♪ anchor: good morning. i am in sydney, one hour away from the australian market open. ramy: good evening. from new york, i am rama insincere. sophie: and i am sophie kamaruddin. welcome to "daybreak: asia ♪ anchor: our top stories. growing pain. economy, saying the tit-for-tat tariffs are damaging world trade. the eu and china in brussels,

papering over divisions to present a united front to president trump. and derailing the deals. after the bidurs became public. ramy: some breaking news watching the bloomberg terminal with south korean unemployment coming in at 3.8% against the survey estimate a median of 3.9 percent. that 3.8 percent compares with the prior 3.8%, and if you hop into the bloomberg terminal with me, you can see how this stacks up over the past several years really. mostan see here, 3.7% recently, the 3.8% having a tick up, still a far cry from what we saw earlier this year or at the end of last year, so coming within this range that we have been bouncing back and forth along ever since the spring time, i suppose, of 2018, so again, south korean unemployment coming in at 3.8 percent. meantime, let's get a reminder

of how stocks ended the session, and the s&p 500, we were hoping that we could get to a ninth straight day of gains. you can see right on the board that was not to be so. the s&p 500 down by about 6/10 of 1%. a lot of that had to do with the s&p energy sector as well as industrials, energy falling, down the most in two weeks with that imf forecast for revised global growth. down by nearly 200 points, the biggest laggard in terms of percentage. the nasdaq down by a little more than 5/10 of 1%. all in all, a very somber day. now, let's see how things are shaping up in the asian markets, and, sophie, it looks like for you more negatives. sophie: yes, kiwi shares under pressure, extending losses into a sixth straight session, watching shares in sydney on the asx 200 after wynn abandoned takeover talks.

we are watching energy shares, with an overnight tumble sparked by the production cuts in korea. geopolitics may loom as the south is considering a summit with the north on april 27. overall, asian futures signaling a decline at the start of a risk heavy wednesday. inflation setting in, the ecb decision, and the brexit. checking in on the end, we have the currency holding on after briefly breaking below 111 overnight, nzd/usd holding steady, but downside pressure if the jeopardy governor certifies projects. there is a speech later today, about threedding basis points with a grim view, and i want to highlight another. this is ahead of the unveiling of an economic plan from turkey later this wednesday, and a quick check, we have already got

a rate coming in from an eight month low from japan. we will have producer prices and core machine orders in less than one hour's time. with the confidence, melbourne races for a demonstration against a climbing living standard taking place this wednesday. haidi? right, let's get you to first word news with jessica summers. jess? jessica: a long delay for brexit. they say the extension wanted by theresa may will not be enough to break the issue in parliament. who faces to may, deep divisions in her conservative party. opposition- labour says she is not offering enough concessions. and a joint statement after talks in brussels, papering over a division to present a united front to trump, the sides facing

an accord after a tariff on industrial subsidies. this avoided a veto. they are determined to stand together in the face of trump's america first policy. >> we can also be honest, with when progress is slower than we would like. , it will help us face our challenges together, and it has allowed us to make real progress. jessica: steven mnuchin and says he is not worried about losing his job if he releases president telling ax returns, committee that the request from democrats is under review and that he will follow the law. several have called the request a political attack and a violation of the president's privacy and a vowed to fight it.

it.nd have vowed to fight mr. mnuchin: i am not afraid of being fired at all. having said that, i want to be clear. i have said we will follow the law. jessica: and the is really election appears to have ended in a dead heat, with both sides electione israeli appears to have ended in a dead heat, with both sides declaring a victory. form all now try to workable coalition with a large number of parties contesting the election. final results are expected on thursday. global news, 24 hours a day on , air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in over 120 countries. i am jessica summers. this is bloomberg. quick, breaking news. attorney general william barr says he will review the fbi actions in the trump pro.

again, attorney general william barr says they will have a team to look at it. we will get more on that if anything further develops. meantime, let's head into the issue of a no deal brexit, which could cause the slowing across me -- slowing economy to weaken more. the forecast is the lowest since the crisis. kathleen is here. kathleen, the imf is hoping for the best but still warning us of the worst. >> absolutely. downside risks are growing. this is the third time that they have cut their forecast in about four months, the second time i am saying this, the fourth time in nine months. they started off more optimistic and keep getting less optimistic. a key statement they made when they were putting out the report earlier today in washington at the annual spring meeting of the international monetary fund and world bank.

waiting global growth and limited policy space to come downturns. in other words, central banks do not have a lot of ammunition. it could harm economic activity. it needs to be the main priority. now, if all goes well, they do see a bit of recovery in the second half of 2019. the federal reserve decided to pause on its interest rate hikes. that is a plus. china has fiscal stimulus to get out of the slowdown that they are suffering in part due to the trade war, but they still see the risk to the downside on the possibility of a no deal brexit, also on the possibility that the trade talks, the possibility that they could collapse. a chief economist at the imf called this a delicate moment. this is what she said. recovery expecting a in 2020 back to 3.6%. however, we see this as a delicate recovery, because it is going to rely on recovery in argentina, in turkey, and many

stressed economies in the world are going to rely on the euro area, growing faster than expected, particularly for china. kathleen: the imf also cut its forecast for indian growth for the first time in years. the president for the world bank, previously working for donald trump, said the world needs faster growth to fight poverty, haidi. no dealf we see a brexit, it could take a big chunk out of the u.s. economy. they cut therall, forecast in the u.k. from 1.5% to 1.2%. they are very worried about a new deal brexit and what it could do. let's take a look at what they are forecasting in that event. for starters, a no deal brexit could chop 1.4% off of gdp over the coming year. by 2021, that reduction in gdp could rise to three point 5%, and that is a lot of growth. it could even be worse, more

chaotic if the brexit happens, if it is full-blown, right over the cliff's edge type of no deal brexit, and they also say it would cut the you gdp by 2021, global gdp by 0.2%. they did raise china growth for the forecast -- for forecast. that is because of all of the stimulus, so china is doing the right thing. i guess that is what the imf is trying to say, but the u.s.-china trade negotiations are critical right here. haidi: all right, kathleen with us. a plan to buy australia's crown, and a very fast developing story. we are getting a bit ahead of ourselves. >> yes, indulge in the gambling. the premature disclosure of these pulmonary discussions,

so -- these preliminary discussions, just a few hours after the talks were on. something was afoot. on tuesday, yes, crown confirmed that the discussions with wynn were underway, about $7.3 billion u.s., and we saw crown shares on an absolute tear, up 20% in trading on tuesday, a different story for win shares about fourres down, point 7%. investors in the u.s. obviously not convinced about the merits of this deal, and they are viewing this takeover pretty much defensive, the idea if wynn gets bigger -- paul, is this likely to be the end of m&a in this industry? the gaming sector?

