paul: welcome to daybreak australia. i am paul allen. shery: i am shery ahn. sie: i'm sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. bombsad, 450 wounded, explode across sri lanka with christians and tourists among targets. debating impeachment amid the widening fallout from the mueller report. a bloomberg survey suggests

using in japan. some say it could happen as soon as this week. shery: a quick check of the market, closed ahead of a 300 holiday weekend. the s&p 500 pushing up .2% topping the 29 hundred level and industrials led the game, upsetting the weakness in financials and energy shares. .e had positive eco-data retails jumping a most since september 2017, not to mention employment -- unemployment claims fell. there was caution given the special counsel report by robert mueller cap thursday. we had targets closed in asia. let's see how we are setting up. sophie: we have markets in australia, new zealand and hong kong off line for the holiday weekend. happy easter to all who celebrate. on the earnings lineup we have the state banko,

of india going to report this week. shinzo abe will be in brussels for a treaty summit and xi jinping will host a belt and road forum which vladimir putin will attend. we have futures pointing to a huge start in tokyo and seoul while the japanese yen is one hundred 12he handle. so three and investors will have trade figures along with exports numbers from taiwan and thailand. sri lankan markets could come under pressure after the tragic events. all right, thank you. let's get the first word news with tom mackenzie. carol: -- tom: ukraine's prominent tv comedian has won a landslide victory. -- vented their

frustrations at the lack of politics. /the andd into political took 70% of the vote. petro poroshenko has already conceded defeat. a new bloomberg survey suggests the bank of japan's next policy move could be further easing, possibly as soon as this week. half of the economists we spoke to expect more stimulus measures as the economy slows and inflation remains stagnant. the vast majority of those surveyed said that next move would be to tighten. to fans inflation is below 1%, less than half the boj target. the financial times assess china is delaying the launch of a controversial measure that would restrict foreign companies from theng certain data out of country. they planned to announce certain plans on data transfer by the end of last year but regulators ald back to avoid sparking

confrontation with u.s. companies. 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. powered by 2700 -- i am tom mackenzie. this is bloomberg. shery: top stories today, one of asia's deadliest terrorist attacks in years has shattered calmelatively -- relative of sri lanka. people were targeted at luxury hotels and christian churches. our chief south asia correspondent has this developing story. what a devastation, a series of coordinated explosions on easter sunday, luxury hotels across the country, the capital know exception. 200 people were killed including 30 foreigners. according to mike pompeo, several americans are among them . no one has claimed

responsibility but a dozen people have been taken into custody. the prime minister says he will look deeper into this. authorities received warnings but little attention was given to those. the priority is to ensure sri lanka is not destabilized. let's listen to what he has to say. >> while this goes on we must also look into why adequate precautions were not taken in this respect. first and foremost we have to ensure that terrorism does not lift its head in sri lanka. we cannot allow that and we are prepared to take all measures to and isit is contained wiped out in this country. those measures include a nationwide curfew. face it -- facebook, whatsapp, they have been blocked. are not like what

was seen before. this was a country torn by religion for decades. minorities this time around were on christians, foreign tourists. president trump is among leaders who have condemned the violence. the impact is on the economy. this is great news for a country forced to take a loan from the imf recently, the gdp at the lowest in the 40 quarters. the rupiah is low. all of this reeling from a political crisis, investors still have fresh memories of a wartry plagued by civil tourism, a major contributor to the economy and source of reserves, will be hit. , also known for its beautiful beaches, unfortunate this time around that may be affected as well.

our southeast asia correspondent haslinda amin in singapore. what's get some more on this story now with -- let's get some more on this story with haslinda this correspondent. as she was telling us, more than a dozen arrests, no claim of responsibility but sri lanka is no stranger to civil unrest. what are the risks things could escalate? >> six simultaneous bombings taking place at some churches and luxury hotels. obviously i highly coordinated -- a highly coordinated effort, reminiscent of a toxic taken by the tamil tigers -- of attacks taken by the tamil tigers. doesn't look like them this time but there was warning ahead of time. the deputy attorney general and

police were out warnings there was a group that was -- [indiscernible] we are not sure who is responsible but a sophisticated attack and that could lead to future attacks down the road. paul: what is the challenge for the political leadership? unity is missing in action on .he political scene how difficult will it be for sri lanka's political class to keep a lid on things? >> you look at the nation and assess other it will bring the nation together or draw them further apart. there were sectarian tensions in sri lanka. we know about the civil war that got resolved in the last decade. it has plagued the country for a long time. those issues remain in the political system. the economic situation is not great. sri lanka has tension. the question of whether these bombings will draw people

together, they were questioning -- they were targeting westerners, so whether they see this as an attack on themselves or outsiders, how they respond will be key. shery: it is interesting because in three decades of civil war we have rarely seen foreign tourists being targeted in this scale. what has changed? >> it is hard to know what is going on. this could be an international terrorist group operating in sri lanka against the west. this could be an attack not against the government. the sri lankan government was not focused on in this attack. it was

it could be an outside terrorist group where there is a sri lanka component. we don't know. it is not typical here, at least in sri lanka. it used to be homegrown terrorism. we will see what happens. shery: the political situation in sri lanka, haslinda amin told us about this loan from the imf they had to take out to support their economy. >> obviously it is a dire situation of the economy needs that support, but it requires confidence in the economy from outside institutions to remain in place. if there is concerns about terrorism and the government not being able to respond effectively and not govern in this state, that is a huge issue. if there were warnings that went unheeded, that will be remembered both locally and abroad. it is not good for this situation. shery: thank you very much. scaliamason university's and school of law. the pressure is mounting for possible impeachment hearings of president trump. adam schiff says it will be top of agenda at upcoming party meetings.

let's get the latest from whitney benjamin sent. we have heard in the past from congressman schiff himself not thatntion nancy pelosi impeachment was not on the agenda. have things changed? reporter: it has in some quarters. nancy pelosi is still reticent to jump into that pool because she won the midterms by having democratic candidates focus on immigration and health care, taxes. outside of washington most americans weren't focus on those issues than they are on the russian scandal. behink she feels it would unwise for them to go after trump on impeachment if they are not certain they will win and that it will be a bipartisan effort. it will further divide the country and make things worse.

giuliani is saying there is nothing wrong with taping -- taking help from the russians. isn't that right? wendy: rudy giuliani, one of trump's lawyers, has a habit of saying things like this. it is illegal. second it is a massive national security breach, and you are handing over the decision to who runs america to a foreign country if you allow them to interfere in the campaign. of course robert mueller says the trump campaign did not wittingly allow the russians to interfere. but now we know they did. to allow, to take information from a foreign country about your opponent is a terrible breach of national security. when al gore was approached by a foreign country in 2004, he said his first call was to the fbi

which is the legally appropriate response. shery: speaker policy will have a private call with democrats on monday -- speaker pelosi will have a private call with democrats on monday. what should their strategy be going into 2020. they: she wants to repeat winning formula from the 2018 midterms in which democrats took three dozen seats in the house and had gains in the senate, which is to focus again on health care done right -- gun taxes, and should not make it about donald trump. donald trump is good about making it about donald trump. that was not a formula that worked for hillary clinton in 2016 to say, i am not donald trump and to work for her and i

think nancy pelosi wants democrats to be cautious about how they proceed and not -- if it is going to be democrats against republicans. if they can get republicans on would bee situation different, but as of this moment republicans are not on board with impeachment. paul: all right, our bloomberg editor in d.c., thank you. the bank of japan governor is likely to deflate his inflation forecast in his latest report. more on that. shery: the wto will deal a blow to china's global trade status. we will look into that. this is bloomberg. ♪

shery: welcome back. i'm shery ahn in new york. paul: i am paul allen. you are watching daybreak

australia. u.s. and chinese officials are scheduling another round of talks next week. it will be the turn of the u.s. team to go to beijing. let's get the latest on the developments with jay blanchette. blanchette. the trump said the china slowdown was making them desperate to reach a deal. things have improved in china since then. does the representative robert lighthizer have a fine line to walk? >> i think he does. economic reasons and more for political reasons. the deal lighthizer has to bring has to be one that is palatable to china. it means it will weaker than a lot of the hawks here in d.c., the china hawks would like. not only do we have the issue of the substance of the deal, which 450his point is said to be

pages and is going deep into the structural changes that the u.s. has been pushing on china, but the question is how can beijing take on a trade deal which forces it to make a deep structural changes without having adverse effects on its economy? in the end of deal that will come out will be light and more palatable to both sides. paul: we might have a signing ceremony at the end of may, but that won't be the end of it. what right do we get into a story of infringement or enforcement? ade: if your goal is to see market volatility, -- a calm to market volatility than forget

the substance of it. let's say an actual deal where the trump administration was going to slap tariffs on china, now it will have a calming effect on the market and we can focus on the other chaos for a change. what you are looking for the deal, for an end to the planetary dust predatory against u.s. companies or foreign companies in china particularly around robust market access. then we should be skeptical of this for a few reasons. the first one which you alluded really an enforcement mechanism the two sides have to agree on. about't know anything what the enforcement mechanism treasurye of the secretary's comments last week. we do know whenever the mechanism there will be millions of points at which the mechanism

can break down. we shouldn't expect at the end of the deal -- this is the second inning. aside from the deal you have the ongoing huawei tsonga and last week we heard from the pai aboutigh -- ajit blocking entry into the u.s. market. deal, wee have a continue to see stuff from other sectors of policymaking. in circleslicymaker here. the trade deal is really the least of their concerns. what they are looking at is the actions by a deep up cynthia's committee in the u.s., security review screening, things like

export controls which is licenses to be selling your technology to china. we have lots of multiple arenas in which the u.s. and china are competing economically and they are areas where they are at frontier technologies. this is what some are calling the new tech war. that will not be resolved at a signing ceremony in may. given the innovation capacity, seeing a vulcanized or decoupled tech innovation ecosystem like some in d.c. are pushing for will have serious repercussions for the global economy than the trade war. shery: we are now hearing the u.s. has won another victory in the wto against china around ofjing's use of quotas right, wheat and corn.

