welcome to "bloomberg daybreak: australia." i'm sophie kamaruddin in hong kong. we are counting down to asia's major market open. haidi: here are the top stories we are covering in the next hour. talking trade. sources in washington say the u.s. and china are in the finals stages of a trade deal that will see tariffs lifted. president trump lashes out again. he says the dollar is too strong

and the fed chief is someone who likes to raise rates. austerity and civility -- prosperity and stability. the promise of progress put the picture is always in mind. ramy: a big week ahead. let's get a reminder of how u.s. stocks ended last week before we hand it over to you. by 7/10 of 1%. the best it saw in the past two weeks ever since february 15. tobroke three days of losses cross the 2800 mark. the nasdaq was up by more than 8/10 of 1%. this was its best performance in the house week. the s&p health of this, the third or fourth best for performance from friday. we are seeing positivity breakthrough in terms of u.s.-china trade and we are looking to the npc in beijing and fed decisions. withdecisions and play central banks. that includes the rba as well as the ecb. friday, in asia,

stocks closed higher but ended the week lower. high onfor a five-month monday. this morning with south korea back in the mix, markets back in line come india and sri lanka are closed this monday. this morning, asian futures looking fixed. a u.s.-china trade deal is entering the final stages of that has boosted the offshore yuan and aussie dollar. checking in the cmh. accor panel against the dollar. it is asia's second-best performing currencies since the start of february. the aussie gained 6% -- .6% which came after china's offer to lower tariffs on u.s. farm goods and automobiles. the aussie dollar above the 71 handle against the greenback at the start of the week. on tuesday, we will see the rba decide on rates and china's leadership kick off the much awaited nbc ratings. ramy: meantime, the u.s. and are closing in on a trade

deal that may bring an end to most or all of the tariffs between the two powers. according to people familiar with discussions, one of the chinese demands was the removal of $200 billion in tariffs on chinese goods. rosing us for the latest is krasny in washington, d.c. and tom mackenzie in beijing. let's start with you, roz. it looks like china and the u.s. are close to finalizing a deal. tell us how we got here. has been a series of talks in beijing a few weeks ago , in the u.s. last week. since those talks have been going, the parties have been in constant touch. there has been a definite desire to get a deal done as soon as possible. there was a march 1 deadline president trump extended. it looks like both sides are now really keen on closing in on this. ishave heard president trump

interested in having a summit with president xi in late march to wrap this up. that arefew things outstanding that may not really -- besides may not come to term on and that could still trip the discussions up. the $200g about billion in tariffs the u.s. might lift immediately or over a period of time, i think the u.s. wants to have a snapback mechanism that if china doesn't do the things the u.s. needs it to do, it could go ahead with tariffs again. probably there will be talks on this until the finish line. tom, a big fortnight for political pageantry in beijing. this could be seen as a victory? really, it is the minimum that china could look to come away from. if you think this is basically going back to the status quo, we

have 25% tariffs on $50 billion worth of chinese goods. 200 billion on dollars with a chinese goods at the chinese have been making this a priority. it is just the timing. what we are hearing as well is exactly how this process might work in terms of the removal of tariffs. on this, thereg may be a phased out removal on tariffs. the chinese are pushing for those to be taken off immediately. tariffs.id not propose as part of the deal, this tariffs would be removed but we are looking at a lowering of tariffs generally by the chinese around the auto sector, where currently tariffs on imports of cars into the chinese market stands at 50%. we know that is part of the ongoing discussions, china has promised and suggested it could buy up to $30 billion worth of agricultural products every year from the u.s. these negotiations seem to be close to some kind

of an eventual deal. the wall street journal reporting you may get a sit down the two presidents by the end of march. ramy: possible warming between close to some kind the u.s. and china. a possible cooling off between donald trump on his own self-selected chairman of the jay powell. some comments coming out this weekend from the conservative political action consult a meeting. here in the u.s. it was not very good when it came to words about jay powell. ros: well, yes. jay powell, soon to be known as a gentleman who likes a strong dollar -- excuse me. and most of us thought the trump tower spat was a one-sided spat in trump's favor, was over. the two of them had a dinner, a sit-down down dinner in february. steven mnuchin was there as well. they had a steak. they talked about the economy. trumperal, it seemed like

