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. he isare mauve he says increasingly worried about the fed's independence.

steve mnuchin says the u.s. and china are ever closer to a deal. he also warns about currency manipulation in japan. shery: let's get you started with a quick check of the markets close. investors were broadly optimistic over the global economic outlook after some positive data out of china. we saw the s&p 500 gain ground for a straight -- third straight week. financials leading the gains with some solid earnings out of jp morgan. the health care sector it was the only sector that was in the red with insurers falling for a second consecutive session as we had congress debating drug prices. u.s. futures holding steady at the moment. let's see how we are setting up for asia. sophie: asian futures posing modest gains. adding a third of a percent this monday. at the start of a week which marks the start of u.s. japan trade talks. economic data will be closely watched for signs of stabilization. today we look at numbers from india as the r.b.i. governor

warns the economy has to deal faster with poverty and other challenges. asian trade numbers are also out today ahead of presidential elections thursday. in sydney we are looking at a flat open. japanese futures are hinting at gains while the yen is trading around 112, near a six-week low. flipping the board to check in on that, we have a topic on friday capping its loans -- worst losing streak. some we are looking at potential optimism. haidi: let's get you the first word news with su keenan in new york. su: we start with the treasury secretary steven mnuchin and saying he wants a currency clause on any final deal to prevent deliberate manipulation of the yen. two days of negotiations begin in washington later monday. japanese officials repeatedly

said it will be based on the september statement from president trump and shinzo abe, which does not mention a currency clause. governmentia, the will maintain australians on next-generation mobile access despite china complaining to the wto. the sydney morning herald says beijing filed a complaint about quote, australia's discriminatory prohibition on 5g equipment. it effectively bans huawei from participating. notgovernment insists it is targeting any one country. two korea, 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 are the end of the year. state media reports that kim enjoys good relations with trump, but warns that the u.s. has been making unilateral demands. the president has said he is open to another summit is not prepared to lift sanctions without major concessions by

north korea. the saudirabia, wealth fund is said to has opened talks with banks on own -- loan of up to $8 billion. the fund wants bridge finances which will be fully underwritten by lenders and fully repaid to aramco. we are told talks are at an early stage and the final size of the loan will depend on the reaction from the bank. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. trade debited headlines on the weekend with treasury secretary steven mnuchin signaling u.s. and china are inching ever closer to a trade deal. say?what did steve mnuchin do we have any more specifics about how closely we are creeping to an eventual deal? ros: one thing he said is when

the sides will get back together and talk. there were two weeks of discussions first in beijing and then in washington a few weeks ago. talked also by phone and teleconference last week but we do not know when they will get together again. so, it did seem that mnuchin's comments about the u.s. being open to penalty should it break the terms of any deal it struck was a pretty big step forward because for the u.s. to concede that enforcement could be a two-way street, i think this is a bit of a breakthrough. we will have to see where that goes. it is certainly always possible that mnuchin could be contradicted by president trump or could be blindsided a little bit by the more hawkish wing of the white house. but it seemed like some progress has been made and those are the specifics he started to lay out this weekend. shery: president trump also

slamming the fed again saying the markets could be as much as 10,000 points higher if it was not for the tightening. does this suggest he could be ready to take action now? the idea, you know, that the dow jones industrial average could be 5000 or 10,000 points higher is totally unprovable. i think trump knows that, but it certainly makes for a good tweet and good rhetoric. you know, i think what we are seeing now is that president trump really wants the rocketship the economy in the u.s. he has not really embrace the idea that he could have done anything wrong, that the trade tension with china or the rising budget deficits or even the aging population, some kind of structural impediment could be holding back u.s. growth, so it must be the fed. in president trump's assessment. it seems like his idea that he had at the end of last year about firing jay powell or looking to see if he could, maybe he has given up on that.

but is taking a few other steps. we did not hear from him about the fed for probably a good two months, but now he is back on track with that almost on a weekly basis. and it seems like he is having some success in that. the fed has changed its stance a little bit. it is impossible to know also if they did that in spite of trump or because of trump, but i think the perception is that he is having some suspects so he is going -- having some success so he is going to keep going. one thing to watch out for is what happens with stephen moore and herman cain, two of trump's loyalist who he wants to install on the federal reserve board. it did seem late last week that herman cain's nomination is in trouble, but nothing heard about it over the weekend. just watch for more news on that because i am sure for any president, getting some of your

loyalist into the independent fed would be kind of a big deal. shery: sure. ros, thank you so much for that. ros joining us talking about the independence of the fed. president trump's attack on the fed was a hot topic. our global economics and policy editor kathleen hays is here with support jay powell earned from an unexpected person. kathleen: mario draghi. he is head of the european and i am sure -- it is so different from what trump is doing but mario draghi, it does not happen very often. he pushed back. he said he is worried about central bank independence in quote, the most important jurisdiction in the world. maybe not surprised when someone is pushing against the central bank in turkey as president aragon has, -- president

erdogan has. thingsook at one of the mario draghi said when he was speaking to reporters. in so many words, pushing back. he said if the central bank is not independent than people may well think monetary policy decisions follow political advice rather than objective assessment of the economic outlook. what is wrong with that? the last thing markets want to see is a central bank that is doing what an elected official wants. they want independent policy, what is best for inflation and growth, not best forgetting someone reelected. it was not the official topic but it was certainly being discussed a lot over the weekend. haidi: and of course being discussed is this idea of this precariousness of uncertainty but not quite recession. the international monetary fund is going to be more worried about growth. is there anything they can do? kathleen: depends on individual countries but broadly what they did over the weekend at the imf world bank meeting is to stress

that things are looking a little bit worse than they were six months ago and they are ready to act promptly if need be to get things going again. as risk still to the downside as the imf set on tuesday last week when they downloaded their global growth forecast to 3.3. what are the main risks? trade tensions, geopolitical risks, brexit, and markets moving quickly to move up again. these are the kinds of things which help unsettle economies. six months ago they saw strong growth in an uneven recovery. this definitely shows more concern. they are urging countries to do with a can to solve trade tensions. also i think there is a sense that, for example, if the u.s. and china come to a trade deal that works relatively soon, you are illuminating a big source of uncertainty, a big dark cloud hanging overall the country. it is not just the u.s. and china, it is the entire eu. in fact, many exporters in asia.

