psychology. andtimes people are excited the price goes way above the intrinsic value. sometimes they are depressed and the price goes below. the next thing you mentioned was how easy it is to things as they are going up. you mean easy psychologically? >> yes. know, dave swenson, who runs the endowment at yale, which is probably the best performing endowment in the country over the last 30 years, wrote a book in which he said that superior performance in investment management requires the adoption of uncomfortably idiosyncratic vision. in other words, the job in investing -- let me say this. investing is a funny area

because it's really easy to be average and it's really hard to be above average. but for a professional like , sinceor like swenson is notsy being average what we seek. average.o be above this may shock you, but professional investors do it for the money. they hope to be paid highly. but clearly, anybody can be average without any professionalism. the payoff is being above average. if you think like everybody else , you will behave like everybody else. if you behave like everybody else, you will perform like everybody else. , exceptional performance has to come from diverging from the crowd and

that is what swenson means when he says uncomfortably idiosyncratic. if you are behaving in an idiosyncratic way, that is to say everybody else is buying and you say well, they're buying has raised the price too high relative to the intrinsic value, they areg to sell, if all buying and you are selling, believe me, it's uncomfortable. now, we do it because we believe competentrformed a intellectual process. it doesn't make you comfortable. whenat about the flip side everybody is selling? i would imagine that's a little more comfortable when there is selloff panic that it makes it appear things are falling below intrinsic value. .> there's some truth in that

the difficulty in selling when a market has been rising for years is fear of missing out. it's a shortfall. book out on crashes and he says something like there is nothing worse for your mental well-being than to watch a friend get rich. he captures it all right there. that's human nature. so fear of missing out is very challenging. don't knowr hand, i if it's any easier on the way down. intellectually, you should be able to look at assets like stocks and bonds that of gone on sale and say i'm going to jump in, but i spend a lot of time in the book dissecting a common catching ah is falling knife. i am noteople say

going to try to catch a falling knife. this thing is collapsing. i have no idea how far it's going to go. i don't want to stand in front of that. i will wait until the dust settles and the uncertainty is resolved. believe me, when the dust settles and the uncertainty has been resolved, there is no volume left. what causes great bargains? let's diverge for a second. what is a bargain? and asked that you are selling for cheap. -- an asset you are selling for cheap. what causes an asset to sell for cheap? error. for you to get a great bargain in the market, somebody else has to be making a big mistake. for you to buy something exceptionally cheap, somebody else has to be selling something exceptionally cheap. what makes anybody want to sell something at a price that is exceptionally cheap?

and the answer is human nature or what you call psychology. , people live. up when prices go down people get depressed and sell. warren you know who says i like hamburgers. when hamburgers go on sale, i.e. more hamburgers. that's how investor -- i eat more hamburgers. that's how investors try to behave. we try to not be emotional even if prices have fallen. we try to say it is a bargain, i am going to buy more. >> that requires you to get control of your psychology. let me bring you back to the .ook for one more question you write, rule number one, most

things will prove to be cyclical. rule number two, the opportunities for gain and loss come when people forget rule number one. >> that's pretty much what you are referring to, panic selling. when things are rising and a great bull market for 5, 6, 8, nine years, what do they say? it's going to go up forever. and when it is collapsing and an asset is a third of what it was what do they ago, say? it's going to zero. they extrapolate directional trends, whereas i believe most .vents are cyclical trees don't go to the sky and very little goes to zero. >> let me bring up one of your pet peeves. what inning is this? people ask you that question and you hate it. explain why. >> i don't hate it, but it's challenging to know the answer.

right now i think we are in the eighth inning. great. the only trouble is i've been in the eighth-inning for a couple of years now. what i realized a year ago is -- by the way, that question started to come up in 2008 when we were in the global financial crisis and people used to say it meaning when is the collapse going to end. now they mean when is the up cycle going to end. going toimagine what make it come to an end. at an advanced stage of economic recovery and bull there are very few securities around that are absolutely cheap. are happy doing

risk investing in have lots of money for the purpose, so they are driving up asset prices. so i think we are in the realizedning, but i about a year ago an important distinction. this isn't baseball. baseball, we know that a regulation game has nine innings. in this game, it could go 9, 11, 14, we have no idea. again, the fact that i think we are in the eighth and that sting -- that things are extended does not mean that the game is about to end. >> let's talk a little bit about that. the fed, some people have been complaining that they tighten too much. others have said it's a curve. you have been a student of the markets for decades. what do you think about where the fed is and how the future might behave? yikes i talk a little bit about the fed in the book -- >> i talk a little bit about the

fed in the book. the fed has a tough job -- it actually has three tough jobs. tober one, it is supposed manage inflation, keep it under control, which means the economy shouldn't get too hot. number two, it's supposed to support economic growth and employment for which the market did get hot. number three, a lot of people think the fed's job is to prevent a recession and a declining stock market. i don't think jay powell feels the latter. know, low interest rates have been the outstanding characteristic of the market for the last 10 years. they have dominated behavior over that time. they have been too low, unnaturally low. they were made unnaturally low in order to bring the economy back from the global financial crisis and the abyss of

collapse. there are reasons why rates should be higher. one, rates should probably be at their naturally occurring levels so that the free market will allocate resources prudently. to date, it has been subsidizing borrowers and penalizing wonders. number two, the fed once rates to be high enough so that if the economy goes down they can drop rates to stimulate the economy. and so forth. there is a belief that there is a correlation, an inverse correlation between unemployment , when unemployment gets really low, that triggers inflation. that's called the phillips curve. are nowybody, since we in a 50 year low in unemployment, everybody is waiting for inflation to get going.

the fed's main concern is that it shouldn't get going too strongly. that's why there's talk about raising rates but it hasn't happened. everybody's mystified why we don't have inflation and there's no easy answer. factor fora risk accredited investor like yourself? wax inflation? is -- >> inflation? it is, but i also think it's unpredictable. for me, the question over the last five years or more has been our rates going up or not? are rates going up or not? i believed they would and they have, for reasons i have explained. but for years people would talk to you and say do you think rates are going up in january or march? i would say why do you care? once they go up, it doesn't matter.

people are so preoccupied. the only thing that matters, are they going to go up and are they going to go up a lot and are they going to go up fast? happens innth it doesn't matter. and of course nobody got it right, to my point about the timing. rates and myraise guess is they will raise them a little more. i didn't think they would go up far or fast and i still don't. were one time, people concerned about deficit. lost ouro have enthusiasm for fighting deficits. what are your thoughts on the government balance sheet and modern theory? are deficits now ok? the term is passe.