paul: the commentary has been coming out fast. analyst was saying that there is no guarantee. isy point out that wynn pretty much confined to macau, and macau is facing saturation. japan, aobviously number of big gaming companies competing for licenses there, very lucrative, but the deal wn would open up australia. for its part, crown has pulled back. thaturse, there is well-known incident back in 2016 when 19 crown representatives got detained in china for the promotion of gambling. in a rare interview, james packard, he was gradually stepping back. he does not even live in australia anymore, and he

stepped down from the ground board as well, so one suspects that, yes, the ground story arc is not completed yet, ramy. allen all right, paul there with that seemingly failed crown.d to buy and we have a shipping chairman live out of singapore. with the trade tensions. we willat is right, but speak with a global strategist, bob, and we will look at what he sees as the key risks ahead. this is bloomberg. ♪

welcome back.t, macro risks, they definitely about, the imf cuts its global outlook to the lowest since the crisis. brexit has a potential to drag on for another year, and

president trump turns his tariff sword to the eu as a trade war with china rages on. to weigh these risks and the effects on the market, we turn to a veteran strategist with his global macrofirm, and markets, robert sinche. bob, i just ran through a lot of negatives. are you feeling that way, and how does that impact your strategy? robert: the things you focused on are things we should focus on the trade side, right? a trades essentially issue between the u.k. and the eu. the eu, they export a lot to asia. actually, their biggest export market is to the u.s. and then to the ek -- u.k., so the eu would suffer with a breakdown of trade with the u.k.. i think markets have been expecting the u.s. and china may be to announce something this week after the last few weeks of

negotiations. that has not come forward, but i think on the fiscal side, things are stable. on the monetary side, things are, perhaps, less tight than we thought they would be, so i think if you look at the risks around the world, it really is on the trade side, and that is pretty unusual. trade isn't usually the major issue for macro forecasters, but i think we are in a unique world, and i think that is where we need to focus. ramy: all right, in terms of focus, where is the easy opportunity? and for that matter, where is the hidden opportunity? bob: i think in the short run, we are going to continue to get this risk on appetite through probably the first half of the year. as i said, central banks have backed off their tightening. i do think we are getting some better growth numbers, particularly out of china. we saw some improvement in retail sales activity out of china in the early months of the year. of course, we do not have much other data in china because of the holiday. once we get through this season,

we will see better consumption data coming out of the u.s., so i do think that the growth environment is improving at the same time that central banks have backed away from monetary tightening. that is probably a pretty good environment for risk assets during the rest of the first half of the year. what i think is not well discounted in the markets is the fact that i think there is still another fed hike in front of us in 2019. ramy: right. very contrary and for you. a lot of folks think it will be a fed cut, by december, more than 50%. bob: that is a comfortable place to be. data,k if you look at the you know, the inflation numbers in the u.s. have slowed a little bit, but they are still basically around 2%, core cpi 2.1. i think on the growth side, as i said, i think once we get through the first quarter with the shutdown, with tax surprises coming in for a lot of people,

we are going to see a strong labor market, good wage and salary income, better consumption in the u.s. we are seeing china pick up. so i do think as we get into the second half of the year, the markets are really going to have to give up on this notion of a rate cut, and i do think by the end of the year, we are probably looking at one more rate hike out of the fed. so if you assume the fed issue is going to fade and that last year was a year of u.s. market exceptionalism, is it fair that you would see more opportunity in other markets outside of the u.s., particularly ones that could involve a recovery in china? bob: i do think that would be a surprise this year. last year, the big surprise was growth in the u.s., particularly in the consumer. i am getting a little more optimistic, as i said, about

some of the china data. it is a little more encouraging. the data that really stood out for me was actually, ironically, the australian trade data for march. we had a record surplus. exports to china were up about, i think, over 21% year-over-year. having watched markets for a long period of time, exports out of australia in march i think, production in china during the april, may, june corridor, so i do think we are going to see some pickup in production activity in china, and i thing that was spread across the region, so i do think there are probably -- i think that was spread across the region, so i do think there are some probabilities. i would caution that later in the year the markets will have to deal what i think -- with what i think will be fed tightening. right, a fed strategist joining us. a lot more to come on "daybreak: asia."

this is bloomberg. ♪

other women show that we are in that arena. once you're in that arena, you have to be prepared to take a punch.

♪ investors have been watching the fight for pension their in brazil, part of economic reform. that is not easy, but now their vice president tells bloomberg the end might be insight. in an exclusive interview, he discussed part of the pension reform. >> well, let's first speak about this majority in congress. sure that the action he is taking is to seek transitory majorities for every moment that we need to pass something in congress. bigll this politics with a , because he is calling people to be with us and our ideas. last thursday, for instance,

there were the presidents of the political parties. today, he is meeting with other ones, and when they came out of we meeting, they said, ok, are not supporting the government, but we are supporting pension reform, so we are working inside congress. is a vote next week. and in my opinion, by the beginning of august, this will be approved. >> how much will you accept with pension reform? >> it is not a question of "accept," because congress is forced to do the job. they are representing the people. is what is happening for us and for brazil as a whole. $260 -- it is some

$260 billion to be saved. $200 billion, that would be good for the country. >> there was so much optimism at the start of prisoner bolsonaro's administration -- the start of president foronaro's administration the brazilian real, as well. what do you say to investors who are concerned about the growth trajectory of brazil? o: they have to be confident with us. we know what we have to do. we understand we have to change so the economy can get back on its tracks, ok? and what do we have to change? for this moment, there is the question of the pension system.

