haidi: welcome to daybreak australia. ramy: i'm at bloomberg's world headquarters new york. sophie: i'm sophie kamaruddin in hong kong. we are counting out to asia's major market open. ♪ haidi: here are the top stories were covering. wall street edges higher with the s&p 500 extending its longest rally since 2017. about 1% from an all-time high. oil is at the highest level

since november as clashes flare in libya and the u.s. steps up its rhetoric on iran. demand for aramco reaches $75 billion. the saudi energy minister. ramy: later in bloomberg technology global link, we will speak to the ceo of liquid group. which just reached unicorn status. let me walk you through the u.s. market action. this is how we ended the day on monday. a bit of a mixed picture. the down was down about one third of 1% but it could have been a brighter day and it not been for two major stocks, mainly gm and boeing. ge and boeing rather. those two on the down. the s&p 500 seeing a bit of a lift, but barely. up three points. haidi was talking about how we are close to getting to that record high. off by about 35 points. the nasdaq seeing a bit of a

lift, up 2/10 of 1%. the s&p tech sector was one of the biggest sectors moving, in addition to the s&p 500 energy sector in terms of the oil markets with the conflict in libya. a quick look at active futures just arming up now for the s&p. we can see they are flat. sophie, let's see what is trading in asia. sophie: we are looking at modest gains with asian futures pointing slightly higher. change 50 with little but some upside. bond markets beginning tuesday. of course, waiting on aramco's debt offering. attracting $75 billion in orders. when it comes to other things we are watching in australia, homeowner data. energy producers as well as commodity prices. that will likely keep tracking crude as hedge funds turn more bullish. look for advances on miners for

stronger metals prices. when it comes to iron ore, citigroup moving towards $100 over the next three months. contracts in singapore trading above $93 so far this month. so, citigroup advising investors to chase this rally in iron ore's anticipated tick up in china's construction activity while cargoes are very low. that's checking on sterling. the british pound edging up slightly higher, extending the gains we saw on monday. this is the u.k. parliament passes a law to stop a no deal brexit, haidi. haidi: let's get you the first word news with jessica summers. jessica: thanks. the trump administration is ramping up the pressure on iran. the league evolutionary guard is a terrorist organization. the decision's unprecedented move and may prompt a backlash

that makes it harder for u.s. officials to work with allies in the region. the move places the guard in the same category as al qaeda in the so-called islamic state. a u.s. judge has barred the trump administration from forcing central americans to seek asylum to wait for mexico in months and years. the ruling is the latest setback for the president as he attempts to curb immigration. his policies have been repeatedly stymied by judges since he took office he says the u.s. is. "full and can take no more migrants." jack dorsey received his first salary payment since resuming the ceo role for years ago. a revelatory filing shows he pocketed 100 $.40, a modest sum sey's long elected not to take a salary, bonuses or awards from twitter. it is a testament to his commitment to the platform's long-term potential. global news 24 hours a day on

air and on tictoc on twitter, powered by more than 2700 journalists and analysts. i'm jessica summers. this is bloomberg. ramy: thank you very much. oil rose to a ties level in five months as a drop in u.s. dollar as well as conflicts made it the more reliable bet for investors. the gem comes as saudi aramco received orders worth $75 billion for its debut bond sale. joining us is tina davis, managing editor for energy and commodity. let's talk about the price of oil. we haven't seen this on a tear, five-month high ever since november. how much more do you think this could go? tina: it remains to be seen. the price of oil is responded to geopolitics in a way it has not been for. the price run-up is credited in part to what is going on in libya. we have seen the alternative government in libya threatening to take over tripoli.

it is not necessarily contrary -- control the oil but it is a symbolic capture. it is only 50 kilometers away from the major export facility. if you hold it, you can control the spigots in libya. haidi: extraordinary demand -- saudi aramco's dbet offerings -- debt offerings. tina: it has been a phenomenal story. this is only a $10 billion offering. we may see some -- we are going to see the pricing later today london time. we will see the actual size of the offering itself. people we are talking to are telling us they expect is offering to increase partly, maybe closer to $15 billion. the demand is showing this is the first time we have seen anything from saudi aramco be offered to outside investors and investors are really responding to the opportunity. haidi: tina davis. lots of action on the oil patch.

