreement is reached before march 29. additional sanctions may be imposed on venezuela when regional leaders meet in columbia on monday. this comes as clashes erupted between supporters of nicolas maduro and juan guaido. when attempts to deliver american humanitarian aid fate -- failed. is saying thiso is a cover for a u.s. invasion. juan guaido is due to meet mike pence at the talks in bogotá. a new business secretary, greg clark, is being urged to lead a mission to japan to ask honda to move its plant. honda has decided to close the

factory with the loss of three and a half thousand direct jobs and 6000 in the supply chain. the companies as the move is part of global restructuring at not a result of brexit. the philippines is starting the search for a new central bank governor after the death of the old governor over the weekend. he died at the age of just 60 after a long battle with cancer. the deputy governor will be taking the reins until president rodrigo duterte names a successor. the central bank governors raised the benchmark interest rate by 175 basis points last year after inflation rose to a nine-year high. 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'm su keenan. this is bloomberg. president trump says the u.s. will delay a deadline for increasing tariffs on chinese goods, saying substantial progress has been made in talks with negotiators. tom mackenzie joins us from beijing. what are the details?

are we setting up for a potential leadership summit? this isn't a major surprise, given what we heard from president trump in the last week in terms of optimism of these negotiations. but it is a major step potentially toward a deal. you have had this tariff deadline, march 1, extended by the u.s. that would have increased tariffs on $200 billion worth of chinese goods. president trump suggesting we are looking at a meeting between the two leaders. we have heard from others in the administration that it will be at some point by the middle or end of march at mar-a-lago. more optimism is interesting to contrast with the nuanced comments we got out of ustr lighthizer, who said there were still major hurdles between the two sides. reports suggesting one of those hurdles was a disagreement around the enforcement of any deal on the yuan. the u.s. had been forcing the

chinese to say they will keep the yuan stable, because the u.s. is concerned should they devalue it, it will mitigate the impact of tariffs. the enforcement mechanism, there are still details that need to be ironed out. has remained an area the two sides need to close the gap on. trump saying they made progress on things like intellectual-property, agriculture. the president sees there has been enough progress to extend the deadline. ramy: how have fx traders been reacting to this? tom: broadly positive. goldman sachs have raised their forecast for the yuan, looking at 660 now. analystheard from fxcm over the weekend, saying this would be welcomed by the market. another said it is going to be positive at 4em. this could potentially tie the hands of the chinese in terms of their fiscal and monetary

easing. they have been looking to advance policy around those areas to support the economy, but should they step up additional easing, that could pressure the yuan. that could put them in something of a bind, but this puts them -- this gives them something of an opportunity. we have had a little more clarity on the reported bad on australian coal shipments and china. beijing has denied that. do we know what is going on? tom: pretty smoggy still. china has said there is no ban on australian coal, but our reporting is clear in saying at least there has been a delay in terms of getting the cold that arrives at the port, getting it from the board and into the country, because inspections have been stepped up. the chinese have said there have been increased inspections, looking at the quality of the call from australia. the chinese saying this is not a

ban. in terms of the percentage of coal australia ships, it is pretty small. markets are more concerned about whether this signals a harder line from the chinese, a pushback in retaliations for australian actions in blocking huawei, the start of a retaliatory stance in the chinese. that could be damaging for the australian's. again, australian politicians playing this down at china saying there is no ban. ramy: a lot of moving parts. thank you for breaking it down. don't miss a new look, bloomberg open, livehina with tom as we launch our new state-of-the-art studio. we will have some great gets to break down policies and assess their impact on the markets and global economy. let's continue this discussion, because president trump has announced to the delay on tariffs from chinese goods, as he is set to leave for talks

with north korean leader kim jong-un. let's speak with bloomberg's ross cressy. we are already seeing positive effects in terms of s&p futures. let's push this further into the political realm. what can we expect? >> earlier in the program, we talked about the tension with the u.s. trade team, between the hawks and doves and what trump really wants out of the china talks. it is clear the president did not like the bearish action in the stock market back in december when talks were not going so well. i think he would be happy to see what is happening in the markets and would claim this as a victory. it does sound like from his tweets -- you know about as much as i do on them -- that a lot of progress was made over the weekend. i think it has always been clear that president trump wanted to put a cherry on top of this deal

by meeting with president xi in mar-a-lago, and that is what he intends to do. haidi: in the meantime, we have talked about this very public disagreement between ustr lighthizer and the president over mou's. we also heard the secretary of state contradicting the president. >> do you think north korea remains a nuclear threat? >> yes. >> but the president said he doesn't. >> that's not what he said. >> he tweeted it. >> what he said was the efforts that had been made in singapore, the commitment that chairman kim made, have substantially taken down the risk to the american people. it is the mission of the secretary of state and the president to keep american people secure. we are aiming to achieve that. haidi: does this suggest to us that going into the second leadership summit, there is not a coherent strategy or policy on north korea? ros: it certainly has been

notable for months that the u.s. administration did not have a clear sense of what it hoped to get out of the talks, having said after the june summit in singapore that north korea was no longer a threat, what are the next steps? kim hasame time, leader been wanting to see the u.s. tamped down sanctions on north korea, tamp down economic pressure. it seems the administration is a little bit at cross purposes. president trump did tweet about denuclearization on the korean peninsula, so he thinks there is progress to be made, or he would not say that. it seems like he is going into the summit, talking to kim about economic strategy at bringing north korea more into the mainstream of the world, at that that is a tactic the u.s. things

is going to be successful. haidi: roz grozny, our bloomberg editor in washington. a busy week for you. we will bring you in-depth analysis on the trump-kim summit live from hanoi all week. kim has already started making his way to hanoi. we will be seeing what the analysis and developments are through this week. let's take a look at some of the movers in the early stage of the sydney session. a pop in u.s. futures, the aussie dollar, trading in the yuan. it is looking pretty risk-on. sophie: when you take a look at some of the earnings reaction, companies like lend lease under pressure, stock falling 8.3%, the biggest drop for them since august, after reporting a 96% year-on-year drop in first-half profit. that included a pretax impact from announces -- from losses on its engineering project.

it does see earnings outside of its engineering unit skewed to the second half with a large number of residential apartments due for completion. that is the biggest laggard on the asx 200 this morning. that is a education, the biggest drop since august, despite the company saying the new year has started encouragingly with occupancy growth of 2% this year. conditions do remain challenging with evidence of a downward trend of industry growth rates in the fourth quarter. ahead, we will be discussing cybersecurity issues with the australian policy institute. find out which sectors they think could be targeted. ramy: first, a preview of the busy week ahead. where we see opportunity next. this is bloomberg. ♪

ramy: welcome back.

