>> welcome to "daybreak australia." >> and the bloomberg world headquarters in new york. >> i'm in hong kong. we're counting down to asia's major market open. >> here other top stories we are covering in the next hour. what emergency? the senate faces a showdown with the president by rejecting his wall strategy. theresa may wins backing for her plan to delay brexit. the european union wants to know

exactly what will change. pauses all macs deliveries with the plan expected to be grounded at least until april. >> u.s. stocks fluctuated between gains and losses, lacking clear direction. we have the brexit vote happening in the afternoon on u.s. hours. that had investors' focus, not to mention a report that presidenttrump and she might not be left month. all of that sort of weighed on sentiment. the dow and s&p 500 virtually unchanged. did finish above that crucial level but we had and --l shares way weighing on it. seeing s&p futures at the moment opening unchanged. let's see how we are setting up for asia.

>> after a choppy week, asian stocks looking at a mixed start this friday as we head into the close of china's npc with a trade deal with the united states looking elusive, but that .eal likely looking ahead the likes of jpmorgan saying it is time for investors to embrace risky assets like stocks and commodities. in china released new home china released new home prices. we will get a snapshot of trade performance in india and indonesia as well. >> let's get you to first word news with selina wang in san francisco. selena: the u.s. and china are said to have delayed a positive na: the u.s. and china -- settler delayed possible

are said to have delayed possible trade talks. early reports suggest to the summit could take place this month as a follow-on to resident sidentpresident -- to pre xi's tour of europe. boeing and the faa are racing to produce a fix, but the process is expected to take at least six weeks. meanwhile, flight recorders from the doomed ethiopian airlines plane have arrived for analysis by french experts in paris. toc is urging oil producers cool production levels to prevent the return of a surplus this year. the cartel says supply is outstripping current demand, growth, and sees the risk of inventories becoming too high in the fourth quarter. he opec members and their allies will meet this week in azerbaijan to review output they key been implementing --

opec members and their allies will meet this week in azerbaijan to review output. >> thank you. the stage is set for a grand showdown in washington with the senate rejected president trump's national emergency declaration and he is taking to twitter to declare he will veto the declaration. drama elsewhere, too, with a possible trade summit with president xi jinping put off until next week at the earliest. let's start with that vote in the senate, a second review following that vote on yemen. what does this mean for the president? >> it means he may have to look over his shoulder in the future. this could open the way for republicans feeling more comfortable in defying him when he goes beyond the bounds that they set. down a fairlyned narrow question, if the president's emergency order

in interferings with the congressional role in setting spending, so does not necessarily indicate that there is opposition to his wall a key part of his presidential campaign, but this also is going to be bound for the courts. congress will not be able to , so we'll goveto into effect and there will be some court cases moving along. one of the things that perhaps the court will be looking at is interpreting the law that he is using to make this emergency declaration and looking at what the intent of congress was. congress has delivered a message on its intent with this vote to disapprove it, but there are parts of this that have to play out. it does look like a political vote for a president, who otherwise looked pretty invincible with republicans. >> in the meantime, the

president may also have to wait longer for his other objective, which is a trade deal and a summit with the chinese president. >> right. the president had previously been touting the idea that he might have a meeting with president xi of china by the end of this month. that always seemed a bit ambitious, but there are, despite talk of great progress from both sides, still a number of significant issues apparently left to be decided. the chinese were not willing to go and finish off negotiations in a room with trump himself. they would like to come over and have the deal set, pretty much ready to go, and there has been some speculation that they are concerned about the fact of walk out ofsion to the north korea talks. there is still some negotiating to be done. they do not look to be any particular roadblocks beyond the

usual for any such trade deal, which often take a long time to finish and get all the so bothns tidied up sides can agree to something. if it comes in april, i think remains to be seen if they can get it done by then. >> thank you so much for that. theresa may won a rare victory and her brexit drama with the house of commons backing a plan to seek a delay for the divorce. sebastian, what comes next? sebastian: the plan is still in place. -- we're looking to see her strategy now, which is to see if she can pass the deal and the extension will be short, it will be until june 30, and it is just technical. if you do not pass the deal, the application is that it will be a

