>> good morning. just under an hour away from the open of australian markets. >> good evening from new york. i am rainy inocencio. >> welcome to daybreak asia. ♪ our top stories, leaders agree to delay brexit. australia heads to a federal election. scott morrison will defend his

record next month. the u.s. and china edging closer to a trade deal. with broad agreement on how to enforce any accord. a reminder of how u.s. stocks ended the session. they broke and eight a winning streak. 0.3%.p 500 act up i this had to do with the minutes from the fed. further confirming the reason for that dovish tilt. the dow eking out a gain. knowing shares down. could be about 30 points higher. the nasdaq, tech was one of the biggest sectors. you can see that filtering in. what are you seeing on asian markets?

adding a third of 1%. futures pointing lower. india kicking out the first round of voting this thursday. the asx 200 has been fairly resilient, leading up to the poll. wondering just how long this can continue. aussie bond yields slipping a touch. losses.ay see more the world's third most valuable sharemarket by value. a stream of earnings from japan. missing forecasts. desktop be chopping outlook.

we are keeping an eye on japanese carmakers as the country is planning to reject auto quotas. trade. of headlines on the first word news. >> the latest fed minutes include signals policymakers are prepared to raise lower rates. they could remain on hold all year. those issues are described as significant uncertainties and include drugs such as brexit. such as brexit. australia will elect its next federal government on may 18. scott morrison has named to the date showing his coalition trailing the labour party. the parties head into a five-week campaign. issues include tax cuts and

reducing emissions. marathon elections begin. a six week event. as the prime minister seeks a second term. nationalisted a pitch in the campaign. led by theion is congress party, with issues seen as reform and unemployment. scientists have shown the first glimpse of a supermassive black hole in what is called a groundbreaking moment. presented were simultaneously around the world. animation shows what is known as the event horizon where gravity is so strong where no accepted laws apply and not even light can escape.

by 2700ered journalists. this is bloomberg. >> thank you. let's get back to one of those breaking news stories. eu leaders have agreed to an extended october deadline for brexit. that is longer than theresa may would like. let's get straight to brussels. our reporter has been covering this meeting. they were looking at between 9-12 months. >> it looks like this is a compromise, not just with what prime minister may wanted, she wanted a short extension. with the european union initially put on the table, a year-long extension. states pushing for a

deadline closer to the end of the year. and the french president emmanuel macron pushing for a short delay. ust we have, sources telling the extension will go all the way to late october. whatwill be a review after the situation looks like. >> in terms of political backlash for prime minister theresa may, this is a compromise. do you think people might find this as a reason to try to end her political life? the prime minister is in a weak position. the fact she was not able to deliver brexit on brexit day is a testament to a negotiation that has not gone well for the prime minister, three years after the referendum. been able to take

the u.k. out of the european union rhythm fact it will have to run in the european elections if this deal is confirmed is a testament to negotiations happening on the way she wanted it. critics will say she has failed. you can read the european elections on a proxy to another referendum, to see with the british public really thinks about brexit. >> how does this work for the european side? they don't necessarily want this to be extended indefinitely. >> politically, it is a difficult situation. it clashes with the european elections. from brexit.o move they wanted to reset the conversation into something different. they did not want brexit to hijack the conversation.

you made a good point. the european economy has slowed. german exports, the uncertainty hurting the biggest economy in europe everett and he will tell you we can avoid that cliff edge that could be detrimental. we should try to go for that option. not precipitate a chain of events, nobody knows what it could turn out to be. >> staying on top of the latest in brussels. what is happening between the eu and u.k.. thank you for your time. the u.s. and china seem to be ever closer to a trade deal. the treasury debt -- secretary on they are agreed enforcement procedures. they will open offices to ensure the other lives up to any deal. that includes binding pledges. thes get more details from

deputy team leader. you are here today. how close are we to this, to some deal? >> we have steven mnuchin saying, there are enforcement offices they are planning to open up. this was one of the biggest sticking points. on that front, yes, this does signal clear progress. we have here and from president trump they are getting closer. they are still take issues remaining. technology transfers. details are still being hashed out. question of what happens to the tariffs in place. still some stuff to be worked out. >> enforcement, one of the big questions a lot of people had. despite some positive incremental progress, there are members of the party that do not

appear to be entirely happy. do we see a situation where congress fights back, even if we do get a deal? consensus is a deal would be potentially good in china. there are some in congress who are very skeptical of china and have been quieter. including democrat. that being said, whether congress would go to bat to oppose president trump on a deal seems unlikely, given the disruption to financial markets. on other initiatives, potentially other tariffs all square, you could see congress try to stop president trump. separately, attorney general william barr said spying did

occur. to what degree does this heightened scrutiny on the fbi? >> he thinks spying did occur. they did not show availability on his part. he said he was planning to open a probe on this. separate from the current inspector general probe going on. to be seen.remains >> more tension for sure. thank you very much. still ahead, the australian election will be on may 18. the issues and the uphill battle. later this hour. speakingt, we will be about market strategy. what he sees that is particularly concerning.

welcome back. >> i am haidi in sydney. asian stocks poised for a mixed start. confirming what we know about the dovish tilt on policy. afterquities edged higher the longest winning streak in 18 months. a look at what is going on. we are about to kick off earnings season. >> we have gone through -- the last couple of quarters. ,ith a continuation of a paz u.s. dollar probably reasonably

stable. commodity prices doing ok. effect, thesewn are adding to a better picture for the second half of this year. you have to have the underlying earnings season support with the market is expecting. here in australia, the earnings disappointmentof . despite that, our market has continued to perform well. >> u.s. stocks or global these, we have had incremental moves higher. ,f we go on the way we have still going to be a record year. highs,nk record valuations looking richly priced, where do you find opportunity in value? >> it is getting harder. in an australian context, we see

growth outside of austria. we are thinking asia is looking better. that is where our focus tends to be. we have seen curves flirt with inversion. we haven't yet moved to inflection point. we are taking money out of the markets. not significantly so. we think the cycle has been extended by virtue of the fed keeping rates on hold. there do not appear to be any significant imbalances. 10 years of u.s. expansion. the ende are near earth than the beginning. >> i'm wondering what your base case is. i want going to brexit, i

