haidi: good morning. we are talking -- we are counting down to the asia oven. -- asia open. sophie: welcome to "daybreak: asia." haidi: our top stories this monday, president trump's economic advisor close to a trade deal. .here are past issues remaining oil rising.

and carlos ghosn facing the end of the road. let's get you a first check of the market. finishing at a six month high. the s&p 500 seeing its longest winning streak since 2016. very close to that record high in september. we had optimism over a potential trade deal between china and u.s. we have the jobs report on friday, payrolls in march meeting expectations. u.s. futures looking like this. sophie: futures are pointing higher in seoul and sydney. high ono a one month friday, but tv stocks are losing ground for a fourth straight stocks arekiwi

losing ground for a fourth straight session. we await more brexit drama. -- we are keeping an eye on oil producers as crude extends gains. they might cut 700 white-collar jobs as early as this week. eco-agenda.the the current account balance for february, we will get aussie job numbers later this morning and taiwanese trade data. sophie kamaruddin in hong kong. let's get the first word news. maywe start with theresa saying that compromise is needed on both sides. she admits there are many things

that she and labor leader jeremy --byn disagree about because but there are areas where they see i tie -- eye to eye. the current deadline expires on friday. reports from germany say the u.s. government has dropped at school for a down on huawei. washington" -- washington is "highly satisfied regardless of the provider." there are calls in the u.s. for an inquiry about how -- the transcript between president trump and malcolm turnbull was leaked.

it brought u.s. australian relations when it was revealed that the president shut -- cut 24 minutes.ll to the militia warlords -- they have advanced steadily into the west. crude output has surged in recent months. the latest violence shows that production remains unreliable. alliancend, the suffered a setback amidst confusion over last month's election and the result. they said it could form a seven way coalition that would oust the ruling military party. the election commission says more than 25 parties will likely

receive -- significantly diluting the potential numbers. the results have been delayed until may. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. trump's topdent economic adviser says the u.s. and china are getting closer to a trade deal. a lot of teleconferencing. this after the latest round of talks. let's go to washington. we will be seeing a signing ceremony soon? >> i do not know if you should start booking your tickets quite yet, but it looks like progress is being made. they come though says the two sides are getting closer and closer.

there are some tough issues on the table. the toughest time, a note they talked about the issues still on the table. intellectual property enforcement mechanisms, trade balance. these are not insubstantial issues. with the talks under our belt and more talks coming up this week, a lot of ground to go over. >> -- after substantial issues, the low hanging fruit has already been picked. is it profitable to gauge who has more leverage at this point? chinahave the sense that and president xi jinping would like to get this wrapped up as soon as possible. they do not want the president to pull out one of his about-face is.

-- about-faces. that would be an embarrassment to china. u.s. side, i think there is a lot of momentum towards wanting to get a deal that boosts the stock market. tosident trump is very keen get the u.s. economy on that rocketship trajectory that he talked about on friday. i think that he could also see a boost in economic growth from getting this china trade deal nailed down. that is what is happening on the u.s. side. is inhard to know who control, the trade hawks or the doves. a lot of momentum and hope that this could be nailed down over the next month or so. shery: another key issue is border security. we are hearing that kiersten

nielsen is expected to be leaving. she has been on the hiring line for some time. >> she is out. president trump tweeted that within the past hour. she is being replaced, as of today, after going to the white house to meet with trump this afternoon. kiersten nielsen has been a lightning rod on policy. i do not think she is very popular within the white house either. somewhat unfairly, she is being seen as somebody unable to deliver for him on border security. he has been promising his supporters since the first day of his election campaign. there is -- there are some things no dhs secretary has control over. it does seem like president trump and his advisor is want to

go tougher on immigration and go with some law enforcement figure . we will see who they come up with. yet another member in the administration. the president likes it that way. haidi: certainly one of the more challenging portfolios there. thank you so much for that. the foreign currency holdings rose. we saw bond yields in developed markets that helped with evaluations. tom mackenzie joins us from beijing. the pboc says they expect the reserves to stay stable for some time. there is reasonable economic growth there. this is something of a gauge of

the pressure that china faces, particularly in terms of outflows. there has been very little sign of that, given the strength of the yuan this year. there have been concerns toward the end of last year but a beginning growth picture would see increased pressures on outflow. that has not come into play. dollar ands. progress in trade talks are part of the reason the reserves remain stable. bysaw an increase in march $8.6 billion. 3.0 9 trillion in total. this is partly the result of the strength of developed bonds, offsetting some of the currency weakness. officials expect this to continue. shery: we also have the reserve

data. what did it show? tom: absolutely. ofourth straight month buying gold. secret abouttively the lack of transparency on the gold holdings. tons.rease of 11.5 standsal gold reserves at a little over 60 million ounces. it may be a diversification play by china, but it is adding to himmism by the -- ottomans -- optimism that they will continue adding gold. levels -- they could become the second largest buyer of gold after russia in 2019. addedal, the government 651 tons of gold, the second

highest level on record. forecastings is $451 million over the next 12 months. shery: thank you. still ahead, we will get a preview on what to expect at the with seniorussels fellow isaac stone fish. haidi: this is bloomberg. ♪

shery: counting down to the major market open this morning. we are expecting the cereplast to have shrunk the month of february -- the surplus to have shrunk the month of february. nikkei signatures up .4%.

this is "daybreak: asia." aside from the japanese current account data coming out today, there is also some other data later this week. inflation on the cpi data in china. the data has been regional. we are looking to china to see if the recent bounce back is a lead indicator. more?we are seeing >> the earlier stimulus measures that the government is relating do take hold. that is important because it is really the first clean weeding of the year, after the lunar new year plate having with the with the- played havoc

january and february data. this is a chart that takes a look at the number of cuts since january. it is not looking great, if you are looking at emerging markets. it is all trending down. in terms of where we are at in the late cycle, is it really looking so bad? someially if you look at of the factors coming from the u.s. it is looking broadly positive. >> it is hard to see the upside risk. we are focusing on the downside risk. it does reflect a downward revision in the forecast. there are a lot of downward risks. he still have the great uncertainty, as well as the unresolved trade war.