we have to deal with the system. we have to deal with our labor. we have labor reform going on. it is not totally improved. we have to deal with the question of productivity, and that is linked to our infrastructure, and infrastructure is at a point were all investors can come and put their money in brazil knowing that they will have a good business environment, and contracts will be respected, so come to brazil. our: all right, that with extrusive interview with brazi'' as vice president, hamilton mourao. we have information with crown wynnynn, crown saying that resorts has terminated the conversation. you can see crown resorts jumping some 18%, 19%, just on

that one day, but wynn resorts falling in reaction, investors not taking very kindly to that possible to big, and right now, crown has confirmed that wynn resorts has terminated talks with crown. ok, haidi, to you. a look at the business flash. minister says domestic underwriters will be chosen along with some overseas, the nikkei news saying one billion shares would lower the government stake to the legally required minimum of more than one third. a convertible bond sale to raise about $800 million. we are told it could launch the offering as soon this month with discussions ongoing with certainty they will succeed. e will add to what

previously happened, many of which were in the technology sector. boeing forng compensation for losses suffered due to the grounding of the 737 max. ♪

haidi: -- jessica: this is "daybreak: asia." i am jessica summers. the imf cut its global outlook to the lowest since the crisis. the fed now says the world economy will expand 3.3% this year, down from the 3.5% in january. it is the third time the imf has downgraded its outlook in six months, it would be the weakest since 2009, when the global economy shrank. the brazilian vice president has told bloomberg the government expects pension reform to be approved by late july or early august. he says tensions -- pensions are

at the top of the agenda of president bolsonaro, and he added that changes to tax laws are another priority. us, and for brazil as a whole, it would be good if the whole deal passed. billion, ok, to be saved in 10 years. i think the loan limit would be some 200 billion dollars. jessica: and carlos ghosn with nissan executives and his first public comment since being arrested. he accused unnamed figures of playing a "very dirty game" in orchestrating his detention and downfall. he was rearrested last week. the topsome of executives conspire to put him in jail instead of focusing on fixing the company's deteriorating performance.

>> this is a conspiracy. this is not about specific events. this is not about greed or dictatorship. this is about a plot. this is about conspiracy. jessica: the indian election has officially closed. their vote is seen as a referendum on the management of the economy. the opposition party has accused using security concerns to scare voters. -- scionar-old psion is from the ghandi family. global news, 24 hours a day on , air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in over 120 countries. this is bloomberg. haidi: let's take a look at the markets. sophie? asian futures pointing

to a lower open, on asian investors digesting the imf downgrade as well as the agenda coming up on a risk heavy wednesday. we did have the jobless rate climbing from an eight month low, and later this morning, we all get more from japan as gauge on australian consumer confidence. a quick round up of some recommendations from analysts, morgan stanley downgrading one with a lower price target of 17 aussie dollars. there is potential for tm motors, upgraded to outperform tofor kia motors, upgraded outperform. there was an increase from the last. and checking in on the japanese at j.p.nderweight

morgan. analysts have lowered their price target over the past few months as japan navigates changing mobile restrictions. ramy? .amy: ok, sophie kamaruddin and one of in bonds the most oversubscribed offers in history. they let the energy giant borrow at a lower yield than its sovereign parent. our bloomberg executive editor joins us from hong kong. so, tracy, what does this tell us about how investors are viewing saudi arabia? reporter: yes, i think most will tell you this is a win for the kingdom, in particular a win for the crown prince, for a few reasons. the first is that it really shifts the narrative away from the murder of jamal khashoggi. remember, we had investors clamoring to the tune of $100 million worth of orders to loan

money to saudi arabia. you might have thought the order book was pretty padded, but it definitely said something, and maybe it said that the money of the international capital markets speaks much louder than the words of the international community when it comes to this particular issue. secondly, this is going to be a the visionterms for of the kingdom. has notsomething that been without controversy domestically. remember, he would like to diversify the economy and open up the kingdom finances. he wants to sell off part of aramco in the form of an ipo, and this bond will be considered proof of concept for a lot of those ideas, in particular financial transparency. remember, the bond sale came with a big prospectus that gave us the first insight into aramco for the first time in like 40 years, so to get this done, we are going to see, well,

basically, foreign investors are voting for their interest in the saudi economy, and one more thing on that note. for aors really clamoring portion of the bond sale, the longer dates, maturing in 30 years. that would be seen as a vote of confidence in the saudi aramco 30 years from now. haidi: yes, tracy, extraordinary, this look. we are seeing a repricing of the bond for all of the kingdom's sovereigns, as well. to extrapolate from the regional story, what does it tell us about the yield going on? tracy: sure. it definitely tells you something, right? like i said, the longer-dated bonds had the highest demand, the longer yields, and the hedge spreads on aramco are going to be about double the premium that

investors would be getting from the bloomberg barclays index in the u.s., so, yes, you are getting a quasi-sovereign here for more yield. that said, i do not think you theextrapolate too much to wider emerging-market picture, because saudi arabia and saudi aramco are a special case in many ways. yes, there are risks when it comes to the kingdom, but on the other hand, there is tons of cash flow, and saudi aramco is ate old -- is rated single and it arguably has the cash flow of a aaa, so when you are looking at the cash flows for the yield that we have seen over to capital markets yet again in recent weeks, i think you can come up with better examples than aramco. bloomberg right, executive editor tracy alloway there. open itsth a chance to markets. a joint commute k after talks in

brussels over divisions to present a united front. our bureau chief is here from sitting today. howet this deal given bearish the sentiment was going into the meeting, but what did beijing specifically agreed to? of concession. at least beijing agree to wording about dealing with subsidies and foreign companies. we are reporting this was after the eu withdrew a veto threat. beijing is also saying this is a victory for them. the state run newspaper had an editorial saying that this proves the relationship between the eu and china is not confrontational. this will silence critics, silence people who are saying that the relationship has deteriorated, especially after xi jinping's visit. they can put to rest all of these concerns. ramy: sharon, it looks like the joint communiqué almost did not

happen, back in 2016 and 2017. what is different this time? sharon: one of the sticking points was that the eu was threatening to use a veto, and also another sticking point was another discussion going on in the background between the eu and china about the natural investment accord in 2013, still going on. now, eu officials are saying they think the deal could be done by 2020, and that would be needed, and that is a condition that the eu needs in order to start free trade agreements with china. haidi: does it look like the eu is making progress when it comes to reforms with china? sharon: well, it is the same problem the u.s. is having with timelines. it is taking a different approach from the u.s.. they are representing what the chinese government is thinking and emphasize that negotiation

is the way to go with the eu, and they brought up this recent u.s. push to put tariffs on $11 billion of eu goods in retaliation for airbus subsidies, and it is saying in that case, china thinks it is appropriate not in the eu case. should stick to negotiation as a strategy. haidi: our bureau chief in sydney, sharon cehn. -- chen. and the outlook for an industry with regard to the impact of the ongoing trade war. this is bloomberg. ♪

welcome back. i am ramy inocencio in new york. haidi in sydney. a trade war would be negative when it comes to the shipping industry, especially for the

container and dry bulk segments. joining us is a shipping chairman in singapore, esben po ulsson. he is at a conference. rate to have you with us. it is very timely. i guess a bit of an existential crisis faced by the shipping industry. if we do get at least a short-term resolution when it comes to the u.s.-china trade war, doesn't have a meaningful impact when it comes to freight -- does it have a meaningful impact when it comes to freight prices and more that would affect your industry? lsson: i think the most recent news we have is that the chances of a revolution to this dispute, at least in the short term, the chances are quite high, so i think most in the industry feel it will be resolved. i think also these trade was pew's, a lot of it in real terms