suppose. extension.about this could we make it 11 years? it will probably not get extended in that range. the pace and rate of growth is slowing. not to the point where we are getting concerned. aggesting there is still expansion taking place. the market has been factoring in some of these risks. we want to see a trade deal. hopefully there are no speed bumps. president trump is talking about

being in some conflict with the eu with regard to trade. trade issues are going to continue. the market is going to get comfortable with this. china,ing at data for what are your thoughts on that? we think cpi and ppi will be up a little bit. food prices heading higher. been strong. we are going to see a little bit of pricing pressure. we think the chinese authorities are managing that pretty well. that is going to have a positive effect over time. we are seeing that reflected in markets throughout the region. >> you are talking about sources

of growth throughout australia. this chart, bazaar affect of australian data. the markets are doing pretty well. in terms of scott morrison 18, it the election may will take a lot for them to get back in, does it make a difference for investors? >> i think it will. we have a differentiation on policy. the government is making this about economic stability. there have been a lot of policies articulated by the labor opposition with a question over the potential impacts on the economy. with regard to housing, income as well. wages growth. it is going to be a very large impact on the economy. there is a clear decision to

make. coalition's running a minority government. they cannot afford to see a dramatic move against them. the u.s. election, all that stuff. this election will be closer than the polling is showing. omissions,change, electric vehicles, that mate give investors more opportunities in these areas where there has not then. >> i don't see the timeframe. we have a very small tech sector. the only way it is lithium and the mining sector. we are forced to go offshore to get those across our portfolios.

there is no doubt. this are key issues election is going to be fought around. australia has had a tough couple of years. draw -- drought level, record summers. this is australia and this is what happens, but we have had an increasing incidence of this. this will be front in mind for a lot of elected leaders. >> great to have you on set. you can get a roundup of the stories. today's edition of daybreak. right there on the mobile. that is the first picture of a black hole we have ever seen. can you believe it? it is extraordinary. this is bloomberg.

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>> welcome back. amazon may be listening into you as customers talk to your alexa. they have a team capturing voice and echo owners homes. aside from the creep factor, wise amazon listening in? >> they need a tremendous amount of data to make their system better. they rely on a town of information about how people speak. way, someoneng the has to annotate that data. was this word correct? humans are doing to move the listening and transcribing behind that software. what has been the experience

of the staff? eavesdropping, so to speak? for some people, it is monday and. 1000 recordings you have to transcribe for your shift is up. aboutof time for thoughts deeper meaning. people are saying, billions of things per month. it is going to take up accidentally a ton of stuff cooling disturbing experiences, funny experiences. a recordinged out of someone singing poorly in the shower. ask i feel this might be distressing. >> i think so. people were always a little nervous about putting a speaker with a microphone array into your home. surveys show among those folks who don't hold the trigger, privacy is one of the reasons why.

what are the safeguards on it? >> fascinating. privacy is top of mind, maybe not a great look for amazon. let's get you a quick check of the latest business flash headlines. a race for a $10 billion crowd services contract. they remain in play after a limit in oracle and ibm. it will become the primary data repository. the winner will not be announced until july at the earliest. rareple has been given a negative recommendation. an analyst highlights concerns it could take time for apple's digital services platform to generate returns. they are only the second

brokerage with a cell or equivalent rating on the stock. the rest of the analyst are slightly in favor of a by. shipmentsde pc dropped. -- hady issues that then been hurting the industry. the disagree on who the industry leader is. they remain top dog. coming up next, is scott morrison facing an uphill battle election?nth we will be discussing the prospects in the focus when it comes to the next five weeks of campaigning to keep policies australians will be voting on. all that next. this is bloomberg.

>> this is daybreak asia. proposing a brexit extension. between those, who wanted a year's delay and those who wanted a shorter pause. that is longer than theresa may asked for and could provoke a backlash. emmanuel macron has said a long delay should not be taken as granted. north korea policy nominal parliament expected to convene to approve the kim jong-un economic plan. possibly a shift in strategy following the failed summit with

president trump. he is calling for what is called a blow against those countries supporting sanctions come although it is not clear what that would mean. the u.s. and china moving closer stephende deal with mnuchin saying the two sides have pretty much agreed on enforcement procedures. he says they will open offices to make sure the other lives up to the terms of any deal including binding pledges that retaliation. remains ontanyahu course for a fifth term as israeli prime minister after the opposition party conceded defeat. to winty has been able support over a range of small parties. will output in venezuela fell

for the 21st consecutive month as a rolling power outages shut down production. 28%.t sink according to sources at opec. oil workers went from striking protesting then-president hugo chavez. news powered by more than 2700 journalists and analysts. this is bloomberg. markets check in on action. sophie kamaruddin. >> we are seeing a risk off tone for the start of the asia sessions. chinese cpi data may provide some excite went. we could see continuing meltdown and bonds. declines potentially for tokyo, seoul, and sydney.

checking in on the end, we are seeing some hints of caution as the currency is set to strengthen. level,back above that underpinned by expectations. first quarter gdp not accelerating. stocks to watch, reactions to the eu. heels --tariffs on steel tube fittings. is to takear renewal effect from this thursday. also watching as government 5g frequency. billionn to spend ¥200 each, significantly less than expected.

