haidi: i am haidi stroud-watts in sydney. shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. haidi: here are the top stories we are covering. commerzbank and deutsche bank, the government trying to reese gasquet a stake. theresa may hoping she is a third time winner. she is warning hardliners that the u.k. could remain in the

european union. saudi arabia pledges to do whatever is necessary to rebalance the oil market. others are not convinced. shery: quick check of the markets close here in the u.s. stocks followed the global equity rally, the dow gaining ground. the s&p 500, the best week since november. also quadruple witching so volumes were high. we saw a lot of volatility in trading. still the tech rally was what led the markets higher, positive results from broadcom. the nasdaq topped its highest level since october. we have u.s. futures unchanged but under pressure, investors focused on the central bank decisions. we have those out of the fed, the boe and several asian central banks. let's look at asia.

sophie: at the start of a week that will see policy decisions from thailand, taiwan, indonesia and the philippines, futures hinting at gains. investors in japan have trade data to consider. the boj kept its stimulus policy unchanged but downgrading exports and production. in australia aussie shares could resume amid the treasury warnings. the downturn could hit the wider economy. new zealand grapples with an attack come that nation's gun laws are under scrutiny. a 10th of 1%- after hitting a high on friday. we got data from new zealand showing the services industry expansion slowed in february, 53.8, returning to levels from last 2018. we have new zealand institute of economic research with its quarterly forecast, lowering gdp

for 2019 on moderating expectations for investment and public consumption, private is faster for new zealand. haidi: first word news with ramy inocencio. ramy: thank you and good morning. a new bloomberg survey expect the federal reserve to bring its end aftercycle to an one more increase in september. that would be the peak at the upper end of the target range at 2.75%. in december the same survey expected to hikes this year with the cycle at a hike of 3.5%. of 3.5 percent. saudi arabia still has to rebalance the oil market but they insist they will do what is necessary. the saudi energy minister said opec must continue to restrict output until at least june. he said the job is nowhere near complete and excessive u.s.

inventories mean there is a risk of short-term oversupply. the australian government is warning the stall in property markets could hit the wider economy. holly post -- falling house prices could fill in two consumption and small business investment. australian rates are at a low in sydney home prices have fallen 13% as the country goes into a general election. near is a group tony fernandes -- asia group ceo tony fernandes has quit a facebook livestream. he took to twitter to say facebook could have done more and he has been the victim of fake online stories. the new zealand by minister plans to address the issue of livestreaming with facebook directly. 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 ramy inocencio.

this is bloomberg. shery: germany's biggest lender and one of its rivals confirmed talks on a merger. deutsche bank and commerzbank ended months of speculation. they are in contact but will only merge if a deal makes sense. let's get the details from our editor in washington. this coming after various totructuring attempts failed convince investors. have they run out of options? tony: partly they have and it is a whole slew of circumstances that have come together. low interest rates, deutsche bank has tried and still has the biggest investment inc. in europe. short,tried and come up trying to take on wall street. faced aliens in fines. is economy in europe slowing. all of this is coming together in a moment where the deutsche

bank ceo is running out of road and the government is saying we would like to sort of maybe not take control but serve more pressure. in terms of why they are backing troubled lenders, what does the government want to get out? tony: the argument has always been the economy is export dependent and companies, german companies who, as we know, are among the most competitive in the world, need a strong homebase think to back them up. that is the government's argument. there is a broader backdrop with trade wars, all of this spooking chancellor merkel, especially her finance minister, a left schulz -- olaf schulz.

you have the government trying to prevent this merger and saying it is considering retaining a stake in whatever murch bank might come out of this. shery: how will investors like that? tony: there is skepticism from our reporting. investor side, part of the problem is both banks are in a word quite weak and investors stand to get diluted if there is a merger. if the merger involves a capital increase, which is an option that is being talked about certainly on the analyst side. and then you have the much wider question of does this actually solve deutsche bank/commerzbank/germany's banking problem which is an open

