haidi: welcome to daybreak australia. i'm haidi stroud-watts. shery: i'm shery ahn. sophie: i'm sophie kamaruddin. we are counting down to asia's major market open. ♪ haidi: here are the top stories we are coming in the next hours. u.s. stocks rise despite the emergence of the u.s. economy. the nasdaq climbing to a 10th of its all-time high. qualcomm and apple strike a deal, bringing their chip licensing battle to an end. and, indonesia kicks up the

biggest exercise of one-day democracy in the world. we are live in jakarta as polls open. shery: later in bloomberg technology global link, we will analyze netflix's forecast as the giant feels the heat of competition and slowing user growth. a quick reminder on how u.s. stocks closed at the moment. the tuesday session in the u.s. u.s. stocks were higher with the dow up 3/10 of 1%. the s&p 500 stayed above the 2900 level, the highest level in six months. financials leading the gains with black rock result's upsetting some of the weakness from bank of america. we did get some other sectors like health care and utilities, really weighing on the markets. the s&p 500 barely changed. the nasdaq at the highest level since october. newsd qualcomm surging on that it reached an agreement with apple and entered a licensing agreement. u.s. futures rarely moving.

let's see how we are setting up for asia, soph. sophie: we are setting up for a busy day in asia. kiwi stocks adding 1/10 the 1%. aussie shares set for a lower open as we await updates from companies. we will be watching reaction to vale given the nod to reopen. the nikkei 225 could add higher as u.s.-japan talks wrap up for now and could resume next week. we will be watching the tech space on earnings and the settlement of the apple-qualcomm litigation suit. the cosmetic space on the radar after lori l asian shares overtook. we can look at the eco-agenda. trade figures from japan, singapore and the philippines. a key data point is going to be china's gdp report which will offer insights into the impact of stimulus policy and increased government spending in the first quarter and monthly activity indicators expected to add to

signs of a recovery. india is closed today and indonesian markets closed as voting starts in the southeast asian nation. haidi: let's get the first word news with jessica summers. jessica: the initial investigation into the fire that destroyed notre dame is focused on renovation work that was carried out on the roof. prosecutors have all but ruled out arson, saying there is no evidence of anything other than an accident. newly released drone footage shows the majesty of the cathedral. it was the tallest structure in paris until the eiffel tower was built in 1889. >> we are a nation of great builders. we have so much to rebuild, so yes, we will rebuild the notre dame cathedral even more beautiful. i want that to be completed from now until five years. we can do it and here again, we will mobilize. jessica: u.s. factory production

stalled in march as car output declined. headwinds for manufacturing and growth at home as well as abroad. overall production was unchanged from february while auto output slipped. manufacturers have to deal with rising inventory, continued uncertainty about trade, and falling demand as global growth slows. house speaker nancy pelosi has given u.k. lawmakers some stern advice over the long drawn out and he neatly deadlocked brexit negotiations. don't mess with the good friday agreement. speaking at the london school of economics, she warned if the peace accord was compromised, there would be no chance of a future u.k. trade deal with the u.s. >> if there were to be any weakening of the good friday accord, there would be no chance whatsoever, a nonstarter for u.s.-u.k. trade agreement.

jessica: and pilots appointed by the faa have reviewed software fix. they conclude the cockpit crew will not need extra stimulator training but the panel is calling for additional training on the anti-stall system that has been linked to two fatal crashes. the panel stop short of requiring expensive simulator time. day onnews 24 hours a air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shares surgedm more than 20% in late trade, but news of a settlement with strata -- with apple. the legal battle threatened to jeopardize the chipmaker's most popular line of business. mark gurman is in san diego.

