>> here are the top stories we are covering in the next hour. wall street eeks out a slight gain. iranumps on the end of sanctions waivers.

and a jihadist group forced sunday's wave of bombings. investor. tesla's his new claim that self-driving cars will be the best in the world. it was a light volume session. ofestors still awaiting lots earnings this week. the s&p 500 managed to eke out a small gain. u.s. refusing to renew those waivers. we had real estate stocks waiting on the market. we got some disappointing numbers. u.s. futures are unchanged at the moment but are under a little bit of pressure. >> after a lackluster monday

that saw chinese stocks on the move for more than three weeks, we saw these back online. stocks are eking out slight gains. watch out for a selloff. sydney, we are looking at moves in aussie construction players. we did see a drop in base lentils and early data showing slowing exports in asia. the u.s. has decided not to waivers.'s iran oil samsung delaying the launch on its smartphone. flipping the board for a quick check on the agenda for this

tuesday. singapore reports inflation at 1:00 p.m.. getr this afternoon we will industrial production numbers from taiwan. news.'s get to first word here is jessica summers. assica: sri lanka is blaming jihadist group for sunday's wave of bombings. shared intelligence had shared warnings beforehand. they are wondering how a small group could have struck across the country and may have had assistance from abroad. several foreigners are among the victims. at least eight people were killed by a powerful earthquake in the philippines. the magnitude tremor. --uck north of manila and several parts suffered power outages.

trains and metros were halted to check for damage and clark forort was ordered to close 24 hours. a lebanese company said to be at the center of alleged payments thinking nissan and renault to a they facilitated transfers to another company connected to the pair. prosecutors have indicted them for misdirecting the funds for personal use. he denies any financial misconduct. the apparent spontaneous combustion of a tesla in shanghai has triggered urgent investigations by tesla and its rival. after eight chi -- eight cars caught fire. last year china reported at incidents.re-related

onhours per day on air and tictoc on twitter. i am jessica summers. this is bloomberg. trading volume was light in the u.s. market but there were small gains in the s&p 500. let's get it wrapped from bloomberg's su keenan. volume.d see very light lengthy holiday and perhaps many players are not back. stocks, but wein did see the energy stocks as well. housing came in a bit weaker than had been projected in march. let's look at the big movers. there were sizable moves.

doubled ineir volume this recent trading session. that launched ipo last week, continued to move higher and an interesting sidebar, there is a china-based called mobilephone maker zoom technology and saw its shares rise 70,000%. confusion, maybe? a lot of focus on zoom has people jumping into this. recent $60 million deal with beyonce at disney. the latest in their rush to put -- in place. 2020 robo taxi plant was deemed aggressive and confusing by many in attendance. investors across the board seem

to be giving this a thumbs down or a note of concern. a more positive outlook and .uickly onto the bloomberg a slightly flat increase in s&p. oil off to the races. thene of the big stories of day. we were talking about that big .ump to a six-month high that's coming as the u.s. flexes its muscles on the sanctions waivers. >> that has a lot to do with mike pompeo saying he is confident he will see a stable market.

that reduced supply. looking at the energy companies about report. the only one that has reported lower is halliburton. going forward they still face a .umpy road senior market analyst ashley peterson is here with me in the new york studio. great to have you with me. -- thatheard that the president trump does not want to renew these waivers which is surprising because you would think he would not want these prices to rise. will these gains be sustained?

>> it was a high-risk maneuver for president trump to get rid of the waivers on these sanctions. beains are unlikely to sustained at these levels but it will get support through this week. now the question is, what does opec-plus do. they could easily come in and fill the gap caused by any reduction in iranian exports. will happen tot these iranian countries receiving iranian oil. iranian exports mostly went to turkey,lso to japan, and india. we could see these waivers expiring.

you can't really overstate that it will go to zero immediately. there are banks in china that could handle these transactions and allow the flow of oil still without being subject to the sanctions. we don't know if these flow issues will continue when everybody is expecting it to go to zero. >> what about the response from iran. thee has already been suggestion or the threat that the strait of gibraltar may be closed. >> iran threatens this every time, but what they are saying is if you physically try to stop our ships part of international trade, we'll take that as an act of aggression. we're just talking about sanctions on financial institutions, they won't close the strait. strait, ando the

stop their ships from sailing, that becomes a more sizable risk. it is technically possible for them to close it or to significantly reduce the shipments through it. --take me back to your first point. you did see they are capable of filling any supply gaps. >> it would be the end for production cuts. libya, mind, we have nigeria, and the u.s. not under any production restriction and all capable of growing from last year. we are expecting one million barrels to disappear but what happens if it doesn't disappear and the opec deal starts to see more production coming. supported bybeen

fundamentals? declining seen stocks around the world in both crude and product. everyone was worried about what consumers were doing. they still are. consumer spending is generally resilient. the structural increase we have seen this year has been supported. be getting a little ahead of themselves. peterson, thank you for joining us this morning. senior market analyst. upll ahead, elon musk talks and answerschip question about cash flow and safety. and why are investors going

long on the aussie?