the debt and deficit are passe. nobody seems to care. when i was a boy, it was not ok for a nation to have debt. i don't see anybody discussing that anymore. the only question is if there's such a thing as having too much debt. historically, of course, democrats believe in tax and spend and i would say deficits, and republicans were fiscal disciplinarians who would fight against deficit. that's going out the window. nobody really understands deficit and debt reduction. in fact, most recently, we started seeing articles saying it's old-fashioned to worry about deficit and debt, and more important to pursue society's needs, even at the cost of the deficit.

it's troublesome. i think there is a thing as too much. the bottom line is it probably doesn't matter how much you have as long as you can print the world's reserve currency. when the debt goes up, the interest goes up and it goes up faster if rates rise. occupythe interest will an increasing and increasing and increasing percentage of the federal budget. that doesn't matter as long as you can print money, as long as you can sell an infinite number of bonds overseas. risk.that's the to the nation, the risk is

someday china says you know what? we have enough treasuries. is what are you going to buy if it's not the dollar? are you going to invest in the pound? that's difficult with brexit. the ruble, the yuan, whatever it might be. when you look at the government , theow badly it functions optimism with regard to the future comes from the believe that we always have muddled through and will continue to, and that we don't have to worry about the debt and the deficit because we can always print money. but the arrival date when we comes with what i call improbable disasters. it would be a terrible thing

with a lot of negative but we can't, assign a very high probability to it year after year. one of the most interesting dilemmas is what does the investor do about the improbable disaster? you can soften your portfolio to prepare for it and it will have disastrous consequences and turn out you didn't do enough. there are a lot of things -- hyper inflation, deflation, all these things fall into that category. >> two seconds left. i want to get to a discussion from the room, but not yet. the last thing i want to do is our speed round, 10 questions in five minutes. >> by now, you probably know i

don't know anything about speed rounds or short answers. >> let's give it a shot. first car you ever owned, year, make, model. -- old old cutlass cutlass, aquamarine, $3200. what the biggest political surprise we might see over the next --? >> well, it might be the molar report,- robert mueller but it's a great example of how we have no idea what going to happen. >> favorite nba team? >> i guess the lakers. i have lived in l.a. for the last 34 years. out here six moved years ago because our kids moved here and she said we are going to be in new york, so we are. again, i was smart enough to say yes.

iybe i will be the -- maybe will make that the title of my book. smart enough to say yes. >> name three of your favorite books about any subject. book called fooled which, when you talk about the limits of foreknowledge, that things are unpredictable because of this book, i think contains very, very import and ideas and i know it was very valuable for me. a great investor wrote a book called against the gods, the story of risk. again, understanding risk. risk is so provocative and so important. and then i would say there is a book by john kenneth galbraith history ofort

financial euphoria. he talks about cycles, the speed of cycles, the error of cycles, and one of my favorite quotes is that we have two kinds of forecasters, the ones who don't know and the ones who don't know they don't know. >> classic quote. what do you do for fun? >> i spend a lot of time with the kids and their kids now. since we moved back here, they have both gotten married and had children, so we are in a great place in that regard. andke architecture decorating and that kind of thing. little bit of an architectural tour when you visit cities? i recall you talking about that not too long ago. favorite -- of the next decade. well, i hate to say that kind

of thing, but i am willing to be a long-term investor in emerging markets, both debt and equity. japan and europe are senior citizens economically speaking. the u.s. is a mature adult. the emerging markets are teenagers. if you have ever had a teenager, you know it can be chaotic and know it hast you decades ahead and that's how i think about emerging markets. >> favorite asset for the next century? a house high up in the hill. [laughter] investor goat, the greatest of all time? muchhaven't read that

about personalities, but everybody assumes it's that warren guy. he has a great record with a lot of money. there's a book out called the warren buffett way. i was asked to write the preface . i wrote something called what makes warren buffett warren buffett. he is intelligent, unemotional, figures out what important, makes a quick study of what is toortant and he's not afraid lose a job. if you are afraid to lose your job, it's hard to do things that are bold. but being different and bold is necessary to be superior. long amounts of time in the wilderness. in 2000 when i wrote the memo, everybody was saying it's too

bad about warren buffett. he has lost his touch. he didn't have any tech stocks. and a year later, everybody was saying what a genius. approach in the investment world. there is no approach which will always be right. no matter what approach you have, there will be times when , and then the doghouse more strongly you hold your philosophy, the more strongly you hew to it, the worse those times in the doghouse will be. and yet, what else is there? you certainly can't -- especially since you can't time it out. just jump fromo style to style to style and expect to have the right style at the right time. you have to hold to the style you believe in and are good out -- good at, and then you have to survive the times in the doghouse. to me, that's the mark of a

great investor. it's not how well you do while you're style is in favor, it's how you do when your style is out of favor that determines if you are excellent or not. >> that's a perfect spot to open this up to questions from the audience. before we do, let's hear it for howard marks. [applause] a microphone. raise your hand if you have questions, and identify yourself by name and company. right over here. >> thanks for coming out, howard. quick question. someone could tell you anything you are uncertain about in the world, what would you want to know? alright, they are taking a

bit of a q&a right now with our own bloomberg opinion columnist, barry read holds. we do want to get you some breaking news across the bloomberg terminal in regards to elon musk. the headline coming across is that the sec has asked a judge to hold elon musk in contempt for violating -- there was an inaccurate february tweet about production. musk tweeted that tesla would make about 500,000 cars in 2019. he corrected himself a few hours later to say that would be an annualized rate, but that was enough for the sec. that is now weighing on tesla

shares, trading down by nearly 4%. it's interesting to note that if this tweet and correction had been sent by another executive, it would've been seen as a mistake. but tesla is supposed to have internal controls so that elon musk would not be able to skew media.bers out in social that obviously was a failure here in the sights of the sec and we are seeing it now, the sec saying it will hold elon musk, founder of tesla, in contempt for violating that deal. know, this comes after the deal elon musk reached with the sec over the other controversial tweet. he has landed himself in hot water once again and it's common to pretty tumultuous time. what spend an -- it has been a tesla.ous year for resignations, management of

corporate counsel, concerns over the company's ability to ramp up reduction -- production. another stunner in the works, a judge asking to hold elon musk in contempt because of that tweet about production numbers. won't buffett says he give up on -- after a wipeout, but he isn't rushing to buy more shares. he says he has no intention of selling or buying. after thet's parent highly anticipated android redesign will be rolled out. it is 40% below the pk year ago.