, weekend corn. jude: this is an obama administration victory because this was put in before trump came to office. put wind in the sales of robert lighthizer going in to beijing next week. this is about the art of the deal and optics. leverage matter. when you have momentum, it helps. even aside from the q1 growth say in thewould aggregate, the u.s. has more momentum in the two decisions. one win for the the e.u. and one for the u.s., but both were losses for china, certainly helps lighthizer's position into next week. you can't understate the

political importance of president trump. will be an important plank of the 2020 campaign. jude: yes and no. for most folks in america, it is the economy is stupid. things like a trade deal with the u.s. are going to be, a deal will be less important to issues that really matter for average voters than their liberal perspective. that being said, looking at a trump ispulist package trying to sell, the idea he has been able to secure the best the greatest deal against china is a feather in his populist cap. paul: jude blanchette, thanks for joining us. you can get a roundup of the stories you need to know to get going in today's edition of daybreak.

subscribers can go to dayb on terminal. it is also available on the bloomberg anywhere app. you can customize the settings so you only get news on industries you care about. this is bloomberg. ♪ this is bloomberg. ♪

paul: i am paul allen in sydney. shery: i am shery ahn. you are watching "daybreak australia." reports from the u.s. putting pressure on boeing as it struggles with 737 max grounding. the new york times says the plant in south carolina has suffered issues with production and oversight to create a safety threat. the paper said internal in males and -- sites internal emails and documents. the tesla boss elon musk is stepping up, accusing panasonic of -- the two sides

admitted the plant was operating at full capacity but now elon musk is pointing a finger at panasonic. there are questions about tesla's ability to deliver cars and make a profit. incorporating jet airways planes into their fleet. the times of india said spice jet will take 40 of jet airway'' 747s. another airline will take several others. it will mean new employment for jet staff who faced being laid off by collapse. the airline suspended operations must week after failing to secure emergency funding -- last week after failing to secure emergency funding. paul: the bank of japan governor lowering his policy forecast. this is bloomberg. ♪ this is bloomberg. ♪

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it is a: 30 a.m. in sydney. the market won't open because it is a public holiday here and in new zealand. i am paul allen. shery: i am shery ahn in new york area you are watching "daybreak australia." first word news. tom: sri lanka has blockedtom: social media after 200 people were killed in a series of bombings on easter sunday. the government said some explosions were carried out by suicide bombers and 13 people have been arrested. the attacks on foreigners and christian -- in christian locations marking major shift in

the history of violence. mustile this goes on we look into why adequate precautions were taken in this respect. we have to ensure terrorism doesn't lift its head in sri lanka. we cannot allow that had are prepared to take all measures to ensure and wiped out in this country. trump's lawyers say there is nothing wrong with accepting health -- help from russia. rudy giuliani said any candidate would accept politically damaging information on an opponent and it depends on where it came from. this is part of the trump administration's response into the robert mueller report. ukraine's most prominent tv comedian has won a landslide victory in the election as

voters vented frustration of the lack of progress in the country. he tapped into populism and the political class. exit polls said he took 70% of the vote. the incumbent won about 26% and has conceded defeat. the financial times says china is delaying the launch of a controversial measure that would restrict foreign companies from taking certain data out of the country. aging had planned to announce restricting cross data transfers by the end of last year but regulators have held back to avoid sparking confrontation with the u.s. and u.s. companies while trade talks continued. 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 tom mackenzie. this is bloomberg. a few markets closed in asia. let's get a check of what's

watch. sophie: we have nintendo on the radar. the stock moved today on a meeting report that china will start accepting more applications for games monday. flipping the board as you can see, we can show you nintendo jumped over 15 -- 14% after tencent won approval to distribute the switch version of a super mario game. this is a positive move in light of concerns around switch shipments. numerous also going to -- nomura going to report results. slashingalked about dozens of jobs. the price has raised the question of the potential merger which the ceo said is not going to happen. jumping into the terminal the sinking of that share price nomura'sumerous --

value of people question how they can build revenue after cutting trading staff. it will post its first loss in a decade thanks to -- thanks very much. let's stick with japan. the bank of japan governor is expected to stick to his guns at the policy meeting even after policy threats intensified and inflation remained far below target. kathleen hays is here with the preview. is the governor just hoping things will pick up? kathleen: if you look at the economy and have a hope that some of the global forces buffeting the world, japan like u.s.-china trade war will be resolved by the second half of this year. people are hoping that and governor kuroda among them. our bloomberg news team here in tokyo learning they are

considering cutting the gdp forecast in light of what we have seen it -- not the inflation forecast. china's economic slowdown has stabilized but taken a toll on the region including japan. there is u.s.-china trade war also weighing on the bloomberg -- look at industrial production. exports have been weaker. it has been suffering. we have seen stronger economic data from china responding to the stimulus from the economy. u.s. manufacturing, pmi looking better. that could give the boj more hope. oj officialsex-b that done with us and he is looking ahead. october, the tax hike is coming and he seems to think it will hit the economy. that will take -- make it harder to get closer to that target. listen to what he said.

the bank of japan expects the overseas economy to turn positive at the end of this year but i don't think it will be strong enough to offset the slowdown in japan after the sales tax hike in october. kathleen: more than half of the economists interviewed by our economics team in tokyo say if there is any kind of move by the boj, it is towards more stimulus, not less. shery: the slowing economy doesn't add up, but they did cut bond purchases last week. is there a signal there? kathleen: when i spoke to governor kuroda in october, one thing he stressed in the interview was it isn't so much the amount of bonds the boj is buying or selling but the whole anchor there.

yield curve control hasn't changed, his message would be we adjust the bond message from time to time. but it is a good idea to let their own yields rise. our bloomberg news team pointing out that the financial stability report and governor kuroda's reaction at the press conference, after -- will be closely watched. real estate lending is heating up. will he have any concern? they could be a question he is asked -- it could be a question he is asked about the press conference. in terms of financial stability, another official, also talked to bloomberg news. here's what he said about possible risk. although profitability in japanese financial institutions is worsening steadily, it is not at a critical stage.

i don't think the situation is bad enough for the bank of japan to change policy. kathleen: when you have your bond yieldskathleen: below, it makes it tough for the banks, not just the big ones but regional banks to make money. he gets questions about that. see what he says this time. paul: quite a bit on the calendar. what are you keeping an eye on? kathleen: think of indonesia is expected to hold its policy study. you are in the midst of a volatile election, but the government over the weekend putting out a forecast saying they expect manufacturing output under a new term for the president to rise 5.4%. any optimism amidst all that. other nations, waiting for

australia's cpi. it is seen rising. we will see how that pleases or doesn't please the bank of australia. south korea, their first quarter gdp number will show weaker growth. they held policy study last week downsidey noted mounting in their economy. -- moving closely more broadly in the u.s., first quarter gdp, people are looking 1.8%, above 1.5%, slower than the fourth quarter. people are boosting these on the recent u.s. data. that number will also be watched closely especially ahead of the fed policy meeting next week. shery: will the fed steak dovish? -- stay dovish? kathleen hays there in tokyo. let's go to pakistan with imran new financeing a

ministers -- finance minister. this would be the 13th support program since the 1980's. bloomberg spoke with the ceo, one of the beginning investment firms about the potential package. >> it is important for the economy because we have a huge current account deficit. we can't go alone without that. this will be the last commitment given by the current government. they are taking measures which will i think continue to make it happen. we are taking the structure reforms and changing the economy from consumption led economy, growth models to export and -- definitely because of this, exports will improve, good ability will come down. so this can bring the package -- it will be the largest one.

reporter: what are the current sitting points as the team gets ready to go to pakistan, said the i's,. the -- to dot cross the t's? >> the mission is already done. they will go to pakistan in the end of this month, and they will have meetings with the finance ministry officials and sign off on the first week of may. the issues were the thing that delayed the imf from november until now was defense opinion -- difference of opinion between imf and pakistan because the government has already taken structural reforms. they have already [indiscernible] in november by 400 basis points and they have also devalued the currency 27%, so they have already taken the measures of compression but imf was of the

view they should do more. thought it will not be outstanding, but they said it will be good. in the month of february we have seen the imports have come down drastically. it was a low month import. we have also seen current account deficit -- 12 month low. all of these measures have proved -- proved to imf those measures which are taken by the government are sufficient. you helped organize meetings with the finance minister here in new york. what are the main concerns now of these funds? the imf of pakistan is good but there have been a lot of bumps in the road. shahid: they are waiting for the imf package. it is important for all the capital market investors because our market has performed during the imf timeframe.