-- open question. joining useditor there. you can get more on that tie up in today's edition of daybreak. bloomberg subscribers can go to dayb on terminals. it is also in the anywhere app. customize settings so you just get news on industries and assets that matter to you. looking ahead, the saudi energy minister said opec would do what is necessary. russia and iraq are not sure. shery: a third time lucky for theresa may? pressure mounts on tory hardliners to back her deal. this is bloomberg. ♪ rg. ♪

we are counting down to the start of trading in sydney. all asian features ahead of the citi open looking positive -- sydney open looking positive. close to 3% and

u.s. stocks had their best week since november. optimism over china's amendment to stimulus. futures on the upside of .5% in sydney. i am haidi stroud-watts. shery: i am shery ahn. and her chancellor are putting the pressure on hardline torii euro to back her twice to fetid brexit bill, -- back her skeptics to twice defeated brexit bill. there are no more negotiations with the e.u., yet she clings to her deal. kathleen: she thinks it is the best they will get. maybe three is the charm because there was a chance it could come to a vote against this week. chancellor ofd exchequer philip hammond are

putting pressure on brexiteers by reminding you could have a long extension if we don't get something passed. philip hammond who was on bbc today talking to andrew marr, that is when he said in fact that support is going for maize deal. deal.ould hold -- may's they could hold a vote. it is a work in progress, this vote, after it was defeated for a second time last week. >> what has happened since last tuesday is the significant number of colleagues including those will gone public have changed their view on this and discernment -- determined that on reflection they think the prime minister's deal is the best to deliver brexit. kathleen: she conceded the deadline has to be delayed.

she wrote an article warning about this long delay and the fact that you continues to demand a purpose for extension. to square one, that would mean a longer extension. the idea of the british people going to the polls to elect members of the european parliament, three years after voting to leave, there could be no more potent symbol of parliament's collective political failure. this brexit secretary said there is no point in having a vote if there is no chance of winning. that is what is at stake. haidi: is there a sense that putting fear into the hardliners, the people -- she has a better time of getting through? kathleen: i guess so but even more importantly, a former cabinet minister who with the cabinet protest said it is a bad deal but the best when we got.

jeremy corbyn, leader of the opposition party, said he might back a good brexit deal with a dynamic relationship that includes trade. he also spoke to the bbc today. here is what he said. >> clearly we have had a good discussion are the key thing is actually theresa may steel has been rejected twice i parliament -- theresa may's deal has been rejected twice by parliament. she could bring it back. this has been defeated comprehensively, and she has got to recognize that we have got to do something different. kathleen: he raised the possibility of a no-confidence vote if she puts the deal on the table and is defeated again. shery: with this saga continuing over and over again, we see funny comparisons. kathleen: the dutch prime minister has a sense of humor. anyone who remembers that monty python movie where the black

night i'm a legs are cut off, arms are cut off -- night -- knight, his legs are cut off and arms are cut off, he is comparing theresa may to that black knight. certainly had her legs cut out from under her more than once. haidi: the saga continues. kathleen hays is with us. let's stay with brexit. what does the future hold for the pound? here is the chief market strategist joining us in sydney. great to have you. there is a great deal of optimism for the pound, outperformance of sterling. there is revised higher indications that pound-euro -- i want to look at this chart of brexit optimism. analysts forecasting [indiscernible] to be higher by the end of 2019.

that is optimistic compared to trading against the euro. given no deal was taken off the table, is the kicking of the can a good story for trading in the pound? surgeseemed that way, 2% in a single session for the pound against the u.s. dollar. the u.s. dollar as well, the pound is making gains. we moved to the final shape of brexit, that is helping both of those currencies. the 133ee, the pound at level, 10-month high, the pullback suggests there is more work to be done. there is optimism whichever way the u.k. goes out but eventually it will lead to a stronger pound. we might see further dips. currencytimistic for traders, some breathing room,

but there is no clarity if you are a business leader or someone making investment decisions. absolutely not. we assume we could see a third vote, on theresa may's package, but the speaker could disallow that vote given it has been voted down already. there is no sense of any of this. it is clear that you want a time -- the e.u. wants a timetable if it will agree to a delay. in the last time for them to agree is later this week on the 21st and 22nd. with that pressure and so much uncertainty, there is real possibility of a slip up that hurts the u.k. and the pound. shery: why are markets getting ? the pound but not the ftse it has been underperforming its peers. michael: it is interesting. one of the keys to the puzzle, growth in the u.k. is superior