it is a big deal, everyone is waiting to see what happens now. and the governor set on friday talking to reporters that he sees if the trade deal gets resolved, that will help the chinese economy. as europe straightens out, regulations hit with gas exhaust, those are resolved, that will eliminate another source of weakness. and he sees better growth in the second half. he agrees. right now we are in the downside. shery: right now they do not like what they see but they are confident about the future. kathleen: they are hoping. they have their fingers crossed. shery: kathleen hays, thank you so much. still ahead we will be joined by to find out why he counts the u.s. dollar as a safe haven and what lies ahead for sterling and the yuan. askingfirst we will be investors while they --

this is bloomberg. ♪

haidi: this is daybreak asia. paradethe earnings continues this week on wall street and could be a catalyst in pushing stock indices closer to record highs. the s&p 500 posted gains for a 3rd street week -- third straight week helped by record earnings from jp morgan chase and the energy sector. su keenan joins us with more. topping and the 2900 level. su: very strong technicals. will the s&p advance higher? that is the big question. and will earnings be a catalyst? let's go right to the big stocks and focuses at the end of the week. banks with j.p. morgan chase and wells fargo.

j.p. morgan chase hitting it out of the ballpark. while wells fargo had an increase in profit, it continues to be plagued by a series of problems that had the stock lower. disney getting record in announcing a video streaming service. that was another big positive and pushing stocks higher on friday. and a deal in the oil patch. surging up after chevron agreed to buy it. there is a question if that will be another theme monday. let's take a look at what some of the earnings will be. banks were very much in focus last week and they will continue to be. we should point out that jp morgan mood 5% friday on record earnings. $29.9 billion in revenue. j.p. morgan chase ceo jimmy morgan was hitting all the main points investors were looking for, citing robust consumer son

been -- consumer spending, higher employment and wages, and pretty much taken recession off the table. as we look at goldman sachs and citigroup which will also be reporting later monday, the question is what will they say about possible recession and global growth. you will note that citigroup earnings are tied more to international operations than any other, so that is in focus. goldman sachs top line revenue expected to climb a bit with earnings, which are also down. that would trail. we should also point out many analysts believe legal issues will continue to be a major factor, although goldman was one of the key underwriters in the uber ipo, so what they have to say about expectations might also be a bright spot in the call. that is what is on tap for monday. haidi: also on tap morgan stanley, bank of america, blackrock.

what are the expectations we have? su: the key themes analysts and investors are looking at is what is the outlook, what is the trading revenue, which has really been a depressing factor for last year. and also what really are they seeing about the economic environment here in the u.s. let's look at bank of america. 22% year to date. it has had a decent year. of course that big issue that had caused a dip in that and other banking stocks was what direction would it take in terms of raising interest rates. it will be very interesting as there is a lot of focus on the fed to hear what some of these bank ceos might say about interest rates. morgan stanley also has had an interesting year, up a better than 18% so far. they are also underwriting the uber ipo, so that will be of great interest. blackrock up from six he percent year to date. one of the issues analysts are

pointing out is there institutional investor makeup. what that is. it has been a big change in the management structure, including a drop in the compensation. so, that also will likely be part of the focus on the conference call. --in, a lot of shery: always great to have you with us. su was talking about the strong earnings. some excitement. some relief rallies for bank stocks. should be be getting excited that this could be a sustained recovery for these banks? >> yeah. so, the expectations going into the earnings season have been very low. if you look at the broad market in the u.s., analysts expect to .5% to 3% contraction

year-over-year. any releases which beat expectations will be -- it is especially light. if you look at financials, it is not done very well. they are cheap. buyback is very strong, 11% to 12%. if they beat expectations they should see -- shery: when we are talking about valuations here in the u.s. we are seeing them not that expensive. this chart on the bloomberg showing valuation doubles we are seeing right now, s&p 500 against their price earnings ratio. around september levels. so, given where we are at at this point would you say it is under invested? binay: i would think so, yes. on theals have been cyclical elements of the economy.

financials sold off aggressively into the fourth quarter of last year. they made a recovery but still they are not -- buyback is strong. if they guide the markets to sustainable earnings growth over the next 12 months you should see some response from investors positioning into more cyclical sectors like financials and technology. does it feel like we are at a bit of a cusp where things could go the other way? there is some concern that maybe we have not seen a bottoming out when it comes to global growth expectations. if growth continues to deteriorate and if we do not immediately get a china u.s. trade deal and there are other geopolitical shocks into play like a messy brexit, does that potentially mean that the evaluations we are seeing at the moment are looking pretty peaky? binay: yes. if the risk factors play out, either geopolitical or the

expected gross recovery for the second quarter of this year does not play out, then valuation argument will prompt markets up to withstand december and first quarter of this year, will not be as supportive as it was. which means he will see a correction in the markets. is recovery and growth should happen this quarter. there are already signs. the latest showed better globally. chinese pmi picked up as well. that the alignment of easier financial conditions are beginning to have an impact. case, people see an uptick in analyst's petitions and earnings as well, which should help continue the rally. not and the same way we saw the start of the year. haidi: do gains in emerging markets rely mostly on the outcome of a trade deal or doesn't rely on where the u.s. dollar goes from here?

binay: both are very important. trading is very important for the chinese and growth perspective obviously. if a trade deal does not come you'll see the dollar strength and it will not be good for emerging markets. they are very tied at the hip. you need both to be favorable for emerging markets to continue the momentum they have shown this year. shery: of course we have seen chinese stocks fall last week. the shanghai composite seeing its biggest loss since 2019 for the week. is this just a little bit of profit-taking or should we be worried that now the rally has peaked and the only way forward is down? marketthe chinese stock is the most volatile in the world. if you look back, about 15% to 20%. shanghai was about 27% to 37%. which means those markets tend to move exactly the way described.

these changes every week. if you take a fundamental look at what is going on in the economy it is beginning to show traction in terms of growth response to easy fiscal and monetary policy. there is the possibility of a trade deal. of course it is possible as the tree deal is announced -- if it remains decent investors will come back into equity markets. bear in mind chinese households do not own a significant part of domestic equity markets, therefore there is only long-term essential for domestic to save through the equity markets. shery: we saw imports in march fall more than 7%. should we be worried about chinese consumers now? binay: chinese consumers have been a little soft, no doubt about that. our hope is that with easing financial conditions, with the

banks pushing loan growth through, the outlook for consumer spending will improve through the course of the year. that will be an important part of the economy, if the chinese economy has moved away from -- to consumer-driven growth. if they do not go out and spend money it will be negative for growth, and therefore ever -- therefore equity markets. but i hope they come back. haidi: always appreciate your time. lots more to come on daybreak asia. this is bloomberg. ♪ this is bloomberg. ♪

haidi: quick check of the latest business flash headlines. elon musk has hit out at panasonic saying holos in production are laying delivery of the model three. than heed it is less

would like and it is a drag on production. not boostsla will investment until additional battery lines are up to speed. reports that expansion plans were on hold less week. shery: facebook is investigating a third major outage this year with users unable to access the platform or messenger, instagram and whatsapp. facebook atbegan on 6:30 sunday morning in new york and spread across the u.s. into europe and asia. it was back up and running three hours later but users were quick to vent on other platforms. haidi: general electric finalized a deal debate $1.5 million to a federal investigation into its defunct subprime mortgage business. it claims of umc mortgage misrepresented the quality of mortgage-backed security. they did not admit liability.

washington is in no rush to reach a deal with japan when it comes to the tree deal because quote, they are too busy with china. we will get a preview of trade talks this week. this is bloomberg. ♪ the biggest week in television is back!