on top of that, you have the sentiment looking not so great. that is a particular problem when you have people not believing that the expansion will continue. it almost becomes a self-fulfilling prophecy. shery: take a look at this chart on the bloomberg. unemployment rate is falling, but we continue to see wage growth really limited. not to mention that core inflation is below that to %ercent inflation level -- 2 inflation level. does he have a point here? get a goodrd to insight on what the trump administration is thinking. is that it seems premature to talk about u.s. rate cuts at this point in the cycle. in a.s. economy is still good position, so it does not

make sense to consider monetary easing when we still have a low unemployment rate. we have a healthy jobs market in america. the possibility of rate cut does seem low. the job market seems to be a bright spot. how much will this be threatened if we see a stronger japanese yen, given the narrowing referential's from the u.s.? market is a loud indicator of the economy. that is the case in japan. was017, the economy traveling strongly, but now it is not in that great position. while we had a strong labor market that has translated to some improvement over the past growth,so, and wage given that the economy has

slowed in japan and the currency is looking weaker, conditions are not that great in japan. we will start to see a slow through the labor market. much of the damage gets unwound if we get a china u.s. trade deal? >> it is hard to say at this point. alleviate some of the downside risk. it would be an upside. we have seen impacts materializing in china's foreign trade data, especially on the export front. it helps, but at the same time we have this slowdown happening in global exports that will not be alleviated by a trade deal. ironically, you look at

has of the u.k. data that not been impacted that much by brexit. >> the sentiment has. investment has as well. it is only a matter of time. weaker sentiment and investment does flow through to a weaker labor market. think thet do you president meant when he said policymakers should look at ways to soften the impact of negative rates? >> the focus has shifted. we have not seen that there is a lot of base for monetary easing from major central banks, globally. to looking the focus at how policy can play a greater role. we are seeing that in australia, where the consumption is looking weaker and the focus has shifted to how the australian government

treats income tax cuts. than focusing on what central banks can do. shery: thank you. looking ahead to some of the key eco-numbers are looking forward to this week. here are some stories that you need to know to get your week going. it will be right there on the bloomberg. you can customize those settings. this is bloomberg. ♪

haidi: this is "daybreak: asia." last week, jp morgan's ceo warned that the volatile end to 2018 could be a sign of more to come.

telling bloomberg that the volatility is the new normal. in an environment of high uncertainty at the moment. managers like ourselves provide the opportunity. we always have these events on the horizon. the brexit debacle that we are facing. u.s.ing elections in the and europe, so there are always things that are playing through. my concern is that they are being a little too complacent at the moment. why do you say that? i know there are others. bit about it.le absolutely. the global economy remains relatively strong for where we are in this point in the cycle. play intontinue to

improving global data. that will reinvigorate the fed. what we have seen is jay powell ame in to his tenure as significant hot and he scared the market. what we have seen more recently is a move to chicken. just really low -- rolling over towards the market. it will continue to play in to the volatility that we are seeing. where do you see investors putting their money right now? a bit of a continuation of that theme. the one dry spot in the global economy remains u.s. consumer. accessre lots of ways to the balance sheet, housing being one of them. it has worked out ok so far.

we are going to continue to see that play have. let's get you a quick check of the latest business headlines this hour. toren buffett is advising look beyond wall street for a new ceo to avoid attracting criticism in washington. he is the largest shareholder and said it would not be smart to appoint someone from the business community in new york. tim sloan retired after a range of scandals. carlos ghosn is said to lose the latest of his titles in the next few hours. remove him from the board. extraordinary shareholders to takeis supposed

carlos ghosn off the board. service.ride-hailing valued at $10 billion by u.s. market intelligence communities. the first to join the $10 million club and only the second in southeast asia. it is definitely a long-term plan, but not anytime soon. what is coming online in the next hour. looking pretty positive. we had japanese stocks climbing to a one month high in the friday session. sydney, looking to reverse losses from friday, taking a stronger lead. around 1% or so of that record high. new zealand seeing a downside.

today, a busy time for the markets. hong kong resuming trading after a long weekend. at the take a look implications for the oil markets. this is bloomberg ♪ -- this is bloomberg. ♪

>> this is "daybreak: asia." with first word headlines. homeland security secretary kristen nielsen has been after -- asked to resign after president trump renewed his public frustration about the situation on the mexican border. to accompanied him on a trip california last week where he said the u.s. is "full" i cannot accept any more migrants from latin america. the president is said to want a new law enforcement height figure at homeland security. president trump's top economic advisor says the u.s. and china are "closer and closer to a trade deal."

how negotiations will continue this week via teleconference. larry kudlow says he is optimistic about resolving the trade war. china has echoed the positive sentiment saying progress is being made but state-run news agency shin law also says the outstanding issues are "tough nuts to crack." >> all of these negotiations, we get closer and closer. we made a good headway last week when the vice premier was here. will being week, there a lot of teleconferencing among the top tier people to continue the discussions. su: china is continuing to spend big on gold. expanding its reserves in march for a fourth straight month. on bb as he raised boy holdings by 11.2 million tons last month. this after buying around the same amount in the previous three months. if china continues to accumulate it at this pace throughout the year, it may and 2019 is the

world's top buyer after russia, which added 274 tons last year. 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. let's look at market setting up. sophie kamaruddin is in hong kong. sophie: we are seeing caution filtered through in wellington, off by four straight session. down for tenths of 1%. nikkei futures are hinting to upside after tokyo stocks rose to a one-month high on friday. aussie shares could snap a two-day decline. oil producers in sydney like it -- likely to track that, if i've month high. flipping the board, we have the aussie dollar holding recent losses after the greenback rose on friday, giving the jobs data. aussie bonds opening higher. iron or traded in singapore from

a delivery that has hit a new contract high, $90 a ton. check on the end. as we take a fresh trading week, the ends outlook is dimming, even as yields on treasury is at the lowest than more than a year as directed by the white line on this chart. the yen a short-lived boost we had traders adding that short positions on the end for six straight weeks. this is on signs that economic growth will like it likely that the boj will continue its record stimulus policy. this weeks of data, that may add to the bearish yen mood. machine orders expected to shrink in february. shery: thank you so much. president trump called on the federal reserve to stop the monetary policy accelerator again, hours after the march drop -- march jobs report olivier did the concerns that the economy may hit a bump. kathleen hays is here with the