it is a very busy week for investors with u.s.-china trade talks and the headline that just crossed the terminal, in addition to the u.s. and north korea add the second trump-kim summit, as well as the fed figures coming out this week. let's cross over kathleen hays in the new york studio, our bloomberg economics and policy editor. what do we have to look forward to when jay powell speaks? sec. tillerson: i think we will hear an underscoring -- kathleen: i think we will hear an underscoring to policy. one thing was on friday, the almost a summit with many fed officials speaking, the same day that jay powell, the federal board reserve of governors in congress, that released the semiannual testimony to congress that he will be giving next week on tuesday and wednesday. talking about patience on interest rates.

if we can look quickly at a snippet from his report, one everybody is looking at. repeats what they said previously that they are looking at global headwinds from international trade and market volatility, also muted inflation pressures. that's why they are going to be patient. let's jump into the bloomberg live and look at the inflation part of this equation, because this is something he may be asked about when he speaks to the house of representatives and senate. both below thees 2% inflation target. at the conference on friday, you had john williams, president of the new york fed, saying that if inflation stays below target for too long, we may have a hard time keeping it there. the fed vice chairman saying as they do the big policy review this year, maybe they consider letting inflation run above target, making that more explicit. those are the things we are listening for on tuesday and

wednesday. ramy: global economics and policy editor there, as we look ahead to what is happening with the fed later this week. let's bring in our next guest, from los angeles with medley global advisors, managing director. , iore we get to fed speak want you reaction to this headline that just crossed in the past few minutes, with donald trump saying he will extend the deadline in the crucial u.s.-china trade talks. what should we be looking for? i am seeing this as a sigh of relief. >> it is a sigh of relief. there was some worry the extension were not happen, but given he signaled before he may --ended, this is a mount, this is an outcome the markets will appreciate. you can see it in the aussie dollar and the yuan. it will probably start to see some strength, because there is

uncertainty in the currency itself about the tariffs going up to 25%, how that would impact the chinese economy. you can see the chinese stock market seeing further recovery from here. all good news. the agreement still needs to be completely worked out. what is the agreement exactly at what is the compliance exactly and what is the timeline of the compliance precisely? he has had 300, 400 days. it is not clear yet. we will learn in the next number of weeks. the threat of tariffs being revisited in the future could still be there if china turns out to be noncompliant. markets will keep a level of caution, but the news is encouraging. ramy: fairpoint on needing clarity. s&p futures just crossed the 2800 level, their highest since early december. how much do you think we could see a spike and how much do you

think we might get into over exuberance? >> it could be somewhat indeed because there is now a lot of momentum behind this in the sense that one trade was on everybody's mind last year and the fourth quarter. that was one of the key contributors to the downdraft in markets. as the federal reserve followed through with his communication on friday, there was more developing communication, revision of framework. they were going towards a situation where we are going to have a friendly environment for stock markets likely weakening of the dollar, and lower interest rates overall. a benign environment where inflation leads to higher stock prices. of perfect kind storm, i am wondering whether that changes your views on emerging-market assets. this chart looking at asian stocks in the e.m. space. of marketsn a number

from shanghai to hong kong to south korea, new zealand even entering overboard territory. momentum has been picking up, but we are also seeing the relative strength index starting to approach the 200 day moving average. is there a sense that this good news on the trade front gives another leg up to these equities? where do you see best value opportunities? do you see further upside for chinese stocks, even though we have had a big jump? higher china has closed since last september on friday. our kauai think the word overbought is not the same as overvalued. there is value in some of these markets. china, the multiple valuation is really low. there was such depression last year that there is more room for upside, even when you see technical indicators indicating a short, overbought signal that could reverse temporarily.

the rally continues from there. earnings have come out in the u.s. somewhat stronger. how will this play out globally? globally, earnings are impacted by the fear of trade war and the subsequent caution when companies started to pull back. how will that be reflected in forward-looking indicators, like pmi data? i think those data will be the drivers for the next quarter to move the stock market potentially higher. in china, there is upside potentially given that the multiple valuations are far more undervalued relative to the u.s., for example. haidi: in the wake of the trump tweet on delaying the tariff breaking u.s. dollar through. does this mean we will see further upside for emerging-market fx, given how closely correlated and how they

foreshadow the moves in the yuan? >> the yuan has always been the barometer of the global economy, particularly relating to trade. the movement of the yuan, reflection of the dollar entrenching, because you have uncertainty receding while the yuan see strength. i would not see the yuan strengthening all the way down to six. that would be an aggressive outlook. but it will strengthen, and that will give a boost to e.m. assets right confidence perspective that people see the trademark is getting out of -- see the war getting out of the picture for the time being and economies may have some relief. haidi: always appreciate your time. lots market, on daybreak asia. this is bloomberg.

haidi: a quick check of the

latest business headlines. a canadian money giant has built up a small stake in a u.s. rival and may push for changes as it considers a hostile takeover. they have acquired 1000 shares through a subsidiary and plan changes to bylaws. we are told they want to lower the amount of shares needed to call a special meeting from 25% to 15%. ramy: -- is reportedly close to buying spark therapeutics in a deal worth $5 billion. spark had a market cap of less than $2 billion in the close on friday. the wall street journal says there is competition from one other bidder. spark specializes in therapy drugs and its blindness treatment was the first of its kind to win u.s. food and drug administration approval. haidi: huawei has launched its first folding tablet found just days after samsung did the same. the phone has a 6.6 inch screen size and opens out to become an

eight inch tablet computer, slightly bigger than the galaxy fold, and will be more expensive. it will cost $2600. the galaxy cold -- galaxy fold comes in at just under $2000. ♪ this isn't just any moving day.

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a gohis is we start with the latest on the trade deal. president trump says he will delay the march for deadline for extra tariffs on chinese imports. he tweeted a list of areas where progress has been made, including intellectual property, technology, and currency. he announced as a result, he would delay the tariff deadline. eight a promise summit with president xi jinping, a full agreement will be concluded. north korean leader kim jong-un is in the middle of a two day journey to vietnam for his second meeting with president trump. his train has crossed into

china, but has been traveling slowly due to being heavily fortified. kim is expected to travel by car from the china-vietnamese border. his trip to hanoi will be the first by a north korean leader in half a century. his grandfather visited in 1964. voters in okinawa have rejected plans to expand a u.s. marine base. local people asked to approve the government-backed land reclamation scheme that would allow the base to move to a remote coastal area. nhk and kyodo both report exit polls showing the question was defeated. the referendum is nonbinding, however, and earlier this month the government said the results would not affect its plan. spain has surpassed italy and risen to the top of the global tables for health. the 20 addition of the bloomberg healthiest country index ranks 169 countries across a range of

factors that contribute to well-being. spain was in sixth place last year but is now first. nations the healthiest in asia, fourth place overall, while the u.s. fell to 30 fifth place. life expectancy has declined due to drug overdoses and suicides. 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'm su keenan. this is bloomberg. ramy: thank you very much. let's check again on australian markets and bring in sophie kamaruddin. looks like a positive morning there. sophie: aussie stocks rising for a third straight session, up .2% as the earnings season winds down. we are seeing gains led higher by tech and health care while real estate layers are under pressure. asian stocks could be on track for the best winning streak in a year with the regional