long extension and that brings brexit the risk of wreckers having plenty of opportunity to derail the project and possibly reverse the 2016 referendum. of course, she needs the permission of the eu as well. other eu member has to sign off on this. they have indicated, though, that they would allow two or three months if a deal is approved, but if the public rejected, then the eu is much more divided on the course of action. there's suggestion they may back a deal of at least a year. he says he needs to be open. second biggest trading partner has been very open about the risk of no deal because he probably has the most to lose. it was clear that they want a good reason to extend talks, and

that is also the general feeling from the rest of the eu. they want to know that may has a strategy going ahead and that she's not just doing this to kill more time. >> crisis after crisis, but given that there are no more negotiations scheduled with the eu on the deal itself, what's the likelihood this will actually change the present arians -- the parliamentarians' mind? >> they are going to vote on exactly the same text next week. the difference is this threat of a longer extension because there is so much it could bring with it. the currency of theresa may now is essentially fear because you could get a second referendum or risk the eu setting the terms of the situation and may has also said that if there is no deal march 25, she will let parliament have a chance at taking over. all of this is so unpalatable for the right wing of the conservative party as well as

for the northern irish party currently propping up may's conservative government. before the vote, the government was holding secret talks with these groups to try to get them on board, some sort of compromise. i guess we will find out next week if she has been successful there. >> still ahead, jpmorgan's chairman and ceo remains bullish on china. we will hear his thoughts on progress toward a trade deal. >> next, we look at the market response to theresa may's rare brexit win. this is bloomberg. ♪

>> we are counting down to the start of trading in this final friday session. the bit of a mixed picture for asian stocks.

steam andlosing really fighting to gain traction as we get a delay on brexit as well as potential delay in this deal as well. >> you are watching "daybreak australia." we have breaking news out of aia group, now announcing their full-year results, saying the value of their new business was a 23%, beating estimates of rise of 22%. we also see full-year operating profit came in at $5.3 billion. we have seen the stock really take off as investors factor in the expansion of their business into china. the stock has risen more than 20% this year. we are now hearing they are also proposing special dividends for a share of nine hong kong dollars $.50. the value of their new business, up 23%. let's get back to brexit and

that rare victory for prime minister theresa may. parliament has voted overwhelmingly to delay the march 29 brexit deadline, so now that they have bought a little more time for themselves, what does this mean for the market? to have you back with us. we have seen this hurdle being cleared, but of course, this coming after -- what? two use of negotiations on the deal, three years since they brexit. voted to leave how big of a dark cloud will the ongoing drama before the european economy going forward? >> the biggest dark cloud in europe today is actually brexit and the reason is not necessarily that it is hurting consumer confidence or that it's hurting spending, it is that it is hurting business confidence. pmi down andou see it has to do with business is

not being confident enough to invest. what is important for britain to a countless over the course of the next few months is too narrow the range of outcomes. right now, anything can still happen. if we can get from anything to happen to at least lop a few branches off of that tree, businesses concert to plan, to invest, and to grow confidence in the economy. technically, no deal brexit could still be on the table if we do not get a proper extension of the deadline and the way to move forward, but let's talk about the fact that you have the brexit uncertainty, but at the same time, you have trade protectionism, u.s. trade tension. how does this conflict kit the outlook for the global economy when you have one catalyst after another? you deal with one and there's another. >> it is a little bit of a game of whack-a-mole. when you have more than one player playing that game, you

are kind of cheating, and we have that environment today. central banks are the ones whacking at malls -- moles today. the fed may explicitly say that they are pausing, that they may not raise rates later this year. they may also go out and say exclusively that they may not continue to sell bonds in the market. they may suspend their quantitative tightening measures. what can happen in europe and japan and china is various changes to availability of credit, availability of money, all of which can stoke growth and stoke confidence. the reason i think this is not pushing on a string like we had after the global financial crisis is this is a crisis of business confidence. business is not confident not because consumers are not ready,