latest. we have many people that would agree that it is time for the fed two pods. have we seen anyone call for rate cuts aside from the president? there are economists who are worried about the lack of the monetary policy. they are looking at things like leverage corporate debt buildup. for the most part, people are saying a positive for how long, wondering, not many calls from economists for that cut. friday hourson after the jobs report was released, he is getting ready to hop on a helicopter and a plane and go out to look at the wall,y but asked questions about the economy, asked about the fed. he had something rather surprising to say. he wants the fed to buy bonds. let's listen. pres. trump: the fed should drop rates. i think they really slowed us

but askeddown. there is no inflation. i would say in terms of quantitative tightening, it should actually now be caught -- quantitative easing. kathleen: stephen moore, the president -- who the president has tapped to be the next fed governor, has called for the fed to hike 50 basis points. hillary kudlow, a former economistdown. there is no inflation. on bloomberg television, seemed to say as well, maybe more gently than trump, but it would not hurt if the fed moved. curveking at the yield and other market-based measures, i think on their time, the fed is independent, i emphasize that, but the president has i thinkd i concur, that that we could do at some point with some reductions in the fed's target rate. kathleen: we did have a brief and version of the yield curve, a very powerful signal or of a recession coming. not inverted now. let's jump into the bloomberg and look at world interest rate projections. this is the line of looking at

the probability of a cut this year. if we get through the year, when we get to the end, more than 50%, that is the bet that there's a chance of a rate cut, that is what the bond market is saying. if the economy doesn't get fednger, not only does the have to sit tight and wait, they may have to cut the key raise. haidi: what is the scenario that eventual hike,, goldilocks conditions throughout the course of the year? kathleen: the depends on which part of the report you look at. let's jump into the bloomberg for another look at some bars and lines to make it a clear picture. very weak in february. over 300,000 in february -- in january. that is meager. that is almost statistically insignificant. now, 196,000, they beat the forecast. a sigh of relief. this looks like a fluke. this looks like where we are.

year-over-year, the white line down here, up to 3.4. now back down to 3.2. not a disaster. but may be losing steam. becausens are important the fed wants to get its inflation rate up to the 2% target. if wages pullback, maybe that makes it harder. let's look at one more chart. i really like this, you have unemployment at a 49 year low as 3.8%, that means the type -- a tight labor market. theyge hourly earnings, have pulled back. you can see they have been moving up. here is 2%, here is 1.8%. it has had a hard time getting to 2% and staying there. this is one more reason why people figure the fed may not be ready to cut rates. as long as inflation is that much below target, if it is not above 2% as jay powell has said he would like to see it, the fed

will not be ready to hike rates. haidi: our global economics and policy editor there. coming up, our next guest says president xi is a victim of the trade war as he is an aura of invincibility takes a hit we will get an insight next. this is bloomberg. ♪

haidi:shortages. haidi: let's look at oil now. we have seen rival forces raising the risk of new supply it has risen to its highest since mid-november. not justnot just that, but bulls from the market when it comes to do bti. >> that's right. we are seeing in both commodities, definitely. look at this map i have here. this really does help illustrate what has been happening in terms

of the forces in the eastern part of the country. of the forces in the eastern part of the country. is now battling yuan back to fort -- eu backed militias outside the capital of tripoli. what is most important is what is happening is that there are not many forces actually under the control of that government. they are relying on forces that are allied with them. i now, we are trying to figure out what is happening between those forces, and whether they can push them back. the biggest headlines we are seeing now is what has been happening at here in terms of the conflict. shery: as eastern forces tried to breach the defenses, what facilities are under threat in western libya? ramy: the most important one here highlighted in yellow is the port of those and we of. this is most importantly linked to the biggest oil-producing region of libya. can see this orange line here which implies that this is

the major oil pipeline that goes through here. the biggest thing is if the eastern factions do move in, take tripoli, the question is what will happen with the port? the question is whether this is going to impact the oil production, oil exports, and follow me this way, because over qadhafi 10 years, since fell, we can see products and has been unreliable in libya. before over the past 10 years from 2000 112010, production have been fairly stable. before over the past 10 yearswe can see all of this volatility. of 2018,ntly, in june we also saw what has been happening with half stars seizing two ports and that impacted production. you can see that in the little dip here at the end of the chart. looking ahead, the yuan backed government is saying they are going to do a counter attack,

and that is called a volcano of citiesto cleanse libyan of aggressors. the fear is that this could be the bloodiest fighting we have ever seen since 2011, since the fall of qaddafi. protecting that are tripoli are well experienced. right now, we know the battle content -- continues outside the city. shery: thank you so much with the latest on oil. on the trade friend, are we approaching the end of the trade war? trump's top economic adviser says the u.s. and china are getting closer to a trade deal, and top-tier officials will be talking again this week. teleconferencing. larry kudlow's comments come after talks that ended friday. senior us for insight is fellow isaac stone fish. great to have you with us. we have heard the president saying that the latest round of's top -- of talks was a big

success. we are used to the president being optimistic. at the same time, is this time different given we are seeing that sentiment being replicated by china? isaac: seems like we are closer than we have been to a deal in the past. i think kudlow said it was guarded optimism, maybe more than that. more likely, the deal will be a truce rather than official and to the trade war. i think what we have heard leak out of the deal so far, it seems likely that this will be kicking the can down the road to 2020 and 2025, which if trump wins a second term, will be after he left office. shery: i want to focus on jinping's role in getting the trade deal done to what was interesting was seeing this news about this app in popular "studyr

the great nation" which promotes the ruling communist party, trying to strengthen the ideological control over the chinese. wonder what the confidence is on president xi jinping in steering the economy. a few months ago, we were talking about perhaps there being some doubts about his leadership. there it does seem like is more economic confidence toward chairman xi jinping. one of the things the trade war could have done and did in the change the luster around chairman she, this idea he could do no wrong. it seems like that idea is taking route. it is difficult to know what people in china actually think about the chairman of the country. we just don't have any good it is difficult to know what people in china actually polling. to actuallyot free express their views on the attention toward people studying attention toward people