-- i think also these trade wars, a lot of it in real terms, yes, we are hopeful that will be resolved, and we think it looks optimistic at the moment. haidi: it is not just trade, and as you said, not necessarily day, but wen the have the international monetary fund overnight cutting its forecast to the global -- for the global economy, the third -- third such revision we have seen in the past months. at the same time, you also have industry-specific factors, volumes,ns, like lower more consolidation, so there are a lot of challenges for the industry that do not have anything necessarily to do with the trade to between the u.s. and china. mr. poulsson: absolutely. as you rightly say on the

regulatory front, the implementation of the convention, we have long-term commitments to reduce co2 emissions, and we have the up-and-coming low sulfur cap coming in mid-january 2020, where fuel will have to be .0% sulfur content as opposed to the 3.5% current. the challenges on commercial front, if i can put it that way. we definitely have our work cut out, but shipping is a very resilient industry, and i am optimistic that as we have shown throughout the centuries, we will handle this in the best possible way. n, one of the points that really stuck out to me is with the current shape of the shipping industry, really as you have here, it has very negatively affected large capacity vessels. to what degree is that going to continue on here?

mr. poulsson: i think not the 180,000ips, ships over deadweight, very, very hard, and in recent days, the rates for these ships have reached almost historic lows, and that has had a cascading effect to the medium and smaller sized carriers. we believe that this problem will be resolved, and, actually, we are quite optimistic that in the second half of 2019, order will be restored to the market, and we will see some rate recovery. -- index in august last year it has fallen to around 700 at the moment. that is very big. it is a volatile business, and as we saw, it was down to 2.90. there was an enormous recovery throughout 2017 and 2018. we will always have this volatility, but i would say overall, we are quite optimistic

for the second half of the year that the situation will be resolved and, of course, much will also depend on china. china is a big driver in the dry bulk market. we are optimistic. ramy: you pushed into 2019. i will push into 2020. haidi just mentioned the international maritime regulation, the imo. what do investors need to be aware of? there are a lot of uncertainties because there are a lot of technical aspects with the technical implementation of this new rule in 2019. we think there will be some problems in the short-term as we enter the new year, but at the same time, the implications are that shipowners are working with implementation plans. we as the international chamber of shipping have issued a lot of guidance. be some problems in the short and medium-term into

the new year, but overall, i believe that the industry, as always, will cope with this and that, eventually, it will be smoothly implemented. ondi: it may be transferred to customers. yesterday,o a coo who was also in singapore. he said mirsky cannot really shoulder the costs on their own. maersk cannott really shoulder the costs on their own. passoulsson: they will some of these costs on to the customers, and i think that is reasonable. when you take the dry bulk market, there is the payment of

the fuel used by the ship is not paid by the owner, so to some extent, it shifts the problem onto the user of the ship, if you like. in terms of the companies you represent, i am sure trade has been top of mind, but i am wondering what aspect or what industries are actually ones that you're are optimistic about. mr. poulsson: well, we have a saying in shipping. "if you're going to be in this industry, you have to be an optimist." on manymany challenges fronts. you need to be an optimist, but, generally speaking, when you see the order book in most of the segments as a percentage of the existing fleet, the picture looks quite healthy, and the thing you can never quite know or farecast -- or forecast is demand. it may be better or worse than expected. you can make predictions, but

you cannot be sure. what you can be sure of is the capacity of ships, which traditionally has been throughout the decades, and in this case, the order book in terms of the existing fleet looks quite positive. you forsben, thank joining us, and good luck with the rest of the conference. that is the shipping chairman joining us out of singapore with the industry conference. we are getting some breaking news with japan data crossing. machine orders. you're on year, they are at a contraction of one point 1%. this is a leading indicator. we were expecting this from the previous plunge in february seeing a decline. to a gain ofevised 1.8 percent. still, missing expectations of 2.8% and a bit of a bounce back from that contraction of 5.4% in

the previous month. we are still awaiting those march numbers when it comes to factory inflation. we are expecting a bit of an advance when it comes to ppi, largely on account of the game we have seen in oil prices, which have surged almost 6% from the month of february. we also had weakness in the yen of about 6/10 of 1% in february, as well, expecting factory inflation to moderate somewhat towards may, given that we are seeing very strong effects. we are still getting numbers. core machine orders is one that we have gotten through. getting.hat we are 0.3% is what we are getting when it comes to ppi for the month of march. that is slightly better than expected. we were expecting that to moderate as we get into the middle part of the year, and, of course, we have had a bit of a bounceback when it comes to the japan orders sub index for

china, at least, and that could potentially give a little bit of an uplift to that data, as well. well, don't forget the bloomberg functions. can get, and you interviews and the functions we talk about. you can also join in on that conversation. you can send us messages and questions for our guests. do check it out. . at tv this is bloomberg. ♪

ramy: all right, welcome back. let's take a mate -- take a look at a major move for softbank. a $5 billionersee tech, focused on latin america. bloomberg technology anchor emily chang spoke with a coo about that new project. market, the of the latin american market is twice

the size of india, so it is in the right place, the right population, the right technology, so we are looking at companies that are growing and leveraging data. disrupts traditional business models, and i can tell you we are already looking at 140 companies, so this is our expectations with the amount of investment that we plan to have in the latin america region. ow, 140 companies in just a few weeks. dry powder is already at record highs. how does softbank stay disciplined and put so much capital to work at the same time? i think we have been quite disciplined in terms of -- we had a very clear investment mandate. we are looking for that number company -- number one company, entrepreneur, who has the

ability to leverage intelligence, leverage data, to disrupt the model. of thatbroad in terms because we believe in artificial intelligence, the level of disruption in the next few years is significant, and pretty much every industry is in the midst of disruption. we can put our capital, our growth strategy. we can bring them into the system and basically help them grow, and so far, we have over 70 companies that we have invested. they are doing great. and we are applying the same logic and discipline to the same in latin america, which traditionally had been india, china, and the u.s., and now we decided to put some in latin america, because of the size of the market, and we are applying it to that region of the world. emily: tell us about your day today. how much time will you spend on this latin american part of your

job and your duties as coo of softbank? welllo: we are pretty organized in the ecosystem. we have someone in charge of the division fund. part, whichational is most of the operating group, a company in which we have a majority ownership, such as that, or energy group, so and i am launching a new technology fund, so we are spending some time in latin america, but it is basically running most of the operating companies in the group as well as being the coo of the entire group, so we are working in partnership with others. we basically are able to accommodate the responsibilities accordingly, so we have amazing people throughout the world, and

investors who supplement us. we are busy. that we areot applying the same rigor and discipline to. ♪ the biggest week in television is back!