it was not quite that surprising to see these two sides coming to an agreement that benefits both of them. what have they ended up gaining? mark: yeah, it was not a surprise they were eventually going to go down this road. apple was denying it was nearing a settlement, whereas the qualcomm ceo had been talking up a settlement for months on tv. they both benefit. apple has a very clear and clean path to releasing new iphones and ipads next year with those faster five g networks -- five g networks. qualcomm sees the business model being certified and vilified with apple being in agreement with them by settling, so to speak. haidi: is this the end of qualcomm's troubles. we saw the huge surge in the stock price. clearly come investors feeling optimistic. still waiting for judges decisions on the federal trade

commission accusations as well on anti-competitive behavior. mark: marright. we're still waiting on the ftc situation and class-action situation but this apple trial was the big one. that was the one that would see qualcomm continue to be without one of the biggest phone makers in the entire world right now. having this partnership back in place with apple is going to give them at least six years of long-term stability, given that is how long the agreement is for but i don't know if it will go much longer than that. this is happening in san diego. apple is building their own modems. they are working on that technology. eventually, they will design out qualcomm but it is not going to be as soon as it may have been if they were not able to come to an agreement today. shery: it is a huge time when it comes to tech. is this a be all, end all agreement? all: it is a be all, end

agreement for 5. g. look out for apple to be there after 5g. these technologies last for about 10, 15 years at a time. 4g really grew up in two important in 2011. in 2019 here, eight or nine years later, they will see 5g grow in 2020, 2021. 10 years from their, you will see the next leap to 6g or whatever that is called. qualcomm and apple will be together for the next three years. with the bigurman movers when it comes to qualcomm as well. the stock jumping about 23% in the reaction to the settlement. 190 million voters in just six hours to cast their ballots. the polls opening as indonesia posts the world's largest single day democratic election. the president is running against a former general, once again for the top job. our chief southeast asia

correspondent haslinda amin is covering the elections. the significance of these votes today. haslinda: this is deja vu, a repeat of what happened back in 2014. it was such a narrow victory. six percentage points. it is expected to go down to the wire as well. it's tempting to say that this election is about bread and butter issues. about food, jobs, the economy. but it is deeper than that. this election is about religion. it is about the country's political leanings. its religious division that we have seen so far that has been so deepened. have capitalized on this rift among the people, between the moderates and the conservative muslims. take the choice of the vice president, a muslim cleric, the

head of an organization of 40 million people. 20 millionto gain supporters for this particular election. in terms of probowa, he has chosen as his vice president a venture capitalist turned politician. a self-made man who is seen as a modern educator put a staunch muslim. his appeal comes with the millennials, the educated and the business community. the division between the two and what both candidates are after. what the winner, whoever the winner is, what the winner needs to do when this is all over is to unite a country. you talk about 193 million eligible voters. 800,000 polling stations. 6 million volunteer election workers. it is a massive exercise. we talked about how this is the

biggest election one day exercise in the world. if indonesia can pull this through, it will be quite a feat. haidi: our southeast asia correspondent haslinda amin there, as indonesia wakes up and begins to cast their vote. still ahead, netflix lighting after hours as forecast for new user growth trails estimate. we will take a look at the competition in streaming. shery: next, china releases gdp data later today. we will preview that. this is bloomberg. ♪

haidi: i am haidi stroud-watts. shery: i'm shery ahn. you are watching daybreak australia. u.s. stocks rose on tuesday despite mixed earnings, perhaps showing clues of the string of the u.s. economy.

but where does that leave emerging markets? the index raised thanks to a boost from chinese stocks. joining us to dig and is they wells fargo asset manager. great to have you with us. let's get started with the u.s. and global markets. we have seen this rally both here domestically and abroad. one of the most hated rallies to be honest. blackrock's larry fink now saying given this environment, the risk could be of a meltup not a meltdown. does he have a point? guest: i think he has a very good point. if we look at what is going on in the emerging markets side over the last few months, we really have seen just the removal of a lot of the headwinds to emerging markets from a liquidity standpoint, growth standpoint, growth expectations that point. i think as we move forward and as we start to see the data behind that, we could see

investors getting even more enthusiastic about the markets in the short-term. shery: how much do we need to see data also support this equity rally? derrick: i think we are beginning to see some pretty good numbers coming through. as you mentioned earlier, the chinese gdp growth is expected to come out tomorrow, today your time. we don't expect great numbers out of that. we are probably close to consensus. 6.3% or so. the data we are seeing elsewhere as you know -- the budget was highly stimulative. rates coming down in china. we are seeing more and more positive data that the stimulus is gaining traction. gdp,e not going to look at so much as signs of looking forward, we should see growth continue to accelerate. haidi: does that stabilization story create enough momentum for the em trade to continue or for