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>> this is daybreak asia. su: treasury secretary steven mnuchin says they a china are continuing to make progress on trade and edging towards a final round of talks. speaking at the imf spring meeting, they are working on a detailed agreement covering issues that have not been dealt with before. he also says the u.s. ought to be subject to repercussions if it does not live up to its eventual obligation. president trump has renewed his attack on the federal reserve. he tweeted the stock market could be as much as 10,000 points higher if it were not for the fomc. he isdraghi says

concerned about the relationship between president trump and the fed. he told reporters at the imf spring meeting in washington he is quote, certainly worried about central bank independence. there are reports that the japanese government stepped in to block the potential merger of nissan and renault in april of last year. the french newspaper says emails between executives and state officials show the trade and ministry weighing in the stop merger discussions. the newspaper says all the government emails were sent to the former no nissan chairman carlos ghosn. took tos of protesters the streets of the sudanese capital calling on the army to hand over power to a civilian government. the military toppled the longtime president last week. protesters say they will continue to demonstrate until a civilian counsel is formed. they fear the military, which is dominated by loyalists, will rule indefinitely.

global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. now turn to sophie on what to watch for the japanese markets. ossie one are watching airlines after a group has reportedly agreed to sell industrials controlling stake in the carrier. a meeting held earlier this week to approve the plan and the value is estimated at about 300 billion yuan. they won a -- records the radar amid -- reports. reportedly partially halted operations at its number three plant in beijing. also watching these. orders of suppliers for the cosmetic company rose on march

compared to the previous two. stocks to watch in tokyo after much speculation. japan agreed to a $1 billion infusion. suzuki.ching recall of vehicles affected by an inspection problem was discovered back in september. it is reportedly considering cutting its number of distributors in japan. this, as chip sales are seeing declining in 20 due to weak demand for robots. ndecc needs to win eu approval. haidi: also watching and waiting for investors for the outcome of this first round of trade talks between japan and the u.s. kicking off monday in washington. wants a currency clause in any potential deal to

prevent elaborate manipulation of the yen. we are joined now from tokyo. what is at stake? we know there is some commentary that perhaps it will take longer because to be fair, the u.s. is pretty distracted at the moment with china talks. >> yeah. there is a lot at stake for both sides. the u.s. is looking to close a $60 billion trade deficit and of course with the -- for japan the u.s. is the second biggest export market. is it was larger idea summed up in the imf keep mckay over the weekend where officials agreed the biggest risk to global trade right now is trade tensions. and i think there is no question about where those trade tensions are emanating. we have seen the u.s. threatened tariffs on china, the eu and japan. i think japan is going into the stocks with a sense that if anything, japan is the good guy in these talks and it is trying to placate the u.s.

shery: japan never really wanted a bilateral negotiation to happen. they were very happy with the multilateral transpacific partnership, of course from which the u.s. has withdrawn. how is this playing into the equation now? brian: i think there are two things that are risk factors for the u.s. first on the micro level, american farmers including beef and pork producers have a 22% share of japan's food import market. so, they could lose that access to other producers like australia that can produce at lower costs and lower tariffs. i think on the bigger scale, the u.s. is at risk of losing its influence in this region. just yesterday, japan's foreign minister was in beijing and he met with his counterpart and they agreed that the china/japan economic alliance was better than before and on the right path towards of -- towards

improvement. i think there is a real risk that as the u.s. stokes pretensions with its bilateral partners, a lot of its partners kind of come together and the u.s. gets squeezed out on the diplomatic front. broader context when looking at u.s./japan relationship at the moment? brian: we have a few bilateral meetings expected in the next few weeks. prime minister abe is supposed to be meeting with trump and washington later this month. then trump is supposed to be coming to japan early next month for a state visit with the new emperor. so, there is some expectation that perhaps we will get some kind of a quick and easy deal on some of the easy issues, then leave some of the more complicated issues for later. both sides want a victory, both sides want things to happen in a way that reflects well on them. we may see that these bilateral meetings will pave the way for at least some kind of --

something that looks like progress on the trade front. shery: thank you so much for that. , bloomberg news editor in tokyo. next, why one strategist is betting on dollar strength, and that is not a good sign for u.s. stocks. this is bloomberg. ♪

shery: this is daybreak: asia. the pboc says it will maintain a monetary policy stance this year keeping in line with fundamentals. policymakers have been trying to stimulate growth without causing a debt blowout. we are joined from hong kong now. are there signs of potential more policy easing in this statement? reaffirmingk it is

the message on the monetary side of things. we know they think they are trying to be neutral in their own wording but they are putting the onus on the fiscal side of things through $300 billion of tax cuts in the pipeline. not going down the -- the old binge borrowing route. on the monetary policy side we have a credit which came out friday which suggests credits be turned back on. that would suggest the central bank has less work to do. the way most people reading the they shouldmbers, be more targeted and what they are trying to do. small and private sector businesses rather than broad-based easing or an interest rate cut. the message from the pboc at the imf meeting was essentially that fiscal policy is carrying the brunt of the work and monetary policy as they are provide support, but not the broad kind of support it has done in the past. shery: how much of those tax

cuts and other fiscal measures have we seen so far? are we expecting more to come? enda: certainly they are beginning to flow through the economy. they are a sizable amount and total, $300 billion u.s. or so. that is taking the burden off other companies to cut red tape, boost. i think there is a feeling that the fiscal side, the supply side coupled with the liquidity the central bank is pushing the economy to help banks lend into the private sector, all that will help growth find its feet. we have gdp due this week for the first quarter coming in wednesday. that is expected to show the slowest pace of growth since 1990. of course we also know there is a much bigger base. it is expected to be finding its feet after a rough start of the year. there is no doubt the tax cuts and the other policy measures are expected to gain traction over the coming weeks and

months. haidi: what was the message for foreign firms and foreign capitals? enda: essentially that china is open for business. we know they are taking steps to welcome foreign investors and foreign capital. what i think truly everyone is waiting for detail on is a trade agreement. what exactly will china agree to open up its doors to. how will they enforce? we know already both governments are talking about enforcement representatives on each side. it will be critical to see which benchmarks are in place, how will benchmarks be measured, how will investors be reassured it will not be another case of promised fatigue. there is so much devil in the details when it comes to foreign investments and easing foreign regulations in china that most people are just waiting to see what is in this trade agreement and that will let them see how durable and sustainable any traders will be. haidi: enda in hong kong.

