haidi: good morning. we are under an hour delay from the australian market open. sophie: and i am sophie kamaruddin and hong kong. welcome to "daybreak: asia." -- in hong kong. welcome to "daybreak: asia." haidi: our top story this thursday, falling to a one-week low as they do little for confidence. health care is leading the decline. topping one million

aussie dollars. u.s. and china in new trade talks. the signing ceremony could happen in may. we are live in jakarta with the president seemingly on course for another term. i will be joined by some big guests and get their reactions to the preliminary results. shery: let's get a quick check of the market close. day for probably down the rkets. the s&p 500 falling .5%. not even use that we could probably see a trade deal in may was able to lift it into the green. it was mostly to do with health care concerns over potential policy changes in the future. you have provers like unitedhealth falli for anoth day. thcomposite was unchanged.

the nasdaq saw a record high as we saw qualcomm gaining ground on that licensing agreement with apple. let's see how we are setting up for the asian markets. sophie: we are setting up for a subdued start ahead of the eastern -- easter weekend. keeley stocks are off by one third of a percent. stocks are off by one third of a percent. in australia, we have the jobs report you this morning. a highlight among them, fortescue out a moment ago. below estimates at 38.3 million tons. just to show you how the stock spared, we did see a drop of 8.5% on wednesday, tracking that decline that we saw in iron ore prices. sees iue says it still

am shipments staying at 155 million. lowering the guidance ever so slightly. australian bank announced additional cost for customer abbreviation matters. 1.1 billion australian dollars. this result was the unexpected cut to first-half earnings by an --imated 325 million a ud aud. su: we start in indonesia. like he isnt looks on course for a second term. this with unofficial polls pointing to a victory. extending a stock rally. thanks and construction companies made the most with jokowi.

the jakarta composite has rallied 10% in the last six months. to the u.s., we will learn more about the mueller report leader with attorney general william barr planning a news conference thursday morning in washington. the almost 400 page report will be scrutinized for any new disclosures of contact between the trump campaign and russian operatives, who allegedly interfered in the u.s. election. sought to see if the president interfered. national security advisor john bolton says washington needs to see a real indication that pyongyang is ready to move. i am told that is not the case at the moment. a lot more pessimistic than recent comments from mike

pompeo. to paris now. the reconstruction of notre dame has already attracted $1 billion in donations and pledges. the immediate priority is to secure the vault, which is open to the elements after the spire collapsed monday's fire. french president emmanuel macron has vowed to rebuild within five years and said the government will pass new laws to simplify tax breaks and construction procedures. 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. i'm su keenan. this is bloomberg. haidi: thank you. are and chinese officials planning more trade docs in a bid to reach a deal by mid-may -- trade talks in a bid to reach a deal by mid-may. another step closer, it seems. >> it does seem like we are in

the last leg of negotiations. you have more dates for your diary if you are 18 -- a keen watcher. 29th, they will have high-level discussions with their chinese counterparts. the following week, we are inspecting them to lead negotiations on the chinese side and fly back to washington. then we are expecting both sides to announce a deal. that is likely in early may. you are looking at a presidential signing summit between president xi jinping and president trump. is the expectation from our sources. last couple of weeks but have heard of progress around the enforcement mechanism. it has not been finalized. this will be a two way enforcement deal. it has gone some way to address the concerns of the chinese.

least $50 billion in tariffs to be kept in place. we had that unusual request for the chinese to move their retaliatory -- remove their it -- remove their retaliatory tariffs. i was speaking to a senior u.s. official who is close to the negotiations. he told me he thinks the deal would be more substantial than many people expect. tom, we have seen the chinese economy looking like it is stabilizing. at the very least, it gives them a stronger platform to continue negotiations because we had comments from senior u.s. officials, saying look how weak the chinese economy is. they will have to make serious

concessions. the chinese can turn around and say, look, things are beginning to stabilize. other data figures are looking fairly positive. there are usual caveats around those. been reporting on that. there is a plan by the reform commission, potentially to put in measures to support the auto sector. sales continue to fall in the auto sector. you might get additional measures to support that. that is a sector that makes up 5% of chinese gdp. we saw some pickup in terms of major of apple and a electric maker. -- electronics maker. up largest automaker picking strongly on the back of this news.

additional stimulus measures may be in the pipeline. the economy appears to be stabilizing and that gives the chinese a stronger footing. as we said, the timeline is getting slightly clearer on when we finally get an end date. shery: tom mackenzie in beijing. they give. -- thank you. i doubt why our guests said they should not get defensive. and later, we will be live in jakarta for commentary from the deposit insurance corporation. this is bloomberg. ♪

shery: -- haidi: we are counting down to the asian market open this morning.

gains posted for japan and korean markets in the wednesday session. the unchanged. a bit of a down day that we had yesterday, despite some of the robust china numbers that came through. we have the bank of korea decision as well as aussie market data out later this morning. dayy: it was another down for health care providers, which helped to drag u.s. stocks lower. the listm offsetting from qualcomm. we had a quick recap of the trading action and after hours. got ae health care sector lot of love before the downturn. that is not necessarily a good thing, especially with the political climate changing. you will notice the health care managed-care sector was down

athlete 3%. that was one of the key stories today. to it.en inching closer the s&p 500 inched closer to a record but did not hit it. let's go into the big movers. we are in the peak of earnings season. qualcomm is at the top of the board because in two days it has risen a whopping 40% because of entering into a deal. even that could not lift greater market. very disappointing and earnings report. morgan stanley, on the other side was a positive, but they canceled each other out. earnings season has kicked off with thanks reporting. -- the banks reporting. we had mixed results this week, but technical show financials