had stopped his criticism of the fed. and at the same time, the fed had stopped raising interest rates. and powell and most of the other fed officials have talked for a month or more about being very patient on rates. a lot of people think the fed rate hiking cycle is over. or very close to being over. all of a sudden, at the cpac meeting, president trump was back on powell's case again. a little bit unclear if he was going back throughmeeting, press back on greatest hits, it was an epic two-hour speech from trump. he talked about a lot of things. past, present, and future. there is also a sense that as he looks toward 20 and the next election, if there is any chance that there is a recession on the horizon and obviously economists have bit -- have mixed views, that getting back on the fed's case and on powell's case for having raised interest rates, he

lines up a convenient scapegoat should the economy weaken. there might be a little bit of that going on as well. tom, the most wonderful time of the year. the so-called two sessions getting underway this week. what are we watching out for? is always one every year, that we pay attention to. really, that is one of the key takeaways from this annual parliamentary session is the gdp target. we are expecting to get that tomorrow, tuesday, when the premier outlines the economic priorities for 2019. there has been reporting that suggests they may soften the target to between 6% and 6.5%. 2018, you got a four-year growth of six point 6%. most of the forecasts for 2019 are looking at 6.2%. the range is going to be interesting in terms of the gdp target. we are expecting targets around the debt of the deep -- of the

gdp, the deficit may be increased to 3%. we will also get data around inflation and money supply. also, this is about president xi and his team having to juggle the need to ensure that they stabilize growth with concerns about that. and continuing concerns about the trade war. we will get 3000 delegates senior party officials come a local government officials, military leaders, and ceos of the big companies gathering at the great hall of the people. it kicks off properly tomorrow, tuesday. a few hundred meters from where we are standing today. ramy: it seems the breakthrough between u.s. and china could not come at a better time for xi jinping as they embark on the mpc. any other takeaways from donald trump's own long speech? i think it clocked in at the longest ever, two hours, is that right? ros: that's right. two hours and two minutes by my stopwatch.

he really touched on everything from the day he launched his campaign pretty much to the kim jong-un summit from last week. he ran the gamut. he talked a lot about democrats, talked about the green new deal, the expensive new power plan that some democratic lawmakers are in favor of and talked about a few of the may be running in 2020. it seems like he was trying to fire up his conservative base. there has never been doubt that the conservative base is with president trump. a new poll out today showed almost 90% of republicans are in favor of the president. themso, he likes to keep fired up. he likes to keep them motivated so they will get out and vote. bloomberg editor ros krasny in washington. joined by tom mackenzie, china

correspondent there, very early morning in beijing. let's get you to first word news with su keenan. su: thank you. u.k. prime minister theresa may has been given the conditions that a hard-line brexiteers are demanding as the price of supporting her deal. the sunday times says members of the pro-brexit european research group my to back her if she agrees to a legally binding formerthat overrides the agreement. a stronger promise has the irish border backstop will be temporary and a clear route out of the backstop if talks fail. haslower house in japan approved a record budget for the coming fiscal year starting april 1. favor of theed in abe government $907 billion --kage ensuring it can be an and acted before the new year begins. under the constitution, the budget will take effect 30 days after being passed by the lower house.

the initial budget for last year was $873 billion. itsstan has rio and airspace. this after releasing a captured indian air force pilot amid signs that cross-border tensions may be easing. international flights were disrupted when pakistan closed its airspace last wednesday with carriers forced to divert or cancel services altogether. there are still reports of clashes with both sides accusing the other of killing military personnel over the weekend. spacex has taken a giant leap forward with the successful docking of its first astronaut ready capsule at the international space station. the craft was making its maiden flight in the only -- and the only passenger on board was a life-size robot named ripley after the "alien" movie character. nasa gave spacex and boeing company contracts with more than

$6 billion to fly u.s. cruise to the iss. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. haidi: thank you. still ahead, the pressure mounts on australia's prime minister as more ministers in his cabinet quit ahead of a national election. ramy: tribeca investments joins us for a look at what to expect from the markets this week. this is bloomberg. ♪ this is bloomberg. ♪

we are counting down to the start of trading this monday morning in sydney. futures looking positive. outside of .5% after u.s. stocks snapped the three days of declines, finishing for a fifth consecutive week higher for the s&p. i'm haidi stroud-watts in sydney. ramy: i'm a inocencio in new york. you are watching "bloomberg daybreak: australia." up for a busy