if you compare our market from 1993 until now, the returns were very exceptional. data, it isthe around 30% compared to 18% otherwise. so that the government should go , it will strengthen the economy , give more confidence to foreign investors, local investors. the government should go with the imf package. .aul: that was the ceo coming up, charles lieberman joins us to look at the markets and what to expect as the fed turns reactive. global news 24 hours a day, on air and @tictoc on twitter, a dan air and @tictoc on twitter,

allen in sydney.

shery: i am shery ahn. you are watching daybreak australia. we have an interesting week ahead for the start of tech earnings season and the release of first quarter igo data. let's look ahead for the cofounder and cio charles lieberman. great to have you with us. we are expecting some very relatively strong gdp numbers for the first quarter in the u.s. focusing on strong growth. this chart for our viewers, the couldverlaid with -- we potentially see steepening on the yield curve if we get more long economic data. what would the applications be of the yield curve steepening? >> the most important is the market is recognizing the economy is not at risk of recession and therefore somewhere down the road interest

rates are likely to go higher. -- : shery: what is the largest visible risk especially when you have the fed still being on pause? the strength of the economy causing inflation. we have seen the labor market become tight and we haven't seen a dramatic rise in inflation although it has increased modestly so far. in principle it could increase much more. the ongoing growth of the economy, which is becoming clearer now is going to continue to cause the unemployment rate to drift lower. that will tighten the labor markets even more. it will put pressure on and drive inflation to lower levels. startwhen does the fed talking about tightening again and how the markets get spooked?

the second question is yes, the markets will get spooked. the timing is difficult. the economic theory tells us about the direction of how certain variables are likely to move. say the labor market, they wage inflation should rise and inflation. doesn't provide much operation -- mention of the timing of it. the markets have become worried about a possible recession without a great deal of evidence. it will not take that much evidence to convince the market thatession is not likely, stronger growth or ongoing solid growth is going to continue. i suspect by the middle of the year, the market will be thinking of the possibility of rate hikes down the road and at some point the fed will follow suit. my judgment is the fed wants to

see higher inflation before it would actually be willing to raise rates. paul: i know you thought that selloff at the end of the fourth "ridiculous." if you do protect what is now a record bull market long enough one day you will be right. charles: that is right. a stopped clock is right twice a day. the fact of the matter is when you look at the economy closely it is hard to come up with areas where there are obvious imbalances. the consumer sector seems to be in good shape. increasings are capital investment but not at an unacceptable rates and cash flows are doing well. there seems to be a bit of a positive in terms of profit growth. i suspect that will prove to be temporarytrigger a recession ate

point. recessions don't die of old age. usually they are murdered and mostly by the fed. the prospect right now is pretty minimal. the expansion should continue. last face almost no market reaction to the mueller report but we continue -- last week we saw almost no reaction to the mueller report, but we continue to hear from donald trump, that those who started this are guilty. what happens if we get an investigation into the investigation. charles: it will be more theater, a lot to watch on television. it is certainly going to fill the news. but it is safe to forecast. in terms of its implications for economic growth, interest rates,

, itation, the stock market is a sideshow. so it is newsworthy, but it is not particularly relevant in terms of value. shery: great to have you with us. charles lieberman, advisors capital management chief investment officer. you can watch our past interviews on the interactive tv function tv . you can watch us live, get into the securities and functions we talk about and become part of the conversation sending us instant messages during our shows are this is for subscribers only. this is bloomberg. ♪

copper futures at nine-month highs last week. i sat down with the chilean finance minister and asked how much demand for copper he sees

from china. >> china is almost half of all the world's demand for copper. almost 50%. in a sense china is the main determinant of the corporate price. keen to see the effects. we are starting to see other measures taken by the chinese government to stimulate. measures to deregulate, measures to increase investment in infrastructure. sell copper to the chinese. we are selling one of our store products is cherries. staran cherries -- our products is cherries. chilean cherries are sold mainly to the chinese, other countries as well. the chinese think -- they are

right, it is bring happiness. they bring well-being to people. it is a very nice thing to receive one cherry before chinese new year. emily: happiness and well-being, don't forget chilean wine also loved by china. thego has dominated as world's largest producer. will they be able to maintain without the government capitalizing these upgrades of mines and other investments? felipe: it is the world leader in copper production. we want it to remain the world leader and with all the support it gives chileans because it is the main public company in chile. capitalized by our government in $1 billion. we put $1 billion in two codelco

but we are helping them because it is necessary for the investments that will sustain to otelco. and the production because if you don't invest in the mining business, your production goes down, the iron ore -- the ore content of the mines and resources you are getting from the ground, it starts to decline. you need investors. shery: this comes at a time -- a time when global stock piles are falling. what do you expect the market impact to be? felipe: copper prices are getting close to three dollars -- nine-month highs, a little over $290. it will depend on a peaceful and rational resolution of the trade

conflict and that will have a have a -- that will have a significant impact. if you get to that final point, where we saw the price of copper stafford -- suffered. shery: that was my interview with the finance minister of chile. a quick check of business flash headlines, singapore stepping up upeals -- appeals to set production facilities. the government board is already negotiating with manufacturers and is helping -- looking for more to build a wider community of ev makers. dyson announced its first electric car factory in a bid to launch its first electric vehicle in 2021. tends to. morgan chase widen -- intense to widen blockchain. it will expand the use of the interbank information network which allows companies to share

accounting information. 75 of the world largest banks joined the venture to protect tradinges from digital companies. we will have all the action of daybreak asia next. this is bloomberg. ♪ xt. this is bloomberg. ♪

>> good morning. i'm paul allen in sydney. shery: i am shery ahn. i'm sophie kamaruddin and hong kong. welcome to "daybreak asia." >> our top stories this monday, under curfew and stock markets closed as bonds strike in sri lanka. pressure on the president, the democrats sent to debate impeachment amid widening fallout in the bloomberg best the meal report.

more easing in japan's tested. some say could come as soon as this week. shery: let's get you started with a quick check of the markets. the s&p 500 gained 2/10 of 1%, finishing about that 4900 level. withtrials let the gains weaknesses in energy and financial shares. economicore positive data, retail sales jumping the 2017, not too much of the unemployment claims of fell. we have seen some caution in the market as investors were focused on that 448 page report by special counsel robert mueller. let's see how we are setting up with markets in asia with a few theets close still holidays. sophie: australia and new zealand and hong kong are off-line for the easter break. this is the start of a week that shinzo abe had to

europe and america for trade talks. see numbers from china mobile, and mahendra. we have futures pointing to a fairly muted start in tokyo and seal. -- soul. -- seoul. free investors will get a pulse check on trade data on the first of the year. there will be data from thailand and taiwan as well. colombo stock exchange has been close following the easter sunday bombings. the first word news now. here is tom mackenzie. prominentne's most comedian has won a landslide victory in the presidential election as voters vented their frustrations at the country's lack of progress. tapped to popular dissatisfaction with the critical class and exit polls show he took more than 70% of the votes.

the incumbent one about 26% and has already conceded defeat. survey's justg the bank of japan's next policy move may be further easing, possibly as soon as this week. but have the economists we spoke to expect more stimulus measures as the economy slows and inflation remains stagnant. this time last year, the vast majority of those surveyed says the banks next move would be to heighten. belows inflation remains 1%, less than half of the boj target. says chinaal times is demanded launch of a controversial measure that would restrict foreign companies from taking certain data out of the country. beijing had plans to announce regulations restricting cross-border data transferred by ft end of last year, but the says regulars have come -- fallen back to avoid sparking frustrations with american companies. 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. i'm tom mackenzie. this is bloomberg. paul: let's get to our top story today. one of asia's deadliest terror attacks in years has shattered a. of relative calm in sri lanka. more than 200 people have been killed in a series of bombings that targeted much re-hotels and christian churches on easter sunday. haslinda amin has the latest on the still developing story. has? devastation following the coordinated explosions on sunday. the death toll rising to more than 200 churches, luxury hotels across the country were attacked, including in the capital, and foreigners were not spared. according to secretary of state mike pompeo, several americans were among those killed. no one has claimed responsibility, but about a

dozen suspects have been taken into custody. authorities had received warnings, but little attention was given to them. now, sri lanka will have to look deeper into it. the priority is to ensure sri lanka is not destabilized. here's what he has to say. >> while this goes on, we must also look into different precautions -- why different precautions were not taken. first and foremost, we have to ensure that terrorism does not lift its head in sri lanka. we cannot allow that. we prepared to take all measures to ensure that there -- terrorism is contained and wiped out here. those measures include a nationwide curfew that has been imposed. social media access card does well. interesting to note, the strikes

are not like what we've seen before. this country is no standard to war. it is seen decades of strife. this attack is different. not on the buddhist majority by the hindu minority. christians, foreign tours, condemnations coming from global leaders, and couldn't president trump. shery: what does it mean for the sri lankan economy, which is already reeling from the political crisis last year? haslinda: this is not great news for the country. it has been forced to take a loan from the imf. it raise 2.4 billion dollars from international bond market a month ago to pay for its debt obligations for this year. -- gdp, theat gdb, rupee at record lows. some people say we think it -- expect a 3% decline. sri lanka reeling from the political crisis, which he

still about, investors have fresh memories of a country that has been plagued by civil war. for as in, the other thing to be looking out for, is a major contributor to the economy. that will likely be had. the trimester says this is the worst violence since the civil war. can't sparkes it sectarian violence. it took decades to end it. that. thank you for our chief international correspondent for southeast asia, haslinda amen. you can get more on the terrorist attacks on this days edition of daybreak. the pressure is mounting here in the u.s. for possible impeachment hearings of president trump. house intelligence committee chairman adam schiff says it would likely be top of the agenda at upcoming meetings. wendy. latest from

the democrats want to spend the energy and little capital discussing put -- at the proceedings, when it will be killed in the senate. >> that's right. some do, and some don't. that is the topic of the meetings that begin tomorrow. nancy is back from a foreign trip. -- p losey is back from a foreign trip. nancy pelosi is back from a foreign trip. the fundamental question before them is, do we keep congress focused on possible impeachment of donald trump or do we try to move forward with the legislative egg jen.? -- legislative agenda? rudy giuliani made some interesting observations, saying there is nothing wrong taking help from the russians. is he right? wendy: with all due respect, no.