benchmarks set for a six-day of gains. this comes on the back of trade tweets from trump, saying he will delay the increase in chinese tariffs. that has sparked a rally in the aussie dollar, up one third percent. cnh continuing to strengthen after its best week since mid-january. let's check some movers in sydney. educationrds, gh sliding 9.4% after its report it sees challenging conditions ahead. a 96%ease sinking after year-on-year drop in first-half profits. whitehaven is snapping a two day rise. qbe, one of the best performers today, back in the black after the insurance player managed to boost profit by scaling back on overseas businesses. some stocks gaining ground, adden rising to the highest level on record after the full-year profit beat the

highest estimate. we do have this company gaining ground as well. the company says it does not see any material impact from the senate report released on friday on the financial sector in australia. this company gaining ground, climbs to the highest level in 12 years after first-half income came in at $7.1 million australia. bluescope steel rising for a third straight day, climbing to the highest level we have seen since november 2018. haidi: let's get more on bluescope steel. it has announced record first-half profit of $624 million australian. the question is, what happens from here? is it sustainable? ramy: bluescope warning the second half is likely to be weaker. but it still sees the full-year up over 10% year-on-year. very strong numbers, up 42%, best half on record.

bluescope says it is driven by strong demand. a handy tailwind as well from the weaker aussie dollar. looking forward, healthy cash flow means the $250 million share buyback announced in december is going to continue. the company looking for growth opportunities in north america and at home. interim dividends of six cents after slumping most of the year. the share price rebounding, as sophie was saying. clouds on the horizon. it is ongoing. the escalating industrial action down the coast from us on sydney. ramy: paul, a little more on that. bluescope is considering using iron ore from brazil instead of western australia. not so far, only about 15,000 kilometers away. what is the logic here? paul: brazil is a little further

away than western australia. there was a report in local media this morning. we might hear more about it in about an hour. bluescope apparently testing the different iron ore shipments for the past 17 years. they have had an exclusive supply agreement with its former owner. that is going to end at the end of june. it has already taken a test shipments from rio. now it is in talks with vale as well. we might learn more in the next hour. ramy: paul allen in sydney. don't miss our interview with the bluescope ceo at 8:40 am and hong kong, 11:40 am in sydney. plenty merger, on "daybreak: asia." ♪

ramy: we are counting down to

asia's first major market open this morning. japanese futures are up by about .2%, and they are not the only one, especially after what we got across the bloomberg terminal, donald trump saying he will extend the deadline on u.s.-china tariffs. s&p futures up 3% across-the-board. active trading, looking at a positive start. this is "daybreak: asia.". i am ramy inocencio new york. haidi: and i am haidi stroud-watts. warren buffett says he wants to spend cash on a giant acquisition. our bloomberg finance reporter joins us now on the line. catherine, what has he said about his plans for what he is going to do with this cash pile? >> he was not incredibly optimistic. if anything, he warned investors that prices for businesses are at all-time highs.

that might be the case for 2019 again. he warns that might mean berkshire spends more of its money on common stocks of other companies. investors might be intrigued, he did dig into his changed policies on repurchases. anotherht also open up avenue for berkshire to spend some of its money. the issue of succession comes up every time. did warren buffett say anything about that? katherine: he praised the people who were promoted last year. he did not give any explicit directives on who will take over. he did talk about important issues that investors might care about after he is gone, including how berkshire should be kept together as a conglomerate, despite its wide-ranging businesses. he also talked about the purchases. i think that gives the successor a lot of flexibility to say, buffett actually did share

repurchases and said the company should stay together. that might be helpful for his successor. haidi: what does the letter tell us about buffets view of the current political situation in the u.s.? katherine: he went through kind of american prosperity and how it has been incredible over the past several years, but he threw and some lines that are interesting. he noted prosperity has been gained in a bipartisan manner. you could read that as his view about how the contentious nature of the u.s. political system. he also talked about it is beyond arrogant for american businesses or individuals to boast they have done it alone. that might say something a bit about some political leaders. its: berkshire wrote down stake in kraft heinz. we know what happened recently there. to what extent did it hurt the company? katherine: berkshire took a $2.7

billion hit. this raises the question, how does buffett view this as an investment going forward? you could say he is a long-term investor, so he likes to stick with bets for decades. obviously the write-down of key theds at kraft heinz raises question, can this consumer-facing company survived the next decade in terms of customer preferences and how quickly they are changing? on whatnance reporter has been happening with warren buffett and berkshire hathaway. to lenovo, the company keeping a watchful eye on trade negotiations between the u.s. and china. there outlook remains cautious between trade tensions, and the cfo says it's global supply chain will help lenovo react quickly to changes. >> the u.s. at china are the two biggest economies in the world. obviously we believe a two

sector solution will be better for the world and customers. >> how exposed are you to the trade tariffs that could disrupt the supply chain in the global electronics market? >> we are a global company. if you really look at our business, we have been evenly spread around the four major regions -- american, china, asia-pacific, india. havee same time, we also from a supply chain perspective, we have may be 50-50. some are in-house. we will obviously be able to cater to faster to whatever changes as a result of the trade negotiation between the two countries. haidi: more than half of your revenue comes from north america or china. if the chinese economy slows

down, that could drag down other economies depended on china as well. >> right. i think the answer generally is yes, but at the moment our china business -- the american region, china, as well as india, europe, africa. part -- this is the good thing about a global economy, when you have a well spread business, if one region is not growing fast, the other is picking up. >> there is growing scrutiny of chinese firms like huawei worries ete -- huawei or zte. are you concerned that might affect lenovo? >> we are an international company, diversified management, and we have been doing business around the world for the last