whitehaven on the radar after cutting guidance for coal production. coal supply expected to increase modestly. not --onfirming they are second-half earnings are unlikely to improve. ans they plan to provide update by the end of this year. keeping an eye on rio tinto after the stock was set to underperform. and bnp paribas. -- hasing to know go food against a plan. >> australia heading for the polls. an election called for may the 18th. by scott called morrison. how much of an uphill battle is

this? >> it is going to be a challenge. behind in the polls now. for a number of years now. the government is an unusual position. get back win seats to into power. scott morrison has held off as long as he could before announcing this. he has been hoping voters forget about all the dysfunction of the past four they years. not quiteors still do understand. a number of high-profile women have left the party. julie bishop. scottof problems for morrison. narrow, treacherous have two victory. to the drinkers

a fax they are running on the idea they are steady hands when it comes to economic growth. they are projecting the first return to a surplus and about a decade. of the policies are also attacking things like wage growth. >> labor will be campaigning hard on wage growth. >> wage rage. profits have gone up something like 40%. there is an argument to be made some of that should be spread around a little more. >> on the topic of environmentalism and how that factors in, how did they cleave? what is the support? climate change has been a major issue in australia for quite some time. it is one of the factors that brought the previous prime minister undone. you had the energy guarantee, that was use as an excuse by the

right-wing to get rid of him. the opposition party has been campaigning strongly on climate change. one of the policies they unveiled before the date was revealed. the economy is what the government is going to be campaigning on purely we had got morrison try out a slogan we are going to be hearing a lot of. who do you trust? they will be campaigning hard on their record of economic management. the idea of strong economic management is going to be one of the themes the government hits hard. >> one could be the emergence of independent and smaller parties. does that speaks to how unimpressed a lot of parts of the public are? >> definitely.

i have been keeping an eye on the local media. a lot of the commentary, comments from people in the street, we don't trust either of them. minister, the prime minister's old seat. it was won by an independent. the former minister just across the water here. he is facing a stiff campaign from an independent there as well. people are fed up with the undermining that went on. >> there's a lot of sentiment. markham temple was our prime minister. so much dissatisfaction. when it comes to how australia there is the idea in spite of the the politics, the economy drives itself. is that a danger with the slowdown in china?

>> you did point out a minute the country has had it no recession for something like 27 years but there always seems to be some kind of up cloud or threat at the horizon. i am fond of the phrase australia is half a lucky country. the lucky country run by second-rate people who share in its luck. it is just now we see a big boost in the iron ore prices. on.could hit $100 a time -- t some firstpe we get rate policy coming out of this. thank you so much. let's get some analysis on the upcoming campaign. she is the co-author of a book fortled australian politics dummies. what is the next five weeks have and hold or us, given we have

seen campaigning on the back of the budget get underway? it seems fractured so far. >> i think a lot of us trillions will be pleased we have an actual date we can count the dates towards. her of the year, we have seen campaign promise after campaign promise without the actual campaign. we will be treated to the traditional things about taxation. that is what i am looking forward to. of populisteen lots announcements already. trying to drive home this idea of people left behind despite being a robust labor market. living standards have been gradually eroded. energy prices and paralysis when

it comes to energy policy. do you expect that to be where the battleground is hot? can the coalition come back to have a real chance? beboth parties will campaigning on living expenses. there are concerns about wage growth. which has not occurred in australia for a number of years. as well as energy security and dominatingf things global issues. ultimately what we are expecting the campaign to be about, domestic issues. the labour party has been running hard on electric vehicles. such a policy will not work effectively. polls,look at opinion the government is so far behind. they cannot see things turning around drastically.

>> what strikes me as there were opinion numbers up. it seems to me it is more of a vote for labor than for bill short. tradition, the opposition leader is usually the most unlikable person in politics. the job is difficult and they have to be opposing all the time. a vote forn it is the party rather than a personality. that is being played out at the moment. labor has an unpopular leader. here in the u.s., we have the first hundred days of a president. if there were the first 100 days

of a premiership, what would be the first policy moves labor would do? significante reforms promised by labor. the issue of electric vehicles is becoming prominent. there are taxation related issues labor has run hard on. those who make investments through property. voters and citizens who own investment properties can claim in taxes as losses from those properties. that is what i would expect them to be focused on in the first 100 days. >> how much of the vote to you expect to be splintered off the major parties? we were talking about the phenomena in wentworth.

is think the disillusionment going to create a different i guess political party environmental landscape? would expect the parties to dominate the lower house of parliament. there are more opportunities to succeed and win representation. we have seen over time a gradual shift away from the two major parties. they are willing to support independence. independence, that was a peculiar election. focus washe national on that seat. the previous prime minister left. i'm not expecting too many in the next following the election. us.oining

great to have you. appreciate your time talking through that election date announced today. plenty more to come. this is bloomberg. ♪

you are watching daybreak asia. the inf warning about growth and a risk continues to echo as the ecb and fed site uncertainties as one of the reasons for doing nothing. kathleen hays is in d.c., keeping an eye on all the policy. sid bestnothing and said little. .> at his watch full. they know there are downside risks to the european economy. draghi, saying

there are reasons for them to be careful. >> the risks around the growth outlook remain tilted to the downside. ofaccount of the persistence uncertainties, the threat of protectionist, and vulnerabilities in emerging markets. >> one of the things that started this second look at the economy has been manufacturing gauges getting weaker. let's look at the bloomberg chart. ,he blue line, german pmi showing contraction, down to about 44. france, the yellow line dipping below 50. the manufacturing industry is get weaker, services get weaker, too. if you are in a -- not getting a

money,k, making as much you don't have as much to send outside. the risks of a recession remain low. the first line of defense for the ecb should be the economy weakening even more. he is mentioning the possibility of tweaking negative interest rates. that is what he is hinting at. essentiallylation, the positive continues? >> absolutely. consumer prices, not the main gauge. there was a slippage in the core cpi. have been 1.9% year over year. coming in a little bit weaker.

it is not so much that this is telling the fed things are slipping a lot. yellen is speaking in texas. she is talking about the fact it is the right thing for the fed to have a cause. she does not see rate cuts needed right now. politics not entering into what the fed is doing. janet yellen is endorsing what we are hearing from the head. the minutes on the heels of those numbers that showed more week this. >> we will leave it there. our global economics and policy editor. this is bloomberg. ♪

a check of the latest business flash headlines. creditors have extended the

deadline for potential buyers to declare interest. out ontial deadline ran wednesday, but sbi capital says it will run until friday evening. 20,000.loy it was once a corner star of the is $1 travel market but billion in debt. >> tencent in the spotlight with a new game winning the green in china. it is one of 40 locally developed games to be granted official approval. china suspended all mobile game approvals for several months. lyft hit a record low on news uber could file for an ipo this thursday. it is expected to be among the 10 biggest of all time. they are seeking about $10 billion, five times more than raised last month.