candidates will always look for any edge in a campaign. taking damaging information, any information from a foreign power is highly problematic. it's a national security breach. it helps a foreign power determine who will lead this country. they will pick someone that would work to their benefit. the russians did not want hillary clinton to be president. the bottom line is, it is illegal. al gore, when he ran in 2000, said that he got a call from a foreign government with some information about his opponent, and his first call was to the fbi. that's the legally appropriate response. shery: we are getting a strong response from the president's team. the president himself saying that those who started the program are guilty of very

serious crimes. are we going to see an investigation into the investigation? wendy: i believe we are. that will be the battle going on in washington. justice, underof william barr, seems to want to look into the origins of the report. whether democrats were involved, how much president obama knew at the time. how much the fbi may or may not have been biased against candidate trump. democrats, pushed by the progressive left will be discussing impeachment. anybody sitting goes on in the next few months is to be seen. -- legislative goes on in few months is to be seen. paul: what is data policy expected to say when she has her private call -- what is nancy pelosi expected to say what you a private call on monday? public,0 has said in and she's has said this, is you're not going to win support

by being against donald trump. in 2016.linton point you can't just go out and say, donald trump is bad, and expect to win. american voters want to hear about health care. they want to hear about gun rights. they want to hear about taxes. they want to deal with immigration. candidates who focused on those messages in the 2018 -- 2016 midterms, they won. candidates who said donald trump is bad for the country, did not do as well. encourageg to democrats to think seriously about whether pursuing impeachment will work, or if it becomes a simply partisan thing, with no republican support, weathered will divide the country further. paul: thanks very much. that is bloomberg editor wendy benjamin sent in d.c. still ahead, china and the united states inching closer to

a deal, but will that by the end of the tensions? we will have the views of albright stonebridge. agendaplenty on that eco this week, encoding inflation readings and the boj policy decision. david mann joins us in a moment. this is bloomberg. ♪

shery: we are counting down to asia's first major market open this morning. japan futures looking like this, under pressure at the moment. it could be a slow trading day. awayill have a few markets on holidays, including australia, new zealand and hong kong. the japanese yen hovering you the lowest levels this year, we have the key inflation gauge picking up in march, 2.8%. we would get the boj decision on thursday. this is "daybreak: asia," i'm shery ahn in new york. paul: i'm paul allen in sydney.

policy decision for the bank of japan and indonesia will be the main events in asia this week. analysts expecting both to keep policy unchanged. joining us now to discuss this and other things, we have david mann, chief global economist for standard chartered. david, we have been discussing this morning a bloomberg survey, which says that we might see some more easing from japan this week. what is your expectation? it would not be a shock to see more easing, but we don't believe the boj has more room to do that much more than it is only doing. it never really ended its easing policy for such a long time. we are such an elevated level of the amount of debt that the boj already owns. physical than to the annual gdp of the country. 40%+ of outstanding gdp. we think the need to continue

with what they're doing. if there is any other option, it is to go with more easing. the challenge is what you can do without taking more extreme risks with monetary stability, things like helicopter drops, we discussed many years ago, could come back again, especially in the context of modern dietary theory, discussed in the u.s.. paul: looming over it all as all, we've been hearing from former boj number, he is concerned about the impact of a sales tax hike in october. hope ofs shut out any inflation reaching the 2% target, doesn't it? david: we've certainly had those distortions theiously, when you added sales tax income a you added a bit too inflation, but everyone views it, once the effect wears off, you don't get a further effect. you only had an impact on economic activity when it was week. if it is the light, that could

help. it's a sign for other economies around the world that when you are down this low, on actual and expected inflation, that you need to do whatever you can to get yourself away from it for as long as possible. those challenges for japan will remain in place and most likely, the only focus will be on whether it is possible to do even more on the monetary policy easing or whether other types of reforms could help to boost growth, which we are not yet seeing. shery: the japanese yen right now is hovering new the lowest year. we have seen this on the other side of the coin, the u.s. dollar, have we seen the strength of the u.s. dollar peak? what is a go from here -- where does it go from here? david: the u.s. dollar has seen a medium-term peak. this is the challenge. even of the fed has made a damage -- dovish shift, so have other central banks, who

described this as a dovish wave everywhere we look. that's also the case in emerging markets, even indonesia, where we are not expected to see a rate cut coming this week. they may delay beyond the seas no weaknesses and quarter to two cut later. central banks, including japan, there talking more dovish lee, that gets in the way of seeing broad-based dollar weakness. the good news is, if you are at least seeing a flat dollar, which is more likely against the majors, the net gives you some breathing room for those who would like to reverse some of the policy tightening they did last year to do that. i mentioned indonesia earlier. i would say that is our top candidate for a central bank that could ease 75 basis points through this year. shery: to your point of a dovish fed, we have seen a u.s. recession odds at the highest level we have's -- we have not seen in years. because we have a dovish fed,

this chart showing that perhaps, we could be easing on the new york fed indicator they use as a spread for the 10 year and three-month u.s. treasury's to generate the probability of recession to 12 months from now. can we say that these recession odds are being pushed back when it comes to the timeline there? avid: talking about having u.s. recession over the next year, it is very clear that we will see weaker growth out of the u.s. over the next year, and certainly 2020 will be well below 2% growth. to call for a recession, to have a bust in our view, you need to of had a boom. while we have had various indicators that over a long-term. period, it has been good at predicting recessions, i would argue that in this environment we are in now, where we are going to the treatment -- weaker trend run rate for growth, these indicators are better at telling

us in foot -- expected inflation is remaining low, arguably too low. if you get weaker growth, you get even weaker inflation, so it is even more reason for the fed to be doing what they decided to do, which is turned more dovish than they were six months ago. it tells us not to expect a major recession or negative growth numbers, expect milder weaker growth out of the u.s. those indicators are consistent with that. that is good news if you're in a goldilocks range. rate ofa reasonable growth with the new trend numbers we estimate for the u.s. or most advanced economies. that does mean for emerging markets, they have more breathing room than they did last year. although stier warnings we were getting from the imf and others about global growth coming off the boil, with a "or was the situation reversed by a dovish tone? david: it did hit headlines that the imf global growth forecast,

3.3%, will be the weakest we have seen since the aftermath of the global financial crisis. 3.2%, we forget that are saying 3.5, is a reasonable pace of growth, even in the context of the last 25 years. we will see slower growth. there are some bigger tail risks led by more volatile politics even advanced economies. but at the u.s.-china trade war. major, small probabilities of large event type factors we have to take into account. at the end of the day, if we get the central case scenario we itk for, that is weaker than was, but still, nowhere close to a global recession. it is helped by the fact that with inflation being so low, and expected to remain low, central banks can do more to come in and

provide a flock to the growth. -- flawed to the growth. -- flaw to that growth. paul: you mentioned indonesia is a prime candidate, but what about malaysia? we have cpi numbers out this week. two straight months of deflation. one of the worst, if not the worst performing equity indexes in asia. went on a going to be forced to act -- when are they going to be forced to act? david: we're going to see a 25 basis point preemptive rate cut coming in may. is the reason for that, increasing dovish messaging we are seeing from the central bank as well. we have low expected inflation. external activity, while it will be holding up, will be relatively weaker than it has been in the last three years. we look across indicators around

the world and they all indicated that we are seeing weaker activity in the last three years. downsideot a lot of from doing another preventive rate cut in that environment. we think that's what will happen in may. shery: they have been one region that has been struggling. -- europe has been one region that has been struggling. this chart shows the pmi has been in contraction territory, that line in white. orders inen china's pmi contracting. will we see europe rebound and will we see china recovering as they rebound as well? david: the first thing to note, yes, we have seen a stabilization in china's growth. we are exciting 6.4% out of china. the fiscal policy stimulus, when you look at the numbers and adjusted for what the actual deficit will be, it suggests we percentagep to 2

points of extra growth out of china because of fiscal policy alone. that leads us to argue that we will see a stabilization improvement in china. for europen impact is positive. we would argue that it won't be a boom in china. you won't see a boom coming back in europe either, or even a v-shaped looking recovery. you get stabilizing data over the next 3-6 months. in the meantime, there is that risk that the ecb pushes out even further its expectations for the market on what it will be able to begin to hike the deposit rate back up to zero. for us, that is a critical moment, for whether or not the euro can start at some point next year to take part in the broad dollar weakness we believe is the new multiyear trend. it's important for europe, because the run rate for growth in europe has gone down so low that the net exports has become much more important than it used