10-15 years. partnerwe are a trusted to many of the local business partners, as well as our customers like us. that,continue to execute i think we will overcome the challenges. >> you are not seeing any scrutiny so far? >> so far we see our business is growing. as you see from the result, i think if you really look at the four regions we are doing business, china, obviously the economy is slowing down, and as a result we maintain single-digit growth in revenue. the american region is doing very, very well on a year-to-year basis. >> your mobile division has become profitable for the first time in years. the as analysts expect market not to do very well in the near future. why not sell this segment while

you are ahead? >> we feel that the mobile business plays a very strategic role in our business moving forward. the reason i say that is we believe the world is going to be getting smarter, and therefore connectivity is one of the key functions in any smart device. that is number one. number two, the mobility business today cannot be profitable. we adopted a strategy at the beginning of the year. we can see the improvement of profitability between quarter one and quarter to, and quarter three we end up really profitable. >> does that mean you can compete with bigger rivals like samsung, apple? what is your end game? >> our end game is we continue to grow the business profitably in a very careful manner, picking up the markets where we

are good at, where we are making attacking the market where we feel we can do it in a profitable manner. we are confident that business will continue to grow, but obviously we will definitely grow it in a very healthy manner. >> you are still cash negative. will you need to raise further funds this year? >> cash negative meaning -- >> cash flow. >> i think our cash flow is actually positive, if you really look at our operating cash flow. we improved significantly year-to-year. while our business on the pc side, or wherever we have a business model, you actually collect cash before you pay cash. we actually are increasing our topline. on the financial liability perspective, i think we successfully refinanced the 1.5

billion bonds that were supposed to mature in may this year. we did about half of that six months ago, and recently we did another convertible to complete the refinancing. it will continue to generate more operating cash, but at the same time we don't have any significant pressure of refinancing any of our long-term liability. haidi: that was the lenovo group cfo speaking to shery ahn about their turnaround strategy at impact of the global trade tensions. don't forget our interactive function at tv . watch us live, catch up on interviews, and do a deep dive into any of the functions we talk about. also join our conversation to send instant messages, questions to our guests. it is for bloomberg subscribers only. this is bloomberg. ♪

."idi: this is "daybreak: asia ramy: let's do a quick check of the latest business flash headlines. bluescope steel reported its best first half on record as first-half profits rose more than 40% almost $450 million. rising steel prices, stronger demand, and a weaker aussie

dollar helped to give profit to boost. they are reported to be considering using iron ore from vale instead of us really up. haidi: investors in australia's brambles are due for a boost, selling its reusable plastic containers unit to a buyout firm triton. bramble says it will buyback $1.6 billion worth of shares and return a further $300 million to investors in cash, about $.20 per share. ramy: this week's u.s.-north korea summit in hanoi will see a local vietnamese airline buy new planes from boeing. that covers 10 dream minors at a list price of about $3 billion for the jets delivered in the latter half of 2020. that will lift bamboo's fleet to 30 and build on last june's agreement for 20 dream minors --

a dreamminors. haidi: the mobile world congress kicks off this weekend spain. new smartphone models will feature prominently, as well cybersecurity and the tenuous situation faced by huawei. this is the head of the international cyber policy centre at the australian cyber policy institute. great to have you. it is really hard to get around the elephant in the room, huawei and cybersecurity, particularly reflecting on hacking of the parliamentary messaging system at the broader implications for how companies and governments can better control the outcome. >> that's right. there is a huge issue around huawei, and it extends into different areas. thatve seen suggestions the australian imports to china are linked to the australian decision to ban huawei in australia. there is a bigger picture, the

western effort to get a secure supply chain around 5g. you have to ask, what are the technologies coming after 5g? there are going to be lots of technologies where using chinese products is going to be difficult, particularly sensitive and critical systems. haidi: where are we seeing progress? we have heard president trump wants to make building 5g a policy priority so there is not the issue of needing to use chinese technology. is progress being made outside of china? >> i think there is. countries like australia, the united states, new zealand, other countries, canada, the u.k., india, japan, looking at potential 5g bands, you'd start to build a critical mass of markets that can sustain a critical supply chain. the brexit decision will be critical for shaping how europe goes with this. i would anticipate that is going

to occur at we are going to start seeing a separate market emerge that is focusing on western supply. i think we will be looking at other technologies as well, like cloud. ramy: you outlined the members of the five alliance on the western side. in terms of possible rebalancing on china's side, if they wanted to build out their own network, who could potentially join them? >> i think china is big enough to be able to really have a dominant global position. i think it is logical markets are going to be countries that are unable to pay the premium to have a secure supply chain, so it is going to be developing countries that are focused on price, where china is going to win big in those markets. huawei is one of the world's largest telecommunications companies, so it is still part of western networks, on the edge of those networks with devices

and the like. i would expect it to be dominant in developing markets. ramy: pushing more into cybersecurity, one line in your notes that causes concern is, we are about to cross a threshold into the first wave of deaths caused by cyberattacks. this is disconcerting. tell me more about this. a of until now, we have had mini focus on cybersecurity where governments have started developing cybersecurity strategies. occasionally politicians will talk about a big hack they have experienced. hasat the moment, no one died from a cyberattack. there is not a spate of serious injuries. to a fairly large extent, it is off the political radar. i think the threshold we are about to cross his into the first wave of debts caused by cyberattacks and serious injuries. if you think about driverless

cars, for example, going to be rolling out across the world. if one of those networks is attacked in a cyber incident and you have one or hundreds of cars crashing into trees or buildings or people, and you start to see deaths and injuries caused by that, you are going to see a dramatic change in the way politicians deal with cybersecurity. the emphasis they place on it, the regulations around it, security controls are really going to change in a dramatic way. i think we are just on the threshold of approaching those areas because we are attaching more and more things, ba cars, robots, devices we have in our houses that have the potential to cause injury. haidi: fergus hanson, thank you for coming on for us, of the australian strategic policy institute. coming up, we are joined by the bluescope ceo to discuss those record results and whether they are sustainable.

we have the market open coming up next in tokyo. we are expecting to see a pop at the open on the back of the news that the march 1 tariffs deadline for imposition of higher tariffs on chinese goods has been delayed. ♪

>> very good morning. i'm haidi stroud-watts in sydney. >> and good evening. i'm ramy inocencio. sophie: i'm sophie kamaruddin in hong kong. welcome to daybreak asia. ♪ >> top stories this monday, tariffs on hold. president trump says talks have been productive and he's delaying them. growing optimism due to give stocks a lift. uan. futures advancing the y

and 80 aussie dollar bull strengthening. ramy: kim jong-un and his second summit with donald trump. in are live in how to why -- on hanoi. let's bring in sophie kamaruddin watching the markets. sophie: first a check on the markets, aussie dollar rallying with the kiwi on the back of trump saying the increase in trump -- and tariffs will be delayed. cnh jumping into a post tariff trading rage while the yen is going lower. on the open in tokyo, the nikkei 225 adding 6/10 of a percent this morning, resuming gains after sliding marginally on friday. we are seeing the kospi extend gains by half a percent, while the asx 200 is rising. we are seeing the asx 200 higher by tech and materials, bluescope

one of the best performers. asia stocks could be on track for the best streak in a year with a benchmark set for a sixth day of gains. there could be headwinds. jumping into the board, i want to show you what is going on with good mood in japan, which could put the test according to securities. traders piled into call options. pushing the cost of hedging against japanese stocks to the lowest level since september, as you see from the chart here. this rebound in japanese stocks and whether that can be sustained remains to be seen. haidi: let's get you first word news with su keenan in new york. su: we start with theresa may, who has delayed a parliamentary vote on her brexit deal, but says it will happen by march 12. a little more than two weeks before the u.k. is due to leave the european union.