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inm haidi stroud-watts sydney. asia's major markets are opened for trade. ramy: good evening from bloomberg's world headquarters in new york, i'm ramy innocencio. sophie: i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." in sydney. asia's major markets are opened for trade. haidi: our top stories is wednesday, stocks poised for declines on renews of concerns of a global slowdown. lower than forecasted, yet

again, saying tit-for-tat tariffs are damaging world trade. ramy: the eu and china stand together. papering over divisions to present a united front to president trump and america first. we want to issue a correction with regards to japan a good data we broken the past 10 minutes. a core machine orders year on year and month on month -5.5 percent and 1.8% positive respectively. the estimate was for a survey of 2.8%. it still misses estimates but is a positive 1.8%. as for ppi, that came in at 1.3%. the estimate was a survey of 1%. let's go to the market action in asia with sophie kamaruddin. sophie: the mood is looking dire as we face a risk heavy wednesday, cutting down to u.s. inflation, fed minutes, and the brexit summit. markets digesting the dim view on global growth in the first half. we have had the nikkei and topics lose over 1% early in the session. the yen is holding onto a to pay

-- today advance. watching for the dollar to fall through the cloud support. flipping the board for a check on the mood in seoul, climbing from an eight-month low to 3.8% in march. the cost be to snap and a day rally. the korean won is recovering further from an 18 month low hit on monday. be hardestwon will hit by norway's pension fund decision to cut exposure to emerging markets bonds including korea. flipping the board to check in on the news in sydney, aussie scherzer lower by 1/10 of 1%. after getting a two gate -- today gain. cba does see a risk of downside if rbae for the currency deked bd governor clarifies market expectation for a rate cut at a speech today. a bonds adding three basis

points as markets digest the imf of elon global growth. in wellington, qe stocks headed for a six day of losses. checking in on the mood on wellington, off by basis points as markets digest the imf of elon global growth. 7/10 of 1%. the kiwi dollar is gaining a little bit here, up 1/10 of 1%. i want to highlight this, pulling up the board room quick, we are seeing the stock under pressure, often by 10.6%. saw onhat surge that we tuesday when the shares rallied by record, jumping 20%. giving back some of those -- of that advance as it has abandoned talks for takeover of ground shares with -- which would have valued the casino operator at 10 billion australian dollars. its extensiong plans for now. under pressure this morning. haidi: let's get you to first word news. pure thethanks, haidi

uk's seems to be heading for a long deliver brexit. these says the expansion wanted by theresa may will not be enough to bring the deadlock in the house of commons. may held talks in paris and berlin but the eu says the delay should last up to a year. that is a blow to make who faces deep divisions in her conservative party. the labor opposition has positive talks with her saying she is not offering an f concession. concession. the eu and china really's joint statement after talks in brussels, papering over divisions to present a united front to president trump. sources say the two sides reached an accord after china made concessions on industrial subsidies that removed the threat of an eu veto. in the face of trans american first approach. the is really election appears to have ended in a dead heat with a both sides claiming victory. exit polls indicate benjamin netanyahu party won 36 of the

knesset is 120 seats, as did former general blue-and-white group. both will try to form a workable coalition, but the number of small parties contesting the election. final resorts -- results are expected on thursday. the brazilian vice president has told bloomberg the government expense pension reform to be approved i late july or early august. he says it is on top of the agenda, but the government is targeting asset sales worth $20 billion this year. he added changes to tax laws are another priority. us, and for purcell as a whole, -- and for brazil as a whole, it would be good if the whole deal past. ok, toome $260 billion, be saved in 10 years. some $200mit would be

billion. jessica: 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 jessica summers. this is bloomberg. ramy: thank you very much. brexit and the u.s.-china trade war could cause a slowing global economy to get even slower. that is a message from the imf as it chopped its 2019 global forecast to its lowest ever since the financial crisis. our policy editor kathleen hays is here with that imf report. the imf seems to be getting more worried. kathleen: i think they want us to know they are worried and there are big events that could happen that the world has to avoid. they downgraded their global forecast to 3.3% from 3.5%. jump into the bloomberg library, it is the third downgrade in six months. no matter how you slice it, the outlook keeps a dimming. here is the outlook for this year, 2019.

down 3.3%. you can see the outlook for advanced nations, developing nations is one point 8% year-over-year. emerging markets, weaker than before. but a lot stronger at about 4.3%. they are getting more optimistic for a recovery in the second half of the year because the fed has paused on its rate hike. china data, particularly on manufacturing, is looking better. u.s. numbers on jobs, that kind of signal is starting to emerge. they still see risk to the downside. of a new deallity brexit, collapse of trade talks between the u.s. and the united -- and china, that is, in the chief economist says the imf is calling it a delicate moment for the global economy. they also warned we have a know -- if we have a new deal brexit, it could take a chunk out of the u.k. economy. kathleen: absolutely. pretty gloomy.

let's look at one of they are saying -- what they are saying. mark carney has been warning that the risk of a no deal brexit has gotten alarmingly high, something everybody wants to avoid. as theresa may goes to the eu summit, it is looking shaky. let's look at what they are predicting for the cut in growth the u.k. could see in a hard brexit. chop 1.4rexit could percent off gdp in the ensuing year by 2021. that could grow to a loss of 3.5% of gdp, could be worse in a chaotic brexit than even what we are seeing here. imf saysl brexit, the cut gdp by 0.5% cut gdp by 0.5y 2021. these are the facts and figures i want to give you. global gdp could be cut by 0.2%. although on the plus side, the imf is raising china growth to six point0.1%

3%. it is the monetary and fiscal stimulus. looks like the imf is getting them a pat on the back. u.s.-china trade war negotiations is important. ramy: a lot of rest -- risks. policy editor, kathleen hays there. the rally in global equities did lose steam today as u.s. threatened to escalate trade tensions with europe. the same time, the imf down trade -- downgrade dimmed the appetite for risk. guests guest -- our next says there is a lot of complacency in the market. such as theues trade war and yield curve sending signals about with equity returns. thomas polo it could joins us from hong kong. where docomplacency, think investors are the most complacent and what do you think is the biggest risk? thomas: we have seen markets rallying quite high in the beginning of the year as part of it was justified after attractive evaluation we saw at the end of 2018.