studying the thoughts of xi jinping but there is growing frustration and growing resentment about some of his policies. haidi: it is undoubtably that there are grievances domestically, particularly after what we ever for two as the summer of malcontent we had in china. to actually express their views on the sensitive political topic. it could be that we are seeing a lot ofisn't it still the case tt there is not a real threat to the consolidation that he has done to his power, either from within his own political allies, or from the broader population at large, particularly if we continue to see stabilization on the economic front? isaac: we certainly know of nothing like solidarity, the labor movement for poland in the 1980's, for any faction within the party that wants to take xi down. partyp of the communist is so opaque. we don't have a good sense of xi jinping's relationship with the central military commission which is a body that oversees china's army or his relationship with other members of the standing committee which is the body that rules and the communist party. as far as we can tell, it does feel like xi has capable hands on the ship of china. is certainly possible that

there is growing discontent among china's elite and we are not seeing signs of that bubbling out. interesting, it this idea that we have a message delivered through saying he wanted a quick wrapup of his talks. as though there was a finite en tod -- end to the trade. if we take into consideration the fact that this is going to be something that exists for months and years and probably decades to come, it is a temporary truce, isn't it? isaac: exactly. i think churchill said it is not the end of the end, but the end of the beginning. if the two leaders are able to sign something, it is laying out what the lines are. and i think there will be a lot of discussions and a lot of difficulty on the u.s. side of being able to say ok, beijing, you agreed to these things, how are you going to implement them?

when are you going to do it enough? the other thing we have to keep in mind is that it is not a foregone conclusion that trump will be in the white house in 2021. you certainly could lose. there are a lot of people in america who would like to see that happen. it is possible the two leaders agreed to something and then negotiations open up again to years from now. week, top eu leaders this how successful has china been in dividing and conquering europe after president xi jinping recently signed up italy into their belt and road plan? isaac: a lot of consternation in europe about how to deal with china. thate seeing language would be unthinkable a few years ago. the french president said we had to stop with this naive sense of dealing with china. i think the countries in western europe led by france and germany are really worried that beijing has successfully peeled off eastern and central europe.

there is a negotiation for my called 16 plus one, a lot of european countries. there is a lot of resentment both in western europe that eastern europe is allowing in china too much. but in eastern europe, they are not getting the same investment that they really need. shery: how much will it hurt europe if they don't come up with a consensus, common view on china? president junker criticized china on unfair trading practices. all of -- after all of the fanfare, when present she was there. isaac: there is such a range of present -- of economic realities. it will be difficult for them to come to a singular viewpoint about how beijing is and say, france is. i'm not optimistic that they will be able to stand together in one voice to talk about how they feel china should relate. isaac, always having a pleasure -- always a pleasure having you on here.

in newtone fish there york. we are just getting some data coming through on the bloomberg on the japan current account. just waiting for that to come out at the moment. what we have seen in some downward pressure on the japanese economy in terms of whether we have seen the peak growth. we are expecting that current inount will probably shrink february. bloomberg economics estimating the number at ¥1.72 trillion. the current account balance coming in at the moment, it is 2000 ¥676.8 billion, estimates slightly above estimates. ¥26.76 billion. we are learning earning signals when it comes to the japanese economy. capal bond yields falling that would have weighed on the primary income sources such as overseas fixed income to japan

to japan. we're seeing lower commodity deflating in port of bills and slowing demand out of key markets like china and europe as well. looking ahead, economists expecting the current account balance to remain in surplus. the main risk being seen as a potentially stronger yen. let's get you more ahead on daybreak asia. more to come. this is bloomberg. ♪ this is bloomberg. ♪

carlos ghosn is said to lose his last remaining title at nissan when shareholders meet to vote on removing him from the board. our chief north asian correspondent stephen engle has been following this story from the start. his is a formality? stephen -- is this a formality? was he was is removed from chairman, it was a conclusion that he would be removed from the board.

he is still technically a board member. as his former representative ray kelly. that -- greg kelly. that will likely end today when investors meet in tokyo within a couple of hours in tokyo. removedvery likely be as a board member. it is the final domino in his career at nissan. not in his legal saga, of course. he will be replaced, according to sources, by the renault chairman, who did arrive in japan over this weekend. carlos ghosn has been rearrested last thursday on news allegations that he used millions of dollars of nissan money for his own purposes. nissan saying they have substantial evidence of blatantly unethical conduct ghosn and his family have denied those allegations as a smear campaign to make him look greedy. this is going to all unfold as the legal proceedings continue.

a japanese court on friday agreed with prosecutors to keep carlos ghosn detained for another 10 days. this could be an ongoing process. every 10 days, another application for the attention and then the court will decide. the first time, starting on november 19, lasted for 108 days before he was released on bail for 29 days. the latest development, carlos ghosn's wife, carol, said to have returned to paris. refusedportedthe latest that se to submit to voluntary questioning by japanese prosecutors. she said she feared for her safety. she had her lebanese passport as well as her cell phone seized by prosecutors when they raided ghosn's home. however she is said to have traveled to paris on her american passport where she is seeking french government help for her husband. ghosn's ghosn's alleged money

flew to the middle east, but we are also learning that this could have been the prosecutors target from the beginning? stephen: yeah, this is something a lot of people -- their eyebrows are raised when he was initially detained because it well, more relatively chain -- tame charges of misstating his financial remuneration. why he was detained for so long and in such harsh conditions, what carlos ghosn's cleared -- legal team has caused -- called hostage systems. sources told bloomberg news that this was a prosecution tactic to buy more time to get to the root of the real charges. and that is these money flows to and from oman, saudi arabia, as well as lebanon. to allegedly enrich him. haidi: steve angle there with a look ahead.

another eventful day when comes to carlos ghosn. let's preview the market open. we are looking at a mixed start with aussie futures having sunk to losses in japan. keeping an eye on video gaming stocks at the u.k. an automatic renewal of online gaming deals. the european commission accused six videogame publishers of breaking competition rules. i had of the open end in japan, this chart you can find in the gtv library, it illustrates the outperformance in small caps. they have outperformed with -- for three reasons. exports,ndence on dovish military policy, and is the performance of individual stocks. the mother's has seen 20 companies double in that rally. shery: thank you so much for that. let's get a check of the asian markets. australia looking like this at the moment. down 8/10 of 1%.