thank you for joining us. more on aramco's bond sales a little later on. we have the extensive interview with saudi arabia's energy minister. ramy: looking forward to that. next, the hunt for yield. pgi ceo david hunt will tell us the trends that are shaping the asset management industry in asia. this is bloomberg. ♪

ramy: welcome back. haidi: i'm haidi stroud-watts in sydney. you are watching daybreak australia. the recent u.s. economic reports have the next. the message is we should expect growth this year. 2016 ase profits in earnings season gets underway. let's talk about it with david hunt, the president of one of

the world's largest asset managers overseeing $1 trillion. he joins us exclusively. good to hear you have had a good trip. i' wonderingm with respect to the kind of conundrum going on at the moment, every getting too complacent, expecting the goldilocks scenario will continue? david: good morning to you. thank you for having me. the economy is in a very interesting place. it has become quite fashionable to say that actually we have synchronized global slowdown. i think that helps hide the truth. the reality is the u.s. is actually doing fine. maybe better than fine. we would say growth this year would probably be above our projections for its long-term potential. now it will be down over last year which we would say last year was a bit abnormal. it was given a one-time shot by the tax cuts.

europe is actually what we worry about. europe is heading south and faster than most people believe. i think everybody knew about italy going into a recession but i think germany really took investors by surprise. germany has slowed quite dramatically. the new numbers coming out around manufacturing have been much worse. they are within a whisker of getting into a recession themselves. part of that is obviously driven by the slowdown we had last year, in the first half of this year in china. i think china is the most important area for people to focus on because it does drive, particularly for countries like germany, so much of the trade. now, it is true that china did slow from what has been a very strong rate of growth, but the government has responded. there is a strong stimulus program in place. we would expect the economy will pick up in the second half of this year so we are more optimistic that. it is regionally quite different

rather than to there being a super nice any particular movement. haidi: what are your top opportunities, particularly in asia? david: we are long-term investors. spend too we don't much time worrying about the kind of quarter to quarter volatility. we look at where long-term growth is and we absolutely believe that the emerging markets are aware most of that growth will come over the next decade. i spent quite a bit of time in asia and we absolutely are invest in across the region and we think most investors are not exposed enough to asia and emerging markets more generally. ramy: long-term growth in emerging markets, but we have to get over some high short-term risks with the u.s. and china with the trade talks. larry kudlow says things are getting closer and closer but we have not gotten a big break yet. what are you looking for here? of theso, the coverage

china trade talks does resemble sort of a lot of high drama television show. an enormous amount of discussion about whether we get a deal or don't get a deal. our view is we will probably get a deal, but they will not matter very much. most of the work that is going on around tariffs is a very small part of the overall economic relationship between the u.s. and china. we think it is highly unlikely that they really come to grips with the issues around technology, around the support for state owned enterprises and importantly, around the opening of the markets and cross-border m&a. those in many ways are the most important issues to get addressed. for us, we hope to get a trade deal but we hope they use that momentum to actually pivot more from these longer-term issues. ramy: you told haidi you think

the chinese economy will rise later this year. let's say a resolution happens between the u.s. and china. can you put a number on it or a range in the terms of what you are expecting for chinese economic growth by years end? david: there is no question that if a deal were announced, and if it is a deal like what i suggested which is fairly belief in nature -- our is you will see a little bit of a relief rally in the markets and that is more because the downside scenarios have effectively been cut off and market sentiment around investment would improve. rather than because people feel there will be a near-term benefit from gdp. unlesst that will happen the deal is far more extensive than we would imagine. haidi: in terms of emerging markets, it is clear that chinese growth perhaps then what happens from the u.s. point, ittors at this