performance issues with the android app contributed to share issues last year and investors want a redesigned host usage. with ibm tong up help drivers navigate. in's ai system is the latest a bid to grab a share of the growing transportation market. the: let's do a check of asian market as we head into the second day of the asian-pacific trading week. .7%.sx 200 down nearly the nzx 50 is above water. clearly, mixed here. kospi futures were up about .1%. we will continue to watch those

markets as we continue to digest everything happening over the course of the day. plenty more to come on daybreak asia. this is bloomberg. ♪ so with xfinity mobile

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top stories this tuesday, the sterling strengthens as theresa may .onsiders delaying brexit asia off to a mixed start. investors are watching trade headlines. donald trump says a deal might not happen at all. check on australian markets right now.

down by nearly .7%. what happening? snapping a three day advance this morning led by materials. gainedseeing some stocks ground, climbing for a fifth straight day. we saw trade optimism overnight on wall street. u.s. stocks losing ground early. cautious a bit on tuesday. let's look at the movers in sydney. losing ground after soaring 19% on monday, the tech company posted a gross loss rate. fiscal guidance last week triggered a drop in the stock.

caltex australia, up 2.9%. that beat guidance. note.ther movers of a 4.1% rise in the first half. the company did cut its 2019 guidance to mid single-digit growth. intertech off. looking ahead, moderate growth expected despite the negative impact of the national broadband network contract. lastly, news that asx will

sell its shares of the company. >> let's go back to that breaking news from tesla, moving to the downside. just a short time ago we heard from the sec. they will hold elon musk in contempt. seeing that decline after hours. let's get all the details from our bloomberg news reporter. in hot water again. >> yes, it never ends. as you recall, last week he sent out a tweet about production. four hours later, he corrected the tweet. this did not make the sec happy. the drama never ends. it brings up a lot of issues around social media and the original agreement and whether he is in potential violation. >> why wasn't he controlled, i

guess is the word. according to the deal, the board was supposed to have kept him away from social media. >> he was supposed to be kept away from that wasn't supposed to be kept away from social media but he wasn't supposed to tweet this kind of information. the filing says he tweeted without consulting the person he was supposed to consult and that person helped him write the correction, and they wrote the correction together, but it was four hours later. >> it never ends, as they say. tesla shares now down 5% after hours. thank you. gears to brags it. theresa may said to be considering a plan to delay the official exit. the eu said that would be a and jeremy corbyn

said he would back a second referendum. it looks like do or die. >> think about it. may had gone to egypt. there was the eu arab league summit. eu officials were on the sidelines. there was some talk that maybe she would get a deal in the desert. there was not any of that at all. of then the story broke officials saying may be a delay would be considered. she initially rejected that but hours later, the european council president said at this point a delay would be rational. how could it not be? no deal could pass the house of commons right now. the other piece that's interesting, jeremy corbyn, the head of the opposition labour

party has opposed a second referendum almost since the brexit referendum passed. now he is on board with the second referendum. is it any coincidence we now see theresa may saying i guess i will consider a delay. we have seen a pop up in the pound. it's about halfway where it was. this terrific story that bloomberg news has broken. i think part of the reason you is't get a bigger move because there still is much uncertainty as ever. next?t happens >> what were we talking about on already going was to be a state of brexit

discussion with parliament, house of commons in particular, and a vote on wednesday. here's what's going to happen now. 9:30 a.m. london time, she will chair a discussion with her cabinet allowing them to discuss if there should be a delay. at 12:30 p.m. london time, she will update parliament on the cabinets decision. then she is going to propose a state of play motion tuesday night, which the house of commons will debate and vote on wednesday. they were going to vote anyway on wednesday. it seems like everything has gotten crammed into this moment. remember, she was going to delay on main vote, the final vote braggs it until march 12. that was the bigger -- -- on brexit until march 12. that was the big news yesterday. this is the bigger news today. wins.ard to see how she

maybe something that works for the u.k. generally. but on the one hand, if she gets the delay, then the probe exit -- pro brexit people will say you betrayed us. have said her cabinet better to resign then let it come down to a no deal braggs it. there is a political risk -- no deal brexit. there is a political risk to her. i am going to bring up our bloomberg braggs it haram at our. brexitcently -- barometer. just recently, we are back in the green, but this has been the most negative it has been since braggs it -- since the brexit vote itself.

you are going to keep this uncertainty in the market, in the economy. maybe this puts pressure on the eu and the house of commons to get on board with something that can be passed. in the meantime, it feels like torture. if you are a businessman trying to invest, it maintains an unnecessary or at least unwanted certainty. haidi: an interesting week ahead with that debate. itt is the latest on braggs exit.agg president trump is sending more mixed messages on trade talks. saying a deal could be imminent and then that it might not happen at all. our asian correspondent joins us from hong kong. it would be significant if we got to the point of a leadership

meeting. where we were as recently as november when we had the u.s. and china trading threats of tariffs and other measures. here we are three months later and all the talk is about a summit at mar-a-lago to sign off on a trade agreement. .hat's quite a new current there are skeptics to all of this, of course. but remains to be seen, there is no doubt that where we is a major lift to sentiment. >> we have gotten details with regards to structural changes and ip issues. where are we with that? >> one of the issues people are wondering where and how our

china going to make these concessions. debate,stage of the it's more about how american companies can do business more freely in china. keep talking about the idea that you can pick the low hanging fruit, which are energy and agriculture. but there are some fundamental structural and political issues that look like they will be hard to get past. hanging fruit in i.t. protection as well. there are gestures china could make that are relatively painless. the exchange rate, for example. how can china keep that, how can be thenforced, what will

benchmark for success? will chinay, surrender some of its more economic ambitions in an era when the u.s. and china are competitors rather than partners? yes, you can see china buying more growth and taking steps to let american companies operate more freely in china, but when it comes to putting a break on china's ambitions, i don't think anybody really thinks she's you think he will make major concessions in that area. will makexi jinping major concessions in that area. >> oil plunged on both sides of the atlantic after president trump again tweeted that prices are too high. he also called on opec to "take it easy." recently rallied on

optimism that the cartel would go beyond what it had pledged to balance the market. an overall price gain of 20% this year due to production cuts of opec and its allies. the united states has announced more sanctions on venezuela claiming that the maduro regime blocked international aid convoys. mike pence says this was the desperate act of a tyrant clinging to power. groupcall on all leader nations to immediately freeze the assets. second, we urge you to transfer ownership of venezuelan assets in your country from the maduro henchmen to the presidents government, and to do so immediately.