could be setting up for a bounce. we have to go after hours because the mustang biotech stock -- little-known before up as muchve, it was as 390%. it still retained most of those gains, as we get into the tail end of extended trading. the gene therapy breakthrough for a rare disease called the bubble boy disease that mainly affects young boys. it could really help to turn the tide for this immune system deficiency. you can see investors are piling in. bigi: potentially a really game changer there. oil futures, what happened there? su: generally, the overall tone is bullish. there was a decline, but it was

much less than expected. we barely saw oil move by the end of the day. it was a decline on gasoline. you will notice gold, not much of a move. oil is the story. up 40% plus in 2019. it has a lot to do with the opec plus nations cutting production, including russia. unexpected outages from venezuela, iran and other countries has really created a supply demand equation that has stayed with the bulls today. back to you. haidi: thank you. let's discuss the latest market moves with sandy. always great to have you with us. we have seen the health care sin -- dampening the markets. a potential trade deal between the u.s. and china could becoming in late -- be coming in

late may. what is driving the markets right now? ? earnings -- right now? >> earnings season is underway. earnings growth for the first quarter is expected to decline by more than 4%. by almost half a percent in the second quarter. the market has shrugged this off. the early reports are encouraging. more than 5% of companies have reported. most of them have delivered positive earnings. ever so slowly, that decline in earnings growth is improving slowly. that brings us to a very interesting statistic. what typically happens over the course of the earnings season is that earnings happened to be higher at the end of the period than they were at the beginning. this happens because management

always has a low bar for expectations that they hope to beat. all this focus on negative earnings growth actually may not happen if these surprises continue. shery: we are seeing tech earnings also heating up. this chart on bloomberg showing that despite the fact that we got the nasdaq 100 hitting record highs again, the signals are over bond on the top panel. 70 level.d that compared to the s&p 500, also higher than the dot-com bubble. how long can this bullish momentum in tech stocks last? valuations, earnings have been revised lower, significantly. they are the third worst group in terms of earnings expectations. gives room for

positive surprises. this sector is sensitive to how the china and u.s. trade war unfolds. there is every indication that it will be favorably resolved, probably within a month or so. i do think that the sector might have too many negative indications. it is poised for positive surprises. talk about valuation for just a -- let's talk about valuation for just a moment. go ahead. moving a -- the market is trading at 16.7. people worry about how much higher rate is been historical averages, but do not forget that we live in a regime of low interest rates. were 15.5 on a forward

basis, the 10 year bond yield was higher. today, it is a mere 2.5%. about 16orward pes are for the market. they are easily sustainable. haidi: a lot of this is pricing andhe fed powell report almost coordinating dovishness across global central banks. how much of this could turn around quickly, especially as we see signs of recovery in china? >> the reports out of china, the pmi's were higher than acted -- then expected. than expected. the stimulus they pumped into their economy will support and marginally lift the chinese economy. in most central banks, they have

stated neutral at the margin. they have become a little dovish, as has the said. there is an indication that the fed is on the sideline. i think this sentiment, the reversal back to a more dovish stance by banks will cause a revival of growth in the second half of 2019. big news washer the german powerhouse that we have come to know, cutting growth expectations for 2019 to .5%. is that entire area, including , is that something you would be avoiding? do you think that is a turnaround that could be driven by a more sustained recovery in china? >> europe has all the makings of being a value trap. people look at valuations in the u.s. and get intrigued with low

pes in emerging markets, especially in europe. opposes -- europe poses significant risks. germany is an export oriented economy. the global trade war has impacted the flow of global trade and hurt germany quite a bit. political risks abound in terms of populism, driving significant change in policy. is stillis the u.s. the country, the region with the best fundamentals. is reasonablye accommodative. towardsa drive deregulation. valuations notwithstanding, we are firmly in the camp of u.s. versus non-us. like not emerging markets.

emerging markets. haidi: all right. let's take a look. we have plenty more to come. this is bloomberg. ♪

shery: the catalogue president says he sees significant consolidation in the vehicle industry in the next five to 10 years. he also spoke about the importance of the chinese car market. >> last year was a record year globally. we did just under 400,000 units. more than half of those is in china. china will be an enormous market. the china market itself is enormous. the luxury market is growing quickly there.

we are seeing the growth of the luxury segment, so we are excited by that. all the products we are launching in the united states and china with tremendous success. aret seems like there hundreds of start up trying to get into the market. how tough is it to operate their? -- operate there. >> we had a terrific partner. it is very competitive. we have a good position and great support. we look forward to continued success there. it is very exciting in china right now, dominated by the so-called local players. you can see the international and global competition ramping up their very quickly, given some of the regulations. >> cadillac has a big footprint in china. is it affected by the tensions that have come and gone between

the u.s. and china? >> certainly not from the government. from the consumer, not so much that we can detect specifically. i would say in the market, overall, the early part of this year, a certain amount of uncertainty. there is another compounding factor in their, such as changes in different tax treatment of automobiles that applies to everybody. so far, so good. it is an enormous market. is 28 million, it is still a huge opportunity for us. for me i with cadillac, we are on a strong growth trajectory. >> what about your electric vehicle launch? we going to have an all electric cadillac? >> we are a couple years away from that. we did unveil that at the

detroit auto show and we will continue to talk and showed more about that. you can expect that in a 2022 timeframe. >> what will be the way forward? will it be more buying of startups? how does that market evolved for you? >> right now we are at a reflection point that we saw in the 1920's, where there was a huge number of entrance coming into thets coming automobile market. you can expect significant consolidation over the next five to 10 years. it is not easy. it is investment intensive. the market can only withstand a certain amount of fragmentation. it will start to come together as it plays out. shery: coming up, next, the very latest from the indonesian