softbank expected to earn a boost when they go public. the company may lose its seats board.ride hailer's softbank, at the end of 2007 teen, was negotiating this deal where they agreed to put in $9 billion in exchange for the largest stake in uber. they got the rights to these two board seats. they have not been able to claim those seats yet because of some internal machinations. they have to get approval from u.s. regulators to take those seats. because of internal negotiation's, this has been strung out for a long time. the process to get

approval for a company that approves deals between american companies and foreign companies. uber goes ahead and goes public before that, softbank is going to lose the ability to automatically claim those seats. >> what is the hold up? when it comes to the board seat? it has been a long process. they cut the deal to put the money from group levels. this fundoversaw which is a separate entity which that -- withoup of a separate group of investors. only after that process was complete wasn't able to go and begin the process of sharing

u.s. approval for this transaction. some internal negotiations. as we expect, the documents are going to be filed on thursday. >> thank you so much for that. let's get you a preview of the market opening in japan. >> a soft open at the start of cash trade in tokyo and seoul. aussie futures have turned slightly positive, showing the resilience to slowing economic signals as australia kicks off a five-week campaign. checking on the aussie dollar, near a 10 year high. strengthening for a fourth session, hinting at the

caution at play. chinese inflation numbers could offer some excitement. nikkei futures could add to the downturn. kong, it all behind hong making the hong son -- hang seng the third biggest index. those are top -- far from the top two shot -- spots. come on daybreak asia. more on trade as well as concerns around global growth. we did see a downturn wednesday. we are keeping an eye on auto stocks in japan as well as japan reportedly set to reject auto quotas.

then, a snapshot ahead of start of trade. this is bloomberg.

haidi: a very good morning, i'm haidi stroud-watts in sydney. asia's major markets have just opened for trade. ramy: good evening from bloomberg's global headquarters in new york, i'm ramy inocencio. sophie: i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." haidi: our top stories this thursday, eu leaders agreed to delay brexit until october 31. a much longer pause meant theresa may wanted. she now faces backlash at home. the u.s. and china edge closer to a trade deal. a broad agreement on how to

enforce any potential accord. ramy: australia heads to the ballot box. scott morrison will defend his record next month with laborers still ahead in the polls. let's get straight to the market action and bring in sophie kamaruddin in hong kong. sophie: we are getting a flavor of the risk off sentiment with the start of cash trade. the nikkei 225 off 1/10 of a percent. declines astending it has seen it lose its crown as the third-largest index market value to the housing -- hang seng. the yen is holding steady, around 111 after dropping below the mark overnight. checking in on the mood in korea, the cost be managing to seek some gains. up, looking to extend its rally for a 10th straight day. the korean won is gaining more ground, trading just below 1139 against the dollar.

10 year yields are holding. checking in on the asx 200. australia is set to vote may 18. opening,e the asx 200 a little change. the aussie dollar is not losing too much ground. we do have miners in view after it was downgraded. keep an eye on coal as it has cut its output for a second time. i want to bring up the change for bank of queensland, which is under pressure after we saw a core earnings report from the lender. we have bank of queensland saying second-half earnings are unlikely to improve. the stock falling over 3% this morning in sydney. a last check on shares in wellington. kiwi stocks set to snap a six-day decline. asx 50 up about 0.06%. haidi: let's get to some

breaking news on brexit. eu leaders have agreed up to six hours of emergency talks to extend a deadline from brexit. they are delaying the split until october 31. we are getting confirmation from the european council president's twitter account. the eu 27 have agreed to an extension of article 50, who will now be meeting with theresa may for the u.k. government agreement. agreed27 said the u.k. for an extension of upturn 31st -- october 31. that offers six more months for the best possible solution. this is longer than what theresa may coul wanted. let's get straight to brussels. our reporter has been covering this for us. an early exit is tough of mind for theresa may. she still wants out by may 22. is it a compromise, given we are hearing the eu wanted a 12 month extension?

maria: it is. it has gone past 2:00 a.m. in brussels. we finally have a deal that is a compromise between all sides. prime minister may wanted an extension until the end of june. european council in the donald tusk put on the table a year-long extension. now we have something in between. the u.k. will get six months. at the end of october, there will be a review. it is unclear what it will mean. or what kind of conditionality it will include, if any. if anything, the prime minister would walk away from brussels today with a deal. we avoided the crash out due in today's. ramy: something in between. how will this be interpreted by her own people in her own party? the prime minister will no doubt be in a very difficult position. if you look at the entire brexit

negotiation, it has not gone her way. she missed the crucial brexit day, march 29. ministers, the prime said the u.k. would leave that day, she would deliver on the referendum. happen. not now, she is in a situation where she will have to run in the european election. by then, it's a very strange turn of events. the u.k. voted three years ago to leave the eu and she has not been able to answer those fundamental questions. the u.k. is very much a member states of the european union. haidi: what comes next, in terms of gaining the u.k.? thernment side of things, the can downck the road, the more time there is for theresa may to be ousted? that is very much a possibility. from a european perspective,

they would like to see, given the fact that they have given her more time, is to see whether or not she is able to get the deal she is promised to the finish line. that would in term mean the brexit negotiation that was agreed here, almost 600 pages, will finally go to the u.k. parliament. ultimately, she has to get the deal approved in the u.k. parliament. it's not really about brussels and that point. she has put it to a vote three times and lost. the eu would like to see the crossbar of the deal get to the finish line. when we get the vote, she can finally seal the deal and leave the eu in a smooth way. ramy: as we are talking, we have lines crossing the bloomberg terminal. the deal means a new commission can start work without the united kingdom. the agreement helped avoid a hard brexit, which everyone really did want to avoid.

looking ahead, i can't help but think the past reporting we have had at bloomberg is a lot of businesses say if we are going to do a hard brexit, with the mandate off and do it now. between 12sort of in months what theresa may wanted. how do they factor in? will they be wringing their hands and saying "here we go again?" maria: in many ways, i guess they will say yes. it's a good point you bring up. will we hear -- what we hear is they want to see this done in a way that is smooth and with a transition period. there will be no transition until the agreement is done. in the u.k. and the european union would like to see clarity as to what the future relationship will look like, and if i what the deal will look like.