as you can see, she's in egypt for the arab nation summit and will again attempt to win concessions for her deal. some eu officials say brexit could be delayed by as much as 21 months if no agreement is reached before march 29. additional sanctions may be imposed on venezuela when regional leaders meet in colombia later monday. this comes as clashes interrupted between supporters of nicolas maduro and juan guaido when attempts to deliver american humanitarian aid failed. president maduro said it was a cover for u.s. invasion. juan guaido is due to meet mike pence at the talks in bogota. the philippines is starting the search for a new central bank governor after the death of nest rs penny a over the weekend. he died at 60 after about a with cancer and he will be taking the

reins until president roderigo names a successor. as he raised the interest rate by 175 basis points last year after inflation rose to a nine-year high. a u.k. business secretary, craig clark, is being -- i should say greg clark, is being urged to lead a expedition to japan. honda decided to close the factory with the loss of three and a half thousand direct jobs, and at least 6000 in the supply chain. it was not as a result of brexit. global news, 24 hours a day on air and at tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. ramy: thank you very much. president trump says he is delaying the march 1 tariff deadline with china. he tweeted his decision following, " substantial progress" the two sides have

made in ip protection, agriculture services, and currencies. jodi schneider joins us from hong kong. give us the details here. jodi: we just saw this tweet fairly recently. he tweeted that the agreement, while they haven't yet reached an agreement, enough progress had been made to delay the march 1 deadline for imposing more tariffs. president trump threatened to raise those tariffs on $200 billion worth of chinese imports from 10% to 25%, which would be a substantial increase. it looks like they must be making progress because he's allowing that deadline to be extended. he said if they make more progress, he will meet with president xi probably at mar-a-lago, although no date has been set. >> at this point, what are the major obstacles?

jodi: looks like one main obstacle is on a currency agreement. the u.s. asked to china to not modify the currency, not to allow it to be devalued if there is an agreement. the concern on the u.s. side is that the devaluation in the one would affect the tariffs and would be a way to offset the tariffs. the u.s. doesn't want to see that. but the enforcement mechanism is a major stumbling block at this point. it looks like that is one of the big obstacles to getting an agreement. of course, there's been thorny issues on intellectual property rights, china's industrial policy. president trump saying they are making progress, but these are big issues to iron out and clearly this could not be done this week before the deadline. ramy: speaking of thorny nest, ess, testyhornin

words from robert lighthizer. will kind of implications does this have in terms of the overall deal? jodi: i'm not sure it has many implications. president trump has had testy exchanges with other members of his cabinet, but apparently he and mr. lighthizer, there has been increasing frustration between the two of them. this came out the other day when meeting with the vice mayor, china's -- vice premier, china's main negotiator. president trump apparently told mr. lighthizer he didn't think memorandums of understanding, which mr. lighthizer just said they were trying to reach, he didn't think they held up. and this apparently just the latest in a set of real frustrations between the two. president trump has wanted mr. lighthizer to move more quickly on the deal. he has been in the president's camp on being tough on china,

for president trump has been worried about the cost of that in terms of things like the stock market and blamed mr. lighthizer for not being able to reach this deal more quickly. mr. lighthizer has not wanted mr. trump to intervene in these talks as much as he has. the two sides, frustration there. we'll see how this plays out. apparently, it doesn't look like serious implications. they have extended the deadline and are moving forward on those talks in a significant way. as theye most notable, played out rather awkwardly. our senior international editor jodi schneider with the latest on trade, giving a big tailwind to asia stocks as a gets started. the other major risk event investors are watching for this week, the second summit between president trump and the north korean leader kim jong-un. kim is on his way, taking his heavily fortified train to

vietnam via china. stephen engle is in hanoi. we know you flew there. you didn't take a long train journey. we're still a few days away from the meeting. some of the key players on the move. stephen: yeah, that's right. kim jong-un on the move with his team, as well as family members, his sister, who made her debut on the international stage with her charisma in the olympics last year. she's apparently on that train, as well as the key negotiators. they will be arriving in the next day or two. it's a slow trip to the border, where he will cross, and then take a car here to a rainy and hanoi.anoi -- chilly it's supposed to warm up, but now cold and wet. the negotiators have been hammering out details to discuss

between donald trump and kim jong-un to move the ball forward from what was a rather uneventful joint declaration, if you will, last june in singapore, a vaguely written document that pledged denuclearization of the korean peninsula without specifics. that's what they need to hammer out when the two gentlemen meet face-to-face. ramy: that begs the question of what can actually happen here. not so much really happened after singapore. what is at stake here? stephen: well, a lot is at stake. a year and a half ago, there was a lot of saber rattling, missile tests over japan. that has come to a halt, but tension is still there because we don't have a clear course of action from the north koreans. that's what the u.s. administration is going to seek, and that is all along,, complete

verifiable, denuclearization. they didn't get any of those things or pledges of any of those things in singapore. yes, they pledged to denuclearize the korean peninsula, but both sides have different definitions of what that means. the north koreans want the military capabilities of the united states to be off the korean peninsula. two sides to that. again, kim jong-un unlikely to give up his loan bargaining chip to the united states. he's probably going to want to get one-on-one facetime with donald trump. donald believes he is the best negotiator. who knows if he will give up the best concessions, like state big and, who has been in pyongyang several times ahead of this summit, might not want to give up. haidi: other than playing host, of course, what other way is vietnam really involved in this

summit? it's an well, interesting question because vietnam has seen explosive economic growth, averaging 6.6% over the last decade. i've been coming to vietnam many times. i've never seen it so vibrant and transformational. it is booming right now. a lot of people are saying kim jong-un could use a vietnam as a good model for its economic transformation. it's a one-party socialist ruled country with a booming economy and strong manufacturing sector. this is what a noted economist told me about how pyongyang could possibly see vietnam as the model. up,f they are going to open and over the long-term, north korea could take lessons from vietnam. those would be invest in your infrastructure. but your point, seek investment from hong kong, taiwanese firms.