willing, and able to spend money -- they very much are, especially here in the u.s. we're talking about a very solid consumer with very low unemployment rates and finally experiencing some sizable wage gains. there's too much going on, too little they can predict and without that creditability, they are not willing to invest. predictability. >> you are not seeing animal spirits, right? the markets just keep wanting along. we are still seeing gains when it comes to equities. is there a sense of complacency breeding? be a groupl seems to bepeople who think 2019 will another goldilocks year. >> you are right on the money. investors have really received this information very different leave versus business leaders. the comeleaders have exceedingly pessimistic. if you look at the recent round of earnings reports, many

business leaders ratcheted down expectations for the coming year and i think this has everything to do with business leaders looking at this environment not having the confidence to invest, and yet, why are investors thinking about this is really? i think investors recognize that the volatility of last year was an incredible opportunity because the market reaction was out of touch with a garden-variety economic slowdown. not a recession, slowdown. that, i think, is what we are likely to experience because central banks have plenty of ammunition, especially in the u.s. where we have been able to hike interest rates by a significant amount over the past two and a half years. mentioned at the top, which is kicking the can down the road when it comes to brexit and potentially delays when it comes to even a short-term trade deal with china -- even if we have both of those narratives locked into place, is there still a since the slowdown you are seeing with most of these countries is cyclical, and to some of these countries like china is in some ways structural as well cap even if you remove those

catalysts, or those uncertainties, does it drive global growth much higher? >> i think it does. you're right on the money when bothay china's slowdown is cyclical and longer-term. the longer term as china is going from a 10%-plus growth economy to something like a 2% or 3% growth economy because it very much mirrors the demographics of western europe in the u.s. as it gets wealthier and dots technology. there are limits to how fast it can grow for how long, but outside of that secular decline, there are a lot of reasons to be optimistic and the biggest reason is we have not seen the full force of the central bank response. central banks keep telling us they are data dependent, the data is there. let's see what they say. president trump right now speaking at an event at the white house, saying at the moment we will have news on a china trade deal in the next

three or four weeks, sort of reinforcing the bloomberg news report earlier today that we will got -- we will not get a president trump/president xi meeting this month. we could have news in the next three to four weeks. we have had a lot of optimism over a deal coming very soon, although we really have not seen details of what that could in tale. will we see more on ip protections, forced technology transfers, have we been too optimistic? is there a risk markets will get spooked if we do not see something as substantive as what we have been expecting? >> i think it is important for trump to demonstrate that he has a big win here. not in terms of a big concession for china, but a deal that is really cheered by markets, investors, and business. i think that makes the possibility for a big deal much more likely, and i think trump in particular right this moment

is -- i would not say desperate, but really eager to have that kind of a big win under his belt because he just had a big loss on the immigration funds. >> two big losses, yemen and that emergency. you can get the news to get your day going in daybreak. you can customize your settings so you only get the industries and assets that you care about. this is bloomberg.

>> you are watching daybreak australia. let's get a quick check of the latest business flash headlines. facebook is losing two senior executives. chris cox becomes the

highest-ranking figure to depart since the company became embroiled in crisis last year. mark zuckerberg says talks has spoken for some time about wanting to do other things. chris daniels is also leaving. he left after the what's up founder quit in a disagreement with zuckerberg. >> tesla problems in china seem to have eased, resources saying china has lifted its restrictions on the model three, which were held about courts around the country after officials found irregularities in the paperwork. >> toyota is betting heavily on the u.s., adding about $3 billion to a long-term investment plan announced just before president trump took office. theaises toyota spending in u.s. to almost $13 billion over

