>> welcome to daybreak asia. i am sophie kamaruddin in hong kong. major market open.wn to asia' >> here are the top stories. president trump renews his attack on the fed. he says the stock market would be much higher if it wasn't for jay powell's policies. mario draghi adds to that story. he says he is increasingly worried about the fed's

independence. steven mnuchin says the u.s. and china are closer to a deal, but he is also worrying about currency manipulation in japan. >> let's get you started with a look at the markets close in the u.s. brought optimism over the global economy because of positive data out of china. s&p 500 gaining for a third consecutive week. onancials leading the gains friday, positive earnings out of jp morgan. the only sector in the red was health care, insurers falling for a second consecutive session as we had congress debating drug costs. u.s. futures holding at 29.13. let's see the asian session. sophie: some of the optimism may be happening for asia. futures are narrowly higher and we are seeing the tone set in wellington. we enter a week that offers chinese gdp numbers and u.s.-japan trade talks in the wake of japan highlighting

concerns over china's industrial policies when they held economic talks on sunday. also we get trade data in india as the r.b.i. governor warns the economy needs to grow faster to deal with poverty and challenges. indonesian trade figures due today i had up special elections on thursday. in sydney, more corporate updates on the line up there. luca production figures are due. japanese figures hinting at gains after the topix on friday capped its worst losing streak this year. it looks like there may be some optimism coming through from escawa electric. haidi: let's get you to first word news with su keenan. su: we start with secretary of treasury management, who also looked ahead to this week's trade talks with japan. deal tot a final

prevent manipulation of the yen. of negotiations began in washington on monday. japanese officials have said the talks will be based on a september statement from president trump and shinzo abe, which does not mention a currency clause. willustralian government maintain restrictions on next-generation mobile access despite china complaining to the world trade organization. the sydney morning herald says beijing filed complaints about "australia's discriminatory prohibition on 5g equipment." that effectively bans huawei from her dissipating. the government insisted is not targeting anyone country. kim jong-un says he would be willing to hold a third summit with president trump as long as the u.s. comes up with an acceptable nuclear deal by the end of the year. state media reports that kim enjoys good relations with trump but warns the u.s. has been making unilateral demands.

the president has said he is open to another summit but is not prepared to lift sanctions without major concessions by north korea. the japanese government stepped in to block the potential merger of nissan and renault in april of last year. a french newspapers as emails between executives and state officials show the trade ministry weighing in to stop the merger discussions. in minister says all the emails were sent to former renault nissan chairman carlos ghosn. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. a very busy weekend for a trade as the treasury secretary steven mnuchin signaled the u.s. and china are inching closer to a trade deal as the inf spring meetings wrapped up in washington. let's get some help breaking it down. the takeaways from rob krasner and kathleen hays.

rob, we will start with you in terms of where we are at with this creeping ever closer to a trade deal. what did mnuchin say and what is the take away? >> one of the interesting things stephen mnuchin said was the u.s. was willing to be subject to enforcement by china once it strikes a trade deal, just as the u.s. has insisted china would be subject to enforcement of the u.s. as well. that seemed more of a way or the highway one-way street that i think some been the trump administration might want. it is unclear when the next round of physical talks will be between the u.s. and china, but this did not sound optimistic. one question would be is if mnuchin is overruled by trump or other members of the administration, saying that just won't fly. haidi: kathleen, you were at the inf spring meetings.

what do policymakers have to say about the state of trade and the global economy? sec. tillerson: they are worried -- kathleen: they are worried. the inf is cutting its global growth forecast for this year and the meeting of the international monitoring and finance committee over the ministers ofnce various countries, central bankers, and they said they are ready to act promptly as risks tilt the downside. they see trade tensions, geopolitical risk -- we know they have brexit on that list. market conditions may be tightening rapidly. these are the things they are concerned about. this was a downgrade from their previous statement six months ago. they saw strong growth amidst an uneven recovery, so they are getting more concerned. they are urging countries to resolve trade tensions fairly to keep the global economy running smoothly. also the finance minister of japan and governor from the bank