election. rivalesident and his already calling foul. this is bloomberg. ♪

su: this is "daybreak: asia." we start with the latest on boeing. expectations that the boeing 737 max 8 jet may be permitted back into service have been dashed by canada's decision. they demanded that additional training be given to cockpit crews. the planes will remain grounded for as long as it takes while pilots learn boeing's fixes in the simulator. the u.s. faa said there was no need for simulator training after review from pilot and industry. the u.s. and china are said to be scheduling two more rounds of

trade talks with a possible signing ceremony at the end of may. steve mnuchin plans on being in beijing on april 29 to meet with the chinese vice premier. it will be flying to washington -- he would be flying to washington the following week. trade talks have been going on for nine months at this point. the trump administration has halted recent government actresses of disclosing the size of the u.s. nuclear weapons stockpile. you may recall that president obama declassified the full history of u.s. weapons dating back to 1945. gaveer administration warhead numbers as recently as last year. now they are saying that they cannot disclose any more such information.

the loss of foxconn has put an end to speculation. he will indeed run for the presidency of taiwan. he said he will seek the nomination of the chinese friendly -- next year's election. he is looking to unseat the president. goddessthe sea encouraged him to run. 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. i'm su keenan. this is bloomberg. attack on theet market this morning. asia stocks at a six month high. stocks when it comes to to watch, we are keeping a watch . mining orders from nuclear

reactors. we are keeping and i on engineering and so-called korean peace talks and defense players. when it comes to stocks to watch in tokyo, flipping the board on the radio -- radar this morning. this is the nikkei news reports that the company is expected to lower its 2019 operating outlook. it saw a drop in domestic volume for cigarettes in march. be keeping a watch on banks and japan as the boj says more banks are vulnerable to risks from credit investment, given the increasing investments overseas. we are keeping and i on e onoleum -- an ey petroleum. reaction alongt

with other production updates from australian companies like what is q -- fortescue. president indonesian seems poised to win another term. this as his opponent signals that he will dispute the result. our correspondent is in jakarta, covering the election. what is the mood today? haslinda: is wait and see. we are waiting for the official results. rumored that he has won another term. mean?t another term essentially a regulator in the banking sector, good to have you with us.

expecting a second term in office. what can we expect for the banking industry? >> we can expect further mergers. we can expect the regulators promoting regeneration to complement the banking system and provide competition. margins is onet of the most profitable banking systems in the world. we want to provide competition so that they can provide better sect -- better service. haslinda: are you encouraging banks to buy startups? betty --sia, it is not ready for the digital economy. where are you?

is pretty low compared to its neighbors. important. it is accelerated now. it is important that it grows within legal core doors -- corridors. time, we need to foster products. haslinda: what can we expect? i do not think we will see growth like the banking system. there is a 6% gap. element inso a third the bond market. deposit growth has been affected by the fact that bond yield has

gone up. primarily because of emerging-market instability. had the options of whether they want to put , 6%y in the banking sector or 7%. that is mainly because emerging-market bond yields has gone up. now the bond yields have gone down. that can provide a little bit of relief to the banks and the fintech companies.

slow. as a regulator, what will you be putting pressure on? right now, there is no reason for them to consolidate. >> if you look at the ratio, it is pretty high. it makes banks very attractive. 115 commercial banks and almost 1800 -- that is why we have specific cases that have failed. this year we have closed down three banks. what we can do is to ensure that those weak banks get consolidated by pressuring the owners of those banks. probably three or form -- four more banks this year. haslinda: why has there been a lack of interest from foreign banks to buy up indonesian banks? >> mainly because the owners of those banks price themselves to high -- too high.

injectionk at capital , if you look at the ratio, it is not that separate. with the exception of a few banks. haslinda: were you disappointed? ofre were no takers interest. >> we are only dealing with failing banks. that financial conditions in the banking system are sound means that, most likely, banks are expensive. haslinda: some people are talking about the potential of the next financial crisis. when do you think that will be? growth, ifook at gdp you look at the interest margins around 5%, we do not expect a

financial crisis, unless a group of taxpayers are negligent. if you look at global growth at expectations that global interest rates are unlikely to rise sharply, most analysts like bloomberg are saying that they are likely to stay where they are. rate.se, the euro danger aso imminent far as policymakers are concerned about financial instability at the level that we saw in 2008 or 1998 for asia. haslinda: optimism as we head into the second half. i will have more election

reaction. we will be speaking to more policymakers and guests, coming up. and then you will banal double be joining us next. -- emmany well rinaldo nuel rinaldo will be joining us next. ♪

shery: we are counting down to asia's first market open. features are looking like a little bit under pressure. 291 is the level. yet expecting the decision later. -- we are expecting the decision later. policymakers have emphasized it is not yet time to cut rates. this is "daybreak: asia." haidi: we will get you a quick check on the latest is this flash headlines. narrowly beating estimates as growth in the gucci brand pulled

from last year's relentless gains. they have become used to the big beats. expectations were fueled by forecasting sales last week. the gucci brand making up three quarters of the group's profits. --ry: the regulator potentially opening a new front in the trade fight between washington and beijing. they want to deny on national security grounds, describing the company as a delaware registered subsidiary directly controlled by the chinese government. china mobile says it is not required to comply with requests. chase isp. morgan swapping responsibilities for two top female authorities. one will become the head of consumer lender -- consumer

lending. the effects -- they will come into effect may 1. let's get back to the indonesian election with president jokowi on course for a second term. we asked what the government must do to boost growth. >> the challenges on the real sector. how do we get out of the 5% growth? that is an investment question. restrictiona lot of to what to invest in. >> we do like indonesia. growth was about 5% or so. shery: let's get back to haslinda amin. haslinda: the elections that against the backdrop of growth.

looking at 5%. the target is 7% growth. rinaldo joins the right now. we talked about how we would make infrastructure a priority again because that is needed for growth. how essential do you think it will be? since the reform of 1988, our --nomy and indonesia relies people, industrialization.