now we are at the point where earnings have been downgraded quite a lot. can we will enter the earnings season where we will have to see the forward guidance are not downgraded further. the second topic is the trade deal. the trade deal between the u.s. by thena is almost seen market participant spirit we found that there are still issues to be dealt with. notwithstanding, you have the -- beneathn outside the trade deal that needs to be considered, and finally, the fed him a we see that there is potentially a risk to see inflation popping up of the chinese stimulus, after also the fact that the job market has been quite strong. if you see inflation increasing, you have a risk that what the fed is expecting by the market participant, by being different to what they are actually doing at the end of this year. ramy: off of that list that we

need to have on our radar, there is also has been happening with the imf and the downgrade for the rest of this year. one interesting thing is the imf chief economist did have maybe a little light at the end of the tunnel of 2019 going into 2020 for major economies. let's listen real quick. >> we were expecting a recovery in 2020 back to 3.6%. however, we see this as a delicate recovery. onause it is going to rely recovery in argentina, turkey, many stressed economies of the world. notill rely on the area growing/-- growing faster than we expect. similarly for china. ramy: i would like to think there is something, some opportunity out there that we do not have to wait several months for going into 2020. what would be one of those biggest opportunities? the one that we have been quite positive on since the beginning of the year is emerging markets.

both on the -- on the equity and fixed income side. we have been especially quite bullish on some chinese companies. we continue to see value there. i think what the imf is pointing out in your chart before is easy not only -- is it you see not only in 2019, but going into 2020, you see the spread of growth expectation between emerging markets and another widening pretty have a better gross picture in emerging markets. and a lot of that is based on beinge stimulus stabilized and accelerating. and i believe older emerging markets in the region to a certain degree in europe would be beneficiary of this acceleration of growth in china at the end of the year. haidi: what if we continue to see an environment of sustained dollar strength? does that muted the gains you expect for em this year? kathleen: definitely -- thomas:

definitely that would be a challenge. we don't see the u.s. dollar weakening that much. at we see instability in u.s. dollar -- u.s. dollar. you are right the u.s. dollar is definitely something that we are closely watching to be a positive for our emerging-market overweight. haidi: thank you so much for joining us. of aipacullaouec, head multi-asset solutions joining us. we join exclude -- we are joined by the ceo of hong kong-based travel startup as the company gets an investment. and aims to ramp up services in japan ahead of next year's olympic games. from another exclusive interview with the brazil's vice president, he tells us the latest on his government's plans to pass important pension reforms. this is bloomberg. ♪

ramy: welcome back. i'm ramy inocencio in new york. haidi: i'm haidi stroud-watts in sydney. you are watching "daybreak: asia." thestors have been watching pension reform in brazil, one of the country's most important reforms. that fight has not been easy. the vice president tells bloomberg the end may be in sight in in an exclusive interview. they discussed a plan to pass pension reform. let's first speak of this question of majority in congress. i think mr. bolsonaro, i know for sure that the cost of the action he has taken is to seek majorities for every moment that we need to pass something in congress. politics a big p because he is calling people to

be with us with our program and with our ideas. last thursday, for instance, he met a lot of the political when we came out of the meeting they said ok, we are not supporting the government, but we are supporting the pension system reform. , he's working alongside congress. it is with the constitution commission. i think it will be voted next week. my opinion, by july it will be approved. change can you accept in the original plan of pension reform? mr. mourao: it is not a question of except because the congress is forced to do its job. ok, they represent the people, they have their looks of what is happening. for us, and for brazil as a whole, it would be good if they

would build past that. that would be good. billion, ok, to be saved in 10 years, well, i think our limit would be some $200 billion. billion come it would be good for the country. shery: there was so much optimism at the start of president bolsonaro's administration. ben called the olsorallies. want to tell investors who are concerned about brazil's growth trajectory? mr. mourao: i want to tell them that they have to be confident with us. we mean what we have to duke it we understand that we have to change so that our economy can be put back on its track. we have to change. the first moment is this

question of the pension system. we have to deal with the texas them. we have to deal with our labor lots. onhave labor reform going that is not totally improved. we have to deal with productivity, and that is linked with our infrastructure problem. and infrastructure is a point where all investors can come and put their money in brazil and that they will have a good business environment and contracts will be respected. so come to brazil. more: brazil sold agricultural goods to china in part because of the rising tensions between the u.s. and china. if beijing and washington do get a trade deal, will brazil lose its competitive edge there? mr. mourao: what happens is we have been -- even with the u.s. people, i think we can reach a point that will be

complementarity for both countries to we understand the u.s. wants to sell its soybeans to china. so we have to search for an agreement on this. shery: what sort of agreement can you think of? mr. mourao: well i'm saying, half are for them, half for us. something that is good for everybody. i think relationships between countries can't be win-lose. it has to be win-win for both. shery: are you prepared to veer your exports toward other in fact brazil ends up losing a little bit of the market share because of reconciliation between the u.s. and china? mr. mourao: yes, i think africa is a big market. we have a great approach with countries in africa. and we can sell not only are commodities to them, but technology, because we have good technology in terms of agriculture, the central part of

africa is almost equal to our central part of brazil. what we did in brazil we can do in africa too. think that is a good opening for us. shery: how about europe, are you planning to go there? mr. mourao: europe, i have been talking with their ambassadors. europe has -- it is a more closed market. that was our exclusive interview with brazil's vice president hamilton mourao. a second crack at sony as his hedge fund builds a stake. what will the activist investor be pushing for this time? we will discuss that next. this is bloomberg. ♪

haidi: shares in sony are falling by the most in about three weeks. still seeing sony shares lower by 2.7% in the tokyo session. this after climbing early on reports that the hedge fund was

building a stake. i would have made it the second time the activist investor has attempted to push for change at the company. our columnist joins us now with more. what was his beef with sony last time, what was he looking to change? that he hador issue 5, 6 years ago was essentially the way it was using the business. they were not getting much out of the entertainment business. sony makes electronics but people forget that they do have movies, tv, and a music business. dan lowe was pushing for them to spin off an -- 20% or0 percent 30% of the and attainment business to unlock that value and pour money into sony for other purposes. he really felt those things that were going on, especially at the pictures and entertainment business were not smart. he made comments about overpaid executives and appalling -- a

poorly managed business. that is when he was concerned about. ramy: second time around for them, but what happened the first time around? why didn't it work out? tim: well, he did not get the spinoff on ipo's he was seeking. i would argue there was not a failure for dan low or what he was trying to do. i read a column pointing out that after that had happened, sony went and decided to hire a in inco, a sold -- a consulting firm to help them find a savings of the entertainment division. they ended up targeting $250 million in savings. that is a very big amount of change. in the preceding, the following few years, they turned to profits last year. the year ending march 2018. they posted record net income for that period of time. they rallied up until september or so last year. thatd not get the spinoff