iranian foreign minister has resigned after posting an instagram message offering his --logies for an an ability an inability to continue to serve. there has been no reason given for what cause this. he was part of the negotiating team during the nuclear deal with world powers. global news 24 hours a day on air and on to talk on twitter powered by more than 120 -- 100 when he thousand journalists and 100 20s in more than countries. >> coming up next, something the industry needs. this is bloomberg. ♪

remy: welcome back.

president trump and kim jong-un are both due in hanoi for their second summit and a discussion bare-bones declaration they signed in singapore last year. our asian correspondent is in hanoi for the much-anticipated meeting. >> it is a misty, cold morning in hanoi. we are at the border crossing between china and vietnam. at any minute, he will be arriving on his heavily armored train that he has been traveling on through china for the last couple of days. he will get off between china and vietnam. he will have to get off, cross by foot, take a car here tuesday at a hotel not far from here on

the others of the lake. there are tanks on the streets of hanoi, a heavy armored presence, soldiers on the streets around what was expected to be the main venue of the summit over the next couple of days as the two leaders, donald trump and kim jong-un converge on what they are calling the city for peace. that there are tanks on the streets right now to make sure the participants are all safe. juxtaposition, talk of peace flanked by tanks. what are we expecting out of the senate -- second summit? the first one was filled with grander but short on details. do we expect more substance this time? that's what the aim is, of

course. you need to move the ball forward from the singapore summit in june of last year. there were four main points that were fairly vague. one of the main points was that the two sides agreed to work toward complete denuclearization of the korean peninsula. what does it mean to work toward something? we did not get specifics or a timetable. the north koreans we are hearing are not getting more specific and six party talks have collapsed because of north korean reluctance to give in to demands for verification. we need a lot more meat on the bone on those declarations that were made in singapore. >> as sten sibley, everything right now is working toward those talks. across theame bloomberg terminal yesterday, the possibility of a peace deal.

that's contrary to what happening right now in the armistice between north and south korea. is a peace deal possible? >> we are hearing that a peace deal between trump and kim could happen that this summit -- at this summit. we are not sure yet. you would think the other parties from the war of the 1950's would want to be involved, china and russia. could undermine the u.s. position as well. if you sign a peace deal, that could basically legitimize the north's hold on north korea and the northern part of the peninsula. why would the united states need -- umbrellarela and and the soldiers that are stationed there question mark

there are a lot of ramifications for signing a peace deal, but it's probably the lowest hanging fruit they could both deliver. go, i want to share the entrepreneur spirit of hanoi. i bring up these t-shirts because about 44,000 people have retweeted these t-shirts on a tweet i did a couple of days ago. not quite viral, but pretty good. of t-shirts.s the city is going mad for this summit. there is rocket man. you can name just about any kind of t-shirt. you can find it on the street. i like this one. it's a good likeness of the president. of this is a younger picture donald trump and kim jong-un. but we are in full swing here. we are looking forward to another historic meeting between

president trump and the north korean leader. hanoi, awaiting their arrival. we will bring you in-depth analysis on the second summit. we are just getting confirmation from the white house that they will be meeting at a dinner on wednesday night once they both have arrived. sarah sanders confirming that is wednesday evening with the two leaders. more details as they arrive in hanoi. the north korean leader making dayway on a two and a half journey through china by train, expected to arrive later this morning. in the meantime, let's take a look at commodities. offering nearly $18 billion.

willhile, newmark says it take over its rival gold core and has dismissed the latest report. >> in my view, it's desperation on their part. it's only been eight weeks since they started to bring their company together. they haven't even started to chew what they have bitten off. i don't know where they are coming from thinking they can take on a third piece. >> this is a very carefully considered process. we have been working on it a long time. not just in one meeting. you would have to present to

shareholders that this deal is better than the proposed deal. if that's correct. our senior commodities reporter joins us in melbourne. where do things stand right now? what are the implications? this is playing out in real time. we have picked up some trolling barbs overnight. the board will review barracks hostile bid, but the company has .een quite clear it's only proposition is its bid for gold core that it launched in january. i guess it will be a case of whether barrick can convince newmont investors to get on board. potentialts on the

savings barrick thinks the two companies can reap by combining operations in nevada. they are pretty much side-by-side. if they put the minds together, they can generate savings. the third issue is goldcorp, do you to be acquired by newmont. what happens if that deal collapses? barrick has been clear, they only want newmont's superior assets. they are not interested in goldcorp. >> i am curious. could newmont potentially turn the tables on barrick with its own merger offer? surprised ifbe there was another twist in the m&a spring sweeping the gold sector? he explained that the company

had in the past reviewed plans to maybe acquire barrick or land gold, the company barrick absorbed late last year. he said look, nothing is ruled out. he has newmont on the offensive, not the defensive, and all options are open. >> that is the latest on the barrick-newmont drama. let's take a look at the markets in tokyo and seoul. some caution in tokyo futures, a little change early -- teasing the earlier advances. the kospi looks to extend gains after a volatile monday session. in hanoi, the so-called peace talks are on the radar. reaction to ating drop in fourth-quarter profit.

we are keeping an eye on softbank and its commercial 5g services. reports theei news company will raise u.s. prices. our parting and i on --which has -- keeping an haidi: coming up, expansion plans and the impact of trade tensions. we will also speak to richard lancaster about their results. you some live pictures from vietnam. we are still waiting on kim jong-un to arrive in the country. he has been on a two and a half day trip from north korea to --

through china. he will arrive in hanoi later this week. right now, you are looking at a live picture of the railway station. more to come. this is bloomberg. ♪ want more from your entertainment experience?

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haidi: a very good morning. i am haidi stroud-watts in sydney. asia's major markets are just opened for trade. good morning. i am ramy inocencio. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this tuesday, sterling strengthens as theresa may considers delaying brexit. news of a delay could change market sentiment. and so was set for a mixed start

after the wall street rally lost momentum. ramy: president trump suggests a signing summit with xi jinping and then says the deal might not happen at all. let's get straight to the market action with sophie kamaruddin. s&p futures down by .1%. what else are you seen? onhie: we are keeping an eye the pound after it jumped to a four-week high on reports that theresa may is considering postponing brexit to stop the nation leaving the e.u. open,ng the board in the the nikkei 225 extending gains, up .1%, while the yen is trading 1.11. aussie shares halting a three-day rise with discretionary and tech the biggest laggards. in wellington, the nzx 50 gaining ground.