-- people call it industrialization. the first one has to be in the first period. in the second period, the government must improve human development. problem.come a in the first period, the unemployment rate of the people inindonesia is going down 2014. you see the unemployment rate coming down, we see the --mployment rate haslinda: the issue is funding for these initiatives. percent for the first time in his presidency. how do you spread the money? infrastructure,

the government still needs to reform. in many times, we see the permit of the industry from the central government. it is tough because of the regional government. --be there is still regarding the negative growth, besides the global sector, there from the 2015 and 2017 getting up. , you can see019 the index. other concern is

account deficit. how confident are you that the government will be able to address current investors? them very high. stagnant.t remains it will bring a decline. also, the income tax. it generates 2.5% of gdp. it may give indonesia a chance in the second half. within the.3% five-year presidency, can we see that growth for indonesia?

>> i think it is possible. the government needs to synchronize for the human resources between the high-end division and industrial demand. if they can synchronize, it can for the quality industrial labor. income growth, also. the biggest risk comes from the global sector. improves, wewar see that it may affect export growth negatively. it can bring down the growth of

indonesia. haslinda: all right. think you for your insight today. they have it. an assessment of the economy poised to grow. still very far away from the targeted 7%. haidi: much below the potential there. we will have much more with haslinda, including more reaction to the indonesian election in the next hour. investment coordinating investor will be joining us with his view. ♪

shery: this is "daybreak: asia." says: the bank of japan they have grown more vulnerable and credit markets as they increase overseas investment.

the is in the wake of negative interest rate policy that is prompting banks to seek higher returns by investing in risky products abroad. one of the takeaways when it comes to the financial system reports in the bank of japan? >> good morning. the biggest take away is that the boj recognizes that the side effects of its unprecedented move on the banking system -- the boj said the banks are investing overseas in risky products. they are also getting back into foreign bonds now that u.s. rates had eased some. one of the latest reports is the boj said the gauge of we'll estate lending and the real estate market has reached the red zone for the first time since the aftermath of the late 1980's housing bubble in japan. the lending at home has become a

this.bbly in the wake of the boj was quick to point out the property market itself is not overheating. shery: how does this influence the boj policy? the bojlikely to shift policy framework. economists are quick to point out that it is too risky for the boj to start thinking about or talking about normalizing monetary policy right now. governor kuroda is very determined to reach the 2% inflation target. on the real estate side, one congressman at bloomberg intelligence said the boj might tinker with its target in japan real estate investment trust. buys ¥19of japan billion and it is undershooting that target already.

somight lower that target that it eases some of the overheating in the real estate lending market at home. shery: thank you so much for that. review of the market open in south korea and australia. sophie: after the topix closed at a december hi -- high. traders will be closely watching to see if the be ok may thisa further dovish tilt thursday. may take a further dovish tilt this thursday. when it comes to japanese stocks, foreign funds have become that buyers. be cautious of chasing games too far. -- gains too far.

japanese stocks tend to be solid for the next few weeks. in sydney, we are watching minors in the back of fortescue reporting iron ore shipments do test cyclone veronica. softer than forecast. it could see possible risks emerging amid raw material and power costs. postedte this morning first quarter production that missed estimates with sales revenue up 4%, due to higher realized prices and despite destruction given the cyclone activity. let's look at how the commodities are doing so far. still overall bullish sentiment, but we did see oil extending losses in asia after inventory data from the government showed that gasoline supplies shrink.

-- supplies shrank. we are seeing a little bit of movement when it comes to precious metals and a decline when it comes to copper. this is bloomberg. ♪

good morning, i am haidi stroud-watts in sydney. shery: good evening, i am shery ahn. sophie: i am sophie kamaruddin. welcome to "daybreak asia." ♪ haidi: our top stories, asia-pacific stocks are set for a muted open after the latest corporate earnings did little to boost their wall street peers. the u.s. and china checking dates for new trade talks. a top level signing ceremony could happen in may. shery: tepco we looks on course

for victory after this jci stock rally extended, live in jakarta. let's go to hong kong for a check of the markets that are trading now. south korea, japan and australia online. sophie: in tokyo we are seeing the topix and the nikkei gaining ground while the yen is holding lowdy, near a four-month against the dollar with 10 year bond yields near the zero level. checking in on the kospi, we are seeing the benchmark higher .1% after faltering on wednesday to day rally. a 13 seeing the benchmark resume gains. --ad of the u.k. decision bok decision we have the korean won firming up .2%. bond yields, there could be impetus for moves for korean bonds if we could -- if we should see dovish tilt from the

bank of korea. the asx is off .2%. we have had updates from fortescue and energy producers with petroleum and south32. we are seeing the aussie dollar going lower ahead of the jobs report and aussie bonds shrugging off improvement we saw in competent pmi's. we are seeing kiwi stocks under five-dayet to step a advance while the kiwi dollar is looking steady after the drop on yesterday after the miss in inflation data. , moving in on alumina in sydney, the stock off 2.7% after alcoa trimmed if outlook for aluminum demand, given the weakness in china. that will impact aluminum prices. also want to highlight rocket 10 -- record 10 --