week on wall street. that includes corporate earnings, auto sales data, and market moving tweets from the u.s. president. be watchingll closely for any confirmation of the u.s.-china trade deal we are reporting. su keenan has the latest. in the pastve seen week, any updates tend to give the market a tic toc restructuring, and that likely will be the case is week. we do have a slightly positive uptick in the futures as we look ahead to the monday open. let's go into some of the stocks that will be in focus. that has a lot to do with earnings. getting into the tail end of earnings season. look at the stocks that are in target, dollar tree, these are stores that tend to target, for lack of a better word, the more economy focused consumers. how they do and what projections they give the markets will be

very interesting because it has been a miss picture on the retailing front. salesforce.com which has had strong results. how they do also will be of interest. let's go into the bloomberg. picture, technical analysts are watching this kind of action. you can find this chart in gtv with our library of charts. this is titled the s&p 500 stock beenrrange, the index has challenged by this resistance level at 2800 on how you wish and -- on valuation. each time it gets close, it fails to break above. there are analysts opinions on the real catalyst it will take to push the s&p 500 through this, could a trade agreement be that catalyst? yes. is it likely to come? that is the big question. clearly any huge disappointments could grow the market the other way. -- throw the market the other way. traded oilyork

futures taking a slide on friday. a lot of funds have taken bullish positions. it is down to the trump last week sending and firing a warning to opec to take it easy. that could be having the opposite effect. su: we did see the first weekly decline for oil. look at the five-day chart. it gives you an idea of the wild ride we saw last week. at the start, that is where the tweet came. then you had a lot of data coming out from opec plus showing that the impact of their production cuts have been significant year we had a surprise drop in u.s. applies, a surprise drop getting in the imports. that had been supported with price. bigger picture, we have seen west texas intermediate and brent crude up between 23% and 25% year to date. that caused hedge funds to go along. the price action of late has been negative. look atu keenan with a the u.s. market action on friday. joining us is portfolio manager

jim balliol in sydney. great to have you. what are you watching this week? and policy inics china as well as the latest, somewhat positive tailwind coming from the trade story. >> absolutely. i think the trade story is the market will take to the next level. even though markets petition for a deal to be done. nevertheless, should there be a the market to the next level. even thoughdeal, the market wout to the next level, particularly for the markets such as the chinese market and the yuan. haidi: particularly downward pressure on the dollar with trump's tweaked, the pressure on fed chair powell to do nothing. i want to take a look at china on this chart. we are getting in addition, the tribe it -- the china trade numbers. giving an idea of whether january was a one off. if we did get in easing in the trade tensions, do you expect further upset for chinese -- upside for chinese equities?

jun-bei: the chinese equities hit the bottom last year while fundamentals was resilient. tradehe resolution of war, is going to put short-term resumption -- short-term disruptions. at the, if you look data, the pmi has not been that bad for china. it is less pessimistic compared to what the market was expecting before. the resolution is really going to put -- push into to the next level. if you look at the confidence, it has never been so high. in many years. we do expect that to rally a fair bit. haidi: one of the big things people were talking about over the weekend was donald trump trying to talk down the dollar. on into the terminal and i want to show you what we have been looking at in terms of dollar gains in february. the first month of gains since october. is the dollar too strong? do you agree with him? jun bei: i do feel a strong

dollar is not great for the u.s. businesses, given it does increase the cost and the impact of earnings. a weaker dollar is great for them. last year, we have seen the strengthen dollar, -- strength in the dollar, it has impacted the economy toward the latter part of the year. weakening u.s. dollar is good for the economy. it is very important for that to keep going. on the same front, a weaker u.s. dollar is great for the emerging market economy, giving them the much-needed relief. ramy: looking ahead to what has been happening in terms of the rally, how much further do you think we could go? we were talking with su keenan about how we have cross the 2800 mark on the s&p 500. that it has traditionally been a coming backof maybe from it. do you think we can push ahead? manager, i will

tell you the market is expected to go higher. for 2019, it is pretty good. resolution war will improve the business confidence, improve investment. china is not doing too poorly. globally, the economic fundamental is reasonably strong. we do expect that to continue to drive the equity market higher. whether it will push through that level in the next two months or three months, we do expect the market to be reasonably supported without any exogenous shock. haidi: the perceived shift from financial risks to potentially, if not really leveraging, at least stability is what started the chinese rally. is that more of the messaging you are looking for? jun bei: i think this will be very important. you're quite right. we have seen the credit data that has come through quite strongly on the back of the cuts. that is going to stimulate the economy.