five years. toyota says the move is partly as a result of tariffs in the u.s. trade deal. >> boeing says it has caused of all 737 max aircraft on top of earlier news that the family could be grounded through april at least. we have the details. what are they saying that the >> the most recent headlines we do need to know is not only on top of the causing's or --pensions of the 737 max boeing will still keep manufacturing it, but they will keep an eye on supply and demand, if there's any impact across the world, which is what we see now. house lawmakers were briefed by faa officials and said this could take as long as six weeks, maybe even longer because the software needs to be updated and the pilots need to betray and on that new software as well. we are looking ahead at least

until april, but again, it could be even longer. donald trump weighed in earlier. take a listen. >> i hope it will be for a short period of time. they have to i know what it is. butnot sure that they know, i feel like we had to do it. we had to take a cautionary route. is sayingtrump they're not sure what it was, but there is evidence starting out that it could be linked -- the cause could be linked to what happened with indonesia's lion air. boeing has been grounded around the world. governments have caused. those are the ones in red. carriers themselves in yellow, but over the past nine days, shares of boeing have fallen eight of those nine days, but bloomberg intelligence is saying boeing's first quarter revenue, profit, and margins are likely at risk. down nearly 14% over those nine days. and over 1/3 of

2019 profit could be at risk. with that said, this possibly some technical light at the end of the tunnel. oversold territory is where we are at with this purple line here. the last time we were at this level was back in november 2018 and ever since then, from here all the way up until early march, the shares of knowing actually jumped by 41%. ifot of folks are wondering technical support could actually be some sign of support moving ahead. >> great deal of uncertainty for boeing. thank you so much for that. let's take a quick look at how we are setting up on this friday session here in asia, new zealand, trading pretty flat at the moment. sydney comes online in just a little bit. in terms of what we're looking ahead to, a great deal of uncertainty as it looks like this trade deal could be a few weeks away still.

we have the bank of japan in talks with policy officials. this is bloomberg. ♪ this isn't just any moving day.

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>> its 9:30 a.m. here in sydney. markets looking mildly optimistic. we just heard from president trump at the white house saying the trade deal with china could still be three or four weeks away. of course, we had parliament voting to kick the can down the road for brexit overnight. >> it is 6:30 p.m. in new york. you are watching "daybreak australia." : president trump says

there will be news on the china trade deal in the next three or four weeks. a possible presidential summit had been delayed until next month at the earliest. china is pressing for a formal state visit to washington rather than a low-key appearance in florida. u.k. prime minister theresa may has won a rare victory with the house of commons endorsing her plan to delay exit. the result means her twice rejected deal remains in place. she is offering the choice of backing her plan and delivering frexit with a delay or risk a split and never happening at all. brussels is open to postponement but the eu wants to know exactly what the prime minister thinks will change. india says it will continue to implement economic reforms irrespective of what happens in the upcoming general election. the finance ministry says it's recent range of measures start to take effect and the economy potential growth rates will start to rise between 7.5% and 8%, but they note the global

trade war as important risk. tel aviv is on alert after to the rockets were fired from the gaza strip. .fficials say no one was hurt media reports said missiles were intercepted by israel's defense system, but the military has denied that. the first times tel aviv has been targeted by militants since the gaza war of 2013. >> let's get more on what we should be watching us trading gets under way in asia with our bloomberg global markets editor. a bit of a stall in the equity rally in no surprise given how much uncertainty there is on the brexit side and on the trade side as well, but this adding more risk to portfolios. >> they are putting words behind

what a lot of people in the market are thinking, do we get a second half of the year that actually turns out pretty well for risk assets? do we get a trade deal? do we get a continuation of the fed being on hold? this chart shows how well stocks have done this year relative to even commodities as well and the point that jpmorgan are making is you really want to be if the chinese slowdown is into its the way they think it will and policy support will be great enough to get the economy going again through the second half of this year. owningt to be commodities, decreasing allocations to government bonds, and a lot of it still premised on a trade deal eventually, which is the base case scenario from jpmorgan and certainly a lot of other people in the market, so it is really a question about if earnings can with stand the deceleration we are seeing in global growth and