the u.s. dollar to unexpectedly strengthen? derrick: that is definitely the biggest risk we are seeing right now. it is surprising to us that we did not see emerging-market currencies rally against the u.s. dollar in an environment where rate expectations in the u.s. were falling and growth seems to be improving in the u.s. so -- exceeds me, emerging markets. i think of we see some good data out of europe and increasingly good data out of china, we should see emerging-market currencies rally. secondly, i think the u.s. dollar -- we are not dollar traders -- i do think the u.s. dollar is reasonably fully valued versus most emerging-market currencies. the potential for the u.s. dollar to make a move like it did in 2018 seems to be unlikely. haidi: is your preference to trade em assets over equities or bonds? derrick: we are strictly equity investors. fx for us is generally in output

of our process. with think of the individual company level where things look reasonably healthy, we find this a lot more easy to track over the longer-term. right now, we are agnostic on those currencies in emerging markets. shery: we continue to hear from china policymakers that they will enforce a prudent monetary policy stance. does that limit the outside for stock markets if we see them pullback, even though we are seeing a recovery in the data? derrick: i think there is plenty of room. if we look at what was the headwinds to the chinese market in 2018, there were certainly monetary tightening and a deleveraging cycle that they have some room to reverse. but there was also regulatory headwinds, fiscal headwinds. they have a lot of room to stimulate the economy by rolling back those regulations and increasing fiscal stimulus as we saw. i think they can stimulate the

economy while still keeping an eye on the levels of debt and leverage in the economy. shery: we are not quite sure at the moment if the trade negotiations between the china and the u.s. will include the currency clause. where do you put the yuan? derrick: we don't explicitly predict the yuan. i think over the next 12 months, barring a significant move on the trade front, we should see a slight strengthening of the currency, but we don't expect it one way or another. haidi: appreciate you coming on. wells fargo's derek irwin out of boston. plenty more to come. this is bloomberg. ♪

haidi: this is bloomberg technology global link. i'm haidi stroud-watts alongside

shery ahn in new york alongside emily chang. let's take a look at the top global tech stories. emily: china is hiring hundreds of people to run an app devoted to president xi jinping. it is called studying a powerful country. millions of chinese citizens are downloading the program to curry favor with the government. it is the latest push to spread the take on socialism that is part of the competition. ibm reported a decline in revenue from its cloud computing a.i. and cognitive software unit. the company has heralded it as the future. revenue totaled $5 billion, down 2% from the same period last year. missed forecast over $18 billion, down nearly 5% from the first quarter of 2018. expedia group is moving to simplify its ownership model and boost its value. it has agreed to acquire liberty expedia holdings in a $2.6

million all stock deal. the stock structure has been divided between two billionaires, barry diller and john malone. diller will become the largest shareholder with 29%. those are the top stories we are watching. shery: thank you. netflix in late trade after delivering a disappointing forecast it domestic growth slowing to a trickle. that renews fears for its prospects in the increasingly competitive streaming sector. let's discuss this with o'donnell. great to have you with us. are investors right and being concerned despite the beat in subscriber numbers? bob: i think this is a bit of an overreaction. i don't really see disney as being a huge competitive challenge to netflix. i think they will be more complement to review the interesting thing about netflix internationally is the fact it had very strong growth internationally.