it is a bit like waiting for good to -- for godot here. hadhe meantime we stronger-than-expected chinese trade data on the export front last week, forcing the dollar to its borst weekly decline in a month. but a stronger dollar may be the way to bet going forward. our next guest joins us here in sydney. is this still the worst of a bad bunch as we get global synchronized slowing arguments? >> i think so. i think the dollar is still a standout for me amongst the wages. it is more of a mixed bag of data but still pointing in the right direction from the u.s. where as i think you look at other jurisdictions and we are seeing probably a worse picture. haidi: in terms of what we are seeing in it -- insert emerging markets, you would think with the fed on pause, more breathing room for emerging markets, central banks, growth is kind of

reasonable. you would see a bit more of the gains. but actually this particular is, 10 particulars, it seeing its worst run since 2005. do you expect that to improve if we see a trade deal and better data? nick: i think so. i think it comes back to what we are just discussing, that trade deal. it is crucial for china and the rest of the e.m. states. if we see that coming through ethic we see support to the e.m. markets but that uncertainty is hitting them hard and unfortunately that fatigue is coming through as well. we are not buying what is being sold to us at the moment in terms of deal rhetoric and i think we need something positive from the u.s. and china. in the end we want to see a deal before the train can resume. shery: how about the dovish fed and other central banks? has that already been absorbed by the u.s. dollar and the markets in general? nick: i think so, yes.

i think to a large extent that is the case. certainly the dollar is still looking relatively well. even though it has been a sharp turnaround from the fed, i think it has been absorbed very nicely. because of what we are seeing before, the dollar still seems the best of a bad bunch. the next move of course will be very interesting. we have got all the central banks that are turning dovish. if we start to see some cuts coming through i think that may give us the next trend in the currencies. until we start seeing that i think the dollar remains supportive. shery: so is the dollar the safe haven bid at the moment? how does the japanese yen play into that? nick: to a certain extent the dollar is. the yen will always be that classic safe haven trade. i expect if we do see a downturn, and we were talking mid last week that maybe we have seen a cap in the equity rally, and of course friday was a good day. but i think if we do start to

see a downturn in risk overall and across the equity markets, then we will see the dollar appreciate and the yen. so i would probably favor the yen more on the crosses than the dollar itself. haidi: do you avoid it at this point? is a long six month extension even worth it? because we really are just dragging it out. nick: i think the uncertainty that comes with this extra six months hurt the currencies. any idease we have not what will happen -- haidi: may 22. nick: they are trying to get a deal with the labour party. talking about negotiations. i think the problem we have got for the pound, and for a certain extent to the euro, is if they cannot get things moving than political uncertainty in the u.k. will really weigh on the currency and it will start to weigh on the process as well and that is not good for the sterling and the euro. shery: sterling has been pretty resilient.

we are seeing this chart on the bloomberg with volatility one week for cable, really plunging. that is the blue line. the white line is volatility on euro-dollar. would you say that the dynamics surrounding brexit has changed? nick: yes definitely. in the last six months we have seen a massive change in the dynamics where we were not even looking at the euro really last october. in the last couple of quarters the euro and the realization that the euro zone will be massively affected by brexit has hit the currency to a certain extent. i think the pound is suffering from a bit of fatigue as well. pointe seeing a 100, 200 moves on any fresh update and it got really fatigued with that whole dynamic. i think we really need to see a concrete step one way or the other and that will be the next move for the currencies. to me, it will probably be a negative now because there are so much going on in the u.k.

there is talk again over the weekend that theresa may should be looking to get something signed off and then get out of office. i do not know whether that is going to happen, but certainly along those lines that would definitely be pound negative. shery: and it is not just volatility on sterling that has been falling. volatility across all g10 currencies at the moment. given the fact volatility is so low, would you say a jump in volatility could become sooner than later just because of the probability? nick: i think so. it is probably not a brief call. i think we hit five year lows in volatility across all them. it is making our job harder as commentators. it does feel as if we are hitting a bit of a pivotal time at the moment. and i think fx could come back and we could see more volatility across the majors. but we need some clarification on trade deals. we need clarification on brexit. and probably more clarification

from the central bank. if we get that, i think we could see some breakouts and some better trend resumes. align givenhing to everything from positivity to trade, showing up china data, potentially continued energy and commodities rally. nick: i think there is a good argument that yields could extend further. if it comes back to that trade argument, commodities are looking strong, data is ok, chinese data is a lot better. i think that could give rise to even greater strength to the aussie over the short term. shery: nick, always great to have you here. haidi: you can get a write up of the stories you need to know to get your monday morning going. tiger's triumphant return is available on the mobile and bloomberg anywhere app. customize the settings to get the news on just what matters to you. this is bloomberg. ♪

haidi: let's get a quick check of headlines. reports from india say jet airways is close to a deal to keep itself in the air. banks are considering an injection of about $150 million into the airline as well as they admit the detailed plan on how the money would be used. the news comes after internation by the prime minister, who does not want jet to fail during the general election. haidi: cambodia's biggest hotel and giving operator says it is spending $3.5 billion on a new casino project. be --ill the remainder will be financed internally. it will be the largest casino hotel in the country. shery: the dramatic plunge in coffee prices has become so deep that it threatens the specialty

blends used by cafe chains like starbucks. on the futures market, it is pushing near 13 year low. people in brazil are becoming more proficient in flooding the market. prices are below breakeven in many countries with many farmers expected to leave the business. acquisition i's s the energy industry's biggest deal in four years. our asian energy reporter joins us know -- us now. so what does this mean? >> what it shows his shale is evolving. right now what is happening is the shale game is becoming a scale game as the chevron ceo said. one of the main things chevron wanted from anadarko was the acreage which is densely located in a couple of key counties in look -- in texas.