he asked for but he himself exited 18 months later with a 20% upside on his investment. sony did change for the better in many ways. ramy: looking at sony shares now, down by more than 2.5%. thanks very much to tim cu lpan. business flash headlines. china is planning to ban cryptocurrency -- cryptocurrency mining. china was once home to about 70% of bitcoin money and 90% of those trades. authorities have waged a nearly two-year campaign to shrink the crypto current -- crypto market. the japanese government is ready to sell about $12 billion of shares in japan post holdings as early as september. the finance ministry says for under rises will be chosen along with two from overseas. they say one billion shares would lower the state to require

minimum of more than one third. isy: a chinese travel site said to be planning a convertible bond sale to raise $800 million. we are told it could launch as soon as this month. with discussions on and no certainty that they will succeed. the $9e would add to billion of convertible u.s. dollars notes sold in the past by chinese companies, many of which were in the technology sector. coming up, shares of crown are plunging aswynn -- as wynn pulled their bid appeared we saw on and off again story with reports that wynn would be making this bid for crown. it shares a road by -- rose by 18%. wynn investors were nonplussed. --lowing by 4% or shares shares falling by 4% we will have more analysis on the fallout with john decree next. this is bloomberg.

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♪ >> this is "bloomberg daybreak: asia." outlook forits global growth to the lowest since the financial crisis. the fund says the world economy will expand 3.3% this year, down from 3.5% in january. it is the third downgrade in six months come the weakest since 2009. mistakes arepolicy avoided, policy need to work cooperatively to make sure the

uncertainty does not further weaken investment. fiscal policy will need to manage trade-offs between supporting demand, protecting social spending, and ensuring the public debt remains on a sustainable path. taken itsrabia has first major step on the global financial stage, issuing $12 billion worth of bonds for aramco, the most oversubscribed debt offering in history, with demand so strong that it allows the company to borrow at a lower yield. with $111 billion profit last year, aramco is the most profitable company in the world. f-35ts from japan say the is being grounded after one plane disappeared off the radar. the news report cites the defense minister speaking in tokyo. the missing aircraft was deployed on a northern island and was on a training mission contact with

air traffic controllers tuesday evening. carlos ghosn lashed out at nissan executives in his first public comments since being arrested. accused of unnamed figures playing an "very dirty game" and orchestrating his detention and downfall. in a statement before he was rearrested, carlos ghosn said nissan top executives conspired to put him in jail instead of focusing on fixing the company's deteriorating performance. >> this is a conspiracy. this is not about specific events, greed, not about dictatorship. this is about conspiracy. >> global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you.

let's look at the state of play in asia. for stocks,own day while bonds are higher, but plenty of event risks ahead. japan, electronics makers and banks are weighing on the benchmark come still the biggest drag on the topix this morning. 0.3%, and thes asx 200 falling for the first day in three. we will be looking for clarification of brown expectations around a rate cut from the central bank. let's check in on movers in the region. bank, to highlight one jumping on the nikkei news report that lender is in talks regarding support towards rebuilding its business following a scandal.

we do have japan post holdings losing ground as the government is set to sell $12 billion worth of shares, and bluescope extending lost her's, $14 a share after it was downgraded on falling steel prices. sydni share slumping after soaring tuesday, following talks to buy a casino operator. crown's future is in question as talks signaled it is willing to talk sale terms. deutsche bank said other potential buyers might emerge. the m&a space still in play.

themore on wynn pulling out rug, were joined by union gaming head. talk to me about the failure. the shares shot out of the gate come in now those shares are falling when it comes to crown. why did this happen? >> the first thing is for u.s. it was unusual and caught us off guard. there hasn't been much interest in u.s. companies looking at australia as a geography, so initially they are a development company and have built their ever casino they own. so we are not surprised to see wynn walk away. the fact that some details were disclosed are bit more than we see in u.s. filings, and that likely scared wynn resorts away.

haidi: maybe it was something that a crown loss is worse than a win. it seems like there is some appetite coming out of wynn resorts, talking about the larger m&a space. will they look elsewhere? >> they are a development company first, but global opportunities for gaming, there are a finite number of opportunities. winning a license in japan is extremely challenging. opportunities, we will see a lot of those companies look to the m&a space, so these guys will look for alternative ways to grow come a development project or other potential m&a. >> number of people have called

this a defensive play than anything. visit the easiest way to access some of these chinese and vip segments? a little bit defensive. they have great assets in las vegas come an asset opening in boston pending a regulatory review. they have great assets in macau. when that stock was under pressure after steve wynn resigned, there was a lot of talk about wynn resorts being a potential acquisition target. movinging bigger and into two urography is like australia, that is a way to fend off potential suitors of their own company. with access to high rollers in china, wynn resorts is one of the best at that. it is one of their specialties in macau. thinky strategically

about the crown potential, they could leverage their best practices in australia, especially with crown having a vip-centric building in sydney australia. in terms of this diversification moving away from cal, these -- from a cow -- from a cal is there a fresh approach at this point? is this what we take away from these failed talks? it is ok to think about wynn resorts looking away. all parts of asia are highly desirable now. asian and rates in pacific asian markets have been better than the u.s.. australia ande interesting play, which is also an interesting market. were seeing other companies spending several billion dollars initially in singapore.

korea has several billion ,ollars of development cambodia, so there is a desire to get into the asian markets. the competition for japan has been a focus for wynn resorts and its peers, but it feels like some daylight has been put between when resorts -- wynn resorts and the other front runners. trying to find those opportunities are were companies are looking at right now. >> it feels like we have not heard the end of the story just yet. the slowdown in the world's largest car market is no -- is showing no signs of easing just yet. slumping 12% to 1.8 million. let's bring in our chief north asia correspondent. even know we have seen a bottoming out of the chinese numbers and an improvement, when it comes to this data point, we are still seeing things

deteriorate. >> that's right. the uncertainty in the chinese economy is definitely crimping --sumer can sentiment consumer sentiment. the passenger car association of china said in the first couple that car of this year sales were the only consumer products segment that saw declines in sales. that issomething tackling because car sales have benchmarkndustry really. they have let car sales for many many years, and now we have seen plunging, down 12%. the last time sales gain was may last year. we saw it down 12% in march, 18.5% in february, 4% in january, double-digit falls in february,november,

october, september. that has dampened car demand. it is something the car industry not justkers, global, local, but global carmakers with a strong presence in china are worried about. lots of things going wrong, but what can carmakers to write to bring back those buyers? you can get into the never ending price for, which nobody wants, but that could bring car buyers back. the passenger car association executive director saying they want new government policy to spur demand and 2019. the association does expect sales to pick up in april, but would not go as far to say that it will mean a full year uptick in year-over-year sales. they expect new tax reductions to help. face it, globally carmakers are facing unprecedented disruption from

the tech space, including the popularity in the u.s. and europe of right showering -- sharing. ford saw sales plunged 54% in china in 2018. they will be launching more than 30 new vehicles targeted specifically for the china market, so they are going headfirst here. a need toker saw focus on innovation as well as quality. contraction in combustibles is not just related to the china story there. thank you. will be joined by the cofounder and ceo o ♪ travel start up and what they plan to do with the new investment from softbank's vision fund. this is bloomberg. ♪ this is bloomberg. ♪