to be. that is true for japan and most advanced economies that now have a weaker trend rate of growth. external sector matters more. we have seen that in the u.s., too. shery: thank you for joining us today, david. david mann, chief global economist for standard chartered . we another big guest joining us later. we will be joined for an extensive interview on bloomberg markets: china open. this is bloomberg. ♪

paul: quick check of the latest business flash headlines. report from the u.s. are putting more pressure on boeing at the struggles the 737 max 8 rounding. the new york times says the g miners in south carolina have suffered issues with production oversight. internal emails and documents and interviews with current and former staff that says for -- faulty parts have been fitted to some planes. the times of india says

it will take up to 40 jet airway will use fivey 737s and some 747s. this is bloomberg. ♪

paul: this is -- tom: this is daybreak asia. sri lanka has shut its stock exchange until further notice after 200 people were killed in a series of bombings on easter sunday. some of the explosions were carried out by suicide bombers and 13 people have been arrested. the attacks on foreigners and christian areas have marked a major history shift in sri lanka's violence between the majority and minority groups. >> we must look into why adequate precautions were not taken. first and foremost we have to ensure terrorism doesn't lift

its head in sri lanka. we cannot allow that and we are prepared to take all measures to ensure terrorism is contained and wiped out in this country. tom: ukraine's most prominent tv comedian has won a landslide victory in the presidential election as voters vented their frustration at the country's lack of progress. he tapped into popular dissatisfaction with the political class and exit polls say he took 70% of the vote. the incumbent won about 26% and has already conceded defeat. saysdent trump's lawyer there is nothing wrong with accepting help from russia. rudy giuliani said any candidate would accept damaging information on an opponent and that it depends on where it came from. his comments are part of the trump's -- the trump

administration's response into the mueller report. the financial times says china is delaying the launch of the controversial measure that would restrict foreign companies from taking certain data out of the country. they planned to announce regulations restricting cross-border data transfers by the end of last year but regulators have held back to avoid sparking confrontation with u.s. companies while trade talks continue. 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 tom mackenzie. this is bloomberg. australia,markets in new zealand and hong kong are away on holiday. here is sophie. sophie: we have a break -- busy earnings calendar with nintendo reporting thursday. jeffrey notes it is one of the shortest stocks in the last six months but has rebounded 34%

this year after a rough 2018. there were concerns shipment volumes of this -- the switch will peak. -- ofese market the first super mario game was approved, and nintendo jumped above 14% friday. the switch could see higher sales volume dennis playstation 4 -- van the way station for. -- sales volume than the playstation 4. expectsg intelligence sony will meet its operating target for fiscal 2019 thanks to smart -- strong game stocks. without a next gen playstation, sony could get an offer to drop for fiscal 2020. nomura has us seek to go through his latest turnaround plan. price with ashare

potential merger saying is not going to happen. the -- quickly jumping into the terminal, a slump in the share price has got valuation close to the biggest discount in 20 years, trading at 25 times above value. people wonder how nomura can go above value after cutting trading stock. nomura expected to post its first loss in a decade. japan, thebank of governor is excited to stick to his guns at the policy meeting even as the economic threats intensify and inflation remains below target. our quality editor -- policy editor kathleen hays is here with a preview. if the governor hoping things will pick up? -- is the governor hoping things will pick up?

kathleen: he has his fingers crossedkathleen:. people are hoping on big factors. one of them is the u.s.-china trade war ending. both sides could move on and orchid sentiment improves. this is taken as a dark cloud over the global economies. major exporting nation and the china economic slowdown which has been stabilized by all the pboc stimulus is something that has affected japan. they are said to be considering something -- our team has learned they will consider to trim their outlook. that is to acknowledge forces weighing on them. let's look at the bloomberg terminal. industrial production is one of the symptoms of economy hit by weaker exports. you can see the last couple of numbers have been very weak on a year-over-year basis. and the numbers we will get next week don't look hot. from china looks

stronger, the pboc has exceeded in stabilizing the economy. u.s. pmi is looking better. that could reassure the boj. -boj official was here in our bureau and he said a lot of things to our new steam great one of them is he is concerned hike ine sales tax october, how it will make it difficult for the economy to grow and could hurt inflation. let's listen. expects theof japan overseas economy to turn positive towards the end of this year but i don't think it will be strong enough to offset the slowdown in japan after the sales hike in october. surveyn: our team here economists, hiding out any kind of move in the next several months, the next will not be to remove stimulus but to add more monetary stimulus. last week boj

unexpectedly cut bond purchases. what signal is that sending? kathleen: according to governor point and inde his a targeted way he wants the world to know we changed the number of bonds we buy or sell. it is not about a policy signal but maintaining yield curve control. toy have a range plus .2 minus point two. as bond yields go forward they can afford to let them rise in that range. let's take that off the list. another issue our team points out is the boj still purchases [indiscernible] and it looks like the most recent report, real estate is heating up. will the governor we asked about that? that is something they could tweak. at zero or subzero 10-year yield, negative rates at the short end, it hurts banks.

another official telling our team in tokyo he sees some financial stability but doesn't think it will -- let's listen. >> although profitability in japanese financial institutions is worsening steadily, it is not at a critical stage. i don't think the situation is bad enough for the bank of japan to change policy. kathleen: so press conference is always very important time -- conferences always very important time to draw the governor out on what they might be doing next. paul: a few interesting things coming up on the docket. we have cpi in australia, what else are you looking at? kathleen: bank indonesia's

meeting but they got policy on hold. they got to an interesting election. looks like the president will have his term at the head of indonesia again. putting out the report that because of the policies he is expected to do as president, growth at 5.5%. that is a pretty strong indicator to be watching. the firstlian cpi, ones out, rising closer to targets. that is a plus. gives the rba a lot of room for maneuvers. south korea is weaker, emphasized downside risk. the economy is suffering from the trade tensions that hurt exports. chart, it washis down on a monthly basis, improvement on year-over-year but very important indicator as well. not in the asian region so much but first quarter gdp, it is below 2%.

now with the lowest numbers, seeing above 2%. the first quarter is the one that has a tendency to be on the weak side. that could be a plus. something closely watched as well. shery: thank you so much for that. our global economics and policy editor there in tokyo. the trump administration is yet to decide on auto tariffs. the latest in the trade war next. this is bloomberg. ♪ ♪

asia'scounting down to first major market this morning, japan futures under pressure as we see markets close on this holiday weekend including australia, new zealand and hong kong. we have the boj decision, half of economists now expect the next policy move to be more easing.

this is daybreak asia. i am shery and in new york. -- shery ahn in new york. paul: i am paul allen. china is delaying the release of some thing that would restrict foreign companies from taking data out of the company -- the country. this has reached a critical stage. tom, what do we know? tom: these measures were originally drawn up two years ago as part of a package of new regulations aimed at giving china a robust cybersecurity regulatory framework. what we hear from the reporting is one of these measures around cross-border data transfers has as you said been delayed in terms of implementation. we expected it to be implemented and rolled out last year and they have yet to do that. what they are saying is that is because they don't want to agitate the u.s. and create

another source of friction as trade talks get in to what looks like the final stages of a deal at some point in may. these data regulations are focused on demanding multinational companies, foreign companies to hold in china certain data. data," is the line. two years ago these were first muted about the vagueness of the wording and what it means for multinational companies operating here, whether they would have to onshore a lot of the proprietary software and personnel to deal with this. you have companies that have gone ahead and invested in china, buying up these services in light of regulations that are expected to have kicked in last year. others are waiting for clarity. one lawyer said it is difficult to know how to play this. vague andtions are so

unclear. they are now saying these regulations of our being postponed. the implementation is until we get clarity. shery: is this about cybersecurity or boosting domestic providers? bit of both. beijing says it is about cybersecurity and improving it domestically and it is a logical and rational response. certainly many would argue this is also going to provide a boost for domestic companies like alibaba which is getting increasing revenue from cloud services. what it will do if it comes in and enforces, it will encourage companies to procure technology locally and i local services -- buy local services and encryption. we have seen companies like amazon selling off cloud

services in china because they weren't able to get the proper licenses. it has had impacts, companies like apple spending money on guangzhouge in province. it could provide a boost to domestic players in this space. shery: tom mackenzie. joining us from stonebridge china, -- great to have you with us and happy easter. you heard from our reporter tom almostie about china delaying controversial measures to restrict foreign companies from taking data out of china. should this be seen as a positive because they are delaying these or a negative because it is a delay and not a cancellation? >> that is a great question. this is a positive perspective from tech companies who operate in china and across a range of sectors.

a number of companies, what are called critical information infrastructure, they would have been impacted in closing -- including oil and gas, any companies that deal with chinese elite data would have been impacted. it is a positive indication there is real substantive discussions going on at the bilateral level. it is a really good step forward and it will be positive for china itself. they try to be a leader in the digital economy. shery: these are not just limited to china because the u.s. is making its own moves. we are hearing from ajit pai they are moving to deny china u.s.e's bid to enter the market. given where we are at with the u.s. and china, even if we do get a trade deal, what would it this mergersan for between the countries?