those acres are right in the middle of chevron's existing portfolio that it has left over from its merger in the 1990's with texaco. what that means is chevron can use its existing operators and workers, acquisition, supply rigs, cement, drilling everything can be put to use at a better scale, allowing it to get even lower costs of production for oil which will allow it to be resilient regardless of what happens with oil prices. haidi: does that mean we will see more tieups in shale? what does it mean for investment in the sector? dan: that is a great question. there is certainly a lot of hunger for good bolt on acquisitions in the basin because of this. exxon, it last year with bp buying bhp. was trying to buy

anadarko but chevron beat them out. there are other countries -- companies like diamondback, apache, which have very strong acreage which could try to grow themselves bigger by buying smaller players, or could possibly even be targets for another super major expansion. haidi: who is in the best position then? is: right now, chevron probably going to be the leader in the clubhouse. like i said, they have a lot of theorage -- acreage from 1990's when they merged with texaco. areuding this you -- they planning a really ambitious ramp up. if you look beyond them, exxon really strong. ,ccidental, pioneer resources one of the original major shell companies, concho, diamondback, they will all be really strong.

it will just be a question of whether these mid tier producers like conscious -- concho and diamondback and continue to grow and find other acquisitions, or are they themselves going to end up being debate. -- the bait. shery: dan, thank you so much for that. markets in japan and south korea and australian underway at the top of the hour. let's preview the open. sophie: this monday because be seeing some gains for stocks in tokyo and seoul. looking at a muted -- this is the start of the week will see aussie jobs data later in the week. from japan to the get cpi numbers as well as a trade balance. a decision is due on thursday. for a gauge of risk sentiment we had the yen holding near a six-week low as investors await the u.s. japan trade talks to kick off. slippery --en slipping.

check out aussie 10 year yields edging back towards the 2% level of six basis points so far this morning. as we start a fresh trading week, some investors are raising red flags over rising market complacency with volatility on the asian stock benchmark levels last seen in october. as you can see on this chart with the blue line. that preceded a massive risk selloff that wiped out about 14% from shares in less than three months in the asia-pacific. for some it is not a question as to if this year's asian stock rallies will end, but when. early results may add to worries. last week we saw dismal results from retailers. those earnings way to very much. you can see the benchmark cap a five-day losing streak, the worst run for the benchmark so far this year. futures nudging higher for shares in tokyo. optimism coming through in the asian stock market today. haidi: does look like brought

optimism as we get into the start of trading proper this monday. this is how it is shaking up with aussie futures, looking a little higher than dk futures. this is bloomberg. ♪

haidi: a very good morning. evening from bloomberg's european headquarters. >> welcome to daybreak asia. top stories this monday, president trump renewed his attack on the fed saying the stock market would be much higher if it was not for jay powell's policies. steven mnuchin says the u.s. and china are close to a deal. there is also warning about

currency minute relation in japan area >> singapore says -- sets tough new rules against the spread of false information. >> markets in australia getting underway. let's get straight to the market action. thee are seeing gains for nikkei and the topix looking to snap a five day decline. after we say -- sought earnings drag, the yen trading near a six-week low against the greenback. we are watching for moves in bond markets after treasury did pick up, yields rising six basis points on friday. flipping the board to check on the moon in korea, the kospi 0.5%ng ground of that 1135st above handle against the greenback. the asx 200 opening slightly higher this morning.

a few corporate updates from that share market. blackmore's do to report its third-quarter results. off about 1%. saying week consumer sentiment in china. aussie dollar holding steady after a three-week winning run. we are seeing bond yields pickup for the 10 year. switching it up to check on stocks in new zealand, up 0.4%, gaining ground this morning. kb-dollar is up 0.1%. kiwi-dollar is up 0.1%. being added toon market value so far this year in asian stocks. we have been seeing etf outflows and growth concerns still looming large, although we did have central bankers over the ifkend say they will move

need be. >> let's get you the first word news now. >> looking ahead to this week's trade talks with japan, steven mnuchin says he wants a currency clause to prevent manipulation of the end. -- the yen. japanese officials have said talks based on a september statement from president trump and shinzo abe which does not mention the currency clause. job vacancies in london's finance industries have an cut in half over the past two years -- theit uncertainty has number of city jobs available have fallen by 50% since 2017. dublin has been the biggest beneficiary.

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 repeats kim enjoys good relations with trump but warns the u.s. has been making unilateral demands. the president has said he is open to a summit, but not prepared to lift sanctions without major concessions by north korea. government will maintain restrictions on next-generation mobile access despite china complaining to the world. beijing files a complaint about, quote, australia's discriminatory position on 5g equipment that effectively bans huawei from participating. the government insists it is not targeting anyone company. 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.

>> trade dominated the headlines all weekend with treasury secretary steven mnuchin signaling the u.s. and china are creeping closer to a trade deal. derek, take us up to speed. incrementally, are we getting closer? >> bit by bit, step-by-step, closer and closer, i think. the latest comments from treasury secretary steven mnuchin signaling the u.s. would be open to facing penalties themselves that they don't live up to a trade deal they are trying to work out with china. that was seen as a very good step. i think it is -- it cut people off guard, but it is seen as a progressive step for the u.s. as they look to conclude talks with china. there has been talk about a aboutle third round -- another round of meetings.

ultimately there would be a summit between trump and xi jinping, although, as i have said before, that will not come until most everything here is already ironed out. meantime, president trump continuing to bash jerome powell. what kind of reaction is this getting? pick upt is starting to global concern. you saw mario draghi, there were concerns about fed independence. i was talking to people in singapore who said they are starting to see some concerns. have always had an independent federal reserve as sort of a northstar. they are picking up questions about whether or not that is going to be relied on going forward into the future. certainly, president trump came out and said if jay powell and the fed had done what he wanted to, markets would be 5000 to