♪ welcome back. let's turn to travel.

one hong kong-based start is helping with looking zen information. klook has raised $225 million from the softbank vision fund, bringing total funding to $425 million. the softbank capital was timely for the 2020time summer olympics in tokyo. joining us for an exclusive interview is the coo and cofounder. great to have you with us. what you planning to do? funding, we will expand our new markets. we set up operations in the u.s., europe, and australia. asia,ain committed to especially japan. lot of great

potential, where tourism is expecting over 40 million visitors, so we will be able to provide our services to those customers arriving in japan. haidi: we have it that an ipo might be on the horizon. do you have plans? >> right now the company is well-funded. we just did our series d last year, so we are well-funded. the focus is on the business and growing our geographic expansion. rami: looking at how much you have raised, $528 million. folks are wondering what is happening with revenue and profit. what numbers can you tell us? , we were aiming for $1 billion in revenue bookings.

we made that. this year, we will go for straight triple digit growth. we are focused on expansion and reinvesting the profits into technology and the team. rami: talking about technology, you are well-known for being a mobile app-first platform. will you push further into other spaces with this money? >> we will stay committed on the mobile front. to invest ae resources in a different category of services. there isn't really one category. ,e call it multi-verticals booking tourists, local transfers, railways, wi-fi connectivity, so we can customize the user experience, as well as the merchant platform, where they will be able to seamlessly connect. haidi: i understand you want to

refrain from giving out pacific numbers. can you tell us when you expect to see profitability and how much growth you expect to see in revenue? seehis year, we continue to triple digit growth in revenue and bookings. , we are inility control and holding the wheel of the company. if we choose to become profitable, we can do so, but now we stay committed on reinvesting profits for expansion. haidi: the focus is on japan in time for the olympics. what other markets are you prioritizing? >> japan is a main market we will be focusing on, especially the railway system that relies on legacy technology. we would like to bring the

experience we have had working with others to digitize the services in japan. we are seeing the middle class in asia having increasing purchasing power. also aiming for long-haul destinations like europe, the u.s., and australia. we put the teams on the ground to digitize those services and cater better for outbound asian travelers. rami: a lot of folks in the west, the u.s., look to kayak as the main portal. ist do you think klook trying to differentiate itself within what it might be able to learn from the team at that is kayak? say the pre-and post-trip bookings are separate ecosystems. on when the travelers

arrive to a destination. that is why klook is focused on a mobile first strategy to allow consumers to discover the most fun things to do and be able to seamlessly make that anding and get a qr code access the attractions or railway system seamlessly on the ground. rami: we will leave it there. and cofounder of klook announcing another round of funding, $225 million. don't forget our interactive tv function, tv . you can watch us live, watch past interviews, died into securities are bloomberg functions we talk about. plus, you can become part of the conversation by sending dozens that messages during our shows. this is for bloomberg subscribers only. check it out at tv -- check it out at tv .

this is bloomberg. ♪ bloomberg. ♪

rami: china is signaling its intent to ban cryptocurrency mining. it has listed crypto mining among a number of sectors it intends to eliminate because of wasted resources or pollution to the environment. joining us now is our asian tech editor. toseems to be a big blow

crypto given the historic role china has played in the entire industry. historically china accounted for 70% of the world crypto mining. at one point, 90% of the trade. over the past meituan-dianping -- two years, china has been tightening its grip on the sector. a lot of people anticipated what we saw this week with the announcement. are we expecting to see a major market impact? we haven't really seen a reaction just yet. >> as i said, over the past two years, beijing has been slowly bringing down the hammer. operationsn the move abroad. is anticipated and that is why we have not seen the

market disruptions we might have a your ago. likeis time, it sounds china is more serious about tightening control. the in drc is one of the country's most powerful agencies. haidi: interesting. it used to be home to 70% of bitcoin mining and 90% of trade. the crackdown continues. the latest. let's get a check of the business flash headlines. is asking for compensation over losses suffered do the grounding of the 737 max. the chinese carrier has 14 planes in its fleet. , china's civil aviation administration has accepted an invitation from the faa to review the safety of the grounded chat -- jet. china was one of the first countries to ground the planes. rami: standard chartered will pay $1 billion over alleged sanctions busting in iran.

it saw a $667 million settlement in the u.s. in 2012. standard chartered later revealed other deals for iranian clients handle i the banks -- by the banks unit. changing itsok terms of services to meet demands by eu regulators and will clearly show you how the data is sold and how accounts can be closed or disabled. the eu said the failure to make changes could lead to possible sanctions. rami: 10 ipo plan has its first bullish review. one analyst is rating pinterest overlaid -- overweight, implying pinterest may return 53% if the ipo prices at the low end of the expected range, 15 to $70. pinterest sales should reach

$1.1 billion this year, up from $665 million in 2018. haidi: let's get a preview of what to watch when chinese markets come online. watchingtsmc ahead of revenue. sales fell 6%. uncare keeping and i on after a 17% drop. and kuala lumpur, one company is reportedly seeking a 1.5 billion dollars bailout from the government to turn itself around. onare keeping an eye developers after home sales rebounded on the mainland, supported by government stimulus , which the auto industry may clamor for after auto sales plunge for a 10th straight month. oc aviationhing b after the company reported expect delivery delays for the c has 878 jets, which bo

on order. haidi: we will watch those shares of china gets underway. let's take a look at how markets online are trading. not much of a lead from wall street after u.s. stocks ended the longest rally in 18 months amid that rest of the global growth expectations from the imf as well as renew trade tensions between the eu and the u.s. rami: checking futures trading, a similar story. bothg a look at futures, negative. more to come. this is bloomberg. ♪

tom: it is 9:00 a.m. welcome to "bloomberg markets: china open." yvonne: we are counting down to the open of trade. david: your top stories. ,apan leads the region down renewed concern about the global slowdown. widening trade tensions. yvonne: crown resorts among the big losers, the stock tumbling as wynn resorts walks away and yesterday's gains are gone. clouds are building, the imf lowers its forecast for the global economy again, same terrorists are damaging -- terrorists --