in the past couple of weeks, we heard a few lines from the official about potentially risk on that growing too far. we are really looking for whether the officials -- the official stance will stand. haidi: a big couple of weeks ahead. thank you so much. jun bei liu, investment parter and portfolio manager for you can get a roundup of the stories you need in today's edition of daybreak. you can go to dayb on your turmoil -- on your terminal. get the news on the assets you care about. this is bloomberg. ♪ this is bloomberg. ♪

haidi: i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york or you're watching "bloomberg daybreak: australia." let's do a check of the latest business flash headlines. u.n. has been asia's second-best performer currency since february.

it's rally may stall as traders shift of focus for the trade war to the state of the rally has seen the u.n. string -- reach its strongest level since july. ocbc and that wes market say the currency will weaken in line with weakening eco-data and any good nude -- news on the trade dispute priced in. ceo of ally has stepped down temporarily as it comes under scrutiny for failing to prevent a second collapse in brazil. the ceo became chief executivetn brazil. 18 months after the collapse of the dam operating in partnership with the hp. he said at the time, never again. anddam burst on january 25 another collapsed last month killing 169 people. ramy: a new survey from citigroup says s&p 500 companies repurchase more than $800 billion of their own shares last year.

surpassing what they invested in new a great -- in new equipment. that is due to president trump's tax overhaul partly. they say that is dominating the use of cash over the longer-term with investment exceeding $6 trillion over the past decade. marketset's look at the in australia and new zealand. trading is underway. we saw both of the aussie and the kiwi dollars getting a nice bump up from this optimism that we are getting closer and closer to a trade deal between the u.s. and china. also seeing downward pressure on the u.s. dollar after president trump tweeted that he thought it was too strong. taking another slap at fed chair powell. also seeing downward pressure on the u.s. dollar after president we are looking at sydney futures opening up by 6/10 of 1% at the open. the s&p clocking a fifth straight week of gains despite lackluster trading in the first half of last week. the aussie dollar below the $.71 handle. aussie kiwi trading at 100 408. we have the decision as well as

australian gdp on top this week. pressures building on australia's prime minister. lawmakers quitting the government ahead of them a election. all of the details next. this is bloomberg. ♪ xt. this is bloomberg. ♪

markets are getting ready for trading in 30 minutes time. futures looking positive. seeing gains of .5%. beautiful sunny day in sydney. hot too looking at the top of 30 degrees. i'm haidi stroud-watts in sydney. ramy: i'm ramy in new york where it is 5:30 p.m. you are watching "bloomberg daybreak: australia." let's get to first word news with su keenan. su: thank you. reports from washington say most if not all u.s. tariffs on china are to be lifted as part of a trade deal purging its final stages. itrces say beijing has made

clear that removing duties on 200 billion dollars of chinese goods from day one would be necessary to finalize it. bloomberg has reported the white house wants the summit between presidents trump and xi as soon as mid-march. meanwhile, president trump has repeated his view that the dollar is too strong. powell, as at jay someone who "likes raising rates." the u.s. is doing well despite the actions of powell and his colleagues, and he wanted a currency that is good for business. the u.s. dollar was quoted lower against the euro and the yen in early asia-pacific trading on monday after the president's comments. pres. trump: we have a gentleman that likes raising interest rates in the fed. lovese a gentleman that quantitative tightening in the fed. a gentleman that likes a very strong dollar in the fed. weekhina's big policy

began with senior leaders pledging to ensure stability and keep what they say is the big picture in mind. as policymakers continue with reform. the chinese people's political theultative conference set major task of the year as building a "moderately prosperous society and upholding president xi's core position on the communist party central committee." cfo facing extradition from canada as the united states has launched a countersuit. to the supremes court of british columbia against the canadian government and police, alleging false imprisonment and the breach of her constitutional rights. the u.s. accuses her of lying to banks to make them profit transactions for huawei, that potentially violated sanctions on iran. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg.

ramy: thank you very much. let's go over to sophie kamaruddin for a check on the markets. take a look at currencies. those are on the move, especially after reports after the breakthrough in the u.s.-china trade deal. sophie: that is like a spirit let's look at how equity markets are setting up for this monday session after managing to eke out gains of .25%. you do have the stocks looking mixed this monday. qed stocks rising for a third straight day. the kospi may start the week on the back foot with markets returning after the long weekend. in australia, it could extend gains after capping a second weekly rise. let's check in on the early currency movers. we have some support coming through from a weaker dollar on trump's criticism of dollar strength. we have the british pound gaining ground on theresa may's brexit deal into closer to success at of the march 12 vote.