i want to highlight one mover in particular. ..4% this morning the back of the nikkei news report. the company will raise u.s. prices. the stock was downgraded at bank of america. all right. let's get you the first word news in new york. jessica: tesla tumbled in late asked to holde -- elon musk in contempt. they said the tweet musk scent on february 19 about car production broke an agreement to have company approval before posting any social media messages that relate to the company or investors. musk tweeted that tesla would make about 500,000 cars in 20 before stepping back from that level later. kid prime minister theresa may has vowed to pressure at home

and the european union -- has vowed to pressure at home and the european union. they suggest putting it on hold would drive it to parliament. she always resisted a delay but now agreed to back the idea to avoid a damaging no deal divorce. the 29th of march. the greater the likelihood of an extension, and this is an objective fact, not our but an objective fact. i believe that the situation we are in, an extension would be a rational solution. voweda: jeremy corbyn has to labour party pressure. he says he will support a second referendum on brexit. theresa may has repeatedly dismissed another public vote, saying it would undermine faith in democracy. and the u.k. and the u.s. are

fears oftion to allay post-brexit disruption. they are setting up emergency policies to make sure derivatives trading continues. the bank of england and the u.s. commodity futures trading commission are promising a seamless transition with existing deals carried over no matter how the u.k. leaves the single market. of thenged on both sides atlantic today after president trump again tweeted that prices are too high. he called on opec to "take it easy." the benchmark had recently rallied under optimism that the cartel would go beyond what it pledged. the president's intervention follows the price rally of 20% this year due to production cuts from opec and its allies. 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.

haidi: thank you. president trump is sending more mixed messages on the trade talks suggesting a special signing summit with xi jinping and adding a deal may not happen at all. is from hongr kong. the risk rally on the back of the delay come friday and the potential meeting. it would be significant if it actually happens. >> that's right. we don't know that a meeting will be happening. president trump is throwing that out that there could be this signing summit. they could come to an agreement and yet at the same time saying it may not happen at all. of we are having this kind similar -- some of the same kind of similar sense from the chinese side. they also expressed optimism that there would be -- they said they were making progress. but then said in an editorial

after that from the official comments about progress, they came out and said there were new uncertainties and that these long-term trade frictions are long-term, complicated, and arduous. we are hearing from both sides that they are making progress, expressing a fair bit of caution that the talks are continuing and that they are complicated. sophie: uncertainties there. -- ramy: new uncertainties there. anything more to add? jodi: we are not hearing a whole lot of details. there are still these long-term complicated issues such as the and the u.s. wants china to agree not to devalue its currency. we also are hearing the issue about intellectual property rights. that remains a sticking point. structure.ustrial

china has already agreed to sell more u.s. products and to open up its markets and to buy more soybeans and other agricultural and energy products from the u.s. the question is what about these long-term, long-standing issues? that is where the talks get complicated, and that is why we see the delay and its extension given. haidi: there's a lot of skepticism over enforceability as well, isn't there? jodi: that's what we're hearing from members of the u.s. congress, particularly the democrats, who are worried that too much may be given away and how do you enforce these kinds of agreements? they really want to see some kind of enforcement mechanisms that they believe will be sustainable, that they believe will work. we heard from the democratic senator from oregon, ron wyden, about that, saying they are pleased to see there is

progress, but let's make sure we can enforce any agreement with china. ramy: great stuff. jodi schneider coming to us from hong kong. thank you very much. is the ig market strategist. with this back and forth and donald trump's head, there may be a signing agreement. there may not be a deal at all. how does a market strategist like yourself figure this out? >> thanks for having me. certainly what we are seeing is that there is risk, but to a large extent, it is helping across markets. we are talking about u.s. markets and asia. the path is seeing towards the key resistance level. withill have to reckon that risk as we are still yet to year the -- official confirmation here the official -- we are yet tohear the of --

we are yet to hear the official confirmation. this event, i think itself still carries the risk. itfar as the market pricing, is shifting towards the positive end. caution in the risk. short-term relief at least for the day, but we are seeing .1% or so. down by earlier on in the past few hours, we did have a guest saying that regardless, the elephant in the room is chinese and u.s. economic growth is falling. an estimate 6.3% is for 2019. governor kuroda of japan saying china's economic growth is slowing down, and this is not going to go away. your thoughts? >> i would say that in terms of

whatwe are seeing, that is we are going to return to. we do see the u.s.-china trade rout. the market is going to watch for how the impact is. that is the key uncertainty as we move into the second half of the year and could be more towards volatility in the market that has been receding quite significantly of late. on one hand, the market is expected to have the resolution. it is really shifting. likely to return and we will see that markets are reacting a lot to this data. itselfadding on the data . it is suggesting we have not priced in the fall effects with respect to the trade war itself. coming outbers are

of china because of the chinese new year. even into march, i would not be surprised to see that the impact on the market remains -- for china. haidi: let me get your thoughts on the chinese markets. on the one hand, you have the best day for the shanghai comp since 2015. the stellar rally almost overbought territory for chinese stocks. withso have every stock securities. is this a rational market that we are finally seeing patience pay off for the china bulls? jingyi: good morning. in terms of rationality, i am not too sure if that is in the chinese market. there is a lot of speculation within the market. it is reacting largely to the news. that kind of reaction has not been seen. as we have recognized, we are

attuned to the news from what we heard from president xi jinping talking about the financial sector. in that sense, the markets will be reacting to some of these numbers, some of this data. volatility itself is going to be something that will come back in a bigger way as we move to this u.s.-china trade optimism. also: one of your calls is sure dollar yuan, looking at just -- short dollar yuan. looking at the march 1 tariffs on chinese goods. offshore yuan is trading lower nyan see in my forecast -- c forecast. the if you take a side trade wars, we still have a structural slowdown taking place domestically in china. that we lookld say

at the yuan itself into 2018, the second half of which, -- in that sense, a lot of the pessimism itself have been priced into that in that sense. what we're finding right now is a bit of a recovery. i would not be surprised if ped to last year's june level. the growth-- recovery is really not going to come through even without the implant that is expected to carry on from the trade tariffs. a bit of a rebound. until then, i think what the also, right now is -- some expectations that the chinese authority is going to keep the currency stable.