they are building a larger and larger library of non-english-speaking content. they talked about in the shareholder letter a very popular korean language show. arean shows, melodramas very popular throughout asia. they are being smart about extending the reach of content and extending what they are doing. i think there was a fear that their forecast was below what people thought. maybe that is because of this competition. probably likely because of the pricing pieces and the churn we see. long-term, there is still a good opportunity. another interesting data point in the shareholder letter that says only 10% of the tv content being viewed in the u.s. is being streamed. there is a huge growth opportunity in the u.s., let alone other parts of the world. shery: but investing in original content, whether it is domestic or international, also means burning through cash. is this a concern? bob: it has been a concern for a

long time. the people who have been naysayers of netflix have raised this issue many times before. legitimately. it is a hits based business. they may spend a lot of money on a show that may not turn out to be a hit, just like movie studios do and recording companies do. there is always that challenge. so far, they are doing pretty well. because they have spent so much on that original content, i would argue that has enabled them to build up a very strong library of content they can start to go back to. a lot of people a relatively new to netflix. shows they did not see in the past, they can start to bring back out. theoretically, they could also have an offering with lower-priced content that is a little bit older. i think there is a number of small things they are doing by investing in that content. yes, it is a risk, but it is a risk that has paid off. emily: we are listening to the netflix earnings call right now. an interesting headline -- they just said they need to find a lower-priced tier to reach more

people. as you mentioned, ceo reed hastings says it was the price increase that led to some people canceling their subscriptions. how much do you think a lower-priced tier could help grow subscriptions? bob: i think it is a great opportunity. that is very interesting. if you think about it, a lot of people again are still just getting into streaming. we tend to get caught up in this silicon valley area and think everybody is doing it all the time. that is not what worst -- most of the world is doing. for most, it is a new opportunity. by offering something at a lower price, i think they can make that attractive to people. i think disney becomes couple of entry -- complementary. they can get more people to move to cut the cord and moved to be completely over-the-top in terms of their video service. emily: there is also emphasis on the call on international markets. they say that growth in europe is accelerating. india is paying off.

even if netflix continues to invest billions and billions of dollars every year in its original content, can they compete with disney that will continue to invest in the original concept, but also has this decades-old library that includes star wars, the animated classics, pixar, and marvel already built-in, for less? bob: fairpoint. the disney offering is stupendously -- tremendous value. people saw that. $6.99 a month with all that content, it is a no-brainer. alongside theve disney service and i think that is what they are counting on. they have a strong base themselves. they have been able to build up a modern library of content. i don't think they have to be one versus the other. i think that is the most important way to look at it. shery: thank you so much for that, bob o'donnell. haidi? haidi: thank you.

that is it for the bloomberg technology global link for today. do not miss bloomberg technology 7 a.m. in sydney, 5 p.m. in new york. coming up next, we will be live in jakarta as voting begins in the indonesian election. round two. this is bloomberg. ♪

haidi: it is 8:30 a.m. in sydney. futures pointing to a lackluster start. 1/10 of 1% move. u.s. stocks ending the regular session and little bit higher when it comes to tech s tocks, but not a great deal of momentum. investors distracted by the situation when it comes to earnings. financials facing those gains. the nasdaq within 0.1% of an

all-time high. i'm haidi stroud-watts. shery: i'm shery ahn. you are watching daybreak australia. let's get the first word news with jessica summers. jessica: apple and qualcomm are friends again. they have agreed to end a two-year legal battle over billions of dollars of technology licensing fees. apple will make a one-off payment to qualcomm and will begin a multiyear supply and licensing agreement in which it will pay the chipmaker royalties. qualcomm jumped on the news. it says the agreement will have two dollars per share to earnings. the polls have opened in indonesia for the world's largest single day democratic election. almost 200 million people are eligible to vote. it will be a rerun of the 2014 race, pitting the current president against a former general. vowed to create 100 million jobs over the last five years. while the opponent is promising

tax cuts and revival of manufacturing. the u.s. and japan have wrap ped up the first round of trade talks and it is described as a good start. the minister told reporters they discussed currencies, digital trade, agricultural goods and the auto sector. he said the two sides will meet again next week and japan is keen to strike an early agreement but there is no deal yet. and, reports from tokyo say japan's once the asian development bank to halt new loans to china on the ground that they are no longer needed. the per capita income exceeds the upper range. the finance minister will stress that point at the board of governors meeting next month. china was the fourth largest recipient of adb financing in 2018. day, onews 24 hours a air and on tictoc on twitter,

powered by more than 2700 journalists and analysts. i'm jessica summers. this is bloomberg. haidi: thank you. the world's biggest iron ore production numbers. paul allen is here. we were expecting the weakness. paul: no huge surprise. third quarter iron ore shipments, 56.1 million tons versus an estimate of 58 million. down by about 3%. new guidance from bhp. 265 to 270 million tons. field guidance was about 273 million to 283 million. bhp did not want to subvert the numbers for the same reasons of rio, cyclone veronica. bhp not too badly affected but there was flooding that affected the rail lines and port facilities as well. one more big miner.