as you said, optimism of a potential u.s.-china trade deal is helping boost the aussie dollar, the kiwi, and offshore yuan. touched 66986nh against the greenback and the aussie dollar gained .6% on the news. 71 handleg around against the greenback after posting a second week loss on friday. get more on what we should be watching as trading gets underway. adam haigh he is here and set -- in sydney. we saw these risk currencies seeing the reaction to the trade and the dollar weakness as a result of the trump dollar bashing. his is going to be enough? -- is this going to be enough to give the next catalyst for the rally? adam: the moves are not huge. we are talking to tenths of 1% on the aussie. they key proxy as at where for environment.rader

the moves are not big. we have seen a little bit of flow this morning. let's see how the s&p 500 futures open, whether we get real signals of impetus that we could get. the global equity rally pushing on. that has been one of the key things, we have had that huge rally from a december lows and a lot of that was premised on the dovish fed but also progressions in the trade war and the soaring in the tension. over the last week, that has come to a head we have lacked any real clear direction on improvement. are stalling. especially for u.s. equities. where at that level in terms of valuation which tends to signal resistance. is not clear yet the start of this week whether we will have enough in the detail from progressions between u.s. and china on the trade negotiations to really get the rally going. it is certainly a decent set up considering going into the weekend, things are looking more fragile.

incremental positive sentiment should help us get a decent start to the week. the standout on the prior board with the shanghai composite up to 20%, just this year alone, chinese assets clearly having a good run. there are plenty of reasons to see those gains faltering. goldman sachs and jpmorgan point two key areas where the rally can continue? yeah, and of course there are a lot of things that have gone into the rally in domestic chinese equities. there has been the macro policy environment, but also significant incremental things. the ms -- the msci inclusion and things like that but have kept it in good stead. i think now from here, it is, what more on the policy front do you get? that is the point that jpmorgan are making. they are saying we could see further gains in chinese equities but it will be conditional along further set -- further policy support that will

keep the growth outlook from not sour and anymore than it already is. anymore than it already is. they are talking about something in the order of 3% or 4% on relative outperformance. a lot of that condition on improvement in the trade backs -- backdrop in whether or not we have enough today to play into that 3% or 4% gains in chinese equities from here over the next few weeks, not entirely clear. something of that magnitude. they are not really saying that we will have a stellar run. they are really cautioning on the fact that you have had such an amazing performance in the first two months of the year. it's very unusual. let's pare back our expectations. even though chinese equities might outperform. haidi: adam, thank you so much. you can check out our library for those charts we brought up. gtv go on the terminal. came outsident trump

swinging against the fed over the weekend, complaining the dollar is too strong. our global economics and policy editor kathleen hays is here with his laundry list of frustration. let's talk about presidential motivations here. kathleen: this is an adjusting situation. the president was speaking to the conservative political action conference in maryland. this is a very important event for republican presidentia candidates. l -- presidential candidates. minute --h ran 120 122 minutes. apparently it is a record in the history of presidential speechmaking. he had a laundry list of make -- of things. soundt -- we just ran the of president trump saying we have a gentleman in the white house, didn't want to say jay powell, but that is who he meant. he said he likes quantitative tightening, running down the balance sheet, likes a stronger dollar, even though he thinks the dollar is too strong.

then it is detrimental or as he said, prohibitive to u.s. businesses. weis interesting to me that did see the dollar weakened in early trading in asia. not a big move. but clearly giving a nod to the fact that the president will lament the dollar being too strong to what does that mean for traders? it is also interesting because this comes after jay powell clearly has signaled, along with several fed officials, that he willnot really think they be hiking rates anytime soon. i found -- i'm sorry, i will have to call it up on my screen, but it is a fun chart. which my monthly producers have already for me. for me.eady it is covering the end of 2016 through 2017, 2018, going into 2019. you can see the yellow line going down in 2017 even as the fed was hiking rates. it starts rising again. but it was originally falling

when the fed was hiking rates. you know what that white line is? trump's approval rating. maybe the dollar is tracking president trump as much -- as much or more as it is tracking the fed. it is another week full of fed speakers. major central bank meetings per the ecb is the highlighted what are you watching? up.leen: let's set this six fed speakers. earlier this week, -- excuse become a friday, we had consumer spending in u.s. down 0.5%. the weakest reading since 2009. fed bank president said he is still patient on rates. in the week ahead, i want to start by mentioning european central banks meeting on thursday. the question is, will they take a dovish tilt, follow the federal reserve at this policy meeting? next in line, all week, the national party congress is expected to send monetary and fiscal signals, three trigger the gdp forecast.