of japan opened the g20 presidency on friday afternoon. both talked about downside risks to the economy and the risk of a global slowdown, although governor kuroda also said he thinks by the second half of the year, with a trade deal et cetera, the road could be on a better footing. haidi: president trump seems he can't leave the fed alone. he blames the fed for the state of the u.s. stock market. do the comments suggest he is ready to take specific action? ros: it seems recently that president trump has given up trying to fire jay powell, the fed chairman. it seems like he was hoping to do more, wondering what he could do at the end of 2018. he has had so much success, it would seem from the outside, in bending powell and the fed to his will. they have made a big about-face on policy. it looks like they are at the very least sitting tight on rates for the time being. nextems likely that the

fed rate move could be to cut rates. that really only encourages president trump to push further. it is push, push, push. he has a vested interest in keeping the stock market bubbling over. by saying something totally unprovable about where the dow might be had these rate hikes not taken place, it is something a lot of his supporters will glom onto, but totally unprovable. it sounds like the truce he had with powell for a couple of months is definitely over, so we will see what, if anything, he does next. >> saying it would be 10,000 points higher if not for powell. even though we consistently hear fed chair powell pushing back and saying the fed won't be bowing or bending the politics, mario draghi sounds like he is concerned. >> i think you are seeing this

around the world. let's take one of the most blatant examples of 2018, president erdogan pushing hard against the central bank of that nation. look what happened to their currency, stock market, and interest rates. many would say it is a stupid thing to do because you are challenging the concept of federal bank independence -- excuse me, central banks. they don't like to see central banks doing the bidding of politicians. it was unusual for mario draghi to say this. he was seen speaking with jay powell later. he is worried about central bank independence and the most important jurisdiction in the world. in other words, the federal reserve, the leading central bank, cannot be pushed in this way. it was a big topic on the sideline of the meetings. the central bank chiefs of south africa and switzerland both said, we have policy mandates. you have to have prices to nobility and maximum sustainable growth. that's how you keep them accountable. if you look at what the federal

reserve did in december when trump was pushing as hard as he could to get them not to hike rates, they hike the key rate. i think the fed tried to improve its independence and then moved in january when it saw evidence of a weaker global economy, a stock market that had gone down, it could tighten financial conditions. it remains a debate about whether jay powell has vowed to donald trump at all. that's why he continues to push so hard. watch we will continue to for that, kathleen hays and roz with the wrap us up of a pretty hectic weekend on the inf and more tweets from the president. more on trump's fed bashing still ahead. later, tiger's turnaround. tiger woods is back on top with his masters win. this is bloomberg. ♪

>> we are counting down to the sydney open. a little bit foggy but still a beautiful day. unchanged, 62, 36 is the level after we saw stocks gained ground on friday. a big upside for the aussie dollar recently. we saw a third week of gains despite the fact the rba's warning about weakness in the global economy. i am shery ahn to new york. haidi: and i am haidi stroud-watts in sydney. let's get more on how president trump is hacking the fed. try vestments -- tribeca investment partner jun-bei liu with us. the president says if fed chair powell had done the reverse and not done quantitative easing, we would see stocks 5000 or 10,000 points higher. [laughter] >> it is always easy to point

fingers on the high side. it is very important to me and most investors that the fed remain independent, because as the manager of the economy, you do need to sometimes take long-term views. influenced -- if you are influenced by politics, and a lot of time that is short-term driven and could have ramifications for the long-term strength and health of the economy. to me independence is crucial for the central bank to be able to manage or even appear to manage the economy for the long-term. haidi: there is a fair amount of criticism. is there a sense that politics has filtered through act there is pressure for the fed to stay patient for longer? >> for the fed, the most important thing is to see the expectation for the long-term inflation rate to stay above 2%. one of the worrying things over the last quite a little while

his inflation is persistently under the 2%. for the long-term that can have a lot of issues. look at japan, look at some of those economies. it is difficult to change long-term expectations. for the fed with volatility around the globe, with a rather remain patient for now and see how it goes. >> that's one of the reasons that president trump recently talked about the fact that there is no inflation. why doesn't the fed feel the need to cut rates at this time? we already know their timing has some segments of the economy, like housing, under pressure. >> yeah, look. i think the important thing for a central bank is that they look at the monitoring tools they have for the economy. it is important to have the firepower in the last 12 or 18 months, it was very important for them to create as much flexibility, i.e. increase the