the pricing of pinterest ipo. also on the radar amidst a chelation -- amid speculation japan could tighten the rules. haidi: good way for asia to play pinterest story. pinterest has priced its ipo at $19 apiece for shares. that is the upper end of the range being $70 apiece. start trading to on thursday on the new york stock exchange under the code pins. looking at $19 a share price, what is coming up. two dollars above the high-end of the range. getting a number of $1.4 billion according to the indicated price of $19 a share. it is not had a rising itself as

social media or a tech company but more a digital bulletin or inspiration board. after that, we are seeing a listing on thursday on the new york stock exchange. we will speak to the ceo later. it has been a banner season for the tech ceo's -- ipo's, i should say. uber will debut in may as well as zoom, the video conferencing aboveer, pricing expectations. let's get you to first word news with su keenan. su: we begin with elections in indonesia. the president looks on course for a second term. unofficial polls point to a victory seen extending a rally. it has added $53 billion in market value. banks and construction companies could benefit the most. pledging to continue a massive

production program in southeast asia's economy. the jakarta market has rallied 10% in the last six months. to the u.s. where we will learn more about the robert mueller report with attorney general william barr planning a news conference thursday in washington before handing the report to congress at 11:00 a.m. east coast time. the 400 page report will be scrutinized for any new disclosures of possible contacts between the trump campaign and russian operatives who allegedly interfered with the elections. the report could show whether the president thought to him -- thought to interfere in robert mueller's inquiry. supposedly supervised the testfiring of what has been described as a new type of tactical guided weapon. this in a move some say as

provocation. -- kcna does not doesn't refer to it as a nuclear weapon. the u.s. wants more evidence kim would give up his nukes before agreeing to more talks. the trump administration has halted recent government practices of disclosing the size of its u.s. nuclear weapons stockpile. declassifiedma had this in the history of nuclear weapons and the trump administration had given warhead numbers as recently as last year. that appears to have changed. the energy department cannot disclose this type of information. expectations of allowing the boeing 737 back into service in by theirve been dashed decision to rebuff the faa and demand greater training for cockpit crew.

the transport minister said planes will remain grounded for as long as it takes while the pilots go through the fix simulator. the faa said something different, that there was no need for simulator training after a review from pilots and industry experts. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: we have been told senior u.s. and chinese officials are planning more trade talks in a bid to reach a deal by early may. economics correspondent has been tracking this, and we are getting more clarity on how this deal can be completed at least when it comes to the timeline. enda: there is a choreography of events being lined up. we will have the u.s. trade representative lighthizer and soon -- secretary mnuchin going

to beijing for discussions and then the week after the vice .remier goes to washington a deal will be sealed if not signed because the presidents will meet later for a formal signing ceremony. we are moving towards [indiscernible] stages. there is haggling going on with both sides where duties will be lifted but a deal is in the works. it will give way to a wave of whether or not this agreement is doable and puts to that -- to bed all of these issues or if they need a -- set to continue. haidi: the data we have had this week suggesting stabilization in the chinese economy, does that give beijing more leverage and strengthen their hand into this last stage of talks?

enda: this has been one of the side stories of negotiations with commentary from the u.s. trade talks, officials like larry kudlow who say the economy was weaker and why the u.s. was in a stronger position was china the volatility in the u.s. market. nevertheless china has got a better position now. the domestic story seems to have stabilized. there is skepticism around the numbers but indicators pointing in the right direction. you could give china some breathing room as they haggle over final bits of this deal and enforcement and around which duties they will lift and not. china is not under as much pressure to sign a deal immediately as they were the end of last year. room more -- it is more for maneuvering. haidi: chief asia economics

correspondent enda curran. let's look at the early movers. janet andoking at in tokyo, the company is expected to lower its 2018 property -- profit operating guidance. slower sales and weaker camera demand. in sydney, fortescue, the stock is fluctuating, sliding one person down but now up .7%. they posted softer third-quarter shipments. they have narrowed the full-year target while costs continue to whether. and alex resources falling 10.3% to a dry 22 -- 2013 low. market sentiment and current weakness in short-term prices for chemicals. and looking at graincorp under

pressure in sydney, this as its business has been disrupted by trade tensions and a drought. they say the deterioration will be approximately $40 million australian, and expect it to be that for the first half. haidi: still ahead, the chipmaker is something of an industrial bellwether. we will have those earnings thursday. and samsung with the downward trend. a preview later on. shery: postelection polls indicate a sieve -- second term for this president three likely reaction with the bank of singapore. this is bloomberg. ♪ ♪

haidi: this is dave -- shery: this is daybreak asia. haidi: some lines on boeing crossing the bloomberg, hearing videohe ceo speaking by a

message saying they conducted 120 tests of the 737 max 8, they spent 230 flight hours testing the [indiscernible] 85% of the 737 max 8 operators have completed simulator sessions so far. we will continue to monitor that, boeing trying its best -- to get to their planes -- [no audio] [please stand by] other insights are saying the effort to return the 737 max to the skies, the transport of they needister saying more simulator training, so ,earing from the boeing ceo giving an update as to where the final engineering test flights

and simulator training for pilots and engineers have gotten to in the redesign of the mcas system as well, all of this following the fatal ethiopian air and lion air crashes. indonesia votes, the unofficial vote count pointing to a second term for the president. they could extend the pre-election rally that has gone on, adding $53 billion over the past half a year. we are at this chart, within a whisper, 3% of an all-time high. 10% ofighs rallied acoustic market value of over $500 billion. you can see the record over the next few sessions. particularly destruction of property stocks leading the vote as a result of this massive infrastructure drive at the core of economic and policy for