to most european growth. it is clear the u.k. economy at the moment is going, but it appears the uncertainty and the listing of the ftse is weighing on it. we might see further underperformance particularly if we see the pound performing well. shery: i will expand on your point about the u.k. economy is doing well. what is up with that? we continue to see it doing ok, yet the ecb had to cut its growth -- its growth outlook for the eurozone by the most since the crisis. how much do they need each other? michael: they are very intertwined. the future relation is important both to the u.k. and europe. whether or not they can come to some agreement i think is

starting to recede, and we could see a fairly disruptive event in currency markets at least before we see things going on. economists are oh -- arguing over what is causing outperformance in the u.k. some people talk about animal orrits released by the newly soon to be independent u.k. we could see a brief flash before we see more concerns for the u.k. economy. haidi: we saw animal spirits with u.s. equities in global equities at the end of last week. looking at the bounceback in the s&p after what has been a time of anemic trading volume. volatility comes back, volume, a lot of that on the quadruple witching. do you think at this point we are pricing in relatively good news or is the sentiment being driven by a sigh of relief given

china has gotten it sorted when it comes to its slowdowns? wobbles in have have the space with the market thinking around these trade negotiations pre-we are seeing a more optimistic footing related in pricing. this is a complex issue, that it will take time to resolve. the resetting of the timetable, comments from the white house, a solution of three to four weeks. the endorsement why the national people's congress friday of new foreign investor loss will be seen as a concrete step -- laws will be seen as a concrete step forward for trade talks. optimism will continue despite the extended timeline. haidi: the other thing that is reassuring is the idea in the power put, but certainly the lower late that he will stay, jay powell reiterating they are

is theurry, patience name of the game. is there a sense that we are overpricing the idea that it will be another goldilocks year of inflation and strong growth? michael: that sets the market up for a file in one direction or the other or the just right conditions are unlikely to last long. the negative risks for assets and shared markets. we are happy to run with the current trend, but we are even higher alert because of the potential for sentiment swing to do quick damage. chinesespecially in the a shares market where retail investors make 60% of that market. what is the risk of seeing that boom and bust of the 2014, 2015 cycle? haidi: i am not sure we will --

michael: i am not sure we will see it at rates of boom, bust, but the week before, 4% and 5% swings in either direction and related industries illustrate that potential. if a panic were to develop -- were to develop, we could see a large drop. i suspect we will see more reversals, more sideways trading as the markets worked through this around the globe. shery: we are seeing chinese policymakers come back, instructing brokerages to minimize risks. our policymakers in bait -- are policymakers in beijing doing enough to avoid boom and bust? michael: it is a tough experiment when you are moving from a command economy to a market based economy with the key concern being social harmony . on the one hand part of a

growing market, on the other hand of concern. there will be a balancing act. i think the support by 1000 cuts approach to policy in this respect and broader economic aspect will apply in china. shery: thank you. cmc chief market strategist michael mccarthy. you can see our past interviews on tv where you can dive into any of the securities or bloomberg functions we always talk about and become part of the conversation, send us instant messages, ask a guest a question on the lower left side of the screen. this is for bloomberg subscribers only. this is bloomberg. ♪

haidi: i am haidi stroud-watts. shery: i am shery ahn. let's get a check of the business flash headlines. amazon has won approval to set

up a campus near washington, dc. it is claimed to create 25,000 jobs to the area with amazon winning subsidies worth $750 million. more than 200 cities competed to win their favor. plans in queens but they were abandoned after reading this meeting with resistance from locals. -- abandoned after meeting with resistance from locals. a brochure onng monday, where the company could be valued at $20 billion. they are pitching itself as a focus bet on ride-hailing to differentiate from the more diversified uber and lyft. they will be listing later. mitsubishi-renault could update their sales. the chairman told the nikkei news the goals are under review

as part two redefined the alliance's purpose. they will announce restructuring plans next week and held meetings over the weekend to discuss ways to improve corporate governance. haidi: check of the markets with a brand-new trading week, pretty optimistic. asian futures, looking back to last week, the best performance when it comes to global equities in about four months. emerging markets also rallying on optimism there is a commitment to stimulus and shoring up the economy after the people's congress wrapped up in china on friday. there is optimism the global central banks, four of which are in asia, are accommodating monetary policy. sydni looking up .5%, the sydney -- australian dollar falling back. every economy has been strong against dollar weakness on friday which drove gains in

asia. coming up next, taking a look at the latest on the tragic terror attack in new zealand. the prime minister faust to change the country's gun laws and will confront facebook over livestreaming. this is bloomberg. ♪ ♪ this isn't just any moving day.