seems like it is straight up emerging markets debt. the like equities and fx as well? how do you strategize your exposure as you say most investors are underexposed at the moment? david: the big problem with debt in emerging markets is how to get in on a reasonable price. if you buy my long-term premise most investors are underweight, how do you get in? the fourth quarter of last year was a great example for how that could work. this is why volatility for long-term investors actually can be your friend. during the fourth quarter and even into january, we are absolutely moved into emerging markets risk assets which is stocks and bonds, both hard and local currency. to date, that has looked very good. we will be watching for other opportunities continuing to put money to work into emerging markets. we like the entry price to come down. haidi: geographically? david: we think overall that the

emerging-market concept, which is now more than 40 years old, is really past its sell by date. there is very little about china or in that looks terribly emerging. these are developing economies. they have almost nothing to do with argentina on the one hand and almost nothing to do with south korea on the other hand. yet, all of those countries you would find -- haidi: not created equal. david: they completely operate two different fundamental drivers. we are putting money to work in the growing middle class across emerging markets. it is mostly consumer durable, services. things that are catering to the emerging middle class rather than putting so much emphasis on a country by country approach. ramy: you were saying that your biggest concern is over in europe, but we cannot get away from this conversation without talking about brexit.

the latest lines out that a possible compromise might happen in terms of a brexit delay from sometime between april of this year the early spring of next year. kicking the can down the road. how does this factor into your forecast for the region? our base case is that there will be an agreement reached which will allow some form of softer brexit and that probably that will happen later rather than sooner. my major message is that people have become complacent. i think people are almost so tired of the issue and it has become so, wicked, they are tuning out. there is a risk. it is not zero. of a hard brexit. i think investors sometimes don't necessarily planned for the tail risks of what could happen if the politicians are not rational.

haidi: call it complacency or just brexit fatigue. david: absolutely right. people have tuned it out but it does not mean it cannot happen. haidi: so good having you in sydney. david hunt, president of pgim. take a look at some of the other guests joining us exclusively in a couple of hours. thompson will be joining us as well in a few minutes. we will be speaking to the liquor group ceo. this is bloomberg. ♪

haidi: this is bloomberg technology global link. i'm haidi stroud-watts. emily chang in san francisco.let's take a look at the top global tech stories of the day. emily: pinterest is seeking to raise as much as $1.28 billion

in its initial public offering. the maker of online inspiration board offering 75 million shares for $15 to $17 of these, below its last valuation in 2017 when the company raised $50 million for a total valuation of $12.3 billion. the latest price would give pinterest a $9 billion market cap at the top of the range. bloomberg has learned softbank has named the lead underwriter for what may be japan's biggest bond writer. it will get 30% of the issue which could total $4.5 billion. the sale will help softbank repay a mountain of debt due. tesla followed a disappointing delivery report by cutting sales staff. the electric carmaker continues to pare back personnel. the company dismissed several hundred sales team members across the u.s. the cut affected teams known

whichally as inside sales reached out to potential customers and inviting them to test drive. those are the top global tech stories we are watching. ramy: thank you. japanese crypto exchange liquid has reportedly surpassed the $1 billion valuation mark following its series c funding round. that makes it one of the rare unicorns in japan. joining us is liquid group ceo mike kayamori. tell us the secret of your success. we know what has been happening to cryptocurrency. we have seen the fall of those prices and the outlook is pretty grim. how did you manage this $1 billion valuation? wherei look at the market it has rebounded from the bottom. 2018 was the year of correction. you can see that sentiment and excitement coming back and it is being led by asia. ramy: japan has only one unicorn

compared with 16 in the u.s.5 and 90 in china. this is a huge difference that is clear and start. what is happening or not happening in japan that you need to put your finger on here? challenge of the unicorns or startups in japan in general was access to capital and access to market where you are confined in the japanese market which is large enough but not large enough to be a global unicorn. however, when you look at cryptocurrency which is inherently borderless and global then where japan is leading the market in terms of transaction volume, that coincided with japan leading the cryptocurrency industry led to this valuation. emily: i will ask a slightly different question which is how

do you justify that valuation? tell us how big your business is, how much business you are doing aside from what is happening in the broader market. mike: yes, great question. --terms of crypto exchange and that was a lot of cryptocurrency only exchanges. crypto token exchanges. when you look at on-ramp and offramp in terms of crypto in u.s. dollars or japanese yen, we are the largest the world. emily: you have been hiring a number of different positions. tell us where you are putting these new employees and how that defines your focus. about 350 so we have people globally. we have about 140 out of japan. we only operate in markets that have clear regulatory guidance and framework. we are operating out of japan and we are also operating out of singapore.