jacoby. the bank of seat in the report -- the bank of singapore leader has joined us here. we see a buildup in the markets, increase in a to second term. do you expect more investors, particularly the foreign investors that have been more cautious of the lack of medical certainty -- political certainty, to come back in? >> yes, as you have shown markets have already rallied in anticipation of the reelection of the president. there is always that uncertainty which only dissipates at the last minute. that remaining uncertainty i think will provide another boost. both markets, bonds and equities, have done well. the next step i would say even ahead of the policy

announcements around spending would be the central bank bank of indonesia would be able to deliver rate cuts. to confidence. we are seeing the currency in a positive direction. that will all add to further upward impetus for the indonesian markets. haidi: what are some of the biggest hurdles? above potential, looking at the possibilities for the indonesian economy -- what is missing in terms of key reforms? more opening up, more foreign investment allowance? is someyes, that fundamental difficult reforms which need to be implemented as well. investors have been told these reforms are going to come over

the past couple of years, but they are always very challenging to implement. your point early on, the margin of victory will be important to reallyt mandate, to deliver on the more difficult reforms. something -- there are headwinds for indonesia, higher oil prices that we have been seeing in the last three months or so, really good for indonesia. better chances of a trade deal between the u.s. and china, those are all good for the region and good for indonesia as well. we saw the rupiah risingze after the rates in 2018. the economy is pricing in more rate cuts. look at this, you can see stabilization of the rupiah. are they premature in betting we

could see cuts? rajeev: i don't think the markets are premature. central banks, the bank of indonesia will deliver rate cuts. they have tightened a number of times to support the currency also. and an environment where the fed was tightening as well. that has changed, the fed is on pause. generally central banks are feeling more relaxed, and across the word -- world feeling more dovish. shery: that is one of the reasons we have seen this rally in emerging markets. what about asia? rajeev: that rally has reversed some of the selloff we saw in 2017 which was particularly difficult on emerging markets and on asia. asia was the epicenter of the

trade war fears and the contamination from slow growth from china to the rest of the region. if that is lifting and we see indications china growth is improving -- we saw it yesterday . but if the trade deal is a good one, and it seems to be progressing well, that will remove some of that uncertainty and also be positive for further investments. probably investors in the great economy have been holding back economy have rate been holding back to see the -- beforebefore cap committing real assets. ordi: how much significance authenticity do you assign to the latest number is we are getting out of china? if you take it at face value, is that going to be a strong driver for emerging-market assets,

provided we don't see unexpected strength in the u.s. dollar? rajeev: you are right. when one looks at the gdp number itself, doesn't move very much, it is stable. it was strong when it came out yesterday. i would look at a broader range of numbers. was improved.oans the purchasing managers confidence turned up a little bit. not just gdp and production. we are having a number of different signs of improvement. some of them are reflected in the commodities markets, metal, copper and other metals. we are seeing quite a recovery since the beginning of the year. the growth is concerned by more numbers than the strong change in gdp. there has been a lot of stimulus of different kinds put into the

economy. rates have been -- monetary conditions have been eased. we expect an impact this year, taxes cut, some as recently as april 1. they will have an impact. vat on cars. they will carry through this year, we believe. shery: thank you for joining us. the bank of singapore cio. plenty more to calm. this is bloomberg. ♪ ♪

shery: fortescue metals has narrowed its annual outlook for iron ore shipments after a cyclone hit australia in march. ray -- david springer joins us now. how has fortescue fared compared to its rivals handling the impact? david: fortescue certainly

haven't escaped unscathed but it went to the same degree from earlier this week with rio tinto group and bhp. fortescue has narrowed that guidance range, slightly lower, the top end of its expectations but broadly shipments in the fiscal year should be in line with last year, not protecting any dramatic -- 170 million tons. cost will be higher as a result but --rages at the port certainly fortescue impacted but not as much as we saw from its top rivals. haidi: what sort of impact are we seeing when it comes to the iron ore market? we heard they would be reopening a key mine in brazil. ? this a short-term impact doesn't disrupt the overall rally? does: i think it probably

disrupt the rally and prices could go lower. commonwealth bank of australia predicted iron ore prices might come back into the $80 a ton range rather than $90 a ton because we will see more supply than had been expected come back online from brazil. issues from fortescue are less than expected from that cyclone here. that will play into that theme. it is a story of the iron ore markets, readjusting expectations on how much supply can be lost this year. stringerl right, david in melbourne with a update on the iron ore rally that we have seen since the start of this year. alienst has raised 1.5 dollars in its ipo. targeting above the range. for $19 apiece after settling in a range of $15

to $17. they are valued at $9 billion less than the $12 billion in the last private funding round in 2017. shery: video conference provider resume raised -- zoom raise money after shares went above the already increased range. shares.d 21 million they initially marketed $32 before bumping the offer up to $35. it is one of the few tech unicorns going public this year that has been making a profit. haidi: there are reports of a major port merger. -- pot merger. -- world's largest canopy cannabis company doing a deal this week. anchorage soared in toronto before the market closed. closed in new york. the deal would be the first

major cross-border cannabis tie up. shery: we will be back live in jakarta for postelection analysis, joined by the chairman of the indonesia investment coordinating board. this is bloomberg. ♪ is is bloomberg. ♪ so with xfinity mobile

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today.