it's interesting to see bhp and rio tinto taking a hit in the u.s.. adr both sliding. on the news that vale got authorization from a judge in brazil to restart the dam at the mine which produces about 30 million tons. that might ease some of the supply pressures we have been seeing, pushing the iron ore price steadily higher. minerswe saw the following overnight. paul allen here. let's get back to one of the other big stories. the world's biggest exercise in a single day of democracy is getting underway in indonesia. let's get to jakarta. our chief southeast asia correspondent haslinda amin covering the elections. 190 million voters with six hours to cast their vote. haslinda: it is a massive exercise. from new york to

alaska. over three different time zones and 193 million voters. it is a massive exercise. they have been pretty much upbeat. you take a look at the inflows. $1 billion this year alone. an outflow of $2 billion in the same period last year so there is optimism going forward. let's get some perspective from our guest this morning. it's one of the best-performing in indonesia, beating 97% of its rivals over five years. it managers $465 million in assets. good to have you with us. so much optimism. where do we go from here? anymore upside? the upside of 20% postelection. 1990's,ou look at the

20% every time the election comes on, six months after that. ,eople are now betting the market is seeing a landslide. but i don't think it is going to be a landslide. but i think it is better than 2014 with only 6% margin. i think it is better than that. haslinda: you have been buying banks. you have been buying the likes of bca. why is that? valuations the looking cheap? bc's: actually, i think not really cheap.did you want to jump into malaysia, you have to buy the largest gap. cap in30% of the market indonesia. you have to buy bca. and -- i think it is a good

chance that it will be 20% after the election in the next six months or at least one year. haslinda: will you be taking some money off the table as a hedge? jemmy: of course. you look at 2014 and the markets in the next few days after that, going down, but after that it is going up again. we're optimists about the market onlybut i think for us, we managed $600 million. it is good for 5% to sell with the markets going up. haslinda: optimistic but there are risks. on the decline. that is a major risk for the country and economy. how do you factor that risk into

your investment? jemmy: i think the problem is in the last year, the weakening and all the investing area in indonesia is because of the unstable politics. indonesia has never been divided into parts when this before. 20,ve been in the election, 25 years.i have never seen it like this before. i think people are afraid that somehow what happened in 1990's will happen again. for us, indonesia, we have been suffering a lot in the 1990's. ,hat people are worried about but i think it will never happen, at least in the next 20 or 30 years. it has been for us. suffering of the indonesian economy after the 1990's. we are optimists it will go through and the economy will

grow up. haslinda: what assumptions are you making about monetary policy now that we are seeing stability in the rupiah? do you see possibly cutting risks? jemmy: all my friends in the market, we're expecting a 25 bet. haslinda: some are saying there will be three rate cuts. jemmy: perhaps using the rates. we are thinking at least 25 points. we think if the fed was going down the rate, only 25 points, but we can do more. we can get 75 points until the end of the year. haslinda: how should someone's portfolio look like right now? jemmy: well, i think you have to the optimist -- be optimist. haslinda: how much cash would

you be holding? jemmy: only 10%. i think the chance of winning -- even if he wins, it will be one or two days. he is a nationalist. a capital market, a venture capitalist. that the realize market and infrastructure and everything we said before is not going to happen to. we onlyple -- i think have an optimistic side. haslinda: whoever the winner is, the focus will be on infrastructure. how do you play the infrastructure scene? what would you be buying? jemmy: we are buying construction. of course, we are buying --

threatened to delay the project for the train. e're thinking of stuff with p.p. haslinda: we have to leave it there. jemmy paul. by the way, elections will start at 7 a.m. local time. casting a vote 193 people. it all depends what the turnout is like. over the years, the nonvoters have increased. now we're looking at maybe 30% of no-shows. shery: millennials will make a huge difference, right? haslinda amin, thank you for that. coming up next, the latest on president trump's pick for the grownard as doubts about herman cain and steve moore. this is bloomberg.