they would be fundamental in building out the industrial park, building out the factory linked to the global supply chain. they cannot do it by themselves. stephen: it seems as if the white house and donald trump feel the best alternative case to having a nuclear arsenal in pyongyang is to have a strong economy there to divert kim jong-un's attention. and donald trump, over the koread, tweeted, "north will become a great economic powerhouse. north korea will become a different kind of rocket, an economic one." we'll see. ramy: stephen engle on the ground for us in hanoi. we'll have in-depth analysis on the second summit between president trump and kim jong-un live from hanoi all this week. still ahead, the ceo of australia's biggest dealmaker just reported bumpie half-year

resultsr. haidi: coming up next, busy week ahead for asia central banks. this is bloomberg. ♪

haidi: this is daybreak asia. i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. the philippines is starting a search for a new central bank governor. the last one died at the age of 60 after a battle with cancer. he praised the benchmark rate by 175 basis points last year after inflation rose to a nine-year high. bloomberg spoke to one of his deputies last week, who said the bank is staying cautious on monetary policy. more on the hawkish side in the sense that we recognize the risks in the

market. we recognize the possibility of oil prices surging again. so we are trying to be more cautious about this potential risk that could impinge on our ability to maintain price stability in the philippines. ramy: and that was philippine central bank deputy governor diwa guinigundo. haidi: shaping up to be a busy week for central banks, watching fed chair powell testimony for any clues as to rate policy. thursday bringing us gdp, delayed because of the government shutdown. it's also expected to fall short of president trump's ambitious goal. we have a central bank decision from the bank of korea. they are likely to stay on hold. let's talk about that with katrina, joining us here. busy week ahead, indeed. are we expecting any trade --

change or signaling from fed powell? i thought what we had last week, regarding what they could do to the balance sheet, was a game changer. katrina: we're expecting it's going to stay steady and a sense it is not going to influence asian central bank policy too much. we are expecting them to stay fairly quiet this year after a dramatic year last year for places like the philippines, indonesia, and india. haidi: i suppose with the fed pulling back, as well, giving more breathing space. i want to jump into this chart, in terms of global growth. we had the good news that additional tariffs on chinese goods are being delayed for now. there seems to be positive progress on trade talks. if you remove a trade war out of the situation, do you still think cyclical or structural slowing when it comes to major economies, suggesting that yes, we're still seeing levels of

growth, but everything is trending downwards. katrina: that's exactly right. we're seeing that in asia and further abroad. china exports started off weak in january and that was a continuation of weakness at the end of 2018. while the trade war, we're seeing it exacerbated the slowdown, it has been a cyclical -- cyclical downturn in global demand. we passed the peak we enjoyed. ramy: this could be a temporary sigh of relief for the market, as well as economic watchers such as yourself. in terms of the turnaround that could happen with emi's, as well -- pmi's, as well as exports, to what degree does this help or not help anything until we get a resolution? katrina: that's right. we really need to see an end to the trade war because of the impact it's having, not just on the hard data we are seeing

slowly materialize in industrial production, export in china, but it is affecting sentiment, as well. more cautious behavior from economic agents means weaker -- asians means weaker implement data, and that's really hurting the already existing slowdown in global demand. ramy: looking ahead, china pmi coming up this thursday. the expectation here is for not much of a bump, maybe 0.1% to 49.6 in february. what's your take? what do you think investors need to know about this? katrina: the really big takeaway is we're expecting china's manufacturing sentiment will remain roughly around the three-year low, and that's a testament to the fact slowing global conditions, as well as the mystic demand, who is still quite soft in china. while policymakers have loosened the stimulus tax, they are not

really coming at it with vigor. they are taking a measured approach. we are not expecting a rebound in manufacturing sentiment or manufacturing data like industrial data. haidi: the pboc has been remarkably restrained. there hasn't been a repeat of whatever it takes. katrina: that's right. that's a reflection of the fact that they are trying to keep a focus on managing the financial risks. they are not wanting to get into a whole lot of pile of debt again that they did in the global financial crisis a decade ago. they are still trying to stay on that sustainable path. haidi: you look at the most recent gauges on the crisis, looks like the stimulus is starting to pass through. does that mean there's room for possible upside surprises for the rest of the year? katrina: perhaps a little, but it depends on many factors. the trade war, how that plays out. we know that while the deadline on the tariffs has been

extended, that could change any moment. that's a downside risk we're looking at. -- the pboc has been increasing stimulus, we're not looking at upside risks. the downside seems to be dominating. ramy: you can see that on the bloomberg terminal i have got on my screen. you can see china's credit expansion in january was a major pop, that blue there. but will that be enough? looking at the trajectory of where the u.n. might be going -- yuan might be going, we talked about the currency pact between the u.s. and china. to what degree do you think this will be something beijing can be held accountable for? katrina: i think it's really too early to draw too many conclusions on that front, but i think more broadly, there has been a push to make chinese policymakers more accountable for their actions. we're seeing that with the trade

war and the structural changes the trump administration is trying to drive around intellectual property protections, cybersecurity theft. i think more broadly, this could be a positive thing. ramy: all right. and moving on to japan, because we got japanese industrial production, as well as trade this thursday, as well. in terms of that, we know that the labor market is doing well, but we're still not saying wage growth and it's all about that to try to boost consumption. katrina: that's exactly right. that's really the missing ingredient in japan at the moment, wage growth. we've seen that they have enjoyed an export uplift last year, but without that missing ingredient of stronger wage growth, we're not going to see that sustained uptick in private consumption that's really the underlying and key driver of japan's economy. haidi: katrina, always a pleasure. katrina ell.

you can get a roundup of the stories to get your day going. bloomberg subscribers can go to dayb on your terminal, also available on the mobile in the bloomberg anywhere app. you can customize those settings so you just get the news that you care about. this is bloomberg. ♪

haidi: a quick check of the latest is this flash headlines. bluescope steel posting best have on record as first-half

profit rose more than 40%, almost $450 million. rising steel prices, stronger demand, and a weaker aussie dollar helping give it a boost. bluescope is considering using iron ore instead of western australia for its east coast port. ramy: investors in australia's brambles are due for a boost. they are selling a reasonable plastic containers unit to buy out from triton and the unit of the abu dhabi investment authority. they say they will buy back more than $1.6 billion with of shares and return a further 300 million dollars to investors in cash. buyingroche is close to socks their picks with a deal worth $5 billion. the market capital is less than $2 billion at the quote on friday. roche faces competition from one other bidder. they specialize in gene therapy drugs.

they were the first of their kind to win u.s. fda approval. coming up next, chinese small caps officially entered the bond markets. this is bloomberg. ♪ the latest innovation from xfinity

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su: this is daybreak asia. i'm su keenan with the headlines. president trump says he will delay the deadline for tariffs on chinese exports. he tweeted progress has been made, including intellectual property and currency. many said as a result, he would delay the tariff deadline and plan a sham it -- a summit with president xi jinping. meanwhile, kim jong-un is in the middle of a two day rail journey to vietnam for a second meeting with president trump. his train crossed into china but is probably quite slowly due to

being heavily fortified. kim is expected to travel by car to the border. his trip to hanoi will be the first by a north korean leader in half a century. his grandfather last visited in 1964. voters in okinawa have rejected plans to expand the u.s. marine base their. global people were asked to approve a land reclamation scheme that would have allowed the base to move from a city center camp to a remote coastal area. and hkn kyoto both report active polls showing the question was if you did. -- was defeated. the government said the result would not affect its plans. spain has passed italy and risen to the very top of the global league table for health. the 2019 edition of the bloomberg healthiest country index ranks 169 countries across a range of factors that all