, before thessible economy headed towards a weakening period. they were doing the right thing. as well the tightening as the trade war conflict as well as issues across europe and brexit had meant that the growth has slowed a little bit faster than expected. if you look at the underlying economy, u.s. is not doing poorly. it is still doing strongly. the growth has been just slightly downgraded. to me they were doing the right thing, but right now is the time to be prudent and just to see how the rest of the world improves. haidi: talking about being prudent, we are seeing excitement over money-losing bets such as uber or even lyft at the beginning. could it be investors are becoming too complacent? is the market to frothy at the moment? easy liquidity environment

always means quite supportive of the asset prices, bonds, equities, and other asset classes. at this point, we do feel, given the strength across the market in the last few months, we feel you need that fundamental improvement. one of those things is the resolution of the trade conflict for the market to move forward. the good news is we have seen better data out of china over the last week or so, and we do hope that with the resolution it will be a faster recovery -- a path to recovery. haidi: is that enough to drive australian stocks higher? we have seen a divergence between the asx and bearish remarks from the r.b.i.. if you get a trade deal, a continuation of the export rebound out of china, is that enough? >> australian markets are

interesting at the moment. we do feel with the resolution of a trade war, recovery, and growth, a lot of sectors will do well, such as resources. however, domestically facing sectors will be challenged given the slowdown in the domestic economy. there is talk of rate cuts, stimulus, all of that will have to come together in the next six months for the economy to pull through this period. in terms of the market, we think it is doing pretty well given sectors such as resources. haidi: you have got to really look at fundamentals as we get into earnings. the interesting take away from the inf and world bank spring meetings is it is uncertain but we are not in a crisis. what do investors do after having one extreme or the other over the past decade? >> absolutely, this environment is where active managers will do well. because fundamentals is very specific.

you need to find the right stock. you need to find the right sector and the right stock and that will give you a lot of returns. once you make that return, you have got to find the next winter. you have got to remain very active in this environment. haidi: you make it sound easy. jun-bei liu, always great to have you here. you can get around of of the stories you need to know for today's edition of daybreak. go to dayb on your terminals or on your mobile is in the bloomberg anywhere at. you can customize the settings so you get news that is relevant to you. this is bloomberg. ♪

haidi: i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. you are watching daybreak australian. the earnings parade continues with banks front and center. after j.p. morgan chase reported

record quarterly income on friday, investors are waiting to see if citigroup, bank of america, and goldman sachs can keep the momentum going. su keenan joins us with the latest. su: we really saw a tale of two banks on friday. aligned withector jp morgan, which blew it out. j.p. morgan chase was up as much as 5%, closing with most gains intact. wells fargo moved in the other direction. jp morgan sword on record earnings. wells fargo once again underperformed, the lowest since january 2. while its profit rose, it lowered its 2019 net interest income. you are looking at the j.p. morgan chart. you can see the big spike up on friday. let me give you some of the details before we move on. .9.9 revenue that blew away expectations. ceo jamie dimon cited robust

consumer spending, a growing economy, and higher unemployment wages. he said financial markets are strong and consumer and business confidence remain strong. he discounted any chance of a recession. that is the key thing that many investors and analysts are looking for as the rest of the banks report what we have got later on monday as goldman sachs and citigroup are reporting. let's talk a bit about those two. analysts say goldman sachs' top line revenue is expected to decline as much as 11% year-over-year. earnings per share could be much lower. there is also concerns about its legal exposure. that was a big issue last quarter. analysts talk about that again. earnings are a much bigger part from its trading that its global peers, so it's comparisons could be difficult there as well. morgan stanley, bank of

america, blackrock all reporting as well. what our expectations look like? su: in terms of blackrock, analysts are saying they need to focus on their institutional client retention. let's go to a chart of blackrock. a lot of management changes at the top. we know there was a downward adjustment to larry fink's compensation in the last year. there will be a lot of focus on what these banks are saying about their outlook on global growth, which is expected to impact any of these financial institutions with international exposure. citigroup has that issue. morgan stanley also a close area of focus. m&a is also a big area. we do know that morgan stanley and goldman were in the lead in terms of being chosen for the ipo with uber, which is heavily anticipated. that likely will go into their forward projections.