if usage club to the view that essentially we have seen the worst in the deceleration of the second half of the year plays out a little better than people may have expected. jpmorgan certainly putting their words behind these thoughts here. that deceleration, we have seen central banks turning more dovish in the past few months and also resurgence in negative yielding bonds. could we very soon get back to those record levels seen back -- back of subzero debt in 2016? >> it was not that long ago. pool of negative yielding debt had fallen below $6 trillion. people were positioning to the end of each release monetary policy and how much of a difference the last few weeks has made with mainly really that dovish swing in many of the major global central banks that kind of put pressure on bond yields across the world in places like germany we're pretty

much at zero now on 10-year bunds. the risk-free rate on most investments is 10-year treasuries and they continue to be declining. still a way from negative, but of course, the trend is still down, so that is be learning the negative yield debt pool back above 9 trillion. we had about 9.3 trillion, so we are still some way off the 12 trillion we've reached a few weeks ago where there was the the story ism, but continuing to play out and continuing to show how much people are worried about global growth and the fact that people are prepared to still be snapping up some of these bonds with negative yields. >> thank you so much for that. you can find adam's charts on the g tv library. the bank of japan wraps up its

latest policy meeting in the next few hours with observers asking -- will the governor jump on that dovish bandwagon by cutting growth and inflation forecast? kathleen hays is here with a preview. given the weak data we have gotten from japan recently does it mean we could be seeing that economic growth forecast being lowered? >> it seems like it will be harder to not make some type of change because the numbers we have seen are pretty dramatic. when we talk about the dovish tilt, they are already one of the most dovish central banks in the world, but this will incline them even more in that dovish direction. it is unanimous that if there is no change in their tools, they range andthat control continue to signal they are etf's.o buy bonds and what they are considering cutting is the forecast for production, export, and global

growth. let's start by looking at exports as we jump into our bloomberg library. in december, exports were down more than eight percent, the biggest drop you see since 2016, so pretty dramatic. i want to move along into machine orders. that has a lot to do not just with the u.s.-china trade war, but with the slowdown in china's economy. we're looking at machine tool orders now. what a drop they had, the lowest in 10 years. if you look down at foreign orders, they went down nearly 22%, the steepest drop since november 2 thousand seven. you can see the production side, the export side. this is a negative sign for japan's economy, another reason why they will probably have to lower their inflation forecasts as well. if you cannot get growth, how can you boost inflation?

our economics team saying the governors going to grin and bear this week data for now. i love that. there gdp tracker suggests the first quarter gdp in japan will be down. when you bring in the sales tax hike, there are a lot of clouds hanging over the economy and the boj certainly has to acknowledge that. >> there are other voices arguing for the bank of japan to pull back on some of its stimulus and let that 10-year go up. >> we have been hearing a lot from small banks in japan. the regional banks have been complaining that they cannot make money, but now the head of japan's bank lobby who is also of thesident and ceo third biggest bank in japan is complaining about their inflation targets.

let's listen to what he said earlier. >> the boj should not be too 2%ested on achieving the price target. they should adopt a more flexible inflation target with a writer -- a wider price range and should be more cautious about the side effects and prolonged ultra easy monetary policy. >> if you are willing to target 1% to 2%, you hit occasionally that 1% year-over-year inflation .arget you could say we have hit the target enough, we could pull back on the stimulus, maybe let .he yield rise higher the finance minister of japan was speaking and talked about bojpossibility maybe that could be a little flexible it is all most a done deal, i would think. the afternoon, the governor

as well say now you have ahead of japan's third-biggest bank as well making the complaint, so it will be very interesting. >> the upcoming australian election could give the economy , that could be welcome news for the reserve bank, which is keen to avoid interest rate cuts. notral banks are generally great -- i love this phrase, pork barreling, but the environment seems to feel different. thing i think is behind this is the budgets are doing well, so it's not like australia will be racking up more debt or putting itself in a difficult position. if both sides are prepared to spend more, that's great. the other thing is once you are