>> we are counting down to the sydney open. back in action. , up by pointing higher 0.5%. i am paul allen in sydney. >> it is foggy and gloomy in new york. i am shery ahn. you're watching daybreak australia. in the cohead of zach -- , we have seen chinese growth starting to stabilize. the gtv chart on the bloomberg anding first quarter sales ip starting to stabilize. when will this growth in china spill over to the rest of the

world and impact currency? as it done that already? >> that is a great question. that is on the top of every member's mind. chinese growth is really picking up. it is a huge economy and has been affected throughout asia. we haven't seen those effects speed through yet. that includes australia itself and the north asian economy, like the koreas. we haven't seen the spillover effect yet. we think that will be coming over the next few months. shery: where do you go? >> that is a great question.

china is picking up but the yuan is staying flat. there are two currencies, those that benefit from chinese growth and the ones tied to the yuan. we think investors should be tied to the former. the real.ian peso, currencies, the taiwan yuan and others, they need growth outside. we think these growth-oriented currencies are better than the yuan-oriented currencies. paul: there has been trading in a narrow range so far this year but connecting with that china growth story, iron or firmly in the 90's. -- iron ore firmly in the 90's. what is your case going forward? >> there is a lot of pessimism

about the domestic economy which we think is now overdone. tailwind certainly helped. the rba will be cutting rates this year, but our assessment is that it is a much more balanced assessment than that. it looks like it is stabilizing in some places, looks like you have a fiscal stimulus coming through at a solid labor market. we think that pessimism on the australian dollar is overdone. with the pickup in iron ore prices, the tailwind for that currency. we like it versus the dollar as well as the new zealand dollar as well. paul: almost a contrarian view as the growing chorus of expectation that the rba will cut in 2019, but you don't see that happening.

can you expand more on some of the other cross rates? i know you like the aussie dollar versus the kiwi. versus newaustralia wheel it -- new zealand is the best way to compare this. in new zealand, there is nothing wrong with the new zealand economy. we have a central bank focus on getting inflation pictures to pick up in a firmer way, and we think that there is a good case as soon as next month. we think that harvey enzi will be reducing rates next month. pair, versusmon the australian dollar, is the canadian dollar. chinesevironment where growth is likely to be picking up and oil prices are closer to the high-end versus the lower end and australia versus canada is another common expression.

shery: let's talk about europe. the gtv chart seen pmi's rise, but it is not translating to other parts of the world. what are the implications for the euro? >> i wouldn't say freefall but europe has been left behind in the latest pickup. it looks like it is stabilizing and not rebounding strongly. we think europe is on an improving trajectory. what doe s that mean for policy and currency? i thing last friday ask about numbers were weak enough that we were not able to see this at the student meeting. we are expecting them to make fairly generous terms for the lending program and to extend their foreign guidance another three months. all of that should put dollar

pressure on the euro over the short run. we continue to think that fx investors will be working over high-yield markets. to tradee euro-dollar 1.14 range.ts shery: you can get a roundup of the stories that you need to know to get your day going. bloomberg subscribers go to jb go on your terminal. you can customize your settings so that you only get the news on the industries and the assets that you care about. this is bloomberg. ♪

paul: this is bloomberg technology global link. in sydneyllen alongside shery ahn in new york and emily chang in san francisco.

let's look at the stories of the day. emily: samsung is delaying the launch of its portable smartphone amid reports of screen defects. it was supposed to roll out on friday but that has been postponed. several publications have reported a range of problems with test versions of the $2000 device. on pophad its eyes payments. they have their eyes on a growing number of cities lobbying through -- cannabis banking legislation. itsdded pot banking to first quarter lobbying report. facebook has named jennifer newstead as its new general counsel. she was previously a corporate lawyer who focused on cross-border regulations and litigation issues.

she replaced colin stretch who announced he was leaving last year. slumped to its lowest in a month after analysts declared themselves underwhelmed. elon musk was determined to be optimistic. highlighting a chip that he says will make driverless car is a reality. how significant is this driving chip? >> it is a big deal. tesla has been working on its own chip for several years. we heard a detailed presentation on the chip design. convinced that this is the best chip in the world for self-driving. tell us how the robo taxi fits into the larger venture? >> what is interesting to note

is that tesla reports first quarter earnings on wednesday. today's reputation is about autonomy. we didn't hear much about the model three or the forthcoming model y. it is about a future where tesla motors can have a model 3 and have it be part of this shared tesla network where the car will make money for you while you're at work. is convinced that this robo taxi network will be up and running in 2020. fromis a very big deadline someone who admits that he often misses deadlines. be raising they funding to make this a reality? >> he admitted that they are spending a lot of money on auto and autonomy now. when asked if they would need to raise more, he said they would raise -- make the right move at the right time. this would be a huge undertaking. >> back to you.