we have always been asia focus but with his capital, we are going into the u.s. market with our partner later this year. ramy: let's get more clarity. you have this $1 billion valuation. where are you specifically putting your money with these new funds? mike: global expansion in terms of asia where we will be applying for licenses and key markets, like singapore. also, japan is passing a new bill around crypto derivatives. we will be applying for that in japan as well. also, markets such as u.s. and europe where we can bring the local liquidity that we generate from japan to the global market. yes, we will be in the u.s. later this year and look into eu as well. ramy: you mentioned singapore. it seems like a friendlier place with regulatory as well as taxes. why the move from singapore to japan? mike: japan, when you look at

the retail fx market, it has always dominated the world. japanese users compared to preferred. 401(k)s they will look at the u.s. dollars and japanese yen and trade because japan is a large export country. to the japanese retail customers, cryptocurrency was the new shiny adjacent market to the forex. emily: used to work at softbank. masayoshi son has seemed to invest in everything but cryptocurrency. vertical farming, then tech. have you approached him or any idea why he is not in crypto yet? mike: i think it is a matter of time. his younger brother is an investor in our company. it is a matter of timing. it shows that cryptocurrency is still early. when companies like softbank come in, that is what it is going to be mass adoption.

emily: have you had any discussions with the softbank team? mike: i think they will find us when they believe the timing is right. we don't need to approach him from our side. we will just wait when the timing is right. emily: mike kayamori, liquid group ceo. thank you for joining us. haidi? haidi: that is it for bloomberg technology global link today. don't miss bloomberg technology at 7 a.m. in sydney, 5:00 a.m. out of hong kong, and 5:00 p.m. new york time. coming up next, saudi aramco received orders worth 75 billy dollars for the bond sale -- $75 billion for the bond sales. an interview with the energy finance minister is next. this is bloomberg. ♪ so with xfinity mobile

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haidi: 8:30 a.m. in sydney. the market open is 19 minutes away. 3/10 of 1%. trading in the u.s. and pushing closer to the record high. about 1% away from a fresh record high. they continue to push for fresh catalyst. i am howdy stroud-watts. ramy: i'm in new york where it is 6:30 p.m. and you are watching daybreak australia. let's get the first word news with jessica summers. jessica: oil is extending its games as fighting continues in libya.

brent crude reached a five-month high after militia fighters attacked the country's only functioning airport. all flights were suspended after he played for eastern-based warlord opened fire view united nations condemned the latest fighting it the u.s. says there could be no military solution in libya. u.k. lawmakers have voted to prevent a no deal brexit as pressure builds to delay the upcoming divorce. the vote came as eu leaders came close to an agreement in a delay ahead of a critical summit in brussels. a compromise is building between france which is comfortable about extending the u.k. in membership and other leaders who say theresa may should have a year to push a deal. is indian prime minister pledging to spend almost a $1.5 trillion on infrastructure as he launches his party's election manifesto. it promises to double income by the year 2022, improving gdp

share for manufacturing and exports. india's 260 million farmers are a key block of the election but the opposition congress party promising to write off loads across the country. general hisesian dismissing independent opinion polls and claiming he is on course to win next week's election. surveys show the president with a double-digit lead but the team says he will take more than 60% of the vote if an election were held today. polls suggest about 10% of indonesia's 193 million eligible voters are undecided. chinese woman who breached security a president from mar-a-lago resort in florida will be held in jail until next week when her bail hearing will resume. she was arrested march 30 for illegally entering the resort and lying to a secret service agent. lawyer says there were innocent expirations philly allegations,