at .5%, we have been at this record low for two and a half years. the governor said himself, you get this diminishing traction, the lower you go with rates. where youtter target want it to go. you're likely to pump more cash into the economy, so it is really the start of an alliance to be a love to use fiscal policy, and the other things the central bank has been carrying the can for 10 years, basically since the crisis because the governments finance position has been so bad and now it is starting to come into shape. it feels like it's time for the government to step up. >> a key focus is how much the economy is actually slowing and how urgent the stimulus is. what are the different sides saying? >> totally. it is quite a debate that is

going on at the moment. on the one hand, people look at budget numbers and our budget has come back to surplus very quickly and a lot of that is driven by increased tax revenue. the revenue from these areas is really, really swelling, so that suggests that the jobs are real, but on the other hand, you have the gdp reports showing the economy slowing. household spending is weakening, which also jars with a property market falling rapidly, the people tend to become more wary. both sides have strong arguments, and people's views on rates tend to coalesce with that. there's a third option that both are happening, just that employment is a lagging indicator. if it is a lagging indicator, we would have to expect the jobs market to turn fairly soon.

otherwise, i think there will be real questions over the gdp. >> thank you so much for that. up, president trump's former phenom at advisor says he is desperate for a deal with china. we will ask how desperate next. this is bloomberg. ♪

haidi: you are watching daybreak australia. jamie remains optimistic when it comes to china despite what he calls its bumpy road ahead. he discussed issues around these trade talks in an exclusive interview earlier. >> trade issues are real. they need to be resolved. they need to be resolved across all these issues -- >> will they be resolved? >> we think so. but they are complex. they are talking about hundreds of pages of memorandums of understanding so far. >> let's talk about all of this

with a former acting deputy u.s. trade representative and one of .ur regular voices the latest we have heard is from president trump himself speaking at the white house earlier today. is it better that they are taking their time? does that tell us their taking time to really get into the nitty-gritty of the details to try and build a sustainable, enforceable trade deal? >> yes, i remain optimistic that both sides will be able to reach a deal and the fact they are taking more time in my view is positive. 90-dayemember the timeframe they initially set for these talks was quite ambitious, and it's not surprising that it's taking longer, particularly given the issues at hand, the seriousness of the issues as well as their complexity. >> in terms of the complexity,

are you optimistic and expectations that some of these bigger structural issues will be able to be adequately addressed? >> i will be looking closely at the results on the structural side. clearly, they are the most occult issues. i believe progress will be made, but i also believe the administration has set very high expectations with respect to outcomes on the structural issues and particularly with structural subsidies and state-owned enterprises. i'm not sure how far they will get. >> you have been at the table for negotiations on multiple deals. when you are at the end stage of such a complicated deal, what is a final push? does it come from leadership evolved from external events? the above. i think the key is that you narrow it down to a handful of remaining issues and you address them at very senior levels.

sometimes that requires trade-offs or sometimes a new issue is introduced which somehow can unlock all of the there's a lot of possibilities, but again, i that both sides will reach a deal as long as both sides are not intent on getting everything they want. it has to begin and take. both sides have to be able to go home and show how they have gained from the deal. >> what are some of the things that they can actually give, they can actually concede to the other side? >> china is extremely consistent on wanting all of the existing tariffs lifted. i know the administration has been reluctant to agree to that, but that is an issue that is going to be very important for china. for the united states, they are putting a lot of emphasis on the