new zealand losing ground for 4/10 of 1%. consecutive concession of losses. the nikkei futures higher at the moment, could get a boost of gains. plenty more coming up on "daybreak: asia." this is bloomberg. ♪ ♪

good morning, i am haidi stroud-watts in sydney. asian stock market have just opened. shery: i am shery ahn. sophie: i am sophie kamaruddin. welcome to "daybreak asia." ♪ haidi: these are our top stories. president trump's top economic advisor says we are close to a trade deal, but warning there are tough issues that remain. oil extends its value in libya.

tripoli raised doubts about continuing supply for crude. road fore end of the carlos ghosn as shareholders vote him off the board. haidi: let's get to the market action. sophie: we have stocks gaining ground, the nikkei 225 up, the topix continuing to climb and the yen keeping steady after a three-day decline. traders at a short positions for three straight weeks. let's pull up for the mood in seoul. we have the cost be adding. ospi adding,be -- k the korean won coming up. on chipeeping a look players. samsung says it will be shorter than previous cycles.

looking in sydney we have the asx 200 gaining ground after a two day decline and the aussie dollar on the back foot while bonds are climbing ahead of the march jobs data due out later. in wellington looking at the nzx extending forark a fourth straight session and the kiwi dollar looking unchanged, benchmark yields below 2%. looking at some movers, looking at chb, up .7%. looking up the company as it is set to cut jobs and the streamlining plan, it could be cutting 700 white-collar jobs as early as this week according to the australian. let's check in on nissan shares, off .4% as shareholders go to vote on carlos ghosn's role as a corporate director. japanese gaming stocks on the move this morning, nintendo gaining ground with sony, also

looking at capcom as probes are being started in the u.k. and e.u. regarding online gaming bills for the likes of sony and nintendo. we have capcom and bond i -- radar as the european commission said these companies and four other publishers are looking to bake -- break competition rules stopping people buying cross borders, going against a true digital single market. shery: breaking news out of south korea, we are hearing hanjinfor chairman -- food chairman has died. he was a patriarch of one of korea's largest conglomerates. he was facing trial for allegedly embezzling $17.3 million in duty free operations. he had been removed at korean

air last month. he was ousted from the korean air board. we are hearing the group chairman has died at the age of 70. let's get to first word news with su keenan. su: starting with the latest on brexit. the u.k. prime minister theresa may says compromise is needed on both sides as brexit talks with the opposition resume this week. there are many things she and the labor leader disagree on but several areas where they see eye to eye. she will also go to brussels, hoping to win a further brexit extension until the end of june. the current deadline is this friday. reports from germany says the u.s. government has dropped its call for a german ban on huawei during the rollout of five g. washington said it is highly satisfied with new regulations from a rent which set strict standards for next generation

wireless regardless of the provider. the u.s. has threatened to withhold business from those who work with huawei or other chinese telcos. there are calls for an inquiry how the transcript of a call between president trump and former australian leader malcolm turnbull was leaked. nuñez says iton is one of eight security cases he is sending to the attorney general. this rock the u.s. -- rocked u.s.-australia relations when it said the president planned to cut in our long call into -- an hour-long call into 24 minutes. attacks on rebels outside of triple s -- aaa. a warlord controlled the east of the country and was advancing into the west. crude output has surged in recent months after fragile peace took hold in libya am a but production remains

unlawfully able -- remains unreliable. confusion over last month's election results in thailand. they say they could form a seven way coalition to be enough seats to oust the ruling military backed party, but they say 25 parties will likely receive parliamentary seats, dilutes the potential numbers. official results are delayed until may. 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. keenan. this is bloomberg. haidi: thank you. president trump's top economic advisers said the u.s. and china are getting closer to a trade deal and people will be talking this week. conferencing.om this comes with the latest round of talks that ended on friday. let's bring in our senior editor out of singapore.

we start looking at those flights to the deal find ceremony -- not yet. reporter: it is early to look at that, but there he kudlow very optimistic on progress of a trade deal. talks are ongoing, there will be teleconferencing between the u.s. and chinese sides. this will be the third week in a row were there has been serious substantial conversations -- where there has been serious substantial conversations. progress being made on both sides. both sides saying we are hearing -- in the words of the chinese crack, andts left to that is right. some of the hardest issues are ahead, but there has been progress made on thorny issues. larry kudlow said this morning, that is a good sign if you are looking at trade talks. shery: we have seen president

trump called is a big success, but we have seen him be optimistic in the past as well. is this time different given the sacrament -- given the sentiment in china? one of the big differences is the level of consistency. we have been in weeks without somebody threatening to blow up the trade session -- trade system around the world, which is an unalloyed good thing. there is a positive trend. i am watching for details. i am watching for forced transfer issues. i am watching for the right and infringement issues -- copyright and infringement issues. i am watching for enforcement. those are the issues going forward and they are the hardest. as trade talks go on, people

, 90%, maybe if it is 70% done, it is most of the way there. you get easy stuff first, then hard stuff west. we are -- hard stuff last. we are at the heart stage. hard stage. haidi: we hear there could be changes in personnel at the top. securitye homeland officer is resigning. she submitted her resignation and by tweet it is official. the president has been unhappy with the situation at the border for some time. there have been long-standing reports he has been unhappy with kiersten nielsen who was an ally of john kelly. she lasted longer than people thought she would. -- the reaction from

them is not unbridled glee but satisfaction she is gone. she had no friends among the democratic party at all especially over the issue of family separation of the border. trump -- jennifer jacobs reported he asked her to take a bigger role. the white house immigration hawk. there is no saying this is a change. you can look for president trump to double down on his policy going forward. editor, derekior wall bank, in singapore. china's currency holdings rose for a fifth month and lowered government yields lifted valuation. enda curran joins us now. this paints a picture of stability, but can it last? pricing effecta

on this and it helped offset situations, but the big picture is china's reserves are on a good streak. they are pretty stable. upknow the yuan is holding well. we know what the trade the currency is in focus. all indications point to china's currency being somewhat stable and remaining that way, even if it is -- even if it can't train a range. trade within when china was having to spend down its reserves to support a currency and when capitalists tried to leave the country, we are nowhere near that. reserves are over $3 trillion and the reserves suggest it remains intact. china addinge seen to its gold reserves. what do we know about that? enda: these things are kept