, we that actually means have to wait for more details to see. ramy: stability really is the question. how can we be sure that the words we are talking about actually have teeth here? how confident are we to ensure that beijing does not devalue the yuan? it has fallen by 5%. jingyi: i think there is quite a number of ways we can look at the yuan itself and talking about how it moved. we are just talking about the mechanics. worries a little bit of as to how that will be because to a large extent as well, a lot of the asian central banks are looking at growth. the easing is not going to help. to that extent, i think it really remains to be seen why

meanstails, the wording management from the chinese side. i think it is really quite a difficult issue. as far as the market is pricing in, there's a bit more of this strength we have seen so far. jingyi pan. we will have to leave it there. coming up, we have an exclusive with the asia-pacific president. they will be talking about their expansion plans and the impact of the trade war. ramy: but first, we are speaking to a hong kong electricity supplier about their latest earnings miss. richard lancaster joins us next. this is bloomberg. ♪

ramy: welcome back. this is "daybreak asia." i am ramy inocencio in new york. haidi: i'm haidi stroud-watts in sydney.

the larger of hong kong's electricity suppliers. net income for the full year came in at just under the lowest estimate. profit frome, mainland china jumped over 74%. profit from australia was up 20%. break is in hong kong to all of this down with the ceo, richard lancaster. sophie: let's turn now to the chat with richard in the studio. they do so much for joining us ahead of your two-week tour of the u.s. to talk with investors. .e saw a drop of about 3.9% due to the change in that guaranteed rate regime, what sort of impact are you anticipating for 2019, given it will have more of a full-year impact for this year?

richard: hong kong is the strongest and largest part of our portfolio. it is our home for market. we had a one-off recess about permitted return which occurred on the first of october. that gives us 15 years under a new scheme of control agreement where we have a substantial increase in investment that is needed to help hong kong decolonize. we will also be needing to import lng. their level of capital expenditure in our business will be increasing significantly over historic levels, so we will see continued growth in our hong kong market from here on in. haidi: previously, -- sophie: previously, construction was to start in 2019. are the timelines still viable? richard: the generation is due for commercial operation in 2020. the other will be starting at the end of this year. all of those are on target. sophie: can you give us a sense

of the total investment of our and the take on the current status of the lng market? richard: a total investment for those projects is 11 billion hong kong dollars, so these are sizable projects, and they will steady contribution to our earnings as we go through the construction of those. sophie: turning to china, the majority of your investments on the mainland is in the clean energy, renewable business, especially when it comes to nuclear power. we have seen players building up their footprints. a lot of nuclear reactors. are you looking to have any stock in those projects? richard: we have invested in a project. that transaction flowed through into our earnings in 2018, which it is a 17% investment in a 6000 megawatt nuclear project. it did make a sizable addition to our china portfolio. when you look at our business in china, a large portion is our

nuclear investment. we got our renewable portfolio. our business is largely colonized in china now. given the reactors, are you seeing more opportunity in the 3g space? are investments in such projects more expensive than the older models? richard: we look at proven technology, where costs are known and predictable. with the two plans we have in our portfolio, those are low cost competitive plans. neweep an eye on the development in technology. we want to have a better understanding of the cost before we step into that. sophie: given the focus on new energy when it comes to hydro, solar, and wind, which one is enjoying a high priority when it comes to your invest and outlook -- investment outlook?

richard: we like to see a balance. that is the strength of our business. we have a diversified portfolio across different technologies and markets. but we don't have any favorites when it comes to technology. it's making sure that we have a good, solid balance. sophie: what is the prospect of getting out of the qualifier business -- coal-fire business? themrd: we will see gradually retiring. in hong kong, we will be retiring one of our plants at castle peak. perform anit does important part of an electricity system at the moment. you have to build the replacement before you can close down a coal mine plant. sophie: with the greater bay development project announced, what investment opportunities are you seeing? richard: we have been part of the greater bay from an electricity perspective since the 1970's.

electricity systems have been interconnected. sureerate jointly to make the system as a whole is reliable, so we see this as a natural extension of our business. australia,ning to they are seeing the lack of policy clarity. 2019 orimproved in 2018, especially with the election coming up? richard: sadly, no. we would like to see more the need tond transition from a fossil fuel-based electricity system towards one that is based more on renewables. that requires careful planning and coordination. it cannot be done in a haphazard way. that is why energy policy it is so critical to see that transition done in a sensible way. if it is not done sensibly, you will see blackouts, shocks in prices, and that is what we are seeing in australia. sophie: thank you so much.

lancaster, ceod of clp. plenty more to come on "daybreak asia" ahead. ♪

haidi: this is "daybreak asia." i am haidi stroud-watts in sydney. ramy: i am ramy inocencio in new york. the coffee battlefield and china has become more crowded with the arrival of tim hortons. the canadian company opens its first mainland outlet in shanghai later tuesday. it has huge presence in its domestic market but has struggled to build a loyal following overseas. it faces competition from starbucks, the duncan group -- dunkin'group and others. haidi: a committee has been formed to arrange a debt resolution for the beleaguered investment group.

the group is led by the export import bank alongside and industrial bank and development bank. they missed a local bond payment last month and has been caring $34 billion of debt -- carrying $34 billion of debt. the streaming service plans to introduce its platform in india in the next few weeks. a court action escalates the long-running dispute between the two companies. warner has not offered a license for its music and says if radioy want to use indian stations to stream songs anyway. haidi: let's take a look at how asian markets are shaping up. deal or no deal on the trade front. president trump is sending mixed messages, saying a deal may not happen at all. he is headed to vietnam for two

days of talks with north korea. the nikkei 225 seeing gains. largely uninspired when it comes to trading in seoul and sydney. more coming up here on "daybreak asia." this is bloomberg. ♪

jessica: this is "daybreak asia ." with firsta summers word headlines. tesla tumbled in trade. musk inholding contempt. agreement to have company approval before posting any social media messages. he tweeted that tesla would make 500,000 cars in 2019 before stepping back from that level later. u.k. prime minister theresa may has bowed to pressure at home and in the european union and will support a delay of brexit. senior e.u. officials have

suggested putting the split on hold. she has always resisted a delay but has now agreed to back the idea to avoid a damaging no deal divorce. the last time until the 29th of march, the greater the likelihood of an extension, and this is an objective fact, not our intention, not our plan but , an objective fact. i believe that in the situation we are in, an extension would be a rational solution. jessica: meanwhile, u.k. opposition leader jeremy corbyn has bowed to labour party pressure. he says he will support a second referendum on brexit. theresa may has repeatedly dismissed another public vote, saying it would undermine faith in democracy. the united states has announced more sanctions on venezuela,

targeting state governors after the maduro regime blocked international aid convoys. mike pence told latin american leaders that the action was not a bold move by a triumph it later, but -- triumphant leader, but as a desperate act. he says washington will impose even tougher measures. vp. pence: we call on all nations to immediately freeze the assets. transfere urge you to ownership of venezuelan assets in your country from the maduro's henchmen to president uaido's government and do so immediately. jessica: -- casting a potential rematch in an election expected early next year. 2016 and accuses her of stoking tensions at the expense of economic growth. he says he would work to grow communication with china in the