investors could be listening closely. haidi: su keenan with the latest on bank earnings. let's get a check on the business flash headlines. facebook is investigating a third major outage this year with users unable to access the platform or mentioned during or instagram or what's up -- whatsapp. the problem began at 6:30 sunday morning in new york and spread across the u.s. into europe and asia. it was backed up three hours later but users were quick to vent their anger on other platforms. haidi: elon musk has hit out at battery partner panasonic, saying hold ups and are delaying the model three. he tweeted that the output at the factory is less than he would like. tesla won't boost investment until the existing battery lines are up to speed. expansion plans are on hold. shery: general electric has finalized a deal to pay 1.5

billion dollars to settle an investigation into a defunct subprime mortgage business. the penalty will resolve claims that wmc mortgage misrepresented the quality of residential mortgage-backed security's. ge revealed the agreement in principle earlier this year while not admitting liability. haidi: reports from india say jet airways is close to a deal to keep itself in the air. business standards says banks are considering an injection of $150 million into the airline as long as jet submits a detailed plan on how the money will be used. the news comes after an intervention from private esther narendra modi, who does not want jet to fail during the general election. let's get a check on markets. about to come online for the brand-new trading week. we are seeing new zealand at the downside of about .25%. futures wise, a bit of a mix. remember it is a holiday.

shortened sessions with a number of markets closed on account of good friday easter holidays. we are seeing strength for another week when it comes to the aussie dollar as well as a third week of gains even as concerns over slowing domestic growth as well as the slowdown in global growth continues. that was the take away from the wrap up of the imf and world bank spring meetings. these are precarious times we are operating in despite policymakers not seeing much of a recession. the aussie dollar trading at 51.77, the boost from exports providing some tailwind for the aussie dollar. often seen as a proxy for economic rebound. at aussie kiwi pair trading 1.0602. shery: the imf chief saying it is a delicate moment. in the fact -- in the past she had talked about the precarious

state of the global economy. let's get a look of what's to, on daybreak australia. the imf saying there is an initiative to aid regional growth. this is bloomberg. ♪

haidi: 8:30 a.m. here in sydney. commuters getting the working week going. the market open is upon us in 90 minutes, futures looking flat at the moment, broader across asia. we are looking at a higher start as u.s. stocks punched out another winning week on friday with the s&p reaching the 2900 level for the first time in six months. not good enough for president trump, saying if the fed had not done what it did when it comes to q. week, we would be 5000 or 10,000 points higher. shery: i am shery ahn in new york. you are watching daybreak australia. let's get the first word news with su keenan.

su: treasury secretary steven mnuchin says the u.s. and china are making progress on trade, edging towards a final round of talks. speaking at the imf world bank spring meeting, he said the two sides are working on a detailed agreement covering issues that have not been dealt with before. he said the u.s. ought to be subject to repercussions if it does not live up to its obligations. president trump has renewed his attack on the federal reserve, tweeting that the stock market could be as much as 10,000 points higher if it were not for the fomc. at the ecb, president mario draghi says he is concerned about the relationship between the president and the fed. he told reporters at the imf spring meeting that he is worried about central-bank independence. the saudi arabian sovereign wealth fund is said to have opened talks with banks on a loan of up to $8 billion. sources say the public

investment fund would be underwritten by lenders and would be repaid from the sale of a stake in a company. we are told talks are in the early stage at the final loan will depend on the bank reaction. thousands of protesters took to the streets of the sudanese capital, carling -- calling on the army to hand over power to a civilian government. the military toppled the longtime president last week and protesters say they will continue demonstrating until a civilian counsel is formed. they fear the military, dominated by al bashir loyalists, plans to rule indefinitely. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: let's get a check of what to watch in australian markets this morning with sophie in hong kong. sophie: -- a move after

determining -- approving an initial investment into its copper project in arizona, which has the potential to supply 25% of copper demand in the united states. also keeping an eye on luca after its production numbers were lower than the previous sayser, but the miner full-year metrics are on track. the vitamin player reports third-quarter results this sunday. citi expect sales to be negatively impacted. woolworths is on the radar as australia reports the company may not proceed with the sale of units as it liquor seeks to retain the business amid challenges faced by its big w operations. we are also watching platinum asset management. speculation that perpetual could be looking to acquire the sun manager, which would provide perpetual with more exposure to international equities.