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haidi shery: i'm shery ahn in nw york. haidi: i'm haidi stroud-watts in sydney. let's take a look at we're watching as trading gets underway midweek with adam haigh. the aussie dollar has been strengthening of the last month and now we have a call from goldman sachs saying on the back of the stabilization story in china, keeping your bets on the aussie. adam: we have seen a little bit of a resurgence in the aussie. we have reached a point where some of the short bets against the all the have gone pretty extreme and it is hard to find people betting on any upside. when you are hearing from the folks at goldman sachs, the fx strategy team, basically go along aussie against some of these other crosses like the new zealand dollar, canadian dollar and south african. this is a trade that does not give you some of the idiosyncrasies you would get if

you are trading to electric -- directly with the chinese wanyu. it helps to cushion against upside risk from things like potential resolution in the u.s.-china trade talks. you are starting to see a few others build on this trend. you are starting to see things pick up. you are starting to see less of a kind of doom and gloom scenario around the australian economy. it is very well in the price at the moment. people are very aware of the housing decline. people are aware of what is facing the rba in terms of what they need to do from a policy support. at the same time, chinese growth has been stabilizing. as the chart shows here, a currency and china that has been very stable on a relative basis over the last few months. the thought from goldman is you might get some kind of break out of that but the best way to play that is my going long on the australian dollar.

epic rally weis have seen since christmas, we are seeing many analysts year and targets having been reached and it is only april. does that mean we could see more upgrades soon? rare youh, it is quite surge in the 16% market in three and a half months. not totally unprecedented, but only a couple of times it has happened going back a couple of decades. it is clearly notable. 500 2900 level on the s&p begs the question whether wall street strategists need to continue ratcheting up their expectations for both earnings, but also for further evaluation expansion and for continued equity gains. or whether this is already what you have seen an asset prices already baked in and you will struggle for returns going out for the rest of the year.

there are a couple of strategists in the last couple of days you have been in the former category, slightly lifting their apps minutes -- their estimates. the continues to be people saying you cannot extrapolate the gains you have seen in the early fea months of the year. the equity market's giving and pricing the benefit of the doubt that the fed stays accommodative through the remainder of the year so you should taper down your expectations on what you might expect a return from equities. the big caveat is you get a better boost to earnings in the second half of the year if global growth does pick up. you start to see some further signs of an improvement in u.s. growth in the second quarter and third quarters. that is really the thing that divides opinion at the moment. are we going to get enough from earnings that will give a kick higher? at the moment, a mixed earnings season. cases of both negative and

positive in the financial sector . as we get further in, we will hear from more of the industrials and the other sectors that might help decide that question as to whether earnings growth can continue higher from here. shery: thank you so much for that. adam haigh. you can find his charts on the library. president trump's top economic advisor has said the white house is interviewing candidates to potentially replace herman cain and steve moore as donald trump's picks for the federal reserve board. joe joins us now with details. we know that these nominations have been pretty controversial. what exactly did larry kudlow said? joe: he said they are looking through names but not acting to pull either man. neither of which have been formally nominated. they are going to background checks at this point and some

further vetting at the white house. but the problem is that at least in herman cain's case, there are four republican to have said they will not vote for him to ee confirmed to the federal reserve board. that means he's pretty much got no chance. democrats are firmly against it and republicans only have 53 votes in the 100 member senate. a cain nomination was something -- unless something drastically changes will not go forward. the president has been willing to let him sit out there and distanced himself somewhat from the nomination, saying it will be up to cain on whether he will withdraw or go through. we still don't have any of the nominations going to the senate so there is no action and there will not be any action in the immediate future. in terms of what comes next in this process, what do we know? joe: the senators will be

waiting to see who actually gets nominated. there is a lot of expectations of the capital that eventually cain will withdraw his own name or the white house will withdraw it. they will have to come up with a list of other candidates. at this point, they have not been consulting with members of the senate who have confirmed. they are going to the process of looking through alternatives knowing that cain is not likely to go through. steve moore seems like he might be in ok shape. there has not been any immediate if youn against him, but have a jailbreak on cain among republican senators, some may take a second look at moore as well. the white house will be lining up some alternatives that they can immediately name if these two fail to go through any further with the nomination process.