communist party without compromising taiwan's commitment to democracy. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. president trump and kim jong-un are both due in hanoi for their second summit meeting. they will be discussing denuclearization and a possible and to the korean war -- end to the korean war. our chief north asian correspondent, stephen engle, was in hanoi for the meeting. confirmation from the white house that the two will be sitting down for a wednesday evening dinner. what are we expecting? stephen: we are down on the streets of hanoi. very chaotic. darting to rain quite a bit. the gaggle of international press are all here. we are in front of the melia

hotel. that is where we are expecting kim jong-un to arise. momentarily, we are expected to get live footage of kim jong-un's train arriving. he will take a car to this hotel. this is what we are all expecting ahead of what he said. meeting withirst donald trump perhaps tomorrow night for dinner. and the full on summit on thursday, there is heavy security. we have security passes, however, even these do not get us much access inside. we are being threatened to be kicked out of where we are standing right now momentarily. on the tanks are streets. we have seen them lined up on the other side of the melia hotel. there are soldiers in their iconic pc three uniformed -- p soup green uniforms.

ramy: what are we expecting in terms of the schedule for today once kim jong-un finally arrives? so kim jong-un will come here, stay at this hotel. there's going to be perhaps what we are understanding is meetings as well with the vietnamese leaders. inight, we are expecting -- cannot confirm exactly. there's a lot of details off the record, but we are expecting donald trump to arrive tonight. tomorrow, he will have meetings with the vietnamese leadership tomorrow ahead of that dinner with kim jong-un, and then the full summit, when they get down to the nitty-gritty of all the details that they need to hammer out in a very short amount of time, keep in mind that joint declaration they find in singapore in june of last year was pretty bare-bones. they need to put a lot of meat on that joint declaration as far as verification and inspection

of north korea's nuclear capabilities. donald trump said he is in no hurry to get any kind of agreement on north korea's nuclear details, because he says they have not tested a missile since september of 2017. that alone, he says, is proof that diplomacy is working. however, even donald trump's own security chief says kim jong-un and the north korean regime is continuing to build its nuclear arsenal and has not embarked on that complete denuclearization that the two sides said they would work towards in that joint declaration in singapore. there onephen engle the ground in hanoi for these two days of talks as we await for kim to arrive in hanoi by train and then by car after a journey.ong train

we bring you in-depth analysis on this second summit between president trump and kim jong-un live from hanoi all week. the analysis and and the patience for broader geopolitical security and whether we could get some actual possibility of those details. the meat on the bones of that deal that was assigned in singapore last year. let's take a look at how asian markets are shaping up. whether this trade deal is a deal or no deal. >> the uncertainty feedings and when it comes to asian markets. asian stocks trading mostly mixed under pressure with the kospi now little changed. korean consumer confidence could provide hope for an otherwise grim economic outlook. we are seeing shares halting a three-day rise. is ticking225 higher. switch out the board to check in

on the stock movers across the region. it is moving and we have stopped losing 2.5% on the nikkei news report that the company will raise u.s. prices as higher steel prices hurt profit and the stock was downgraded at bank of america. in seoul, owners gain ground. the stock was upgraded to buy hsbc. losing 8.8%. the company posted a first-half loss this morning, seeing the kleins --. the clients -- seeing declines. thisy, i want to end on chart here, which shows you korean cbs dropping the mode -- cds dropping the most before the summit in hanoi. ramy: sophie kamaruddin on the markets in the asia-pacific. we have another eye on the united kingdom because theresa

may is said to be considering the plan to delay the brexit day. the news coming after the e.u. said it would be a rational step. jeremy corbyn said he would back a second referendum. so iten hays is here, looks like may really doesn't have much of a choice. kathleen: it has all the weight of battling for a deal, the e.u. . giving ground, parliament just crushing -- ramy: not having it. kathleen: here she is getting off the plane to meet with e.u. officials on the sideline of the summit. she did not get the "deal" in the desert that some had predicted she might. and there were stories released -- bloomberg news speaking to officials, suggesting maybe we should consider delaying brexit. donald tusk also there. it would be rational to

delay because, obviously, march 29 is fast approaching and there is no deal parliament can vote on and nothing they are willing to give back. as for jeremy corbyn, this is so interesting because the opposition leader has steadfastly opposed any second referendum, perhaps for political reasons. you don't want to lose political points by allowing them to vote again and perhaps remain, so that is only a big part of the story. that eveno quiz it is after theresa may rejected a delay, the next thing you know, bloomberg news breaking this very important story. not a huge move up. if you look at this intraday chart, middle of the screen, that is 5:00 p.m. eastern time. that is when we release this news. it is holding onto a good bit of the game even though it remains to be seen just how this plays out. haidi: what do we know about what could potentially happen next?

kathleen: here is what we have been polled. bloomberg news, that is. tuesday and wednesday, theresa may was set to brief parliament on the state of play on brexit them and there would be a vote on what they think she might need to do. remember also yesterday, she officially said she was going to delay the big vote on her brexit deal. here is what we are looking for tomorrow, all laid out in a nice time frame. 9:30 in the morning, theresa may will chair a discussion and let her cabinet beside should we delay? 12:30 she will update on the decision. by tuesday night, she and her cabinet will propose a brexit motion presumably saying let's delay two months or three months. the house of commons will vote on this. this is what we have been told will happen. very interesting, very important

for these brexit talks. ramy: risks abound everywhere. walk us through this as well as economic ramifications. kathleen: there are so many people in her own party. the hard-core brexiteers, who are already for the new deal brexit. bring it on. she proposes a delay. wait a minute. that means you might get a deal and we won't get a no deal brexit that we might think will be good? she has had at least two bank of her cabinet members say that they will vote to block anything that begins to look like a no deal brexit. people are wondering this lead to a call for a general election? that does not even get to the question of the second referendum. for the economic risk, you will prolong uncertainty for business investments, for big consumer decisions. not just a delay because you

have got into the brexit deal, you have to hammer out some more details. they say it would be unequivocally bad for the british economy. look quickly at the bloomberg library, for our barometer. you can see here is the brexit vote, june of 2016. be doingmy seems to ok, doing better. but if you look at inflation, gdp employment, it has taken a toll. we get from bad to worse -- will be get from bad to worse -- will we get from bad to worse? that is the question. haidi: kathleen hays. plenty more to come here on "daybreak asia." this is bloomberg. ♪

ramy: welcome back. this is "daybreak asia." i am ramy inocencio in new york. i am haidi stroud-watts