need for an enforcement mechanism. i think that is extremely important, but i don't think they are going to get everything they want on enforcement. i am looking for a credible, enforcement mechanism, but one that china can buy into. >> ambassador lighthizer says the u.s. must keep the option of to get thatffs enforceable deal. is that a good strategy, having the threat of tariffs in place? arene could argue you better off keeping them in place and lifting them over time if china complies with the obligations or getting rid of them and re-imposing them should china not agree. again, china is pushing hard to lift the tariffs, and i suspect we may end up with many of them lifted. can be thatmise some remain but many are lifted. there are lots of ways to define

middle ground on these remaining issues. >> what does the enforcement or dispute resolution mechanism look like in this kind of trade deal when we know that president is not fond of traditional enforcement institutions like the wto? >> i don't think we will see agreement on a third-party adjudicating disputes in this instance. we have already been informed by ambassador lighthizer there will be a series of meetings at all levels of both governments to review compliance so that will be one aspect of this enforcement mechanism in the question will be -- what then shall will they set to evaluate compliance and what penalties can both sides agree on to obligationsld the not be adhered to? these are tough issues and you always get to the enforcement issues at the end of the negotiation. let's remember -- first you want to make sure you have obligations that you need to

enforce, so a lot of focus has been on the obligations to date and now the enforcement issues are the final issues to be resolved in this negotiation. >> in terms of the leadership meeting, do you think that was something of a lesson learned ? om what happened in hanoi >> absolutely. let's also remember last spring the president walked back from a deal that secretary mnuchin reached with china. if you are in china's shoes, you want to make sure if there is a meeting of the presidential level, that it is going to be successful. i think that is what we are , and i think the united states has sent signals that perhaps a deal can be reached and maybe when the presidents meet, perhaps they .ust celebrate that deal >> it was a pleasure to have you on with us.

lots more ahead on "daybreak australia." this is bloomberg. ♪

>> you are watching "daybreak australia." an abu dhabi controlled investment fund has halted new business with goldman sachs, adding to the fallout for the bank over its role in the corruption scandal. it leaves a cloud over the bank's business. ubs has agreed to pay about 48 million u.s. dollars to federal allegations by hong kong securities regulator, but it mismanaged three ipo's and the city. it also received a one-year ban from acting as a sponsor in hong

kong. ubs is not the only bank being punished. standard charter and merrill lynch are also facing fines for what regulators call sponsor failures. >> waterway has appeared in court in new york to deny it concealed business dealings with iran. that marks the start of while's defense against charges of conspiracy and wire and bank fraud. thecfo is also charged in case, but she remains in vancouver fighting extra addition to the u.s. she maintains the case against her is politically motivated. >> we will not reduce saudi investment in canada. this is a case is an individual case that i do not think should influence in any way be relationship canada has with .uawei >> let's look at the market open in australia. shares makeie

gains. we are keeping an eye on banking shares this morning. it is in the process of implement and recommendations from the world commission and we had anz receiving another downgrade this month, this time from morgan stanley. coca-cola said it is not pursuing a bid. also watching gas players. we're watching the movie iron ore space after the ceo of america's largest producer warned that tightening supply was underappreciated. forecast a chinese mine will come to the rescue so [inaudible]n output

>> trading new zealand is under way with just a few minutes out with that staggered open in sydney. a preview for that market coming online. gaining .1%, the aussie dollar just holding about that $.70 level. we saw a bit of u.s. strength as trade negotiations got a little more clarity. sydney futures looking pretty positive, looking to extend those gains. a big agenda item of the day is that bank of japan policy meeting. no fireworks expected from the governor. of course, no changes but looking for updates to that inflation in growth outlook as always. >> plenty ahead on "daybreak asia." coming ahead, we will get an expert view on brexit.

we will be talking about prime minister may winning the backing of parliament on her brexit delay. >> certainly a rare win for the u.k. prime minister. that is it for "daybreak australia." we're back next with "daybreak asia." ♪ you.

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haidi: very good morning. i am haidi stroud-watts in sydney. australian market had just opened for trade. shery: i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this friday, talking trade. president trump says he should have news in the next month one way or another, but a summit with china is put on hold. theresa may wins