contribute to well-being. spain, sixth place last year, is now in first place. japan is the healthiest nation in asia, in fourth place overall, while the u.s. fell to 30 fifth place as life expectancy declined due to drug overdoses and suicides. global news, 24 hours a day on air and at tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. let's take a look at how asian markets are shaping up with the key catalyst of the trade tariffs on chinese goods being delayed, according to president trump. let's look at the reaction with sophie. sophie: on the trade optimism, we are seeing asia stocks rise, set for the best street in a year, the nikkei 225 adding 6/10 of a percent as treasuries are falling. we are seeing a move in currency prices. aussie dollar rallying 4/10 of a

percent, kiwi dollar also climbing, and the korean won adding 4/10 of a percent while the offshore yuan is gaining ground. high.g a new 2019 when it comes to stocks on the move, trait optimism may be driving the events in a japanese electronics stock. they are rising to a june 2018 high. the stock is the biggest boost to the topics this morning. we are seeing nintendo shares climb on its plan to buy back their investments by existing shareholders. the last buyback was in 2014, and we have nintendo saying it is canceling 10 million shares held as treasury stock. in sydney, i want to highlight reliance worldwide, flipping its results. looking ahead as copper prices are seeing a decline and revenue performance is seen as the key driver of profit growth in the second half. when it comes to brexit,

reliance says the company does not see a material impact on the business. ramy: sophie on the markets, thank you. let's stay on the topic of brexit is it was busy for theresa may as she pushed back the deadline for parliament to vote on heard plan -- her plan yet again. kathleen hays is here. where does this leave the u.k.? kathleen: it leaves them waiting for the vote, facing one vote this week. but the big vote on the deal, theresa may says i'm pushing that out march 12, 17 days before the deadline. 27,n, this week, february some are saying her colleagues, many of them oppose certain things in her deal, may take this as an opportunity to focus on those. in order to put this in perspective, let's look what happened to this rocky road theresa may has been treading. first of all, the plan was crushed when the vote went through. it was the worst loss for a u.k.

prime minister in recent british history. the average backstop has a very big deal. it has not been -- irish backstop has been a very big deal. it has not been solved. and putting it off now, her vote on the deal, for another couple weeks is seen as a negotiating tactic. if you get too close and you don't have a deal, you may say oh well, i'll vote with theresa may. some have wrote, saying they are not going to let this deal be passed without some kind of deal in place. in other words, they oppose a hard brexit. she said she will punish these brexit rebels, although she has not made any definite threats. the job is not getting easier for theresa may and it remains to be seen if there will be shifts made on either side to get it done. and they went to egypt to

the arab league summit. she's trying to get concessions. is there any indications she was successful? kathleen: it looks like members of the european union are also getting concern about going over that brexit cliff. they do not want to do that. bloomberg news learned, and you can see theresa may getting off the plane in egypt, they are considering offering a two-year extension. but the catch here is if you agree to the extension, you also have to agree to stay in the european union until the deal is in place. and in fact, possibly the whole two years. this kind of thing could enrage british lawmakers, but the eu council president is among those who has become more conciliatory as he becomes concerned about needing to avoid the hard brexit. remember, he's the guy who said

there's a special place in hell for brexiteers who don't have a sketch of a plan. today, he was tweeting out we're on the same side, we have common interest, we can't let big powers resolve this. maybe progress is being made. i think many people would say extending this is an really -- is it's really the solution. but at least advise them time. there are some people who want it hasn'tit's not -- moved to center stage just yet. haidi: kathleen hays, global economic policies editor. another week of brexit uncertainty. let's get to china where the stock surge is overshadowing the world leading bond rally. now it could be hurting it. the rally added almost $1 trillion. small caps have entered a bull market. joining us is our reporter. what are analysts saying in terms of the inverse correlations between the equity

front and what is happening with the bond rally? >> of course. we are seeing more and more chinese investors start buying stocks rather than bonds. fromasset classes benefit the loose monetary policy from the pboc and there are bets the pboc will cut benchmark interest rate in the coming month. both asset classes would be supported by that. .he wildcard is the trade war because of the progress made, risk appetite is getting stronger and investors are buying more and more riskier assets, such as chinese stocks. that's going to support chinese stocks for a while. and another reason they have dropped so much in 2018, they now look very cheap versus the bond market. that's also another reason why investors should buy stocks. and in the bond market,

they are saying investors should focus more on the riskier assets such as the corporate bonds rather than -- bonds. ramy: risk on tension, at least for today, but let's put this out for investors watching. what's the outlook? tian: the outlook for the stock market, chinese stocks are not a sure bet. we are seeing signs the rally has been getting overheated and has gained a lot in the past few months, and traders are actually buying more and more money to invest in shares. buying momentum has been so strong, we can see the major four indices have been over in bowl territory the past week. on trade war really depends the implementation of the rules. there's a chance we can get news in the near future. ramy: definitely, always that

chance. tian chen, thank you very much. in less than half an hour, you don't want to miss a new look of bloomberg markets china open. that's life out of beijing as we launch our new state-of-the-art studio. we'll have all the latest policy lines and some great guests. we'll assess their impacts on the markets and the global economy. haidi: coming up, speaking to the ceo of australia's biggest dealmaker. bluescope's chief joins us next. this is bloomberg. ♪

haidi: this is daybreak asia. i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. let's to a quick check of the headlines. the smart bull market is opening up again. huawei launched its first

folding tablet phone after samsung did the same thing. it has a 6.6 inch screen and opens up to become an eight inch tablet computer. that's slightly bigger than a galaxy full and the mate is a bit more expensive. it will cost $2600. the galaxy fold comes in at just under two dozen dollars. -- $2000. haidi: canadian money giant has built up a new steak and could push for changes as it considers a hostile takeover. they have acquired 1000 shares and are planning to table changes to bylaws. the new ceo gary goldberg says the move is "a desperate attempt to complicate his impending deal." ramy: this north korean summit in hanoi will see local airline bamboo airways buy new planes from boeing. the list price is $3 billion,

with those jets being delivered in the latter half of 2020. it will lift the fleet to 30 and build on last june's $5.6 billion agreement. beat guidancepe on higher prices after a week in the aussie dollar. the income was up 42% the same time a year ago. we'll get it over to the bluescope ceo. mark, great to have you. you have cautioned this will be the peak and things will be softer going forward. mark: yes. what we're saying in the first half, after a benefit of strong pricing in north america and in asia, we're seeing prices moderate to the back end of the half. regarding toward a softer -- softer half on the lower prices. haidi: one of the things you

flag is concerns of a china or slowdown in china, second-biggest market in terms of revenue. does the latest developments in terms of positivity of trade talks and delayed china tariffs and potentially a deal struck between the two countries, does that change or level of optimism on whether demand will perk up from china again? yeah, clearly a resolution of trade tensions is in everybody's interest. the drag on demand has had an impact. from our perspective, positive moves in that direction are a good thing. our business in china, on the ground in china, and we have a focus around coding products and buildings. we are seeing strong levels of demand in the country, but a resolution of trade tensions is in everybody's interest. ramy: looking to positive -- possible growth around the world, you've been talking about this expansion in the united

states, $700 million for the north star mill. give us an update on what's happening there now. mark: so the planning is well progressed on that. we've committed in this have to spend about $50 million to finalize the engineering work and the proposal to go forward. we have quite a structured process around large capital expenditures and we're working through that. we're encouraged by strong underlying demand in the u.s. we are seeing good levels of economic activity. it's a fine asset, and asset we are happy to have in the portfolio. it's an expansion an all-star. we're a small player. we're looking to add to our existing facility. more work to do, but getting closer to a final decision and we expect the announcement to come in the second half. ramy: with investment in the country, you know president donald trump likes to hear about jobs.