you see sterling is incredibly volatile. the u.k. economy has really underperformed as of late. haidi: we really appreciate your time, our reporter in brussels. a very late night, going into the early hours of the morning after all of the emergency talks. the yielding that october 31 extension deadline. it's get the first word news with ed ludlow in san francisco. ed: the latest fed minutes include signals policymakers prepared to raise all lower rates as required, but an unusual mix of rates can mean they can be on hold. issues described as significant uncertainty include external drag, such as brexit, to slow down in europe and the ongoing trade war. the fomc is concerned about tepid inflation. australia will elect its next federal government on may 18. scott morrison named a date with polls showing his liberal national coalition trailing the

party.ion labor the parties heading to a five-week campaign, which will be dominated by start policy differences. issued include tax cuts, boosting wages, and reducing emissions, and one of the world's worst per capita polluters. after $100 million was stolen from bangladesh's account at the federal reserve, swift says cyber criminals are reining in their ambitions. the money was funneled through the philippines. fraudulent transactions range from $250,000 to about $2 million. the vast majority of the fake deals were sent to banks in the asia-pacific. begins election thursday. a six event involving 900 million potential voters as the prime minister seeks a second term. he has adopted a nationalist pitch in the campaign, with elections seen as a referendum on the bjp's handling of the economy. opposition is led by the congress party, whose main issue

is much-needed reform and rising unemployment. news, 24 hours a day on twitter,t tictoc on powered by more than 2700 journalists and analysts in more than 120 countries. i'm ed ludlow, this is bloomberg. ramy: the u.s. and china seem to be ever closer to the trade deal with treasury secretary stephen mnuchin saying they "pretty much agreed on enforcement procedures." he says they will open offices in each country to make sure the other lives up to the terms of any final deal. that includes binding pledges that would be about retaliation if anything is broken. let's get more with derek wall bank. are we really near a deal? >> i think we are edging closer. of those things where we have said for a long time that enforcement was going to be a key test for this deal. the pledge to open enforcement

offices in both the u.s. and china is a firm step toward that. the u.s. would give china up until 25 -- 2025 to live up to the commitments, then you have an enforcement office in china and the u.s. to make sure both sides were living up to the deal. that is taken one part of the enforcement uncertainty off of the table. this absolutely moves us closer to a deal. haidi: despite this being one of the biggest questions for a lot of people watching, some members of the president's party don't seem to be happy with other parts of the trade agenda. can we get a situation if congress pushes back and there is a deal? think there is a little bit of uncertainty regarding other parts of the trade agenda. one of those places where there is uncertainty is on the report that the president is using to weigh whether or not to levy tariffs on european autos.

senator chuck grassley, who is otherwise a very staunch trump ally, systemax part of the reason why that report has not is because hesed believes it may not be rigorous enough, it may not stand to outside scrutiny. that is a shot across the bow. looking back to china, trade has been a key question for a lot of trump's very based supporters in the industrial midwest. a coalition that helped deliver him the white house. they will be critical here. if this deal is perceived as soft in any way, you can expect pushback for the president from his industrial heartland base and some of the republican lawmakers based there. haidi: thank you very much, derek wallbank in singapore. let's get some early stock movers. sophie: taking a look at record 10, following about 3.7%.

uber is said to file its ipo perspective this thursday. uber last month was set to seal the deal to buy korean, which has among its backers rakuten. a lot of things around rakuten shares. set to snap a six-day advance. andinvestments lyft pinterest. when it comes to the ipo updates, j.p. morgan saying should we see an absolute value gain and shift to greater liquidity, it can get more financial flux ability as it ramps up investments in worldwide business. the japanese company has allocated 5g frequency along with carriers ahead of the 2020 rule out. raktun planning to spend about ¥200 billion for its network construction. haidi: sophie kamaruddin with the early movers. let's take a look at what's

still ahead. india kicking off the world's biggest election on thursday. we look at the major campaign issues and economic issues. nomura chief india economist joins us. up next, unexpected rebound in chinese inflation and trade figures. it could easily worries about the further slowdown. we preview the numbers with ing greater china economy iris chang. this is bloomberg. ♪

i'm haidi stroud-watts in sydney. ramy: i'm ramy inocencio in new york. you're watching "daybreak: asia." chinese inflation and trade data are due later, giving us a snapshot on the health of the economy. the expectation is for a rebound in all figures. that would allay some concerns about a slowdown. joining us is ing greater china economist iris pang. great to have you on the show. it looks like there is more

optimism, especially off of the pmi's we got. walk us through your expectations. expect inflation is going up, in terms of cpi and ppi. cpi, we expect 1%. ppi, less than 1%, but not negative. stimulus,due to the for both of them. haidi: stay with us, we have to go live to brussels at the moment, where donald tusk is holding a joint press conference. let's listen in. thet can also reconsider whole strategy that might lead to changes in the political federation. not in the the withdrawal regiment. until the end of this period,

the u.k. will have the possibility to revoke article 50 and cancel brexit altogether. seeu.k. will continue to corporation as a full member ande with all its rights trusted ally in the future. message tosh with a our british friends. this extension is as flexible as i expect it, and a little bit shorter than i expected. it is still enough to find the best possible solution. this time.e thank you. >> now president young go of the european commission.