or prosecutors say she may be formally indicted this week. onbal news 20 hours a day air and on tictoc, towered -- powered by more than 2700 journalists and analysts. i am jessica summers. this is bloomberg. ramy: thank you very much. let's go to sophie kamaruddin for another check the markets. i'm seeking at least in futures trading, we might be passing on positivity to you. sophie: we are seeing some modest gains with futures pointing higher but stocks and wellington marginally lower. we are getting more signs that investors are funding -- turning wary. asian equity funds seeing some big redemptive. we could be in the last quarter of the rally that has pushed the asian benchmark to a six-month high. stocks getting $4 trillion in value this year so there could be some caution admitted this advance. stocks to watch, we are keeping

an eye out for this sooner -- casino operators. wynnts from the afr that resorts have made a confidential takeover proposal for crown. in tokyo, we're watching sony potentially tracking the overnight jump that we saw in the company. rising as much as 8.8%. the muslim since february 2018 -- the most since february 2018. building a stake in stony. haidi: let's get more on what we are watching as trading gets underway. stocksd see asian pushing a little bit higher. really, there is catalyst at the moment. >> absolutely. we need to keep in mind that markets have had a really good run. sophie mentioned asian stocks

are close to that october high. the s&p 500 within about 1% of its all-time high. in fact, some of the major indexes around the world have entered that territory. we have a chart that shows the dow jones after rallying 4% in two weeks to friday. it is in that overboard territory. cynically -- signaling the cautionary sign. we are taking a breather. awaiting those catalysts. a lot of talk about the trade negotiations. investors want to see if a deal will be done. we have to bear in mind we are on the verge of entering the corporate earnings season. there was a guest earlier on who said that the biggest market bogeyman is we are seeing very weak earnings at of the u.s.. investors will be watching it very closely. whether all this talk about a global slowdown is now seeping

into the company earnings. whether we will have corporate's , warning in terms of guidance. there are fresh catalysts that the market is awaiting before it takes this rally either way at this stage. for a much in a holding pattern. and: in terms of catalysts diving into global politics, investors are starting to prepare for the possibility of a surprise. what should we be looking for? andreea: that is right. the poll is not until next week but investors are very aware that it is shaping up to be probably a very close race. if the incumbent wins, most of them see the rally that we have seen in the composite index expanding. the jci is up about 10% since october. of if we do actually get a surprise, there could be in upheaval. some analysts predicting a

decline in the benchmark as much as 5%. enough,ingly presidential elections are actually good for equities. what that chart is showing is that stocks have rallied six thehs before and after presidential elections have been produced. investors are very aware that could be a close election and less so of an impact on the currency and bonds. certainly, if we do get a surprise, the jakarta stocks, in the asian stocks could be in for a bumpy ride. ramy: one to watch about a week from now. andreea. check out the library for some of the charts we have been talking about on gtd go. in a bloomberg the close of, the

saudi energy minister says aramco will establish a permanent presence in capital markets. speaking in bloomberg of the first gulf intelligence saudi arabia energy forum, he also discussed the much-anticipated aramco bond sales and its d eal. mr. al-falih: the show is ongoing. i think the deal will close on wednesday. i'm advised not to comment on it. report and press analysts and investors have been extremely impressed but what they have seen. we have been saying it for years. saudi aramco is not only the largest but the best quality company he that exists in the planet. i say that from every angle. not in terms of the resources the company has access to. but also, the environmental stewardship.