10,000 points higher. that is the subject of less than considerable debate. one of the things that ways on stocks is the trade war the president has instigated. one of the other thing people are just waking up to the possibility of including in this white house is the idea president trump could shake the fed -- shape the fed by putting on the people he wants to that are going to agree with him. you have seen that in the nominations of stephen moore and herman cain. cain's nomination seems to be in trouble, but we have not seen much opposition about moore. >> we are already starting to talk about the reelection campaign. the associated press reporting be trump reelection campaign has raised 31 million dollars in 2019. goldman has a production saying

the chances he will win reelection are higher than the chances he won't. derek: that's right. study, they are looking at past trends, which gives you a certain amount of boost for being an incumbent. you could fly on air force one anywhere you want to end you command a significant media presence, not counting some of the u.s. media that is inclined to be favorable to the president anyway. there is a significant set of in-house preferences the president starts with. one of the things that is a little bit troubling is that president trump is so much of an howier it is hard to see many of these comparisons are going to hold. the president is presiding over a robust economy and that -- it is hard to say. the president has been stuck in the low 40's approval rating for

a long time. there is no news that knocks him under that there is no news that rises him above. you can see a scenario where you have an economy going absolutely gangbusters and president trump walking into an approval -- an election with approval ratings where they were when jimmy carter lost to ronald reagan and when gerald ford lost his reelection campaign. that is the parallel you have to go back to to find static approval ratings. where this president is coming into reelection. >> so much depends on a strong democratic challenger, but that's a whole different story. thank you for that. was saying, president trump's attack on the fed was a hot topic at the imf and world bank spring meetings. our global economics and policy -- quite rare for the president of the ecb to wade

into politics, right? about the fed,ng there is no doubt. as derek pointed out, which is something i have learned over the years covering the fed, the is aal bank independence northstar for a lot of people. while these attacks on the fed, i don't think they have dented the fed's independence, if anything they have made it stronger because they have to prove to the world they do not do donald trump's adding. nevertheless, you go to italy where patel was -- india where patel was forced out by modi. turkey, that central bank was under attack from president erdogan. central bankers are getting concerned. that is why he did take this rare step. he said he is worried about central bank in, quote, the most important jurisdiction in the world. if you can't have an independent fed in the u.s., where can you have it? here is one of the things he

said talking to reporters. he said the central bank is not a dependent, then people will think monetary policy decisions follow political advice rather than objective assessment of the economic outlook. if you think your central bank is trying to get a president reelected, what is that going to mean for inflation? what is it going to mean for the stability markets want? not a good thing at all. it was commented on by the chief of the south african and swiss central banks, so it is definitely something that is -- has gotten a lot more attention. not what the imf meant for it to do, but it became one. >> what can they do? kathleen: they are certainly a lot more concerned about growth because in their statement, which came out, they actually said they are ready to act promptly if the downside risk they see, the downside risk the imf sees, the downside risk the oecd mentioned in early march

are starting to come to fruition. they singled out trade tensions of course. geopolitical risk. that has to include brexit. the possibility financial conditions could tighten very quickly. what if u.s. stocks start falling? all these things could take these downside risk. -- one ofterialize the things they are urging countries to do, the u.s. is one resolve these trade tensions quickly. get free trade moving again. treasuryd news secretary mnuchin said enforcement mechanisms will move in both directions. they are moving toward some kind of deal. two of the china economists i ruling on the trade deal getting done, tooving this negativity,

stabilize and start moving a bit faster in the second half. >> we saw some conciliatory tone from secretary mnuchin. thank you so much for that. our global economics and policy editor kathleen hays. facebook moves in soul and tokyo. asairlines jumping as much 30% to a 2015 high after a group agreed to sell a subsidiary controlling stake in the carrier. a board meeting will be held this week to approve the restructuring plan. the value at stake is estimated at 300 billion yuan. , want to highlight japan rising as much as 12.6% at the start of cash trade. back above ¥87 this morning after much speculation. having agreed to get a one million-dollar infusion that

will take chinese and taiwanese companies. j.d. i has been trading near a record low. it fell to ¥59 per share last december having racked up 28 billion dollars in losses over the past four years. this turnaround could provide optimism going forward. >> still ahead, we will be joined for exclusive interview with singapore's information minister on the new crackdown on fake news. >> next, from china's growth figures to indonesian elections, what investors need to watch this week. this is bloomberg. ♪

>> a big week for asian eco-data. onna releases gdp numbers

wednesday with a figures expect to show a slowdown in growth. we will also have trade figures from japan to help us look ahead to the week, we are joined from tick's chiefminute officer. we had aggregate financing over the weekend. they look small on this gdp been showing financing has overshooting forecasts. corporate bonds also gaining grounds. does this point to the economy recovering, given the measures from policymakers trickling down to the economy? >> absolutely. that is exactly what we have seen. interestingly, it is not only loans. we know the pboc is pushing with a lot of help from financing facilities, but also,

interestingly, bond issuance. a lot of what has been issued is perpetual. not only banks. we have only seen one announce come in. basically, rates are following thanks at a very low rate. all of this bodes very very well for growth. the first quarter might be disappointing, but we will see a much higher growth rate for ofna in the next quarters 2019. >> it does bode well for this year, but is it eventually just kicking the can down the road given that you are really not dealing with the issue at hand, which is reliance on debt? alicia: absolutely. this is just more debt. we all know that.

we have to realize also china is not the only one relying on debt. we are seeing all central banks in the world, at least major ones, basically rethinking their exit strategies or at least delaying their exit strategies, including the fed and the ecb. it is more leverage. it is domestically rich. we do not think it is going to increase for the foreseeable future. i would argue this is what china has been doing for so long. i would not expect anything else anytime soon. >> the difference now is the country and the economy has reached the point where it cannot grow itself out of that debt anymore. it is growing out of the debt -- i will put it this way. at to gdp is going to increase further. .t has increased every year

we used to hear the word deleverage. it was not real deleveraging in the sense it was deleverage out of shadow banking, but not on the aggregate financially or on the real economy. this year around is going to be much faster leverage. based onsustainability nominal gdp growth and interest rates is still possible for china because nominal growth is high and interest rates are repressed. they're going to be more repressed this year because as we see, companies can issue protections at a very low rate. wethat regard, i don't think should talk about that yet. the problem will come down the road when china's potential growth, and this is going to be lower as we continue to deleverage, reaches a point where sustainability may be at

stake. of course, every government has ways to reduce debt which might not be very appealing for creditors, but there are other ways to do that. starting with financial pressure, restructuring, et cetera. deleveraging, to china is starting to look week with import numbers that were pretty depressing. concern over the slowdown in domestic demand? a very important point. i think we have been leaving the story of rebalancing to a point that households themselves who thought this was going to last forever have increases in disposable income, so i can borrow, especially the younger generations. you see this very clearly with

auto sales that in the provinces where falls in auto sales are moreharpest -- restrictions because of environmental reasons are lower gdp growth. they are the provinces where households debt is highest. what i'm trying to say his household debt, which is still moderate, but growing, might become a trojan horse for china's rebalancing toward a consumption based economy. this is very important. >> great to have you. our top story, the resurgence of -- you can get all of that on your terminal. customize so you

get news on the industries you care about. ♪

>> the u.k. chancellor philip hammond says theresa may intention of stepping down until a brexit deal is done. he also said the tories-labor agreement to leave the eu and end freedom of movement. itself it is party really clear, whether it wants to argue for a second referendum, some people in labor do, some people are very strongly opposed. .hey have to decide if they did, what that would ofn would be some kind process by which the house of .ommons was invited to decide

some people in the comments are very keen on the second referendum. some are strongly against. we had a vote already and there was no majority. this is a very open question about whether or not they're going to ask for, and if they do, what would actually happen when it is voted on. >> would you support a permanent customs union if it meant clinching that deal with labor? >> we have gone into these talks on the principle that we agree with the labour party that we need to leave the european union. we agree we need to and freedom of movement. end freedom of movement. one of their public demands, the customs union, is not what we set out to deliver, but we are prepared to discuss these things . just because they have put it on the table does not mean we are going to do it, but we are prepared to talk. >> would you accept it?