[speaking foreign language] haidi: we are watching the press conference taking place at 2:20 a.m. in brussels after hours of emergency talks between the eu and u.k. prime minister theresa may. we have confirmed the extension process will take it through

october 31. , weeard from donald tusk are also hearing from jean-claude juncker, the president of the european commission. let's listen in. felt did this because we the first you needed to manage the single currency together should be able to speak amongst themselves while ensuring proper the work of the council of ministers, the ministers of finance at the time. that's basically what we have done today. we have recalled to our british colleagues that they should b -- there should be the principle of negotiation. the u.k. will respect its obligations. again, ween we meet will not be renegotiating

amongst ourselves or with the u.k. the agreement that was reached months ago because the withdrawal agreement must be respected in its entirety. we don't want the withdrawal agreement to be called into question, because that would jeopardize the backstop agreement we have negotiated with our irish friends. i'm sure our irish friends are comforted to see their wishes and concerns have been taken into account by their friends in the european union. there will probably be a european election in the u.k. that may seem a bit odd, but rules are rules. law.st respect european then we will see what happens. fact thatr regret the

we only talk about brexit. i read the european press this morning, brexit, brexit, brexit. reached anusk and i agreement that no one expected with china. yet, there was hardly anything about that in the international press. report.s a detailed all, less while reports well on things. of course it is from outside the european union. they did report on what i consider to be historic agreement. we are over focused on matters

relating to brexit and insufficiently focused on other matters that we work on. i'm very happy an agreement has been reached amongst the 27. it was essential to demonstrate that the 27 stand united in their analysis, action. in october, we will see what happens. >> thank you. the floor is now open for your questions. i think the first question goes to the gentleman on our right. , you said theusk extension is shorter than you expected. isn't it in some ways the worst of both worlds? not short enough to really put on the pressure in the u.k. parliament to get a deal past quickly, but no longer enough to allow you to set aside brexit to

focus on other things that any useful period of time? doesn't, article 50 rule out multiple extensions. is there anything in the language of agreed to today that says october 31 is the final deadline? is it possible that come mid october, we will have a summit like this and work out how much longer we will extend again? it is always better to have a piece of something then all of nothing -- than all of nothing. six months and almost three enough for ald be good solution.

i am satisfied, because not only today's discussion, but our showed this idea of flexible extension. not so obvious for some of our partners. this is why i think we have to be -- maybe not happy, but satisfied by the solution. our intention is to finalize the whole process in october. the political intention was clear among the member states that our wish and hope is the u.k. will be ready with the until the end of october. another old to exclude

denial. it is possible. was?he second question >> it would be a total disaster. we have to do everything to avoid it, that's what we're trying to do. we have been quite successful. i like the decision we have taken tonight, because the end on the 31 of fixed october. on theto leave my job third of november this year, so my guess would be that we will have another night session. if i have to leave the meeting

at midnight. >> thank you. i think the gentleman to our left was next. >> thank you. if october is now the deadline, and the cause of affairs is now fully in the u.k.'s hands, what is the point of this review that has been discussed in june? why are we having this and what can take lace on that occasion if everything is in london? it must be clear, this assessment is only to update us on the progress of the ratification process and the legal processes in the u.k. decisions about

extensions. my intention is not to discuss, only to inform the member states about the situation. >> in june, we are taking stock of what has happened from now to then. it is not a negotiation session, not another cliff edge we would insert in the normal program. we don't have the intention to negotiate in june. the real moment of the decision is october. in june, we're taking stock, preparing the meeting. not a cliff edge

moment for decisions. it must be clear. >> we will take one last question, the gentleman in the middle. >> can i ask you to elaborate on s 7 and 8 of today's decision? what do you mean by cooperation? do you expect the u.k. to not participate? in votes for high-level appointments in june, what exactly is it that you expect? if i may, given the differences today over the length of extension, would you insist that the unity of the 27 halts? or did france go broke today? -- go rogue today? sincere cooperation means

sincere cooperation. there is not any kind of intention to establish a new for member states and article 50. the united kingdom will remain through the whole process. negotiations and all of the voting rights, no doubt. have someion was to political guarantees and dedications that the u.k. will

not use any kind of political to be distracted or stop our work. to use this as a political instrument to do something. what theresa may declared today. thise no doubt that sincere cooperation is treated since seriously -- treated seriously. >> it is a reference to basic principles of the treaty, which are governing been living together. i trust theresa may. they have to cooperate with the other members.

in britain, there is this idea britain could block the next coming decisions of the european union. voices that were in wants to be a very different partner of the others. that is nothing new. the other point is that we should de traumatized this -- tdramatize this encounter. the european commission, others can be dealt with with a majority. treaties have to be dealt with and must be dealt with by a qualified majority voting. the possibilities to block

decisions are very limited. i wanted just to add this to the remarks of the present. >> we are united enough to have common conclusions. always -- alln we are on the same identical position, but in our case, unity means always being able to find a compromise. this is that case. brexit with ae deal. we would prefer a deal without brexit. >> still much easier to build majority here. >> i'm repeating myself by saying that this is an open

book. >> thank you. that concludes the press conference. good night. the end of a very long night of negotiations taking place in brussels. you just heard the joint press conference. , anduropean commissioner the european council president donald tusk. let's get straight to brussels. maria has been listening in on the press conference. a lot of takeaways, including some sense of dissenting opinions within the european 27 nations. mostly interesting, there seems to be a suggestion that even october 31 could be kicked down the road. it could even be another extension. maria: it has gone past 2:30 a.m. in brussels. there is a deal about extending the brexit deadline to october

31. donaldnteresting that tusk, the head of the european council, did not respond to the question where he was explicitly asked if this is it, whether it would be the final extension. he really avoided the question. we also had the president of the european commission say he thinks it is clear the u.k. will have to run in the european election. he was also clear an extension does not mean renegotiation. the deal already approved by the eu is done. there will be no more negotiation. it is up to prime minister may to sell the extension and use the time she was given to get some kind of cross body deal -- cross party deal to get a compromise in the house of commons that would allow her to get the withdrawal agreement to aved and come conclusion of this saga, which has run for more than three years. while this press

conference is going on, we are hearing from other members of the eu 27. frances mcdormand saying there was a wide variety of opinions within those conversations. saying hopefully this means we can avoid a disorderly brexit. we will hear from the luxury -- luxembourg pm. they will not be able to avoid eu elections with the timeline. he pretty much appeared to confirm the u.k. will have to run in the elections. when it comes to the eu, there are many of things today. some things i heard from diplomats off the record, behind-the-scenes, did say that macron put up a fight. at some point, that annoyed other eu member states who really just wanted to avoid the cliff edge, the no deal brexit. the one point appeared isolated. donald tusk tried to scale it