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haidi: 9:30 in sydney where markets open in 30 minutes time. seeing futures looking optimistic, a hot -- the upside of half a percent when we start trading. sydney was one of the underperformers in friday. ,e saw the global rally sydney's stocks ended lower friday. i am haidi stroud-watts. shery: i am shery ahn. you are watching "daybreak australia." let's get to sophie kamaruddin. beste: after the performance last week, asian equities are set for a positive start and we will have policy

decisions from several regional banks. kiwi stocks are higher, .1%, looking to build games at a fresh high even as economists including from the treasury and rnc have lowered forecasts for the year. -- ing at growth of japanese stocks set to rise after capping exports. the boj announced plans for a tax cut on friday. added to the bounce back for the nikkei 225 and helping the topix, which had a tumble but the lines white and orange still lagging the rebound which had lifted worldwide stocks 12% year-to-date. the expectation is the japanese share market could hit a turning point in may on factors including potential pickup in

inflows and approval being seen in machine tool orders. haidi: looking at what we are watching as trading gets underway area adam haigh is here. equity around the world gathering steam as we saw the best performance in four months. the fed decision as well as a number of central banks around the region, what are we expecting? adam: it is how much further can we get this rally to go, how much of what central banks are doing is in the price. this argument gathering steam across the world, participation in the rally in equity markets has been low. the positioning data which indicates that as well and it speaks to the idea that maybe if more people get behind the rally, we can certainly get a further leg higher. part of that is conditional on the fact of a trade deal in the theng weeks or months, but

fed this week reiterating its stance to the market on how much is any policy tightening will happen during 2019. they are the really key things for this week. coming into this week, very patchy economic data around the world and in the u.s., especially on friday, we saw another rally in treasuries treasured -- triggered by soft economic data on friday. this continues to be the disconnect between the way the equity markets are forecasting how the world will look in six or 12 months time in a bond market that seems to continue to paint a very gloomy perspective what is happening. you feel something has to give in these extremes. shery: volatility seems to be declining. j.p. morgan saying it is lower than it should be. why are they reluctant to advise placing hedges? adam: it has been a -- it has been across all asset classes.

we have seen declines in volatility engages, treasuries, the wider bond markets and currencies. if you want to have a more close look at that. what j.p. morgan is saying is yes, volatility should be higher than what it is at the moment. when you look at global growth and the forward leading indicators of the economy around the world, it should not be this depressed. they are saying they don't see a bunch of catalysts that they can see big pickups in volatility. to stick inising terms of asset allocations. from a treasuries and bond market perspective they continue to see the fed pushing down on on volatility. not expecting any bet on breakout anytime soon. if you are running a trading desk or trading book anywhere in

the world, you are struggling with that volatility. it is a tough environment. haidi: adam haigh. check out our gtv library for charts he referred to. gtv on the terminal. first word news now. ramy: president donald trump is turning concerns over to new technology and driverless cars. he is following a tweet about complex airplane software by saying self driving vehicles are a menace. he has said he considers the driverless revolution to be crazy. autonomous cars don't make sense, and he would never let a computer drive him around. an earthquake and landslide on the popular indonesian tourist island killed five people. it struck sunday afternoon. .aturday -- 58 people died most of the water has receded

but rescue agencies expect the number of dead to rise as it has not been possible to reach some of the effective areas. affected areas. similarities to ethiopia and lion air. information from the black boxes have been downloaded in the ethiopian -- and the ethiopian transport minister said there are links to the indonesian crash. they will undergo further investigation and authorities will replace -- release a report in a month. the australian budget will return to surplus in fiscal 2020 but a pre-election spending be would be a threat -- spending spree would be a threat to the bottom line. there is an underlying surplus of $10 billion australian, despite eight sharp -- australian, despite a sharp deceleration. 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 ramy inocencio. this is bloomberg. haidi: new zealand prime minister jacinda adern says she will change gun laws as the country continues to warn the mosque shootings. they will raise the issue of live streaming without rich linked to facebook. -- outrage linked to facebook. in terms of making more restrictive, what are her options and does she have the support to push changes through? she has a range of options and we expect to hear more. clearly the details -- the focus is on semi automatic weapons nman the gunmen used -- guan used. she talked about banning them outright, a moratorium, and

tightening license requirements. one of the issues is with a asic license, someone can buy semi automatic weapon and it can be modified to make it more lethal which is what the government -- the shooter did. looking at the wider community, they are really after the events and within parliament, the main opposition party has indicated it would be -- the gun owners and that recreational side are pushing back, but in new zealand we don't have an amenable gun lobby similar to the nra. onry: significant focus social media, facebook after the attack was live streamed. what is being done? a very difficult issue, the live streaming facebook case.