malaysia, the meeting coming keeping policy on hold. we will follow that closely. the facebook -- the teacher of the economy going into the meeting on march 19 and 20th. ony important, u.s. payroll friday. that january number will be key. many people are saying bond -- many people are saying it could be key to if we see further steepening trades. all right, a very busy week of policy makers. our kathleen hays there. let's get to high profile and it's good the latest news coming out of the australian government. a defeat looming in a few months. paul allen has the story. paul: it certainly has another -- has been an appearance. ministerse industry announcing he will not stand up in the next election. and then the defense minister saying he is done on saturday.

christopher pines is a color for character, the former prime minister referred to him as a mincing poodle. political survivor might be a better description. he has been there 26 years. he survived the coos that another.onnie ever and there is this election coming up. the inevitable question, is a safe i too cannot win? mr. pines as it has nothing to do with our electoral prospects but those prospects are grim. the government trailing in the polls. mps to leave,file the foreign minister julie bishop, kelly o'dwyer, not to limit -- not too many women left. you can guess that the opposition will be hammering that. government itself intends to campaign on its record of economic management. down, how willg that work out for them? not: for the government,

all bad. jobs are strong. there will be a return to surplus likely when the budget is announced in april. we have got the rba moving its stance from tightening back to neutral. low. a few concerns we have house prices slowing. the potential slowdown in china as well. persists.h weak consumption we saw in the third-quarter gdp numbers which is one of the things that prompted the shift in his stance. we have more gdp numbers out on wednesday. overall, not too bad. it is a growth of .5% on quarter. 2.7% on year. it is those consumption numbers that are likely to concern the rba. ramy: paul allen looking ahead to the next election, thank you very much. prepares to look -- go forward. the risks and rewards that could come from its ipo. this is bloomberg. ♪

haidi: i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. you're watching "bloomberg daybreak: australia." ridesharing company lyft has now filed plans to go public. nos ticker will be lyft, no surprise. it will be listed with a valuation target between $20 billion and $25 billion. go deeper and you can see lyft has made plenty of revenue. $2.2 billion. never a profit. in the filing it says it may not be able to achieve or maintain profitability in the future. be able to achieve or maintain profitability in the future. what does it mean for uber? barrett daniels has built his career around ipo's, and joins us from san francisco. in terms of what is happening and the factenue,

that they are saying they may never make money, what do you make of that, why is this interesting to investors? barrett: you know, that tends to be pretty boiler and plate language. we see that in many ipos. a flexible key to ipo is revenue growth. revenue growth is the elixir of wall street, always has been, probably always will be. when you boil it down, the losses tend to not be nearly as important. it is no concern to you whatsoever that this company might never make a profit? barrett: well, no. on the ipo. in order to have a successful ipo cap a really is much more about the revenue of growth. if i am running a company, of course profit will be important. but a lot of today's? accordance has chosen to grow over profitability and believe they can tackle that issue when they need to. the regulatory and legal

issues loom large in the ipo perspectives. have to talk about that in terms of this categorization of drivers, contractors, as opposed -- as opposed to employees. ast recognizes this uncertainty. is that something investors should be worried about? barrett: i don't know about that. it is certainly something to consider. it is not like those costs are not showing up. it would just be a different classification for the cost potentially. i do not see that as something that should be to troubling. at least for the ipo. interesting, you see this as a rare situation for a unicorn going to market in that you see the aa where me positively from both institutional and retail investors? barrett: yes. when you talk about what really excites wall street, the real

sophisticated investors, it will be the revenue growth. just general improvement in the numbers. when you talk about a company with significant brand recognition and this wide consumer adoption, that is where it trickles down. you start to get investors that may be otherwise generally are not going to participate in an ipo. this is the kind of thing that does possibly excite them, as well as the wall street component. typically, those pieces, the significant revenue growth and the brand recognition and the consumer adoption from products that people know and use and are familiar with, is usually quite a good recipe for a sex full ipo. ramy: you are saying wall street and main street investors should be interested in this. is there anyone out there who you think should stand by the wayside to see how things develop? barrett: definitely. you always want to know more and to wait and see what happens. i also think it is important to