prowesse technological in terms of indigenous technologies have provided safety and human resources. this is a company led by saudi's , operated by saudi's. predominantly saudi board that has always taken the right decisions and the value is out there for the world to see. i think we have to think beyond the bonds. deal in theing this six months to come. >> if this one is successful and we are all speculating how successful it will be, will it be a curtain raiser to perhaps coming back to the bond markets again? mr. al-falih: i think aramco will establish a permanent presence in the capital markets that will have both debt and capital instruments. i can assure you in a couple of

years, you are going to have your choice between investing your big savings from working with bloomberg -- or aramco shares or commercial take. aramco is the worlds largest company and is going to have all of its tools and its disposal to access capital markets. nothing in terms of paying the it is going. deal, the prospectus for the investors share this. it is not the primary reason and the only reason for accessing the bond market. it is a tool the company needs to have dad we need to have some debt and instruments on our balance sheet. manus: that establishes a very clear yield curve, so to speak. let's pay a little bit of support and move on to the bond. was it $26 billion demand or $30

billion? how strong have to demand been? where is the bulk of the demand? $26 billion or $30 billion? mr. al-falih: i think the books have not been closed but it is upwards of both numbers. manus: north of $30 billion? mr. al-falih: i believe show but i am not part of the roadshow. it is healthy, let's put it this way. i think be patient, wait a couple of days. wednesday, we will on them. -- all know. haidi: that was the saudi energy minister speaking to manus cranny at the first gulf intelligence saudi arabia energy forum taking place. we will have more on aramco and oil later on. we will be joined by justin. next, chinese premier heading to brussels as the eu raises concerns over trade practices.

this is bloomberg. ♪

haidi: i am howdy stroud-watts. ramy: you are watching daybreak australia. the chinese premier will hold talks with top eu officials in brussels later tuesday at the annual eu-china summit. they meet amid mounting interns about beijing's trade practices and tom mackenzie joins us now. how tense is this meeting likely to be? not expected to be easy-going because there is a lot of contenders issues. there has been a shift in tone from senior eu officials in the last six to 12 months. compared to the last year, the last eu-china summit in july, the tone has shifted. we have heard that from the

commission report calling china a systemic rival as well as a partner and competitive. also from the likes of president macron talking about the need not to be naive and it comes to dealing with china. there are major issues the two sides have to address and the concerns from the eu side around trade and china's trade practices. the fact chinese investment can still flow into the europe relatively easily where as in the other direction there are major hurdles. that has led to deep frustrations and those happen particular did by the eu commission president jean-claude juncker. expect those to be called out, as well as concerns around the belt and road initiative. and the fears among some in europe that has been used to leverage divisions, for example, indebted countries like italy that has now signed on to the belt and road initiative and eastern european companies that are seen as being more open to

the major infrastructure project around wish there are major concerns around transparency, sustainability. there has also in continuing dialogue between the two sides around an investment treaty. position,uropeans they see china as driving their feet. they are annoyed, frustrated there has not been more progress. the premier league saying that china was suddenly behind that unity of the european union. trying to us wage those fears around divide in concord that has been articulated by some. we should see if we get a statement out on the back of the summit. a joint statement showing there has been progress. if there is no joint progress, in underlines the divisions. haidi: what about the awkward topic of huawei and five g technology? tom: 5g technology will also be

part of the technology -- conversation. and likelyto croatia to see a memorandum of understanding signed a between croatia and huawei. huawei has been the focus of attention from officials in washington over concerns about cybersecurity and spying. the u.s. has been tried to push european union allies to block huawei. the commission has hunted over the the decision to member states. each of the countries are going through the process now. it doesn't look like there will be in outright ban. other issues that are likely to be addressed will be human rights as well because there continue to be the mass incarceration of around one million and what many described as reeducation camps. some chinese officials this crime them as boarding schools. one of the largest mass incarcerations. this is likely to be brought up by officials and they will likely talk about the wto ruled.

trying to change and amend rules to make it better fit for the modern-day issues like technology, cybersecurity and the digital economy. there inm mackenzie beijing. we have some lines crossing the bloomberg. the u.s. trade representative saying the proposed cherubs in response to eu aircraft subsidies when it comes to tariffs in response to airbus. the u.s. imposing these tariffs on the plane manufacturer airbus in response to the proposed eu aircraft subsidies scheme. tariffs in response to the subsidies.more details on this as it becomes available but it really kind of creates a bigger test when it comes to some of the issues that boeing has been facing in terms of competition from airbus. pressure coming from the beleaguered 737 max 8 plane.