>> i am a member of the government. the government's position as we are paired to talk. >> markets are wondering, if theresa may will go, whether she will go, what kind of way. is it better to have theresa may that stays beyond the extension now that you have a? has saidime minister she will leave once she has done the deal and taken us out of the european union. as far as i know, she does not have any intention of leaving until that deal is done. she is a person with a strong sense of duty. she feels she has an obligation to the british people to deliver brexit. she certainly wants to make good on that obligation. >> philip hammond with bloomberg's francine lacqua. coming up, we have an exclusive with singapore's minister for communications and information on his campaign against fake news. ♪

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>> we start with treasury secretary steven mnuchin, who says the u.s. and china are continuing to make progress on trade. and they are edging toward a -- speaking of the imf, a detailed agreement that has not been dealt with before. u.s. may face repercussions if it does not live up to its obligations. president trump has renewed his attacks on the labor -- on the u.s. federal reserve sank stocks would be 10,000 points higher if it were not for the fomc.

mario draghi says he is concerned about the relationship between president trump and the fed. in washingtoners that he is certainly worried about central-bank independence. there are reports the japanese government stepped in to block the merger of nissan and renault in april last year. a french newspaper says email's between executives and state officials show the trade .inistry weighed in to stop formerils were sent to nissan chairman carlos ghosn. protesters took to the street of the sudanese capital calling on the army to hand over power to a civilian government. protesters say they will continue to demonstrate until a civilian counsel is formed. however, they fear the military, which is dominated by loyalists,

plans to rule indefinitely. has pulledger woods off one of golf's most remarkable turnaround, winning his 15th major title more than a decade after his previous one. wood claimed his fifth green masters jacket, winning his comeback from scandal and injury . market analysts estimate he generated more than $20 million of exposure for his sponsors during tv coverage of the final round at agusta. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you. stocks across asia higher at the moment. it is time for another market check. asian stocks starting the week on the front foot. bonds falling.

the aussie 10 year yield back to percent. . -- back to 2%. the kospi is headed for a 12 day higher to match the best run since april 2006, led by the electronic sectors. in tokyo, the nikkei rising for a third straight session. tsuzuki is the worst performer. since novembert as the carmaker is to book an ¥80 million charge on a recall of vehicles affected by inspection problem back in september. softbank gaining ground, rising over 5% this morning, extending gains after closing at a 2000 high on friday helped along by prospects of a payoff from the bet on uber. stockstill well off its record high hit during the.com era. japan advancing, easing its

earlier gain of 13%. cautioning there will be a rocky road ahead after the panel maker secured a one million-dollar injection saying visibility is still poor on longer-term strategy. i also want to highlight korean dropping as much as 17%. this is the korea exchange said trading of its preferred stocks may be halted. >> singapore is planning tough new laws to hold online platforms accountable for fake nations tong other put pressure on facebook. new measures will require social media to display corrections to false or misleading claims. the law also proposes criminal sanctions against those who spread falsehoods with intent to prejudice the public interest and those who create bots as well.

juliette saly is with the minister of communications. >> yes, i'm with the minister of communications, s. iswaran. tell me about these proposed measures. the way i'm reading it is a singapore is not waiting for the likes of facebook themselves tucci -- themselves to crackdown on fake news. there is a global recognition of the need for action. we think it is important governments take the initiative. companies have told us as well. we know their position publicly. what we are looking at is really what we call falsehoods or false statements of fact. and how they impact the public interest. it is when the two come together. it is not just a false statement of fact, it is also impacting the public interest. then we will issue corrective orders.

the point is to ensure access to facts are available to readers. information, but to give greater access to facts. readers can decide for themselves. >> how do you enforce it? we understand there are fines and also jail term. a little bit different to what we have seen from some countries that have been implement in measures as well. >> in general if you look at the legislation around the world, there are some stiff penalties. hours, we have calibrated it. there are penalties around noncompliance. when the direction is issued and there is noncompliance, there are fines, et cetera. the criminal punishments are really around malicious actors to go about deliberately spreading posted on the internet. a significant higher threshold from a legal point of view. what we are trying to establish

governmentsgime of -- governance for the internet, which has not been governed in a manner that ensures speech into discourse on social media is informed by factual statements. juliette: the asian internet coalition said they were disappointed by the lack of public consultation during the drafting process. had anuld say we have extensive process of consultation. we started studying in this area more than two years ago. select had a very public committee process in parliament where all the media agencies were able to make their representations. even in the process of drafting this bill we have had confrontations with tech companies et cetera and incorporated their inputs. many of the ideas in the bill are informed by the entire

process, including feedback received from tech companies. juliette: the point is to make sure everything we see online is accurate. in that sense you are trying to make sure we don't undermine freedom of speech. there is some criticism that this is potentially cracking down on freedom of speech. what do you say? thatrst, i think ensuring speech, discourse, and debate is informed by fact is something we can all agree on. it is consistent with the best of journalistic tradition. second, in terms of our process and the concern around whether the government will overstep, we have a series of checks and balances in the process. even though ministers can issue what is fact and what his opinion, this is laid down by the courts. it is not something the executive arm of government can arbitrarily decide. juliette: what about criticism

of? are you worried that is going to impact singapore's reputation? >> we have been very clear that -- we welcometo debate as long as they are anchored on facts. that is some than we feel consistently whether it is in terms of mainstream media, online media, et cetera. in terms of tech companies and aboutment, it is also singapore's involvement in r&d and artificial intelligence, et cetera. we engage with tech companies on a broad range of issues. even on this matter, we have an alignment in the sense that all of us are seeking to ensure that online discourse is based on facts and we are pushing it in different ways. juliette: there is the controlled internet in china and approach in america.