firmafter a litigation cited class action proceedings, alleging that ios subsidiaries -- haidi: once to watch, sophie. trading is starting to get underway. we are seeing valuations under scrutiny as earnings season gathers steam. adam haigh is here. what do we expect to see when it comes to earnings? is there enough to justify this continued move higher? adam: early signs from friday are reasonably encouraging. it has refocused attention on where valuations now, relative to these last few years, the latter stages of this bull market. if you hit gtv on your terminal, this chart shows it clearly. we are not in a real force evaluation issue. we are back to where we were in september before the big fallout in q4 of last year.

that is not too worrying for most people in an earnings environment where earnings have been downgraded somewhat. the real focus is on overseas earners. what does corporate america tell us about the global growth story. we get another indicator of that on wednesday when we get chinese data for gdp, but also industrial production and retail sales, which really sets the bar for how that stabilization, if indeed chinese growth is stabilizing, and how that pertains to where market valuations are at the moment. certainly starting off with goldman sachs, citigroup, bank of america, notable bank earnings that will be very widely scrutinized. and then how does that lay the framework as we get into industrials and other big sectors that will show us just how much of -- whether we get a decent earnings season that will support valuations, or whether people are looking for extra

justification to push this rally on. shery: we are seeing volatility sinking again. horizon anything on the that could push volatility backup? adam: of course, it is not just volatility in the equity market, as you correctly noted has been declining. it is also rates and fx as well. we spoke to folks at j.p. morgan. they put wednesday's euro zone cpi on the radar for something that might give us a jolt out of this volatility, which you can see has been trending lower, back down to multi-year lows. they say that maybe if you get some kind of upside surprise in cpi in europe on wednesday, that might give a refocus of whether the ecb does start to get closer to rate hiking territory. of course many people have backed away from that view over the last six month as data has been pretty lackluster in the

european region. what we saw on friday was a big move in german bond yields, which transferred through to the treasury market and we ended up notching 2.57 on the 10 year treasury. there is convergence between sovereign debt markets as the rally takes a bit of a breather. people are looking in a relatively shortened week with the easter holiday on friday, that cpi number out of europe on wednesday might be want to keep your eye on. shery: 10 year yield at the highest level in about a month. thecan find items charts in gtv library, gtv on your bloomberg. the imf says no further cuts are needed to china reserve requirement ratio after the recent rounds of easing. the asia-pacific deputy director told bloomberg the fund is still closely watching a key inflation gauge after its moderate upward revision of this year's growth targets. >> this year we are projecting

growth at 6.3%. it is a modest upward revision but reflects the january trade truce, which was agreed not to raise the 10% tariffs on 200 billion dollars imports to the u.s. at the same time, a significant fiscal stimulus to the march budget, which look again and a second or third quarter of this year. we are seeing signs of some stabilization. the trade numbers show some signs the economy is stabilizing. i think we need a few more months of data can see that clearly. >> i would think so, because when you see you are purchasing manager's index slip below 50, 47, 48 handle at one point, when you look at some of these sub indexes and export orders, they are still not looking so hot. how confident can you be that you have not just gotten a little respite and there is still a trend, maybe not towards

weakness, but something that does not suggest growth areas? >> you are right. merge data has been affected by strong seasonality and chinese lunar new year affect. it is still encouraging, especially on credit numbers, that we are seeing pick up in you bank loans. we have also seen the authorities taking action to support the economy. we have had fiscal stimulus announced in the march budget. monetary easing by the pboc last year, three or four cuts, which have lowered short-term interest rates to support growth. kathleen: do you and your team have any expectation for another cut in the rrr ratio a lot of people are looking for? >> the current degree of monetary accommodation is sufficient. if you look at inflation, pressures are relatively low. you look also at a degree of fiscal stimulus that is in the pipeline. the monetary policy stance right now is appropriate.

inflation remains well anchored at this moment. kathleen: well anchored? some would say not anywhere near high enough. the producer price index, which i think in china is watched so closely because people are looking for a sense of what is going on in factories, the economy. it is still not sending a very strong signal. >> the producer price index is important to follow. rebound in 2017, the ppi helped drive the economic recovery, left corporate profits, and support investment. in january and february, ppi was lack, but we saw a slight pickup in march. was ken kang. next, trade negotiations continue between the u.s. and china. are we approaching the light at the end of the tunnel? the latest on the trade war, next.