♪ >> we are getting the latest number four april. 49.5 is a slight improvement from march. it is still in contraction territory. since february, but still under that 50 threshold. the manufacturing sector has been under pressure given new orders. they have been falling with some weakness in china. if weld see a reversal

continue to see the economic recovery in china this week. let's get the first word headlines with su keenan. this is for bloomberg subscribers only. we start in turkey. victory wasged as awarded in the race for mayor of istanbul as president erdogan claimed fraud. to boostayor helped the currency on optimism turkey will avoid political turmoil that a rerun of the election would bring. the focus turns to the election board, which has to rule. to the latest on boeing. hopes of allowing the 737 max into service have been dashed by canada's decision. the transport minister says planes will remain grounded

while pilots learn in the simulator. a different view from the u.s. faa, which said there was no need for simulator training. foxconn has put an end to speculation and confirmed that the ceo will run for the presidency in time one. he will seek the nomination in next year's election. he is aiming to unseat the president, whose democratic progressive party has made a decisive break from beijing. goddessthe chinese see encouraged him to run. in paris, the reconstruction of notre dame has attracted $1 billion in donations and pledges. the priority is to secure the fault after this fire collapsed.

president macron has promised to within the cathedral five years and said the government will past new laws next week to simplify tax breaks and construction procedures. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> let's get you a market check with sophie. >> stocks are mixed. i muted session ahead. outlier, while the aussie dollar is sliding. around holding steady 112, while japanese stocks fluctuate. yesterday, pharma stocks sliding, tracking the drop in the u.s. over concerns amid

policy changes in the u.s. we see the kospi extending losses after a 13 day rally. i want to check in on samsung, the biggest drag on the kospi, slipping has deutsche bank no surprise at the scale of the rally in chip stocks despite fundamentals remaining challenging come in noting investors are willing to focus on the sector's recovery. . want to highlight denso uber is nearing a deal with the group that will invest a combined $1 billion in uber's self driving car unit. nab, nowt slightly higher.

the ratio dropping to 71%. >> thank you. bloomberg has learned that rick exit is said to plan his from the trump administration. it is not imminent. he has served since 2007. he could be planning to leave the trump administration, although people familiar with is notn saying his exit imminent, but he may be planning to exit we return. -- exit. we returned to indonesia for election results. done, thection is

mandate given. we are awaiting confirmation. it is time to move on. there is no time to waste. about it is time to move on, but sentiment and confidence in indonesia, foreign investment is still limping along. it is still a difficult place to do business. >> i am happy to report in the last three months that we have seen a resumption of capital inflows. in the last month, $1 billion of and the market comedly election outcome yesterday, markets were closed, but offshore trading and currency for to indicate the market is happy with the reelection of joko widodo, so

expect a strong rally this morning when the open. we are on a good track for a strong revival in investor sentiment. the reform agenda has not been pushed through, hasn't been accelerated to the pace it has meant to be. >> the good news is that today, the president is the undisputed master at the pinnacle of indonesian power, giving him a strong position to resume and accelerate economic policy reforms. will admit that in the past we were hampered by various vested interests and a lot of resistance to reform, but again, i think a double-digit leap after a solid election outcome gives the president a strong mandate to much more easily overcome the resistance to policy reforms. mean?t does that

does it mean that foreign ownership will be reviewed and revised? will it be easier for foreign investors to own assets here? >> you are referring to the low of a lot of people with respect to our reform agenda at this point. the president loves being underestimated. as expectations may have been too high going into our first term, they may be too low going into our second term. all the things you just up ofned, greater opening the economy to integration with our neighbors in the region, the world economy, more investment, better training, more

investment-friendly tax regime is on the table right now. >> what can we expect in the next 12-24 months? for example, the foreign ownership laws will be reviewed by then? >> the president strongly understands the importance of heentum, so time and again has urged the cabinet not to lose momentum, strike while the iron is hot. now with a strong mandate from the electorate, i think it is a safe bet he will not be wasting to have abut will try very strong start to his second term. about --r you talked can you build on that? what will help growth? yes, we based it on data we

see. we expect a very significant tonaround from -8% last year less double digits this year. teens, butely, low there is every possibility of pushing it to midteens or high teens if we generated enough excitement into the october 2020 part of the second term. opening up more sectors to international capital inflows. >> state owned enterprises? >> yes, that is a big one, a big for not only indonesia, but china and many countries in the world. it is a big and complex challenge. also, labor market reforms, rigid labor laws push too many

workers into informal employment, because employers to to avoid entering in legally binding, long-term jobsacts, but on gig--type lackg-type jobs people pension benefits, so it is easier for our people to work in the formal sector, formal employment, and it will make a big difference. chinesebacklash against money and informant in fincher's widododonesia, and joko has been seen as taking a soft approach to china. where do you see this relationship going? japan inample is with the 1980's. markets have a short memory. people forget that there was a

similar uproar around the world when suddenly there was a surge of japanese investment. many of us might remember the uproar when japanese investors bought rockefeller center at the ,eart of new york city hollywood studios, and landmarks like the pebble beach resort. it died down. japan adapted, adjusted. to world worked with japan work it out, so that today the japanese presence around the world is not confer tro -- noncontroversial. >> let's assume you will see a continued buildup of chinese money indonesia. >> if i had to choose one word to describe joko widodo, it would be pragmatic, very practical, right? we don't want that deals.