close to the chest of the national authorities. we know it fits a global trend for sure. last year governments bought gold at the second highest page on record. has been noise about the need to diversify away from the dollar, that the financial system is overly reliant on the currency and russia has been the most vocal in that regard. we have seen russian authorities building up gold reserves. china could be diverse, getting the house in order for a story or junction -- stormier junction down the road, but people are buying gold and [indiscernible] too dependent on the big dollar. haidi: our chief asia economics correspondent enda curran. let's get back to sophie. whate: take a look at korean air is doing. we did have the stock j chairmad

in a hospital in los angeles. this is according to a company statement early this morning. someone else take over as chairman in 2003 and it helped korean airlines become one of the funding members of the global alliance sky team. we had jostling as to who would become chairman of the hanjin group. we had the pension service opposing the korean air chairman's board extension. let's check in on other stocks moving. hanjin transfer -- transport moving up. we have others on the back of this huge call. the holding company climbing 14.10%. looking at that stock move as well. quite a few developments with hanjin group's -- that news

around him. flipping the board, i want to highlight them jumping 13.3% on the back of the news. haidi: sophie kamaruddin in hong kong. shareholders going to strip carlos ghosn of his title, putting an end to a career that spanned two decades. we will be live in tokyo. shery: but first, markets and the biggest threats. this is bloomberg. ♪

says weur next guest could be seeing the early signs of a turnaround when it comes to global trade and the market is sitting that breakout levels. td securities senior rate strategist -- thank you for joining us. glad to have you on this morning.

i want to start off with the jobs report. it feels like it is giving a bit of a reason for this idea of a goldilocks scenario and the -- in the markets could be extended? rishaad: thanks for having me on. we are in a position with goldilocks where we have had the reverse, and the job market is ok. we have seen that with initial claims. they ended up getting 50 year lows, and it looks like there should be further momentum. overall growth is relatively ok and jobs growth as well overall. potentially we have got the foundations for a green shoots rally developing in the markets. haidi: do you think we are being too pessimistic with global growth expectations?

i think that seems to be the perception amongst the investor economy -- investor community. td ended up posting a global fixed income conference in new york. one of the things that did come out of that, out of the polling, was investors were fed up on global economic activity. overall market has moved too far, too quickly to one side of the ledger. there are reports things are looking ok and that the markets are not positioned for a potential move higher. shery: this is why china's money markets are paring back expectations for central bank using? the focus seems to be shifting to inflation in china. i think what we will see over the next couple of months is an uptick in producer pricing

and inflation, but at the moment i don't think it is too much of a concern at the moment. we have had chinese officials trying to fire up policy on different fronts and it looks like easing is working. if there are signs of inflation, it is going to be taken as a good sign. overall we think chinese officials are going to maintain targeted easing, and that should be positive for global economies and global growth. shery: in new zealand it seems with the recent bond rally people are betting on rate cuts for 2019. prashant: that is right. the markets were caught a bit ed when the- offsid statement came out that they easingove to next lesson

bias. the markets are priced in for a potential cut as early as may with another one to follow. it came as a bit of a surprise to the markets. part of the reason is there is a new monetary policy committee that will be formed. the committee will be making a joint decision. already the buyers had shifted to easing before the committee had met surprised people. follows from the rbnz the moves from every other central bank globally except the nordisk bank. every bank has tried to knock down one another. emerging-market bonds, is that where you put your money even as we see a stumble with conviction on em stocks and equities? as long as the fed stays patient, looks like bonds have room to move?

prashant: spot on there. but you have the fed with the move -- that you have the fed with a move to the dovish stance, there is no sign they will raise rates anytime soon. data will be turning positive, and that should be supportive for global growth. at the same time you have a look at the flows into emerging markets where there has been a steady inflows since the start of this year. that should delay any sources of concern of capital outflows. overall we think the backdrop is globally across stoxx, spread product, high-yield, high-grade and emerging-market bonds. that was a findings that came from our conference last week where investors are still comfortable holding emerging-market bonds. haidi: thank you.

td securities senior rates strategist there. you can get around up of stories you need to know to get your day going in "daybreak." go to dayb on your terminal , also the bloomberg anywhere app. customize settings so you only get news on industries and assets that matter to you. this is bloomberg. ♪ is bloomberg. ♪

shery: carlos ghosn is set to lose his last remaining title at nissan when shareholders vote on removing him from the board. a reporter is at the tokyo hotel where the meeting is taking place. what can we expect? reporter: right now in front of the venue where nissans extraordinary shareholders meeting is going to be held. shareholders are coming to this

menu from all over japan -- venue from all over japan. i have never seen this many, despite the rainy weather. they are eager to find out what is going on with a son and carlos ghosn. minutes, the shareholders will kickstart the meeting by giving a summary what happened to nissan and the list misconduct by carlos ghosn are there that will be followed by a q and a. then shareholders will vote to remove carlos ghosn as well as another and to appoint -- we know one chairman. being the largest shareholder, vote -- noere is no doubt those three motions will be moved today. haidi: what is facing carlos ghosn down the road?

after today, carlos ghosn will have no positions in nissan, but i don't think his priority concern is getting positions back but rather he needs to fight for his innocence imports. last week he was rearrested for a new charge of misusing nissan's funds to buy a yacht for his family and helping his son's start up. that is the most serious charge and he is now back for another 10 days in detention. it is a very tough battle for him to fight. battle indeed.l our japan autos reporter there for that meeting. we will get back live throughout the course of the day. us give you a check of business flash headlines read warren buffett is advising wells fargo to look beyond wall street for its new ceo to avoid criticism from washington.

he is the bank's largest shareholder and said it wouldn't a smart to appoint someone from the tightknit business community in new york. one person quit, they have experienced a range of scandals, but buffett backs slowed. -- slaon. shery: thanks bidding to buy a stake in this struggling airline are delaying any moves as they wait for clarity on the state of its finances. india's central bank and supreme court's are weighing the legality of a restructuring plan designed to kickstart jet's recovery. haidi: indonesia's top rate healing -- ride-hailing service is going ipo. it indonesia's first started to join the $10 billion costs and only the second in southeast asia after the rival.