videos of the event streamed and the underlying issue is whether the streaming should have occurred. jacinda ardern said she wanted to talk to facebook directly about it. the suggestions, delays on live streaming and broadcast is an option. it is a complicated issue that is not going to go away, but this could bring sharper attention to it. haidi: it is not just facebook. other platforms from twitter to youtube were blindsided by how quickly the content was uploaded and how slowly the response came about. yes, and that is an issue all redditms have to tackle, has banned some of it.

sort of that have these surege on them, i'm not what the next step can be other than some sort of regulatory intervention. that is for another day. shery: thank you for joining us. tracy withers there. staying the course, saudi arabia urges oil producers to stick with oil production curbs, saying more work needs to be done. we will have headlines. this is bloomberg. ♪ ♪

haidi: i am haidi stroud-watts. shery: i am shery ahn. you are watching "daybreak australia." the russian oil minister said it is too early to start extending cuts. he said russian oil companies

are fully compliant with the opec less out cut -- output curves. >> i think it is too early to discuss what happens in the second half of 2019 now. too little time has passed. it has been 2.5 months since the new corporation has started and there are uncertainties which could have acted either way. it makes more sense to start june when with may or we have more clarity on the state of the market and how all these uncertainties are playing out. people drag their feet when it comes to cuts. russia has been more reluctant. is it going to be harder to get them on board if you extend for another six months of curbs? >> i don't agree with that lackluster assessment.

, so theyinformative are fully on schedule. with the adjustment for the climatic regularities and the factors -- you cannot immediately in one goal reduce production in winter months. they themselves have very good theyrch departments, so are able to see the benefits of --peration and benefits of before making any final decisions on the future of 2019, we will gather with companies to discuss the pros and cons of continuing this and only then will we make a decision. it will be dictated by market needs. when will russia be 100 -- >> when will russia be 100%

compliant? >> we are on schedule in regards to the gradual reduction. forthis schedule calls achieving the mentioned targets by the end of march, beginning of april. >> the president tweeted about prices of epic needing to cool off. are you hearing other consumers, any sort of concerns or anxiety about oil prices getting too high? >> we hear these things from the same sources, public statements and the media. if you ask for my opinion in regard to this, currently the price is acceptable to all parties, consumers and producers, and you can see it is extremely low, which is balanced in this moment. >> if we are balance in this

moment, is there any need to expand these cuts in june? at thise balanced moment in time but i cannot say the same for april or any other time. >> you talked of a range between 60 and 70, that is where brent is now. is russia happy with that? >> we are consistent in our views and i can say that $50 to $60 range is acceptable to the global economy. i can say at the same time this is a price which seems ok with consumers as well. it is a healthy level. we would maintain some investment into the infrastructure. shery: joining us from austin is the key market equity research analyst leo.

we will not see the russian energy minister actually go to the monetary committee meeting of opec plus. what are you watching this week? >> i think today was the first day of the joint monitoring committee in isa huishan -- in azerbaijan. we are seeing statements to the media as well as in official statement probably sometime tomorrow from the opec plus group regarding intentions going forward. keep in mind this is a monitoring committee meeting and it is really designed to watch how producers have complied with the cuts that were in acted january 1. the next official meeting is not until april 17 and 18th. we will have more information as to what opec is planning. at that point you will be more any minister that wants to get a statement on what they want to do.