if there is a trade deal it is not the end of tensions. china has failed to implement these in the past when it has made similar commitments and in the u.s. there is skepticism in washington about what china seeks to do in terms of dominating the strategic sectors, the made in china 2025 program. the skepticism insecurity and in congress and the federal urography will stand. it will have a negative impact on the possibilities for companies. that let's stick with scheme -- that theme of skepticism. eventually these are issues that are going to have to be dealt with. patrick: absolutely. huawei is a ticking time bomb in the relationship. you have the cfo still waiting

for extradition in canada and the administration seemed to indicate they see these things not entirely separate. trump a month ago is saying he would be willing to talk about huawei in the context of trade talks. that is historical in the way the administrations have usually treated justice department issues. ongoing criminal prosecution and long-standing concerns about the security of this country -- company and trade issues. paul: we are counting down to what appears to be a signing survey, but there are still big sticking points not just what we have discussed. how do you unpick this issue in the time that remains? patrick: auto tariffs are a real concern and trump has until may to act on a report from the commerce department on whether auto tariffs constitute a national security threat. , can see this as ridiculous

importing auto parts and automotive's will not necessarily have a military impact but it is part of a broader discussion of national security versus economic security. a lot of these questions are unresolved. he doesn't really address what the consumer -- auto industry is concerned about. almost all of the u.s. landed automotive's sold in china are made -- branded automotives sold in china are made in china. picturehink the broad and where the auto industry is going, more connected and autonomous, the u.s. government could do a lot to secure the next generation of the auto sector making sure there is a level playing field for companies producing autonomous vehicles software. how will that be treated in china's emerging data regulation? shery: we are seeing the chinese recon -- chinese economy

recovering. first-quarter gdp in china rebounding or than expected, not to mention -- more than expected, ip beating expectations. this at a time when president trump emphasized that he could outlast china when it comes to economic pressure. we are seeing pressure in europe over huawei isn't working well. how well is this going for president trump now? patrick: i don't know if we can evaluate how it is going for trump. his supporters will not change their minds although agricultural tariffs have impacted them. from a company perspective, u.s. companies are, despite being pessimistic, still pretty optimistic about the option -- the markets overall. the american chamber of commerce in china did a survey of companies among their membership. companies saw% of

things going in the wrong direction in terms of politics, 80% anticipated positive revenue growth. because of the size of the market companies will want to be involved. shery: thank you for joining us, happy easter. the china practice director. if you missed part of that conversation, tv is your function. you can watch us live and catch up with past interviews, dive into the securities or bloomberg functions we talk about and become part of the conversation by sending us messages during our shows. this is for subscribers only. this is bloomberg. ♪ only. this is bloomberg. ♪

shery: this is daybreak asia. i am shery ahn in new york. paul: i am paul allen. let's get the business flash headlines. j.p. morgan chase plans to widen

the use of blockchain technology to help smooth the financial industry's payment systems. it will expand the use of the inc. network which allows companies to share accounting information. 75 of the world largest banks joined the venture to protect themselves with the rise of digital payment companies. shery: singapore is stepping up its appeal to electric carmakers to set up facilities in the city state. they are negotiating with two manufacturers and are looking for more to help build a wider community of ev makers. last year dyson announced plans to build its first electric car factory in singapore to try to launch its first electric vehicle in 2021. shery: china will accept new applications for computer days according to its media group. that computer games on monday according to its media group. their industry was hit hard last year after regulators froze

approval for new games. they restarted the process in december working through a backlog of thousands of applications. shery: japan and south korea get underway at the top of the hour. sophie: we have australia and new zealand offline, along with hong kong. we are expecting a muted start to monday trading. japanese stocks, the futures pointing to a decline of .1% while the yen is steady near a four-month low amid trepidation. policyg down to the boj decision, downside risks for the japanese economy. zynga stocks to watch, looking at this news report that says a group will host a one-time charge of ¥16 billion in the fiscal year. there -- a higher position for industry payments and cut guidance after a big miss in net income.

the nikkei news reports the impact on mufg earnings will be amenable if the group is not planning to revise earnings. and reaction to the latest data from korea. flipping the board for a lineup of numbers this morning from 9%th korea, exports falling in the first 20 days of april with chip exports down 25% and with should mince to china we saw a drop of 12.1% and on imports we saw a decline with aports dropping 1.2% on yearly basis. thank you very much. coming up in the next hour of daybreak asia, michael kuhlman from the wilson center asia programs will be joining us as we look at the bombings in sri lanka. we will have market opens as sophie mentioned in japan and south korea not here. the markets here in australia,

new zealand and hong kong are closed. we will be back in a moment. this is bloomberg. ♪ ♪

paul: good morning. japan and korea just opened for trade. shery: good evening from new york, i am shery ahn. inhie: i'm sophie kamaruddin hong kong, welcome to "daybreak: asia." ♪ paul: our top stories this monday, stock markets closed. bombers strike in sri lanka,

christians and tourists among the targets. bank of japan looks to stand pat. a new bloomberg survey suggests more easing to come, possibly this week. shery: becoming a key player in the global supply chain, we meet japan's company. some markets still closed in asia for the easter break. sophie: this monday we may see subdued trailing -- trading with countries off-line for the easter weekend. let's check in on the mood in tokyo. the nikkei starting off 2/10 of a percent, the yen is holding steady near a four month low. positiveelivered a division and downsized a risks for the japanese economy on results from heavyweights such as nintendo and sony. little change this morning as we digest data from south korea this morning.

we saw the check on the first 20 days of april when it comes to trade. exports sliding nearly 10% with chip exports taking a big hit, down 25% year on year. that likely will feed into some of the mood. 37 handle.the 11, thanks sophie, let's get the first word news. >> president trump's lawyer says there is nothing wrong with accepting help from russia. rudy giuliani said any political candidate would accept potentially damaging information on an opponent. it depends on where it comes from. rudy giuliani's comments are part of the response to the mueller report into alleged russia interference in the 2016 election. most prominent tv comedian has won a landslide

in the presidential election. they say he took more than 70% of the vote. andincumbent won about 26% is already conceded defeat. the financial times says china is delaying the launch of a controversial measure that would restrict foreign companies from taking data out of the country. beijing had plans to announce regulations about data transfer at the end of last year. regulators have held back to avoid sparking confrontation with u.s. companies while trade talks continue. and the united arab emirates are pledging $3 billion . the nation say they will support the central banks to ease currency and donate the rest for food, medicine, and fuel in sudan.

global news, 24 hours a day on air and on tictoc on twitter. powered by more than 27 hundred journalists and analysts in 170 countries. i'm rosalind chin, this is bloomberg. paul: thanks. let's get to our top story. one of asia's deadliest terrorist attacks in years has shery day period of relative calm. or than 200 people have been killed in a series of bombings. arechief southeast asia correspondent has been watching the story. haslinda: it seems sri lanka is in a state of chaos. it is sending chills and violence may corrupt again in sri lanka. hundreds and hospitals. the death toll rising to more than 200.

churches and hotels across the country were attacked, occluding -- including in the capital. according to u.s. secretary of state mike pompeo, several americans were among those killed. no one has claimed responsibility. about a dozen suspects have been taken into custody. had received warnings but nothing was done. sri lanka will have to look deeper into it, the priority is civility. when this goes on, we must also look into away to see why precautions were not taken. , we cannotoremost allow that. we are prepared to take all this is wipedsure out in this country.

all measures including nationwide curfew have been infused. facebook has been blocked. we strikes are not like what have seen before. this country is no stranger to war. it has seen decades of civil strikes. this attack is slightly different. not on the majority or the mosley temple minority. the attacks pretty much on christians, foreign tourists, condemnation coming from all around from global leaders like president trump. shery: thank you so much for that. we will stay with sri lanka and bring in michael kuhlman. note attacks were targeted only christians but also foreign tourists. how does this violence differ

from past instances of terrorism? it is very significant. experienceds really no mashed casually attacks like this in the decades since its civil war ended. killed 32tioned, this foreigners. it targeted the five-star star hotels that many foreigners stay at. this clearly will be a major shock -- it has been a major shock to sri lanka. it will pose major challenges to its foreign tourism industry, a major component of the sri lankan economy. shery: how bad is the sri lankan economy performing right now? we have heard of this huge imf?out already through the economy has

performed relatively well in the sense that gdp growth has been stable in recent years. particularly the violence ending from the civil war has allowed foreign investors to come in. the big concern for the sri lankan economy is debt. it is heavily indebted. 75% ofent debt is about gdp, which is huge. a lot of this is driven by chinese loans, which has put sri lanka in a difficult spot. sri lanka needs the revenue it gets from foreign tourism. contributedists about $5 billion in 2017. this is revenue sri lanka needs and is threatened if you have a situation where foreign tourists stopped coming to sri lanka in the aftermath of this horrific attack. sri lanka is of course no stranger to civil unrest. you sort of security do

expect we could see put in place by the government to protect forests? what are you looking out for? michael: clearly the government will do everything a can. the government has made it clear it will do everything possible to restore security. particularly, given the significance of this attack. so many mass casualties and happen at a time when the country had been relatively stable. it is significant given that this is a country that experienced horrific levels of violence year after year for several decades. really until 2009. we have seen some of the measures the government in sri lanka has taken. social media has essentially been blocked. just think was done to prevent stirring up rumors against particular factions or groups in sri lanka that could risk

leading to more violence. i think for the government, the main goal now is to restore some semblance of order. can haveuntry itself some semblance of stability and hope. understandably, there is a tremendous amount of shock going on right now in the country. the times were unusual in terms of civil unrest we have seen in sri lanka in the past. diffusedand a bomb was at the airport as well. previously you could point to some fairly obvious groups. this time, no one has claimed responsibility so far. where do you think the investigations will be focused? michael: it is hard to say. the fact that no one has claimed responsibility is very significant. if you look at the patterns in recent years, you have the islamic terrorists, particularly

the likes of isis and al qaeda. they take responsibility right away. something isis in particular does. they have made no claim to the responsibility. especially because sri lanka has no history whatsoever of islamist terrorism on large scales. i think the government has claimed it has already arrested some suspects. they haven't given much information on who these people are. clearly, this will be the major priority for the government in sri lanka in the days and weeks that follow. to signal who is responsible for such a horrific and unfathomable attack. program deputy director and senior associate for south asia, thanks for joining us. the sri lankan attacks headlined today's addition of daybreak. go to daily go on the terminals, it is also available on mobile on the bloomberg anywhere app.