proposedt hearing a tariffs in response the european union subsidies. let's get more insight into the deals that may be struck with this china-eu visit. a visiting fellow at the harvard center of european studies joins us from cambridge, massachusetts. it is interesting because a few weeks ago, we saw an offensive from china. italy signing on the belt and road. that was controversial but widely celebrated in china. you have this criticism of the trade practices is on the back of this. is there a sense that the u.s. is achieving some sort of success and getting more allies on its side in a more coordinated criticism of china's trade and economic practices? >> it certainly seems that the eu was finally waking up to the

potential perils of getting too close to china and not profiting as much from having the economy open to chinese investment, but not getting the same in return. the upcoming summit will be really the first real test of the softer eu stance and rhetoric in terms of how it is going to go about its relationship with china. i think it shows the eu prefers all the measures short of a trade war. what is really interesting is the eu is trying to affect some change without threatening the imposition of tariffs. it has imposed the investment screening mechanism but falls short of with the u.s. administration is doing. haidi: in terms of the broader concern with the likes of other european countries in relation to italy signing on to belt and

road, the you think that is justified in terms of the worries that these other companies signing on to extensive debt in the long-term? gorana: this has always been a major issue. within europe, we see the divide basically around not just north and south but also west and east. onr reporter hinted earlier that at the and of the week, chinese premier will be going into croatia for the 16 plus one summit where we see a number of these new member states as well as the countries that are waiting for eu extension. it is not a simple as that. i would caution against the kind of moving's that has been happening. even within those groupings such as 16 plus one, there are differences towards china. the bulk of states might be

closer but at the same time, the likes of boeing have been very much against both the alignment. the issue of debt diplomacy certainly remains but it is not as simple as they are all in the same kind of rocket. ramy: i see from your notes that you think that the summit might not come out with a joint statement, similar to what happened in 2016 and 2017. my question is, is the joint statement important especially if things can be easily gotten around? and for what main reason would you say something might not come out in terms of a joint statement? gorana: joint statement or communiques are always good and healthy signal of the negotiations going well and things being agreed on. if there are already these sort of the return -- differences and

gaps between the two parties so that they cannot produce a document where they would maybe highlight the most important things, it is a signal that we will get into future. maybe we are not likely to see a major breakthrough. i would say the kind of news swirling around the lead up to the summit has been showing there is a really multi-agenda that the two parties have set out for themselves. everything basically portrayed in investment, governance reform to human rights, it is very hard to find common ground particularly given this sort of differences in the stances between eu and china. also compounded with the rhetoric coming from brussels these days. we might likely see no joint statement. it is not a disaster.

things might change but at the same time, they might not change. war: with the u.s.-trade looming over the eu-china summit, what can we garner? what kind of bellwether can we get out of the talks between eu and china that might be a harbinger of good news moving ahead? gorana: it is really interesting now that the talks between u.s. and china have been going on for a couple of months. asna not really feeling eager to find a compromise solution with the european union. i think with brussels, it is really hoping for a perfect deal that would apply to everyone that would make the playing field even and for everyone who is accessing the chinese market.

at the same time, there is a worry that a deal might be struck between china and the u.s. which could benefit american businesses and the european union investment could be let out. what we heard over the past couple of weeks is that actually there is some sort of text circulating around quotas. we know until everything is agreed upon, nothing is really agreed upon. things are very much on the table. ramy: at the harvard center, visiting fellow from the university of sydney, looking ahead to the eu-china summit. more ahead. this is bloomberg. ♪

>> i am ramy inocencio in new york. haidi: i am haidi stroud-watts in sydney.

almost a for daybreak australia this morning but trading is underway in new zealand. we are looking at a mildly positive start. still waiting for a fresh catalyst.

haidi: a very good morning. away from hour the open. ramy: i am ramy inocencio. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: out of stories this tuesday. flying on friendly skies. washington turns up the heat on trade. since its highest levels mid-november. fighting flares in