down in conference. ultimately said there had been unity because the u.k. and eu arrived to a compromise and were able to put out this joint position for the time being. the question is whether or not prime minister may can seal the deal back home. ramy: a couple more lines crossing the bloomberg. the dutch prime minister says it is increasingly hard to grant even more brexit delays. emmanuel macron also saying a long extension would have weakened institutions. donald tusk said he wanted to avoid the u.k. playing tricks during any kind of delays. he trusts misses may but -- mrs . may, but she is also dealing with members of parliament both on her side and in opposition. been theat has always fear, with regards to the european elections, that you

could see a search and a skeptic u.k. still very much in the eu, still very much member states with all the obligations, but also all the rights. commission, a new european parliament, and the overall structure of european institutions, would make life difficult for the eu and its officials. during the press conference, er did tryk and junck to say it is not that bad. many of the decisions will need a qualified majority. it is not the first time in which the u.k. has tried to slow down decisions. thatdo not think it can be big of a problem if prime minister may or the person who may succeed her if she doesn't manage to stay in power, will still play by these rules and act in good faith with the eu. they could expect the same in return. haidi: we appreciate your time, maria tadeo in the early hours

of the morning. let's take a look at how the markets are reacting. trading in sterling. --ders are basing for this bracing for this announcement. sophie: they seem to be holding their nerve. we are not seeing too much reaction in cable yet. have the won 31 handle. the euro holding steady. we digest the commentary between juncker and tusk. we had some dissent among the eu leaders. macron saying they have to preserve the unity of the eu 27. traders have been waiting for the updates. there is still uncertainty regarding the direction from here. we do have the markets betting on prime minister theresa may agreeing with the eu on a brexit extension. there is still a lot of uncertainty. we do have the pound trading below the 131 handle against the dollar.

let's take a broader look at how asian markets are faring. to thereaction seen press conference. asia stocks trading mixed. 2009ost be on set to match for korean stocks. we get a read on exports for the first 10 days of the month. ramy: sophie kamaruddin checking the markets, especially with the pound off of those lines. we are waiting on theresa may to speak. you will see live pictures. for any reaction to what has been happening with the european council president making comments and the european commission president. to recap some of the biggest lines, tusk says the block agrees to delay brexit up until october 31, 2019. he also says the u.k. has the option to reconsider brexit. we have seen this line, once again. interestingly, it would be in the hands of mps and the people.

he also says the u.k. should not waste extra time on brexit. let's bring in asian fx and rates reporter david xfinity in singapore to get reaction. off of what we have seen out of brussels, what have you seen? quite calmmarket is at the moment. we are going to see what theresa may says, and more important, what parliament react to this. the key thing is the extension and a no deal brexit at the moment. this was not negotiated, that's the big sticking point. the same to go back to issue we have had all along, will they agree to theresa may? it may become a no deal brexit, even though the can has been moved down the road. haidi: it is a great deal more

uncertainty. as we heard in the press conference, they haven't exactly closed the door to a possible extension after the end of october. david: exactly. you saw france with a long extension. extension, this is the second extension. the possibility of a third one cannot be written off worried what is important is how the unit -- the u.k. proceeds. no one wants a no deal brexit, but at some point, the u.k. will go. if they are not moving forward, what is the point of kicking the can down the road? the u.k. does with it, we will wait and see. a lot of factors going on in the u.k. parliament. to reach consensus looks hard at the moment. ramy: a lot to digest. asia fx and rates reporter david finnerty in singapore, thank you very much. let's turn back to china, and our guest iris pang waiting

patiently as we have gone through those lines. let's get back to what we have been looking ahead. we will get china cpi, as well as pbi. let's recap your expectations. iris: my expectation is due to the fiscal stimulus and what we have seen in asset investments, i expect cpi will increase to 1.5% year on year. less ppi will increase to than 1%, but a positive. one thing that we note is from the fai, the mining industry has increased a lot of investment. we will push up ppi in the future. ramy: has the worst already been seen? are we behind that? last month into this month, if this does come to pass, it seems like there is more positivity

coming out. iris: you are right. we are looking at more positivities in terms of investment, in infrastructure. new roads, water management, all of this means there will be important investments, more manufacturing activities. because of the trade were uncertainty, we expect there -- because of the trade war uncertainty, we expect a delay in the other side of the world, meaning export related manufacturers. haidi: how sustainable is this recovery, given it is the old china playbook, extending more credit, basing up in infrastructure investment and local government extension? two sides ofeally the world. ,ne side is really recovering

in the fiscal stimulus world. the other one is trade related investment. haidi: we will have to cut you off again. iris pang. we will go straight to the press conference with theresa may's speakin -- theresa may speaking. we were able to pass a deal. [indiscernible] tonight, there is only a single tier of eu membership, was no conditionality attached then beyond existing treaty obligations. i know there is huge frustration from many people as i had to request the extension. the u.k. should have left the eu by now. i sincerely regret the fact that i have not yet been able to persuade parliament to approve a

deal that would allow the u.k. to leave in a smooth and orderly way. the choices we now face are stark and the timetables are clear. we must now press on at a pace with efforts to reach consensus on a deal in the national interest. tomorrow, i will be making a statement to the house of commons. placelks will also take between the government and the opposition to seek a way forward. i do not pretend the next few weeks will be easy, or there is a simple way to break the deadlock in parliament, but we have a duty as politicians to find a way to fulfill the democratic decisions of the referendum, deliver brexit, and move our country forward. nothing is more pressing or more vital. i will take a few questions. >> eu said a few days ago, as prime minister you cannot consider a delay further along

june. that is exactly what you have agreed here in the early hours. many people are going to be very furious at another pause to brexit. why should people consider you are still the person to preside over this? tonightwe have agreed means we can actually leave the european union before the 30th of june. what we need is to ensure we have an agreement in parliament, that we can get through and get the necessary legislation ratified to enable us to leave. i want us to leave the eu with a deal, an orderly exit, as soon as possible. this decision enable us to do that. >> prime minister, yesterday 177 of your party refused support for your extension plan when it alone june 30, let october 1. l in goodou stil

conscious remain the leader of the conservative party after this extension? working to ensure that as a government and conservative party in government, we deliver brexit for the people of the u.k. what is extension enables us to do is go through the process we have set up to enable parliament to come to a majority opinion on the way forward so we can get the deal ratified and leave the european union. i want to do that as soon as possible. if we are able to do that before the 22nd of may, we don't have to hold the european parliamentary elections. anybody else? >> you talk about us being able to leave before the 30th of june. all could have left in 48 hours. you promised we would leave in march, promised in april, now you say we may leave by halloween. don't you feel you owe your country unapologetic?