we are not going to go for things that don't work, but the opportunity is big. investment and chinese tourism and trade a mathematical inevitability, considering china is an $11 trillion to $13 trillion economy, the number one trading partner to more than 120 countries around the world, so what do you expect? it takes two to tango, and we have to close pragmatically and wisely were china to make it win-win. haidi: we thank you for your insights today. there you have it. the indonesian investment chief. back to you. haidi: the former trade minister as well. covering the elections in jakarta. we will have more voices throughout the course of the

day, including the countries former finance minister and others. airwaysp next, jet suspending all flight operations after failing to secure bailout funding. we will have the details on what comes next. this is bloomberg. ♪

haidi: the bank of korea has held interest rates on hold at 1.75%, as expected by the economist survey, forecasting no change in the rate. expectket continuing to no move in the interest rates this year despite the press to growth and sluggish recovery when it comes to the key semiconductor unit. we will get more details on that as they become available. leaving that key rate

unchanged at 1.75%. jet airways has suspended all flight operations after failing to secure a bailout. decided to hold services on a temporary basis from thursday. our editor has the story for us. this story has incrementally gotten worse over the next few days, a huge blow for the indian aviation sector. a slow death going on for a number of months now, almost six months with a jet airways, the slow deterioration because of this debt level and the cutthroat competition in the indian market, which has seen budget and other carries into her over the past couple of years, which has hit jet airways , which was at the forefront when they deregulated the market in the 1990's, one of the most

successful and at the vanguard of reforming and modernizing india's aviation market, so a heavy fall here. >> this is coming at an awkward time for prime minister modi as national elections are going on in india. i thought the government would be looking forward to helping this carrier. what happened? a group of state-backed lenders refusing to provide emergency lending to the carrier. aey are waiting for bids for stake sale, which will help them presumably to be able to stay afloat, but they did not get that emergency lending, which is surprising given that we are in the throes of an election campaign, where unemployment is a big issue. more than 20,000 people are employed by jet air wise. outntially a lot of people

who will be affected by this temporary suspension of flights. haidi: thank you so much for that. tsmc will announce fourth-quarter results this weeks after few samsung posted the worst drop in profits since 2014. what can we expect for tsmc today? >> today's numbers are not expected to be pretty, income seeking 28% on slowing chip and smartphone demand, and margins narrowing further, which was flagged after apple was dented in january. some analysts are looking past the soft start. credit suisse sees a recovery in the second half due to orders

for seven nanometer chips. doesstant restraints demonstrate some optimism. the share price has rebounded 60% this year to bring its violation to the highest level in the decade, trading at more than 20 times estimated says the stockpb has become too expensive with better opportunities outside of taiwan. they have trimmed its holdings in tsmc. it is lagging its peers, and some pessimism is coming through and analysts have trimmed their price target. today's results will be a test of whether shares deserve that premium. haidi: coming up next, more analysis on that bank of korea rate decision, leaving rates on hold at 1.75%. this is bloomberg. ♪

, the bankaking news of korea leaving its rate unchanged at 1.75%. anything more dovish in the guidance, the bond market looking ahead to that. let's bring in our japan and korea economy team leader. expected this result.

the devil will be in the details in terms of signaling. >> yes, that's right. it toconomists expected be unchanged. there were risks if it did cut rates. household debt is high and korea, so that would be a risk, as well as anything that increase the interest rate different with the u.s. is a risk for korea, meaning capital outflows. we expect the governor to remain cautious. there are headwinds for the korean economy. exports are sluggish, particularly to china. we have seen inflation around 0.4%, very low below the target of 2%. economic growth has been quite slow. the semiconductor hasn't helped korea lately. there are a lot of headwinds. the governor has said rates are serving and helping the economy and has not been indicating

cuts. haidi: what should we be watching when the governor speaks today? particular, watch out for changes to the gdp forecast or the inflation forecast. he trimmed both of those in january down to 2.6% for gdp and 1.4% for cpi. any further cuts could hint at possible cuts to interest rates later in the year. comeat happens, those through, we should watch the bond market, which has been sensitive to changes in south korea. haidi: thank you for that. check of theuick business flash headlines. the u.s. communications regulator wants china mobile barred from the american market, potentially opening a new front and the trade fight between washington and beijing. cc wants to deny china mobile on national security

grounds. china mobile says it is not required to comply with chinese government requests. germany is dismissing washington's threat to suffer information ties if it does not huawei from its network. chancellor merkel said germany will decide for itself. >> bloomberg has told amazon it is preparing to close its online store to cater to mainland consumers, although other chinese operations won't be affected. amazon has struggled to win customers from alibaba and jd.com, even after investing in warehouses and data centers. the pullback is seen as a sign that amazon this shifting focus to growth in india.

sophie for a to preview of what to watch this morning. >> we are watching chinese auto stocks, which surged wednesday. great wall jumping 10%. authorities are said to consider relaxing controls over the number of automobile licenses in major cities in china. also watching chinese developers . valuations are to expand further on moderate policy expectations. sales are seen bottoming out after recovering in march and an acceleration and loan growth. operators are also in view after an amazing start to 2019 as it increased its share of the mass-market while weakness was well flagged. sands china remains j.p. morgan's top pick in the sector. this is the small-cap tech gauge of chinese stocks.

china is to launch a new index which tracks 58 cap chinese stocks -- 50 big cap chinese stocks. that is something to watch as we watch the start of trade in china. before we hand it over, we are looking ahead at the start of trading in hong kong and shenzhen. that is it for daybreak asia. market coverage continues. >> bloomberg markets, the china open, is next. this is bloomberg. ♪ moving is hard.

no kidding. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started.

♪ david: since you have been a leader in the house, you have dealt with three presidents. speaker pelosi: i completely and entirely respect the office of the president of united states. david: there was a tax cut in the first year of president trump's administration. speaker pelosi: this tax bill is a tax scam of the highest magnitude. david: would you call mr. mcconnell and say let's have coffee and talk about where things are going? speaker pelosi: i don't much like coffee. [laughter] david: you have been vilified by the republicans. speaker pelosi: once you get in that arena, you have to be prepared to take a punch. or prepared to throw a punch too.