they said an ipo is a long-term plan, but it won't happen anytime soon. fighting flares again in libya as rebels move on the capital. we will look at implications for the oil market. this is bloomberg. ♪ this is bloomberg. ♪

this is daybreak asia. president trump's top aides say the u.s. and china are close to a trade deal and communications will continue via telecom -- telephone conference. resolve kudlow wants to this trade war. china said progress is being made, but a state run news agency said the outstanding issues are tough nuts to crack. >> on the negotiations, we just get closer and closer. we made headway last week when

the vice premier was here. this week there will be a lot of teleconferencing among the top tier people to continue discussions. chairman -- has died after reaching the age of 70. he has died in a hospital in los angeles. he took over from his father in 2003 and helped korean airlines become one of the founding members of the global alliance sky team. shareholders voted to remove him from the board before he was due to stand trial for alleged embezzlement. their group stocks are advancing in seoul today. here's to nielsen has been asked to resign, this is -- kiersten nielsen has been asked to resign. trump is unhappy with the mexican border. she a company to him --

accompanied him on a trip where he mentioned the border was fall -- the u.s. was fall. china meanwhile is continuing to spend big on gold, expanding reserves in march for a fourth straight month. they raised bullion holdings by 11.2 million pounds after buying around the same amount of the t in each of theal previous three months -- metal in each of the previous three months. they could be the top gold buyer after russia, which added 274 tons last year. the anti-junta alliance in thailand has suffered a setback with the confusion of election results. they said they could form a seven way coalition that would have enough seats to oust the ruling military backed party but the election commission said 24 parties will receive parliamentary seats, and that

would dilute the coalition's numbers. official results have been delayed until may. 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 su keenan. this is bloomberg. ♪ let's take a look at our asian markets. sophie: asian stocks are mixed this morning while bonds are gaining ground or the yen is steady after a -- gaining ground. the yen is steady and currencies are facing a former u.s. dollar. the aussie is off .1% and the asx 200 is snapping a two day decline led higher by health care, energy and materials. the kospi is extending gains, but we see easing, looking little changed for stocks in seoul, and the nikkei is edging isher .1% but the topix

under pressure, on .1%. looking at the moving topics, let's flip up the board. postingliding after profit of ¥212 billion, below its own forecast and missing analyst estimates. we have them saying severe weather and disasters hit domestic sales. we have undergone a -- have aki boni breaking. their break pads are used in a fifth of all autos produced worldwide. resolute mining, one of the oh performers this morning. maintaining the full year production forecast of 300,000 ounces for gold after reporting a 33% increase in output for the first three months of the year. shery: let's look at oil, because fighting between rival forces in libya is raising the

risks of supply shortages. brent has risen to the highest since mid-november. ramy inocencio has the details. we had the momentum even before the latest libya headlines, this adding to that. ramy: the upside pressure and risk is what we are seeing with oil trading. the conflict is on the southern door of tripoli. we have been seeing images like u.n.-backed government jet fighters trying to take out the forces of strongman or a warlord. this man coming from the eastern part of the country, basically having consolidated his support, moving into the south and now into tripoli. tripoli in the top left of this map on your screen. oilontrols the so-called crest. you see the four dots, those are

the ports that are really important to get all of the oil and pipelines to the coast and get exported. now we have this region on the left-hand side of your screen, it is in control. what is at risk is exports going out of the country. to the left you see the port of zawiya. if the tripoli should fall to these forces, this port would be in focus. haidi: how do you think this could impact libyan oil exports? ramy: we are seeing a little rise now but even with analysts weighing in, they say we will have to see what happens if militia backed forces, if you and back to forces continue to ked forces-bac continue to push. over the last 10 years we have seen a lot of volatility in the

production of libya's oil. before it was muammar gaddafi, the strong man of the country for a long time. at least he had stability for the markets. in june last year, exports did drop 800,000 barrels a day, seizedhis strong man two terminals. you were talking to steve saying over the near-term he doesn't expect to see much here, but looking ahead there is concern. libya's government say they will do this counter attack called the volcano of anger to round out eastern forces. since wednesday 35 have died and people are saying people are fearing they could see the most blood should ever since muammar gaddafi was ousted in 2011. haidi: we see this intensifying.

worsen.uptions seem to we have one line from the u.s. government saying the u.s. opposes military offensive by these forces. the u.s. is concerned about fighting near tripoli according to mike pompeo, those lines coming through at the moment. don't miss bloomberg's interview , speaking oil with the saudi energy minister. that is at 2:00 p.m. in hong kong, 4:00 in sydney, 7:00 a.m. in london. the primus are doesn't expect the economy to fall into recession amid the global downturn. he spoke to bloomberg on the eanelines of the as conference. >> i don't think so, but we must be prepared for [indiscernible] and in particular we have two ensure the financial system will

be stable. ensure the financial system will be stable. there is always financial problems of one form of another, whether you are looking at the there hascrisis or -- been a lot of effort put in since the asian financial crisis among the asian economies and central banks to really strengthen the financial system. following the global financial crisis, many are making supervision, providing a better safety net. it is always a work in progress. we always continue to do that and there will be new developments we cannot foresee, but if we do our best to keep it stable, then we are in a better en anion to manage wh

unexpected event occur. janeter: people like yellen have come up to say central banks run the risk of not having enough resources to respond should economies turn for the worst. what is your position on that? >> it varies across central banks. after the financial global crisis, the fiscal stage for have shrunk and the monetary policy because of the very unconventional monetary policy -- it has also shrunk. -- it is smaller that it was before. haslinda: what is the biggest risk for singapore? certainly -- the

is one risk. the impact is not immediate. if we look at our growth numbers is simple.n 2018, it if you look at the asean partners, they remain quite good. at the same time the element has been impacted. uncertainty has increased. and for making long-term investments, they will adopt a wait-and-see approach. this can in turn affect sentiments. it is something we need to watch carefully and hope we have an earlier resolution to the trade dispute, that we can allow investors to plan with greater certainty. haslinda: how closely are you watching the fallout from brexit now a no deal brexit is becoming more real?