we will see statements earlier today from the saudi arabia and energy minister saying he believes the opec agreement injurextends -- and needs to be extended. his voice will be one recognized by oil markets and expect oil to react to what he continues to say. we have seen wti rally, the charts on bloomberg showing the price really rallying in 2019. also at the same time we are seeing some bullish technical indicators. the 50 day moving average poised to go across the 100 day moving average. how supportive will these be for prices? >> i think technicals are very critical in terms of oil trade. there is no doubt. when you look at it clearly there is the fundamental supply and demand picture which has a

material impact and will continue to do so. short-term trading will follow the technical patterns because it is an unpredictable commodity and is difficult to say what it will do on any given day. given how many folks are long or short and technicals, always have a profound impact. it will always continue to do so. another major thing -- you ahead. haidi: continue. >> another thing that they are watching closely as what is the u.s. going to do in terms of waivers on iranian sanctions? last early november you had a six-month waiver given to a number of the importers of iranian oil. that deadline expires on may fourth. the people are watching what the trump administration will do.

haidi: have we seen opec take back the reins in terms of controlling the market or are we in an environment where we should expect to see what the decisions of shale -- [indiscernible] swing producer? >> the answer is in between. there is no doubt in my opinion that opec led by saudi arabia is intent on letting prices rise from here. if they had their druthers. and we have seen u.s. producers cut back in 2019. on average if you look at , capitalin the u.s. budgets of independent producers are down in the 5% to 10% range. a bit of a different story from majors. they are spending more money in the u.s. in 2019 versus 2018. looking at total expenditures, closer to flat this year versus last when we combine those two together.

there is no doubt there is better discipline, on behalf of u.s. producers, but that is the theest growth area in world today and will continue to be for the next several years. i think opec is trying to walk a tightrope, doing their best to really pull their barrels off the market and allow shale producers to continue to take a share here. they are biding their time, playing a waiting game with shale. energy stocks have missed out on the crude rally. do you expect them to get in anytime soon? >> yes. there will be some upside in energy stocks as the year progresses. if you look at some of the latest data points for the fourth quarter earnings season, it was disappointing. the upcoming first-quarter season which the start in a month is likely to be disappointing as well.

that is because producers are showing debt -- slowing down. you will see probably the high quarter for is the first quarter of 2019 and the average oil price is going to be lower. you don't have earnings momentum in the first quarter. i think investors are cognizant of that but as the year progresses, we will see upside in these stocks. there have been significant multiple compressions over the last several months. shery: we have heard from morgan stanley that oil consumption will peak in the year 2025 in china and a faster than anticipated given the return to renewables and other sources. prices? this impact it is difficult to predict that far in advance six years out. my feeling is it is ambitious. i think china will continue to

grow, certainly at a lower rate, but i expect growth and demand from them. there is no doubt if we see a material demand slowed down by the middle of the decade, that will have an impact on prices. we have to consider the supply side as well. it is my opinion that the growth we have seen in the u.s. shale slowt, that will start to 2023into the 2022, 23 -- timeframe. shale is likely to peak around that time frame. the truth -- the permian basin will continue to grow but with one big source of supply growth out of the u.s., i think you will see much lower rates of non-opec growth. brazil is another growth story. for a few years and then slowed down. supply-side will also slow down. shery: thank you for being with

us. of course more ahead on daybreak australia. this is bloomberg. ♪ is is bloomberg. ♪

haidi: quick check of the business flash headlines. a brazilian miner has been ordered to stop production after increased scrutiny following a series of failures. more than 300 people were dead last month and they also to stop work at another mine. iron or prices have jumped and investors worry about supply restrictions. shery: indian carrier jet airways is canceling all flights to and from abu dhabi from monday. they cite a letter from the founder to the staff with abu dhabi the home of its leading investor at the hot. this -- etihad.

they say they are not linked to lack of support. they will also fly to bangkok. haidi: looking at how the australian market is shaping up, sophie kamaruddin. sophie: aussie futures hinting at gains after the asx 200 faltered. after dollar's study halting climbing. cba after the bank and tax office entered into an agreement related to r&d tax claims and another one as it is set to face a class-action lawsuit and -- in a conduct probe. a report that bch capital is backing out of a deal with the hospital operator, saying it has no current intention to build added equity. tomorrow,ig guest joined by u.s. technicals are

secretary sonny perdue to talk andt and follow for farmers investors. it is 9:30 sydney time. daybreak asia is next. this is bloomberg. ♪ you.

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haidi: i am haidi stroud-watts in sydney, where markets just opened for trade. shery: from bloomberg global headquarters in new york, i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." ♪ ♪ haidi: our top stories this monday. deutsche bank confirms talks with commerzbank, aiming to retain a stake after the potential merger. theresa may hopes for first time lock, warning hardliners that

failure to back