this is bloomberg. ♪

shery: shery ahn in new york. haidi: i am haidi stroud-watts in sydney. you are watching "daybreak: australia." steven mnuchin says trade talks are progressing and an eventual deal or lack of a deal could have profound effects on countries tied to each side. natasha cason is a research fellow and joins us. i want to start with this chart, taking a look at economic policy uncertain yet otherwise. it is pretty high when it comes to china, but it is pretty high elsewhere as well. the yellow is the u.s.. the thing that i struggle with his even if we come out of the next few weeks or months with a trade deal, is it a fallacy to assume that that is where the risk ends given the nature of

the strategic relationship between the u.s. and china? >> i think that's absolutely correct. if we do see a trade deal -- president trump is saying 46 weeks, lighthizer is saying much sooner, potentially -- the fundamentals of the relationship are still very challenging and a blunt- i think it will some of those challenges temporarily, but we are looking at long-term issues for the global economic markets. for all the countries in the region and worldwide that are tied to the u.s. and china through complex global supply , you havetrains countries like australia needing to make choices as to who their allies are in this new world. a lot of people are trying to talk about this dynamic has a kind of new cold war where countries line out between the u.s. and china. i do disagree with that. when you look at the cold war, you look at the u.s. and soviet

union being completely separate in so many ways. when you talk about the u.s. and china, you are looking at over $600 billion in two way trade, complex global supply chains, one in three students in the united states at colleges or universities that are chinese. there is a kind of decoupling that can happen in the same way as back then. similarly in the indo pacific and countries like australia, there is a lot of pragmatism. these countries want to have close diplomatic and military ties with the united states, but they also don't want to miss out on the opportunities offered by the chinese economy. even the countries that are the most concerned by china's strategic intent in the region, like south korea or japan, they are still not willing to take a side. certainly australia wouldn't either.

i think these countries would resent being asked to do such a thing. shery: there have been some countries that have benefited from the trade tensions between the u.s. and china. brazil has sold more agricultural goods to china because china did not want to buy more from the u.s. take a listen to what the brazilian vice president had to tell me about this. >> we have been dealing -- for years we have been talking. pointk we can reach a that will be complementary for both countries. we understand the u.s. wants to sell soybeans to china. we have to search for an agreement on this. shery: how big of a risk is solid, big u.s. china trade deal for these other economies like brazil or australia that have actually benefited from those trade tensions? >> i do think it is a significant risk.

i think one of the most likely outcomes of this trade war is something you might call a sweetheart deal, where china agrees to purchase huge amounts -- some of the numbers being floated are $1 trillion in the next few years -- to reduce the deficit between the united states and china. that will mean, for example, for australian agricultural producers, losing some portion of the market. that is a significant risk. but i think there is also potential winners from the conflict. one example is there are reports of some large companies, such as gopro or hasbro, trying to reduce some exposure to the chinese market and moving operations into vietnam or mexico. some of this is because of the prolonged uncertainty, but also, as i said earlier, the idea that a trade deal right now is not going to resolve tensions in the long-term, so reducing exposure to china might be a savvy,

long-term move. that could bring benefits to other markets that people choose to move to. shery: the brazilian vice president was telling me if they could sell more to china, they would try to sell more to africa as well. when secretary mnuchin talks about repercussions for the u.s. if they don't actually commit to a trade deal, what sort of reinforcement mechanism could we think of that would keep the u.s. abiding to a trade deal that they agree on? >> i think this is a really serious issue. there are stories coming out on both sides that perhaps some kind of reinforcement apparatus is being developed. perhaps there is a mechanism that will be in place. at the same time, you have president trump and senior officials saying they united states would be willing to leverage unilateral sanctions toward unilateral tariffs on

china that would be proportionate, but unilateral is the term being used. similarly, the chinese system is unpredictable at the moment. as toreally unclear whether there would be significant enforcement on both sides and whether both sides could be confident that the other will hold off their and of the deal. haidi: is it encouraging they are looking at the, not just low hanging fruit, on, dispute resolution? how does that marriott to the fact that you have a president on one side who doesn't believe in institutional's like the wto? >> i think it is encouraging they are trying to have those conversations, but i think the reason we are getting delay after delay is the problems are so entrenched, it is going to be incredibly challenging for them to come to an agreement that would be enforceable, when you are not willing to go to the wto. a lot of it is based on rumor,