shery: thank you so much for that, joe. our bloomberg congress editor in d.c. chile is one of the world's most open economies, but it is not immune to the ongoing trade war between its two largest trading partners, the u.s. and china. earlier, i sat down with the finance minister, the architect behind the recovery in south america's wealthiest nation. i started by asking him about the large inflows is country gets from chinese investors. >> we are very open to foreign investment. we certainly would like to understand if there are some strings attached, but in general, chile is a very open country. it will welcome foreign investment, particularly in all sectors, but also in the sectors where we need investment infrastructure. very important. we welcome investors to our economy and they have to compete because it is a tough market.

a lot of people competing to get these projects in infrastructure, ports, bridges, railway facilities. it is all kinds of things that could be done. some of them are done, some of them could be done using the , public-private partnership. interestingly, some of these projects were approved and built 20 years ago and coming now to maturity. we have the rebidding, the second bidding of some of these interurban highways. shery: what sectors to the chinese have a competitive edge? >> i think they are coming -- there is a, consortium that includes chinese companies that is trying to get into the train opportunity.

the road most traveled in chile. more than 15 million people on a population of 18 million by go through that road annually. and theen for highways energy sector. we have seen chinese investment come in traditional were noble energy, particularly solar generation in the north. you have probably seen the flamingos and other things. this is the best place in the world to get solar radiation for generation of electricity. shery: chile right now discussing the new tpp, transpacific partnership. when do you expect the country to finally ratified it? >> we are in the process of doing that. it is not a walk in the park.

we have had some people complaining against that, but i think we will pass the bill. as usual, you get some groups that are vocal against this agreement, but i think we will have a solid majority behind the agreement, which started in the previous government. it actually started in the first administration of the president. we are finalizing it. shery: it has been a long time. >> we are talking about weeks before we see the ratification of the treaty. haidi: that was shery ahn speaking with the chile finance minister. breaking news moving the kiwi dollar. new zealand releasing first quarter consumer price numbers, missing expectations. rising 1.5% year-over-year in the first quarter compared to 1.9% in the fourth quarter. missing expectations for 1.7%.

even further away from that 1.3%. consumer prices rising 1/10 of 1% quarter on quarter, missing expectations. .6694iwi dollar falling to . the stronger old prices not quite adding up to stronger inflation for new zealand. this is bloomberg. ♪

shery: we have breaking news. an osaka based paint maker has agreed to buy a group for nine australian dollars in cash. the group is a paint and coating manufacturer in australia. a premium of 28% over the close. duluxgroup says it intends to give up special dividends of up to 26 aussie cents per share.

nippon paint says the bid will not change the leadership or the operations. they are going to pay 15 all the cents per share. of course, we know that the market is a $140 billion market and pretty fragmented so we could see more consolidation. haidi: it is one to watch in the sydney session. let's get a quick check of the latest business flash headlines. blackrock rebounded from a bumpy end of the last year as governor's -- as customers jump into liquidity. the world's largest asset manager saw $65 billion in net inflows in the first quarter, the strongest total since 2017. it helps lift the company's asset of the management above $6 trillion once again. after netflix slumped hours, propping questions about growth in the increasingly

competitive streaming sector. analysted to beat projections in the first quarter, coming in just shy of 2 million yuan. we will have plenty more to come on daybreak asia. this is bloomberg. ♪

haidi: a very good morning. stroud-watts in sydney. we are one hour away from the australian market open. shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this wednesday, u.s. stocks rise despite divergent clues on the state of the economy. the nasdaq closing within 1/10 of a hide. -- high. both sides say they are