some southeast asian countries moving more perhaps toward china. where would you see singapore on that spectrum? >> we are trying to find a path that works best for us. you could call it the middle path. the important point here is we want to ensure free speech continues unfettered on the internet and in general. not we are intending does impinge on criticism, satire, or parity. what it tries to do is ensure when we have the contest of ideas, it is truly based on fact. we want to ensure that way all citizens are well-informed and can engage constructively. juliette: when do you think this will be implemented? >> we had the first reading in parliament in april. we expect a second and third in may. bill in the second

half of this year. juliette: thank you for joining us on bloomberg television. juliette saly with the singapore minister for communications and information. coming up next, treasury secretary steven mnuchin may be pushing for a currency clause as the u.s. and japan are said to kickoff trade talks and look at what is at stake next. this is bloomberg. ♪

haidi: this is "daybreak asia." >> japan is kicking off trade negotiations with washington. shinzo abe is desperate to avoid fallout on lucrative auto exports while president trump wants to crack open japan's agricultural markets and reduce a trade deficit.

joining us now from tokyo, the former trade negotiator at the japanese ministry of foreign affairs. professor, always great talking to you. we would not be having this conversation about a bilateral deal if the u.s. had stuck with the transpacific partnership. can the u.s. get more than what japan already agreed to during that deal? think both leaders from japan and the united states, they have met already september last year. the kind already had of framework. determined to go ahead with this bilateral talks with the united states. in regard of agriculture products, there is a kind of capping. a kind of ceiling in terms of market access in japan.

.hat is much more level japan eu talks. beyonds not ready to go that kind of capping in terms of agriculture, market access in japanese market. , my days in japan, i was speaking with you in tokyo about the transpacific partnership and how difficult it was for the prime minister to actually sell the tpp to his constituents. now, where we are right does the prime minister still have enough political capital to sell this other deal with the united states now? >> you are quite right.

after -- the year after 2009, proclaiming the united states started to be fully involved in tpp talks, japan was hesitating very much whether japan should join or not. a whole nation in japan to a national debate. decision was to join the team -- the tpp negotiations. we don't have any opposition against japan's participation. in the united states, there was no nationwide debate such as the one japan had. japan is quite ready to ambitiousith a quite opening up of market access to

the extent they have considered in the negotiation that was concluded october 2015. both leaders have already agreed said, iscess, as i back in 2015. >> in terms of the timing, the finance minister speaking at the world bank meeting last week saying we are too busy with china, we have not received a risk -- a list of what the u.s. wants to achieve, it is not necessarily the right time. his timing and issue given that we know the u.s. is really distracted by trying to get a deal with china at the same time? >> obviously for united states,

china, it is a priority issue. deficit,of a trade with japan, it is much smaller than the trade deficit with china. -- we have been waiting. japan has been waiting since the end of january this year. we could start trade negotiations anytime. of april has 15th been offered. japan is now engaged in negotiations. the united states is more in haste to produce any concrete results out of this negotiation. why? you see, we have tpp 11. australians are enjoying the presidential market access to japan be it in beef, dairy

products, any kind. -- thathave the japan came into effect this year. fda's. two mega new -- all ofan's this gives access to the constituent members. the united states is lagging behind. japan is just ready to listen, to what the united states might say. >> is currency going to be a stumbling block? steven mnuchin wants to have a currency clause to prevent japan from devaluing the yen to boost exports. that was not part of the joint statement. well, i think currency provision does not make any harm

to japan's monetary policy. artificiallyot intervene into the money market. whether there is currency clause or not does not really affect. i do not think that is a fatal issue for the agreement between japan and the united states. >> thank you so much for your time today. plenty more to come on daybreak: asia. this is bloomberg. ♪

>> a number of southeast asian nations are picking up china's notion of a controlled internet. it would have been unthinkable less than a decade ago. our asian tech reporter has the story. where are we seeing china's internet vision play out? >> southeast asia for china, they are almost like a linchpin in terms of china's ambitions globally politically and economically. we are seeing indonesia, thailand, vietnam, increasingly warming up to beijing's approach of managing the internet. they are adapting those policies

at the heart of how china manages internet. the crux is it is about data sovereignty. the ability to have companies store data locally and also for the government to gain access whenever they want. this,eal -- the idea of especially for authoritarian nations, is very appealing to have a walled off internet. >> are the issues faced by facebook and twitter contribute into this? lulu: that's right. you could say the fact twitter and facebook were used to manipulate the elections and the fact the gun shooting in new zealand was live-streamed across u.s. social media platforms, it does give self-serving governments a justification, almost a reason for them to say, this beijing approach to managing the internet is not without its appeal. >> what to chinese tech giants stand to gain? lulu: for tencent and alibaba,

they are competing with some of the largest u.s. internet companies. southeast asia is one of the fastest growing internet economies. it has a billion people. billion -- tripled 250 million in a few years. some say this offers an alternative to the more free-flowing information -- spread of information from u.s. products. >> thank you so much. let's now get our quick check of the latest business flash headlines. hit outss elon musk has at battery partner panasonic saying they are delaying delivery of the model three.

tweeted output is acting as a drag on production. >> targeting japan as the highest priority for investment outside the u.s.. george roberts told the financial times he feels comfortable in japan more than china. kkr is focusing its investment strategy on real estate, infrastructure, and alternative credit. >> a deal to pay $1.5 billion to settle an investigation into a defunct subprime mortgage business. the penalty will resolve claims wmc mortgage misrepresented the while not admitting

liability. let's get a preview for markets later this morning. >> watching for reaction to china and malaysia agreeing to resume the project for a lower-priced tag get a narrower scope. china construction form -- signed an agreement. china's power may move back to morgan stanley's price target. tencent could extend a five-day advanced. citigroup raised its price target calling tencent its new topic. -- top pick. let's jump into the terminal. investors may be wondering if the rebound rounded up the worst week despite recovery we saw in chinese exports. >> let's now get a look at futures trading. we are seeing u.s. futures looking like this. they are at the moment gaining a

little bit of ground. s&p futures down a bit under pressure while taiex futures on the taiwan stock exchange are up 0.7%. more positive data out there with chinese exports rising. financing rises. a more optimistic mood about the global economy. when it comes to the taiwan of weeklyange, a run gains, the longest since january 2018. that seems to continue at least for today when you take a look at futures. we are seeing the offshore yuan at 670 at the moment. that is it for daybreak: asia. this is bloomberg. ♪

not :00 a.m. and shanghai, beijing and singapore. welcome to bloomberg markets open, china. i am tom mackenzie. yvonne: i am yvonne man. >> i am david in glass. markets are in mostly positive moods. concerns being eased over global growth. >> steven mnuchin says that the u.s. and china are closer to a trade deal. he was about thursday manipulation. >> the government is plugging brainpower. we will ask if supplies are