is there anything you want to update us on in terms of job additions with northstar? expansion ofly an that nature would require more employees, which is terrific. we have a bunch of very motivated and incentive it'd -- incentivize employees and delta. i wouldn't say we been expending -- i would say we have been expanding our business deals, as well. it's been busy and we've been adding employees to that business, as well. on the west coast, we have a coating facility, which equally as a value to raw materials and puts that into the final construction markets. we're seeing expansion there. the strength in the u.s. economy has allowed us to increase levels of employment across the country, not just the north star mel. haidi: i think it goes to the broader question of how you found the political situation in

the u.s. and the policymaking. has it been favorable to the way you have been able to conduct business strategy there? our customersain, are industrial customers across the country. certainly the feedback we get from them is that they're busy and the investment environment is a positive one. certainly, the growth in areas like internet shopping, data warehouses, all of those sectors have been really quite strong for us. the economic settings in place are having a positive spin off for our customers, and that means more production and more employment for us, which is a great outcome. haidi: mark, there's a report recently suggesting that bluescope will be considering using brazilian iron ore instead of australian iron ore. tell me, in the context we've seen in prices following the dam disaster, whether you expect the shortfall to continue.

is that an option bluescope is considering? report quieted some facts and drew some parallels that weren't necessarily accurate. we're in the process of coming to a long-term supply agreement with a long-term supplier of iron ore, who have been a terrific supplier for 17 years. that's a legacy contract that came out of our spin out in the early 2000's. we're reassessing how we'll reacquire iron ore going forward. the market has changed dramatically, as have the cold markets. no one really rights long-term contracts for internationally traded commodities anymore. we're coming out of the legacy contract. we anticipate a large percentage of iron ore will continue to be purchased from australian sources. we have purchased some from brazil in the past, but not

large amounts. and as we purchased iron or from other parts of the world, as well. so the story probably didn't understand the context fully of the fact we're coming to the end of a legacy contract and looking to be contract iron ore supplies. haidi: appreciate you clarifying. in terms of elevated pricing situations for iron ore, do you expect that situation to continue? how does that change the outlook when it comes to cost management this year? mark: yeah, that's very hard to read. the terrible tragedy that occurred had a short-term impact on pricing, as had some of the supply shock is absorbed by the market. how that plays out in the medium-term is hard to tell. we obviously play a spread game and increases in raw material costs need to be passed on through prices in finished goods. we don't really have the ability

to forecast iron ore and coal prices. that's a difficult thing to do. what we try to do is recover any increases in cost as quickly as we can. certainly, the short-term spike on the back of the supply adjustment has seen prices rise. mark, thank you for joining us there. some breaking news crossing the terminal right now. president trump says he's been speaking to reporters at the white house right now and saying news on china will be coming in the next week or two, crossing the bloomberg terminal. separately, looking to north korea, president trump says he's not removing sanctions on the country right now. we will look ahead to both of those here. a couple of other lines i'm -- thistrump says that is him speaking to reporters here on china. we'll have in-depth analysis on

the second summit between president trump and kim jong-un live all week. this is bloomberg. ♪

haidi: this is daybreak asia. i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. let's preview what to watch with sophie kamaruddin in hong kong. e're going to see if

risk appetite carries through. investors piling into chinese equities, which have clocked a rebound in excess of $1 trillion. that has helped of the csi 300 cap a seventh straight weekly rise, longest such streak since 2016 for the gauge, up nearly 70% year-to-date. sayingptimism is substantial progress is made on negotiations, including areas like tech transfer, so we are keeping a close eye on chinese tech stocks this morning. huawei suppliers also on the radar after the company launched a 5g phone with a $2600 price tag, more expensive than samsung's offering. watching suppliers and keeping an eye on suppliers like sunny optical on a nikkei news report that both have seen a 30% increase in camera lens orders

for the first quarter from huawei. yuan,heck on the offshore which is continuing to power up this morning. looking for a look at the cnh trading at 68, trading against the dollar, setting a 2019 high given the boost from that trade. take a look at the one a year chart for the offshore yuan, certainly has been able to shake off some of those concerns regarding the sluggish chinese economy and trade fears. we have seen it over the course of 2019 continue to pick up steam. haidi: a 2019 high there for the chinese yuan to watch out and the new look of bloomberg markets china open, which is up next. yvonne man, david ingles, will be joined by tom mackenzie out of our new state-of-the-art studio out of the chinese capital of beijing. the best place to get all of the policy lines next week, with some great guests, including the

chief chinese economist. andthe vice president, china asset management ceo. really taking a look at the impact, implications, of significant chinese policymaking and the ongoing trade discussions on the global economy and global markets. before we handed over, take a look at how markets are trading at the minute, getting that really strong tailwind from the positive developments in trade, a delay in the march 1 tariff deadline, the nikkei 225 seeing upsides of 6/10 of 1%. we are also seeing the kospi look to break through when it comes to resistance in that market. a little bit of a flat session with the trading in australia, alongside a pop in the aussie dollar, signifying a risk on session. you're seeing positivity when it comes to u.s. sessions, as well. ramy: let's take a look at that.

s&p futures crossed about the 2800 mark, up one third of a percent. you can see similar in the ftse china. you can also see the offshore r&b is catching strengthening by 4/10 of a percent, currently at 6.68%. let's look at some currencies as well. also some strengthening off net positivity we saw crossing the bloomberg terminal, donald trump extending that deadline with the u.s. china trade. that's it from david asia. our markets coverage continues as we had to hong kong, shanghai, and shenzhen. ♪

>> it is 9:00 a.m. in beijing, shanghai and singapore. welcome to," i'm tom mackenzie. >> were counting down the trade in hong kong. >> i'm david ingle. here are today's top stories. paris on hold, the talks have been productive and the delaying of the additional duties that will be due on friday. yvonne: the growing optimism is giving stocks a lift at the start of the week. the yen and the aussie are both stronger today. deleveraging dead? the indication suggests chinese policymakers have reached their threshold on the economic pain. ♪