think of japan governor was expected to stick to his guns at this week's policy meeting. economic threats intensify and inflation still remains far below the target. global economics and policy editor kathleen hays is here with the preview. what can the governor do besides hoping things will improve? kathleen: that is a very good question. the bank of japan is looking at some of the big forces, like everyone around the world. the trade war has certainly had an impact on japan's exports as well as the economic slowdown from the people's bank of china. it has taken somebody steps to offset. there is some reason for the governor and his colleagues as they start their two day meeting and wrap up on thursday. look at the less strength in the economy now. the fact inflation is about halfway to target and say we haven't given up.

we could see signs things have gotten better. jump in the bloomberg terminal with me and see what has been happening to industrial production. one of the things experts of manufactured goods, it has been down for two of the past three months it is expected monthly to be down again later in the week. there is also room for hope as i said. the latest data from china suggests the stimulus has been working. they are seeing stabilization and importantly, the pboc is not expected to start removing stimulus anytime soon. pmi's areacturing also looking a little bit better. that could be good for japan at least as a sign of the global economy hanging in there. the bloomberg news team spoke to annex bank of japan official last week. he has been very concerned about the impact of the tax hike coming in october and what that could mean for growth and inflation. a challenge for the boj.

the bank of japan expects the overseas economy to turn positive towards the end of last year -- this year. i don't thing will be slow enough to offset japan after the sales tax hike in october. theleen: more than half of economist interviewed by our bloomberg tokyo team says the next move, if there is one, be to try to put more stimulus into the economy. it really puts a lot of focus on exports. they pose for the japanese economy. how important it is that the global economy and leaders of nations are taking steps that foster trade among nations that will help japan and the boj as much as anything else they could do now. abe as aime minister busy week. trumpeting with president in the u.s., what is at stake as these leaders discuss a

free-trade agreement? kathleen: there is a lot at stake for both sides. these talks will be at the white house. president trump is hosting prime minister abe. course,able now of especially for president trump is the agricultural industry. they want a deal that will crack open japan's market, particularly to exports of goods like beef and pork. prime minister abe wants to avoid tariffs or quotas on very lucrative auto exports to the united states. on the u.s. side, they are concerned that japan -- that the sales because of the fact that trump walked out of the transpacific partnership shortly after taking office. progressiveive and transpacific partnership went ahead. countries in that block like

australia have advantages over u.s. farmers when it comes to exporting to japan. from prime minister abe side, certainly the whole project, boost inflation, exports are a key part. japan could ill afford losing any ground on the auto exports. we shall see what happens over the next couple days, more towards the end of the week, just after the boj has wrapped up its meeting. there is a lot riding on both sides. it seems to me they have a lot to gain by getting a deal. shery: thank you so much. still ahead, more on what to expect from the boj this week. that is later this hour. paul: up next, a look ahead on what to expect from marcus on this somewhat curtailed trading day. this is bloomberg. ♪

asia."this is "daybreak: paul: stocks in asia off to a muted start as you might expect on a curtailed trading week. this, as the vocus shifts to week four of corporate earnings. his missed looking for clues of dovish central bank policies can overlook some disappointing earnings. the stock market seems to be saying yes. are on track for a fourth month of gains in april. joining us to discuss this is the head of aipac equities and credit at ubs wealth management. thanks for joining us. we have been discussing, the bank of japan, the bloomberg survey that suggests we might see more easing from the boj, what is your opinion? i'm a bit surprised to see

the consensus head in that direction. the evidence is a bit too a contrary. the amount of securities they are buying is actually below what they had initially targeted. importantly, you could always say as long as they are not at 2%, it wasn't too long ago that the boj very explicitly started to show concerns about the possibility that the banks are just hurting. one of the negative side effects. we are not necessarily in the camp that thinks it will get even easier. this talk of the bank of japan potentially easing . some discussion that indonesia may go the same way at some point in 2019. earningsme time, season so far hasn't been too

bad as well. i know you are saying markets have to cut from the price but when we start talking about typing again? hartmut: tightening on the fed side inevitably needs inflation, possibly from labor or other areas. it really is one ingredient i think would be for the fed because earnings, maybe in the second have to come back a little bit. it will not be roaring anyway. you need that inflation. for us, it is difficult because the inflation part hasn't come by now. the u.s. economy very gradually slowing. it is difficult for us. all the way into next year, we do not have any fed hikes or cuts. shery: we have seen as they have turned more dovish, volatility. we saw the sharp rally in the first quarter. what are we expecting in terms

of price swings? we have taken some risk back recently because of the swing back and the rally. you have an interesting consolation where we will both probably not fuel the markets very swiftly from here anymore. as we discussed before, you have the markets underwritten. makess environment, it sense for investors to look at the laggards. we upgraded japanese equity markets on an unhedged asis. the european markets to an leftt, japan was a bit out. and has been left out. especially with foreigners driving force at times for the better part of the last couple of quarters. probably rotating within the markets, looking for those opportunities that haven't

performed that well to catch up. this to us seems to be a palatable strategy. shery: talking about not performing well and having to catch up, let me turn to european banks. their earnings season kicking into full gear. seen them a really underperform the broader markets . this chart on the bloomberg showing exactly that. what is the forecast as we head into earnings season? there is under for -- underperformance but cheap evaluation. it certainly isn't the result of the european easing that reflects the very low returns on equity as well. stand out, really for us to really consider them a idea, it would necessitate the idea that we do believe the ecb starts to go away from interest rates. this could be a very strong driver. we don't anticipate it for this

year anymore. there could be at some stage in the future very interesting trade, probably the next few weeks or months. shery: thank you so much for that. of thisissed part conversation, your function is tv on the bloomberg. you can catch up on past interviews and watch us live at dive into any of the securities or bloomberg functions. become part of the conversation by sending us instant messages during our shows. this is bloomberg subscribers only. this is bloomberg. ♪

shery: let's get our quick check of the latest business flash headlines. the nikkei, the

unit was developing a new system to merge the management of its three separate credit card brands. 2016 witht began in seven hundred million dollars already invested and another 700 million slated for investment over the next three years. u.s. areorts from the putting more pressure on boeing as it struggles with the 737 max. in south carolina has suffered issues with production and oversight to create a safety threat. documents along with interviews from current and former staff and says that full departs -- faulty parts are put on some. the two sides admitted last week that the plant wasn't operating at full capacity. now elon musk is pointing the finger at panasonic. it raises new questions about

the availability -- the possibility of delivering cars and making profits. next we will hear exclusively from the ceo of japan's company dubbed the king of deals. this is bloomberg. ♪

>> sri lanka has shut its stock exchange until further notice after more than 200 people were killed in bombings. the government says some of it was carried out by suicide bombers and people have been arrested. the attacks on foreigners and christian locations. while this goes on, we must precautionsy were not taken. first and foremost, we have to answer that -- we have to make

sure terrorism does not lift its head in sri lanka. we are prepared to take all measures necessary to ensure this is wiped out in the country. : president trump said there is nothing wrong with accepting help from russia. that anyiani told cnn candidate would take the information and it depends on where it came from. the comments are part of the trump administration's response to the mueller report into alleged russian interference in the 2016 election. prominent tvt comedian has one a landslide election in the presidential election. exit polls say he took more than 70% of the vote. about 26bent won percent and has already conceded defeat. the financial times says china is delaying the launch of a

controversial measure that would restrict foreign companies from taking certain data out of the country. to announcenned regulations restricting cross-border data transfers at the end of last year. avoidere held back to confrontations with u.s. companies while trade talks continues. 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. you very much. let's get a market check and here is sophie cameron rudin. sophie: we are seeing fluctuations in japanese equity markets moving to the upside set for a second day of gains. the nikkei adding 2/10 of a percent. health care was one of the top sectors across the board. checking in on movers in the region. after to highlight mufg, the nikkei reported it would