>> over the last three months, i have voted to leave the european union. if they had voted with me in january, we would be out of the european union. we haven't been able to get the majority in parliament. as you know, i have now been reaching out to find a way in which we can get an agreement that will demand a majority across the house of commons to ensure we can put the legislation through, ratify the withdrawal agreement, have the bill through the house and comments and through the house floors so we can ratify the agreement and leave the european union. i want to do that as soon as possible and i will continue to work for it. >> a very quick question. can the deadline of october 31 be extended again? more specifically, you said there's only a single tear of eu

membership's. what do the other members want to attach? >> as you have seen from the decision that has come out of the council, it is clear we will continue to abide by our obligations. as i wrote in my letter to donald tusk, we will continue to abide by our duty and sincere as members of -- cooperation as members of the european union. the council and agreement we have come to is to the extension of october 31. i am clear we should all be working in the u.k. to make sure we can find a way forward in parliament, get a majority to ratify the withdrawal agreement, and make sure we can leave as soon as possible. firstly, we are leaving on the 29th of march, then the 22nd of may, now it can be halloween. do you think your party back home will consider this a trick or a treat?

>> we could have left on the 29th of march, we could be out of the european union now if our limit had agreed -- had a majority in parliament that agreed. i hoped they would agree to ratify the withdrawal agreement to leave on the 22nd of may. if we can find an agreement in parliament and put the legislation through in time, we can still leave on the 22nd of may and now hold the european parliamentary elections. what we must all work for is to find a way we can get a majority in parliament to leave the european union, deliver on the referendum and, you it as soon as possible. -- and do it as soon as possible. tusk suggested we could keep coming back and asking for extensions. what can you give the british people and your own party that brexit will ever actually happen? mustm very clear we deliver as a government on brexit. we gave the parliament a

referendum. the government said we would abide by the decision the british people took. it is now our duty to deliver on that decision. we could have already left the european union. what i want to do is work to ensure we get the majority in parliament to ratify the agreement, leave the eu in an orderly way with a deal, and do it as soon as possible. thank you. that was u.k. prime minister theresa may giving her press conference on hours of negotiations with the eu 27. 31imately, the october halloween extension deadline to the brexit negotiations. taking some questions regarding a huge amount of dissatisfaction from the public, as well as her own parliamentary lawmakers about the multiple delays to brexit. let's get straight to brussels, maria tadeo is still there.

theresa may addressed the fact that she is still hanging onto the may 22 possibility to avoid the eu elections and get out earlier. is that really possible? get the deal to through three times so far this year. maria: that's right. a lot of it will depend on whether or not she is able to bring to her side the opposition and get the cross party deal she says she is serious about. not an easy political discussion for the prime minister. tomorrow, immense pressure on the p.m. brexitmised to deliver march 29, that was clearly not the case. the deadline moved to april. it has now been extended to october. clearly, the prime minister does not have a good track record when it comes to meeting the deadlines. there are now serious questions

as to whether brexit will happen at all. it is interesting, she did defend her negotiation and said if it had been up to her, the u.k. would have left the eu already. the problem is the house of commons does not agree on a joint position. she still wants to put this to another vote, at least the eu, before the european election. ramy: a fourth vote is basically where we are at? shattering of confidence is the phrase that came to mind when we saw theresa may getting not just questioned, but lambaste by reporters, in terms of the deadline going to a third date. she did say she wanted to find a way in parliament. the question for all of us is what is that way? or is her way basically the highway if she gets ousted? think what is pretty clear is her deal, which she

negotiated for over two years and 600 pages, when it comes to the elements the eu has agreed to, she cannot change, she will not get concessions from brussels. forward, which she now appears to be hinting at, is that cross party deal. that, it may be good enough for chairman corbyn, good for the opposition, but it will not work for brexit peers. the whole point was to leave the single market, the customs union, go global, and get big trade deals. the reality is three years after the referendum, she has not been able to get the trade policy done. she will in the end state closely linked with the eu. you can see why it may work for the opposition, but may make her position difficult back home. brexiteers will not be happy about this. ramy: even more difficult, as if

it wasn't already enough. maria finnerty staying -- tadeo staying up into the early hours. thank you very much. let's get market reaction with sophie kamaruddin in hong kong. sophie: we see little reaction in currency markets. cable holding fairly steady. a tight range at 131 as it has done over the past week. the euro is trading around march 25 levels. we saw the euro move on the back of mario draghi's comments overnight. overall, when it comes to developments, strategists will likely go back to the drawing board for the pound to see how it has fared over the past two sessions. sterling has not been able to gain on the advance we have seen over the first two months of the year. they year to date view for sterling. a climber.me we have not much seen to help investors feel confident on for the strength for the pound. ahead of today's developments,

the prize is traders left their desk without a deal, it could send the pound nosediving. we see the pound edged slightly higher on the back of the developments from today. a relief rally from the extension, or greater uncertainty for another six months. before we head over to "bloomberg markets: asia," let's look how markets in asia are trading. pretty mixed picture. flat when it comes to japan. .04% ineclines of about australia after the may 18 date has been set for the federal election. on top, we have china inflation numbers up in the next half hour. this is bloomberg. ♪

♪ ,> 9:00 a.m. in beijing singapore. welcome to the china open. we are counting down to the open of trade. >> your top stories. the eu agrees to delay brexit. donald tusk warns the u.k. to be sincere. , whileolitics nominates the ecb -- >> australia now knows the date.