but it does not sound like they are talking about some kind of enforcement under international law. they are talking about bilateral mechanisms. the other thing that is reducing the pressure to potentially make a deal quickly as i think that in february the chinese economy was sluggish. there was a lot of questions in the united states about whether we needed to wrap this up quickly. one month later -- haidi: looking better. >> the people's bank of china is saying china is doing better. the stimulus package has done a good job. ,resident trump has, i think the outcome of the mother report and both are not under the same pressure for a quick win, which means potentially they could negotiate a good deal and take their time, but it does mean prolonged uncertainty for the global market. haidi: that is interesting, talking about how much leverage both sides have. we are getting started when it

comes to u.s.-japan trade talks. the economy minister from japan is in the u.s. for the next couple of days. is it distracting that there are multiple talks on multiple fronts? there was a while where it looked like washington was trying to get deals out of the way, canada, mexico, so they could focus on china. >> it could be a little bit of a distraction, but i think they are very capable of negotiating multiple deals at once. it is a huge administration with many experts. talks of japan could put a little pressure on to china. there will be recognition that the united states is not solely focused on them anymore, and perhaps it will give impotence to the chinese system to talk to them more about moving forward on this. shery: quickly, will 2019 be about u.s.-japan trade negotiations or u.s.-eu negotiations? be stillk 2019 will

about u.s.-china negotiations, but after that, i do think it will be u.s.-japan. the european union, there is a lot to do, but they are focused on internal issues at the moment. progress on the u.s.-eu fraud has been slower. shery: thank is a much for your time today, natasha kassam. bamay market, on australia -- on "daybreak: australia." on "daybreak: australia."

haidi: let's get a check of the latest business flash headlines. a company is targeting japan for investment outside the u.s. the co-founder told the financial times he feels more comfortable investing in japan then china. on real estate, infrastructure, and alternative credits. a fun focus on asia has raised

record amounts of cash in the past 18 months. shery: cambodia's biggest hotel and gaming operator is spending $3.5 billion on a casino project , half funded directly by the founder and ceo via a subscription of more than one billion shares. the remainder will be financed internally. the development will be the largest casino hotel in the country. haidi: the dramatic plunge in coffee prices has become so deep it threatens the specialty blends used by chains like starbucks. on the futures markets, rather got his languishing near a 13 markets, depressed by in brazil becoming more efficient. prices are so below breakeven in many countries with many expected to leave the business. shery: tiger woods has pulled off one of golf's most remarkable turnarounds, winning his 15th major title more than a decade after the previous one.

woods claimed his fifth masters jacket, completing his comeback. let's get more with bloomberg's evan ovi williams from new york. what does tiger's victory mean for the tiger brand and the business of golf? >> it means everything for both of them. it has been 10 years since tiger woods won a major title. in those years, golf has not progressed that much further in terms of his reliance on him than 2008. he is still the principal driver of golf ratings. that the next couple professional golf tournaments he plays in will see a significant boost in viewership. the next couple of majors will see a significant boost because people want to see if tiger can win again. there is still much about golf that relies on tiger. when tiger is playing well, golf is doing well. haidi: there is ample reward for

sponsors, like nike, that stuck with him through the personal crisis? eben: the corporations behind tiger woods are different than 10 years ago. nike and upper deck are the only two who stuck by him. nike does not make golf balls, bags, or clubs anymore, so tiger needed a new golf -- a new club sponsor, a new back sponsor. companies like monster energy, bridgestone, tailor-made are new to tiger. they joined tiger when he was not the best golfer in the world. some people tell us he was a has been and maybe would not play again ever at the major stages. they got a good bargain as well. no question that nike is the company everybody most associates with tiger woods. he was wearing a red nike shirt today. they will be tremendously happy with his success today. haidi: i that that has paid off.

our sports business reporter taking a look at that remarkable victory. coming up, we will be talking to a managing director about his outlook for the markets. ♪ so with xfinity mobile

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haidi: good morning. we are just an hour away from the australian market open. shery: good evening from new york. sophie: welcome to daybreak asia. haidi: president trump renews his attack on the fed. he says the stock market would be much higher it was not for jay powell's policies. h a rare mauve he says