take about a write-down of its credit card business amid a rising competition. it could be moving on the nikkei's report of a one-time charge of ¥16 billion. i also want to highlight this falling as much as 9% after cutting its operating income forecast. the company manufactures machinery for the apparel industry and exports to north america and europe. we have copy developer daiwa jumping after boosting its operating income for the full year. let's look on the board for a quick check on currency markets. the yen trading near a four month low. u.s. and japan trade talks are scheduled for next week. looking at a little changed after seeing the weakest level in more than three months. some watchers are watching a rebound as the focus returns to

fundamentals and appears around capital outflows. equity markets are closed and heads up, the stock exchange has been closed following the easter sunday bombing. to our tops go back story. one of asia's deadliest terrorist attacks in years i has seen at least 207 killed in sri lanka. our sri lanka bureau chief joins us. we understand the government has imposed an islandwide curfew, what is the situation on the ground? it is 6:00 a.m. here now. initially announced to be 12 hours, 6:00 p.m. until 6:00 a.m. the police are conducting investigations into the cause, they are still looking at the

series of suicide bombings. there is also a police curfew ongoing while they look to arrest suspects. least 13 people have been arrested overnight. 10 of them kept for further questioning. i think the curfew was to keep people calm and keep people indoors. so they could catch on with the investigation side of it. there are still big question marks about who did all of this. a major question because these targets are unusual when compared to previous civil unrest that has occurred in sri lanka. has there been any information at all about who has been arrested and which direction the

investigation is heading in the n?h anisha: they have attempted to block social media to prevent rumormongering. so they have a clear idea. the prime minister admitted there had been some warnings to the government in the past week or so that attacks may be , especially on the charges. he admitted they had not acted upon those warnings and it is a different sort of targets we are seeing. was never a case of particularly targeted like this. they are trying to figure out who the enemies may be. bigy: tourism taking up a part of the sri lankan economy. what is expected to be the

impact on the wider economy? anisha: that is right. ,ourism, especially recently being a big support for the recovery of the rupee. even as we had protracted political crisis as well we saw it recover 5%. tourism was supposed to be one of the brightest stars. we have just been put on a top destination for this year. this is the big? to turmoiluld lead in the markets. paul: thank you very much for keeping an eye on the story for us that is evolving in sri lanka right now. say thefrom washington

trump administration is poised to tell five nations, including japan, south korea, and turkey, that they will no longer be exempt from u.s. sanctions if they continue to import oil from iran. how should we expect the market to react to this news? this is confirmed that on monday the trump administration does decide to take away these waivers to the countries import bring iranian crude, that we'll push the market up going forward. you could see the price of brent or wti spike as the cargoes are taken out of the market. we might not be expecting anna norma's jump in the price of oil. according to analysts we have spoken to. the market was always sort of unsure about how the trump administration would move forward with extending these waivers. there was a bit of hesitation as to whether they would in fact

move forward with extending them. we will see going forward today and tomorrow if the reports are confirmed. is definitely a bullish signal for brent going forward. shery: what would be the impact to the countries like china, india, south korea? will they be able to manage supplies without a rainy and oil? there is a lot of supply in the market. according to reports from the "washington post" you could see exports from saudi arabia picking up slack and boosting. we have seen russia and saudi because ofproduction an oversupply in the market. they could boost if they had to. other countries exporting could feel the gap -- fill the gap.

there will be really no big issues for countries like japan, china, south korea, to find the cargoes when they need to. shery: thank you so much for that. our bloomberg asia energy reporter joining us from singapore. a japanese company has been dubbed the king of deals in local media after growing from a small ball bearing manufacturer to a key player in the tech industry's global supply chain. exclusively to the company ceo. matters. the financial situation for the company in the market environment need to be right. when i feel it is right, i just take action. in this case, i took the seat next to the president on a bullet train one day and chatted about our potential business opportunities. the conversation took a very relaxed matter. i felt a positive response.

it is not a deal between companies. it happens between human to human interaction. what is important is to have enough conversation, trust, and understanding. we have made ¥500 billion worth of profit through 17 m&a's. i thing we could make the same size and expect a fair size of business expansion. we are particularly interested in m&a's in ai, big data, and autonomous driving systems. are core strategies for growth because overnight you could grab time, history, technology, and feel. camara -- we are joined now by the reporter. where do they see the next big thing coming from? isi think's core message smartphones will become less and less prevalent in our lives.

we rely on this thing literally for everything. his view is that as things around us get connected, chips, and start being able to get sensors and become smarter, the phone will be at a way for us to control that. if you think about the alarm clock, it hasn't really changed all that much in the last 100 years. we still get loud sound every morning that wakes us up. he is saying why not have -- if ,ou could control your blinds and the time you want your lights to come on, or even your coffee machine. phone, it through your you start to make coffee at the time you want. it is connected so you could set the time through your phone and it is all seamless. you see this going away from the connected cars and homes. that is where he is taking his

dealmaking next. phones andway from into chips and devices. outside the phone basically is where he sees the next wave. paul: tell us a little more are youm, how certain he will continue to do the deal? we spent quite a bit of time for the article. he is really charismatic. really powerful. i think he really does rely on m&a very seriously and he will pursue this deal. over the last 10 years, he has perceived something like 100 deals. he has closed about 20 of them but he will keep at that pace. he is hoping to close more. he has been in the helm for 10 years, which is pretty long for any measure, including japan. i don't think you will step down anytime soon.

he is 63 years old and i think keep making to deals. he says the biggest possible deal right now he could muscle billion.¥300 a single deal. homes, connected cars and things like that, i think you will continue at a deals aat least 1-2 year it, if not more. he is very optimistic about growth in that area. his most famous deal up until now was for a major nintendo supplier. that has given him a ton of exposure to videogame consoles. he is not planning to shy away from that. stiller consumers are using the wave we have mentioned, he will continue to ride it with deals and not stepping down anytime soon. this guy was educated as an m&a

lawyer, he loves deals. he talks to us in the episode was interesting. andet the guy on the train they started talking it up. three months later, a half $1 billion deal is closed. nakamura.mberg's as the boj prepares for its monthly meeting, some expect the next move to be more easing. we discussed that possibility coming up next. this is bloomberg. ♪

shery: this is "daybreak: asia." sensethere is a growing of the bank of japan might have more stimulus measures on the

way. about half the economists we spoke to said there is a chance of further easing with some expecting a move as soon as this week. let's get some expert insight on this from tote with hs market principal economist. thank you for joining us. what you make of the survey and could we see some stimulus as early as this week? >> i don't see it in the coming meeting. i think the bank of japan is and whatt the momentum and the for them consumer spending. data, itt the earnings

is partially because the changes and the data here. the increased rate continues, the negotiation is going to increase more than 2% year on year. which is about the same as inquiries last year. also the tight labor markets at 2.4 percent or three point -- 2.3%. high so the still judgment is probably a necessary change for them. paul: let's talk about the inflation target. 2% increasingly seems heroically optimistic.

it was criticized not so long ago before he stepped back and said he still backed it. did he have a point? is 2% in number the boj should revisit? especially with the sales tax on the rise in october. don't think they will .hange the target strong as they expected. the downside factors from coming up, the government introduced rate for the fresh impact forl as the the 0.2 percent down from inflation.

also, the largest mobile company announced mobile phone charges about 40%. .2 also.2 -- also 02 down from the inflation ratio. if the bank of japan would reduce the targets, that would -- we will see more buying from one person or two person targets. we will not change them until more good news is coming. shery: we saw data from last --k showing drip and

japan's trade surplus declining again. u.s.-japan trade negotiations really heating up as shinzo abe is coming to the u.s. next week. how would a potential trade deal between japan and the u.s. impact the trade balance? i don't think it is the bank of japan and u.s. negotiations that are the crucial one. obviously japan needed to increase the agriculture goods. also, japan will probably need to reduce exports in auto. it means the impact will be lower. we are also hearing from

prime minister shinzo abe right now saying the result of the elections are extremely regrettable. lost out ofldp two lower house elections, signaling what could come in the july polls. he is also saying that they must for the upperly house elections. given the political situation right now, what are your expectations for the upcoming consumer tax hikes that we could see in japan? the -- theon with government has already started something to counter the downside in the tax increase. size has company

started; some preparation for the tax increases. that probably increase the cohesion because of the downside effect to the economy. likely morent is encouraged. thank you so much for your insights. have another big guest joining us later on bloomberg. will join us for an exclusive interview in bloomberg markets, china open. this is bloomberg. ♪

shery: welcome back. let's go back to sophie kammer rudin in hong kong. sophie: this is data dockets for this monday. later this morning we look at trade numbers from thailand. nearly 4% in march, that will be the fourth time in five months. taiwan expert orders will show the worst of the slowdown and shipments may be over. malaysia anticipates a rate cut and next month's decision, we will get that data at 3:00 p.m.

flipping the board for a quick we have wti rising as much as 1.2%. this, as we learned the u.s. will likely not renew waivers to let countries by iranian oil. this could flood major importers like india and china. thank you so much for that. that is it from "daybreak: asia." we look ahead to trade in shanghai. hong kong closed on holiday as well as australia and new zealand. china open is next. this is bloomberg. ♪

tom: it is not :00 a.m. in beijing. welcome to bloomberg markets china open, i am tom mackenzie. , we arei am yvonne man counting down to the open. bombings in sri lanka with questions and tourists along the targets. yvonne: a new bloomberg service has more using to come, possibly this week. tom: sparks fly as panasonic is attacked over there battery factory. elon musk says