divorce the ipo from the actual post ipo performance. it is kind of like looking at a wedding compared to the marriage. you can have a very successful ipo but then struggled down the road, if you don't get out of the gates or perform right and you don't set the right expectations and you start missing quarters, that can be really challenging to come back from. yes, i think it is always not a bad idea to wait and see what happens. but still, these are fun too. i think people may like these products and just really believe in what they see and work with and want to be part of it. haidi: really appreciate your time. barrett daniels joining us out of san francisco looking ahead to lyft ipo. more to come on "bloomberg daybreak: australia." this is bloomberg. ♪

ramy: let's check latest business flash headlines. elon musk is keeping his investors glued to his twitter feed again with details of a new launch event this month. he says the model y will be an suv and built using many of the components from the company's first manufactured car. of course, the model three. it will be 10% bigger and cost 10% more. a tax bill from this calculating income withholding spirit of the workers in earlier retirement and its accounting of marketing. the chairman says the issues go back to 2009 and include the cost of a 60th birthday celebration. he says back taxes for early retirement workers at up to $11 million. ramy: bill gross has a parting shot for anyone hoping to be the next king of the bonds.

he defines his career as beating benchmarks but says the era of our performance may be over. gross retired on friday after 48 years and financial markets. he says lower yields and razor thin treasury spreads mean central banks have changed the nature of the game. things to there are look at that still exist in the market that can generate alpha. the probabilities of generating historical alpha in the same way are much less than they were. in the worstlia is slump has created a obvious losers. investors bought up are now under the waters. to get ridstruggling of apartments. the downturn has produced winners. peter is here to tell us who had -- who is benefiting. peter: the obvious main winner is firsthand byner -- buyers. there was a concern among young

people are that they would never get on the property prices. it rose 75%. it was getting out of hand. what we have seen is home value in sydney has fallen $100,000. if you are a young person, you have a good job and managed to pull a deposit together, interest rates are still low. it is a good time to get in. if prices fall further, it will get better. is it a good time for renters? peter: yeah, we are saying it is a good time for renters. art of the reason prices are falling is there is a massive wave of supply of apartments coming onto the market. these are projects that were started during the boom. as these come on, there is more supply. we are seeing people moving from renting to buying. in sydney, we have seen rents fall. that is the first time in 12 years rents in sydney have fallen. a good time, it is

to get into the market. asian peter of bloomberg investing editor in sydney. let's look at the market open in sydney. sophie kamaruddin in hong kong. sophie: aussie futures advance for a fourth straight session. hinting again. stocks trading ex dividend. at 8:30 a.m. hong kong time, there will be a delusion lose -- a eight days deluge of data. we have china's national peace conference kicking off, it will be in focus. southy is the final korean quarter gdp. we have already had a start this year with a tumble in february exports. the decision comes as traders boost odds of a rate cut. we are looking ahead to

the start of trading. this monday morning in sydney. that is it for "bloomberg daybreak: australia." trading in new zealand is coming up. really one key thing. the u.s. and china getting closer to a trade deal that could result in all if not most tariffs being lifted off $200 billion worth of chinese goods. we did report friday that we could see a trump set -- a trump-xi summit. we have political pageantry taking place in beijing. a big week ahead. we are seeing aussie stocks trading higher. we are seeing a pop when we see the aussie and qb dollars and offshore yuan in reaction to the trade pause -- trade positivity. in addition to the dollar weakness. that is about it for "daybreak: australia." in terms of the market open, we have south korea returning to trade after the long weekend. the nikkei 225. seeing positivity bradley when it comes to asian futures.

this after u.s. stocks pushed higher for a fifth straight week. getting more in the next couple of hours on china's national people's congress. our china economist is with us. this is bloomberg. ♪

haidi: i'm haidi stroud-watts in sydney where australian markets have opened for trade. ramy: good evening in new york. i'm ramy inocencio. i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." haidi: our top stories is monday, talking trade. sources in washington say the u.s. and china are in the final stages of a trade deal that will the tariffs lifted. president trump lashing out saying the dollar is too strong

and the fed chief is someone who like