in sydney. marriott international is one of the world's largest hotel companies but it has major growth plans for asia. there are new hotels in the pipeline for this region. the question is, can china slowdown global trade tensions put a dent in these plans. i will put these questions to craig smith, who joins us exclusively from hong kong today. skies for the companies he pointed out despite all these concerns about the reluctance of the chinese consumer, the domestic slowdown, and these trade tensions. craig: we are booming. it is still a great story for us. one of the stories of the decade still is that of leisure travel. we have seen a slowdown in the business sectors, but leisure travel is growing at four times the rate of business travel. haidi: i believe, according to your numbers, 70% of

international arrivals are coming from china and hong kong and elsewhere in asia. is that where you see the source of growth or is there going to be a slowdown in china that will bite into those numbers? are you looking elsewhere for new sources of growth? craig: all of asia still is growing. as far as outbound growth, the story is china. it is our number one source market for city destinations and the asia-pacific. business not just travel again. it is leisure travel that's growing. that is spurring our growth and helping us to grow 40%. you had mentioned a slowdown in some business sectors. let's dive a little deeper. craig: with some of the trade tensions, we have seen some of the manufacturing areas slow down a little bit. there it is geographically. we have seen huge growth in places like indonesia and india and it has been replaced by

leisure travel. in one section, we are just replacing it with somebody else. ramy: not just leisure travel. 50% of your luxury hotel openings are in china. as we know, china's economic growth is slowing at 6.2% by the end of this year, slowing at its most in almost the past three decades. craig: it is slowing a little bit but the interesting thing about leisure travel is it is much different today than it used to be. it was only for the elite and rich when i was a child. today, we are seeing people are saving up to spend on leisure travel. we see the demographics changing and we have not really seen a slowdown in the growth of leisure travel. the largestre luxury hotel operator in the world. it is still growing. we are going to grow another 100 hotels in this space over the next few years. haidi: in terms of the most recent holiday season, do you

see a strengthening in your numbers compared to previous years? craig: we did. and most of the markets were up. we had one or two markets that slowed a little bit. i did not see as much of an economic factor. haidi: if you are not worried about the chinese slowdown or the slowdown of the chinese consumer or trade tensions between the u.s. and china playing out, i am wondering what you think our potential headwinds, what would you be looking at as potential risks to the expansion and growth plan? craig: i think the potential risk always will be that countries slowdown the migration border to border for terrorism, and i think that it has been good so far. we continue to ask the governments to make it easier for people to travel. it is the one of the best things that can happen cross borders and to help with diversity of thought, but that is pretty much all it is. we are in asia for the long run.

a pipeline is really strong. you will see some slowdowns in some sectors, but overall, it is pretty healthy. ramy: i want to go into percentage of operating income here. we have a chart prepped for this. the bloomberg terminal, i am seeing that at least for asia, you have 25% operating income at least through fiscal 2017. be does that expect to changed over the next few years or so with your push further into asia? think we are becoming a much stronger piece of our companies business. that is why the company continues to invest and expand. we recently about a year ago launched a joint venture with alibaba. we had many other things we have done in this part of the world and investments in this part of the world. we see the huge demographic will be 60% of the middle class. it is the fastest-growing part of the world, and it is not just

china. it is all of asia-pacific. ramy: you mentioned alibaba. i want to go into the digital space. a lot of platforms are doing that. what are you doing in terms of digital transformations? there is really big opportunity to circumvent traditional ways to book hotels or to travel, really. craig: it has actually been really positive. one of the biggest stories for us is we launched a new travel app. we put together marriott rewards, ritz-carlton rewards, spg, all into one app. we have seen today that it's moving from offline to on line. how can you make this happen all through the customer's journey? can you order your meal ahead of time? can you request special pillows for your room on the app? can you book it ahead? a key. use your phone as

everything is happening in the digital space today. haidi: as an american company, i am wondering if you see it as a risk in terms of we know the chinese consumer can be very good at boycotting american brands if they are perceived as having done something similar to china. i guess,ind of, retaliation on that level, something that were easier? -- worries you? craig: it is something we always think about. arest all of our hotels managed by chinese, owned by chinese, and our team that chinese.t is we are an american brand run as a chinese company in china. haidi: great to have you on with us. chris smith, president and managing director of asia-pacific for. international, joining us exclusively in hong kong. don't forget our interactive tv function. tv is where it is at. you can watch us live and dive into any of the securities or bloomberg functions we talk about.

you can join in on the conversation as well if you want messageus an instant during our show. check it out at tv . this is bloomberg. ♪

haidi: i am haidi stroud-watts in sydney. in new am ramy inocencio york. let's do a quick check of the latest headlines.

general electric sword. it sold it for $21 billion in cash and the assumption of liabilities. it should alleviate much of the liquidity concerns. shares jumped as much as 16% and touched highs last seen in october. stock rose to an all-time high. haidi: gold is going hostile in its bid to buy mining, offering $17.8 billion for the company in a deal. shares in both companies fell on the announcement. it said it is more interested in its own $10 billion plan to take over rival goldcorp and has dismissed the latest approach. >> a move of desperation on their part. they have only been eight weeks now since they started to bring their company together. they have not even started to offst what they have bitten

in terms of bringing two companies together, let alone putting in an operating model that they can manage. you can take on a third piece of complexity. ramy: warren buffett says he will not give up on kraft heinz after the $15 billion write-down but is not rushing to pick up more shares either. he says he has absolutely no intention of selling but has absolutely no intention of dying either. as the company "isn't worth as much -- no intention of buying either as the company "isn't worth that much." let's do a quick preview of what to watch in markets with sophie kamaruddin in hong kong. sophie: when mainland markets come online in half an hour, we will be watching to see if stocks can continue to rally after the surge pushed them into a bull market after a six percent jump. ubs maintaining a positive outlook on chinese equities even after the rally, seeing valuations below historical

averages. we are going to be getting industrial production data from singapore and taiwan. in hong kong, we are going to get a check on trade performance. haidi: let's take a look at some live pictures of where all the action will be at over the next two days. looking to arrive eminently for his consummate with president donald trump. he has been traveling for 2.5 days now from north korea through china, and he will be arriving later on this morning rate -- railway station where he is heavily guarded. we will bring you all the latest from vietnam upon his arrival. this is bloomberg. ♪

>> it is 9:00 a.m. in beijing, shanghai, and singapore. i am tom mackenzie. david: here are the top stories this hour. the surgeon china remains in the spotlight after the biggest rise since 2015 and the tariff may add to the momentum. theresa may will brief the cabinet this morning. >> kim jong-un has crossed the border and he is on his way to hanoi, president trump will fly in later.