thegeopolitics across region, we are seeing huge elections like asia. >> brexit is another factor. i have been discussing this with european policy makers. -- quiteessments significantly across economies. but it is negative. negative for the u.k., the u.k. economy, negative for the rest of europe as well. clear area of risk. effect is of course the of different changes happening and getting conflated. for instance there are people in

europe who are concerned about , the extental jobs to which automation is going to take away jobs. when you have all the different forces at work [indiscernible] shery: singapore's finance ministers speaking exclusively to haslinda amin. traders continue to boost short positions on the yen. we will ask is -- this strategist why she is bullish on the currency. this is bloomberg. ♪

shery: traders have boosted short positions on the japanese yen for six straight weeks, signs of slowing economic growth make it more likely japan's central bank will maintain its record stimulus. our next guest is bullish on yen

and targeting 105 against the dollar for the end of the year. joining us now is standard chartered's macro strategist. we have seen volatility, around 111 level. this chart showing volatility has also plunged to a five-year low on the japanese yen. what makes you think we could get stronger and higher to that ¥105 level? usdhile we are looking at [indiscernible] the narrowing real yields between these two countries. on the yen side we see the weaker economic outlook has onered its real yields, but the japan's side because of how the bank of japan yield curve tends to -- policy is constructed, [indiscernible]

pushed up the real yield in japan. if you combine both sides of the story, it gives you why real yield has narrowed significantly down usd-yen.eigh shery: how much are you factoring in safe haven yen? we are seeing signs the global economic slowdown could have bought them out. we are seeing positive numbers out of china on factory numbers. there is more optimism on a trade deal. said, we have early signs of sentiment influence in march, and we have our house look for kind of compromise the end of q2 in terms of trade talks. all this won't affect the narrowing real yield story,

which will dominate [indiscernible] for the downside. haidi: what is your forecast for the dollar? we have seen since the fed turned dovish we have seen strengthening in the u.s. dollar. is that a function of the fact there is nowhere else to turn given other central banks around the world turned patient as well? lemon: yes. we have been seeing usd is valuelued 10% about its agreed to our model. but with the broad based selloffs it is still recent. if you look in january, during dovish could have been a catalyst, but we have a parallel shift in other central banks as well. because of the concern on the growth economy globally. so unless we see a stability of

back, itgrowth going is hoping investors will become confident in em assets and broad-based em rally and u.s.d. selloff. haidi: does that provide stability for the chinese yuan, if we see stabilization in chinese data? cny aswe are bullish on well. 6.65 to end up this year. economyhe [indiscernible] and in china may be acting as a temporary headwinds [indiscernible] but the pmi data in march have shown early signs of recovery. other sign of recovery will continue in the future next several months. lower. see cny go

maybe later this year, if a trade deal is reached, we can between 6.50 to 6.70. we can see much lower. shery: are you expecting transparency in the chinese concert -- chinese currency to come out? lemon: yes, we expect if the deal is weak [indiscernible] mechanism in the currency market in china which will cap the weakness of cny. [indiscernible] stronger cny this year. haidi: thank you so much for that. standard chartered macro and fx strategist there with some projections. still more to come. this is bloomberg. ♪ ♪

haidi: a quick check of business flash headlines. chrysler is teaming up with tesla to beat tougher emissions rules in europe, using an open pool option that allows automakers to group fleets together to meet carbon dioxide targets. they say fiat chrysler is paying tesla hundreds for the privilege.

[indiscernible] similara are forming a arrangement. shery: etihad is looking for a loan. there is one with a maturity of one or two years. back in february they slashed orders worth $21 billion at boeing and airbus, part of a structuring following losses totaling $5 billion over the past three years. chairman hasoup died at age 70 in a hospital in los angeles. he took over in 2003 and helped south korea's biggest air carrier korean airlines become the founding -- one of the founding members of the global alliance sky team. our reporter joins us from seoul , this death at a controversial time for the company when korean air shareholders voted to remove him from the board last the

nationalist month. what did they say -- from the board last month. what did they say? reporter: he died peacefully at a hospital in los angeles, but they didn't elaborate on what sort of chronic disease he was reportedly suffering from, so the company made the statement and announcement brief, one or two lines that he died peacefully with no other details to follow. haidi: what was the latest we have heard? jihye: the latest we have heard was at the latest annual shareholders meeting, the korean ousthow holders voted to him from his chairman position as well as following the national pension service, opposing him to retain an internal director -- the board of directors position, saying he

had tarnished the image. this comes after revelations of itselfy the group and but especially his daughters and of mistreating , and so abuse of power a lot of not only the labor union but a lot of the shareholders thought this not only tarnish the image but direct -- dragged down how people viewed the company in general. haidi: all right, thank you. let's get you a preview of what we are watching later on. haslinda: we are watching this one after the developer posted a 22% increase for contracts and proposed dollars to refinance debt. last week they were upgraded double be by stitch -- double b by stitch.

looks like to supply lithium for 10 years. china will support funding for small companies in capital markets. i want to highlight jeffries initiating coverage on the macau gaming sector. mgm china and others at hold. this as worker incomes rise and tax cuts are stimulating the chinese economy. haidi: thank you. before we go to bloomberg markets asia, the resumption of trade from greater china markets after the three-day long weekend. this is how it is now in the monday morning trading session. the nikkei is flat after japanese equities climbed to a one-month high in the friday session. seoul treading water. here is trading in sydney, reversing losses that underperformed the broader region last week. most of the gains from energy and health care. we continue to see oil prices

and iron ore prices rally this week. we also look ahead to a reopening of markets in china and hong kong and taiwan. shery: let's check on the futures. we are seeing u.s. futures under pressure after major stock indices finished on a six month high. taiwan futures up .6% and look at the chinese yuan, holding steady at the 6.71 level. they have been stuck here for eight weeks. stability coming through as we hear more trade optimism between the u.s. and china. that is it from daybreak asia. the market open is next. this is bloomberg. ♪ ♪

beijing. a.m. in welcome to bloomberg markets china open. i'm tom mackenzie. yvonne: i am yvonne man. we are counting down. david: looking at president trump's top economic advisers saying we are close to a trade deal but china says there is tough issues remaining. yvonne: flaring up in a libya, attacks raising doubts about continuing supplies of crude. tom: carlos ghosn reaches the end of the road at nissan. shareholders are meeting to remove him from the board.