that is bloomberg technology global link. sydney, 5:00 a.m. in hong kong at 5:00 p.m. in new york. we will be talking about why president trump's trade wars are making the boj's job harder. so with xfinity mobile

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paul: we have the markets opening in 19 minutes time. futures currently pointing higher by almost 0.5%. shery: i am shery ahn in new york. let's get the first word news with jessica summers. jessica: the united states says the iran's threats to close berut strait would unacceptable. strait carries 20% of the world-esque of a shift crude. oil hit its highest level in six

months since washington announced an end to waivers. china is getting a makeover. beijing is exerting more control over the program. they will introduce a lower profile drive. global leaders are in beijing for this second world forum. polls have closed in egypt after a three-day vote on amending the constitution and allowing the president to remain in power until 2030. the army toppled an elective and divisive islamic government in 2013. seriousas suffered a

setback in its efforts to send astronauts into orbit. capsule weekend, the was engulfed in flames. it flew to the international space station last month and was supposed to be reused in june. news 24 hours per day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers and this is bloomberg. shery: the market back online. what are you watching? >> after that break on the hashlist, the company entered a plan to sell for cash consideration of $215 million. considering expanding

elsewhere in europe. upestors had given a thumbs to the appliance maker's expansion. bhp in the spotlight saying there are no plans to exit coal operations although there won't be further investments as demand is unlikely to relock -- to rise at the same rate as gas and renewables. otherng the board for stocks, galaxy resources being downgraded. lumina, the outlook they're looking week. let's look at the board. i want to quickly mention about the warning that the aussie share market is looking at these levels. sellofffor a decent

which will likely be in early to mid-may. as the recession becomes onvia and home prices fall. paul: thank you very much for that. let's look at what we should be watching as trading gets underway. we have got markets back in australia and hong kong. what should we expect? >> we have all hands on deck, but keep in mind that we are sandwiched in between that very long break in japan next week and so volumes are probably likely to be seen. overall investors are awaiting earnings, earnings are full steam ahead.

firstday we have that reading on u.s. gdp which will be very closely scrutinized for any effect of the shutdown. earningsorporate season gets underway investors will want to see whether this dovish turn is enough to shore up global growth in cash and case earnings are going to slow down. the chinese data that we had thatweek, the progress on one. the s&p 500 within about 1% of the record high. needarket probably something else to take it that much serve -- further. jp morgan betting on a global slow down by increasing its holdings of treasuries.

what do we know? assets jp morgan highlights is that investors are still concerned about double growth. jp morgan assets hasn't been adding to its long position in u.s. tenured debt and says it will continue to do so as rates go up. rallied globally from the u.s. to australia throughout march. we have had goldman sachs and morgan stanley also lowering their forecast for treasury yield. shery: thank you so much for that. bloomberg's cross asset reporter joining us from sydney. check out her chart. house democrats want more information from one the mueller witnesses and have

issued a subpoena to don mcgann to testify. joe, really not surprising given the key role that he seems to have played according to the mueller report. >> he was interviewed more than two dozen hours and appears more than 500 times in the report, detailing some of the attempts by the president to derail the .nvestigation .e is a key witness he was talking to mueller as part of the early strategy to offer up all sorts of cooperation. now that the democrats are subpoenaing him, this will bring some of that testimony live in front of a television audience that may be more impactful than just the dry words on the molar

report. that is what the democrats want to do, as well as to build a investigation own as they feel forward for a way to hold the president accountable for what they say are his actions that were unethical or perhaps illegal while in office. >> i guess the question is how far to go. it is house speaker nancy pelosi going to be able to call -- hold these calls for trump's impeachment ? atthe announcement went out the same time that nancy pelosi was convening a call with all house democrats to discuss the issue. there is a building sentiment among some house democrats to be in impeachment proceedings. hello see is arguing that there are other ways to act to hold the president accountable,

perhaps a censure. more importantly, they are interested in continuing the investigations and continuing to finances president's as well as his actions in office, a steady drip of investigations leading to the 2020 election. they are concerned that an impeachment proceeding will backfire by turning off voters with all the conflict there would be over that and would solidify trump's support among his base. they are walking a fine line. president from putting aside his plan to put herman cain on the federal reserve, this coming after just last week when mr. kane said he did not intend to withdraw. what changed? >> there were at least four republican senators who came out publicly and said they could not vote for herman cain.

much scotched any chance he could get through the nomination process. wrote on a conservative website that he did not want to give up some of his financial interests that he had and it would cut his ability to earn money. but the reality is that there was not support in the senate even among republicans for his that leaves the president's other choice, stephen moore, still in the offing. he is still undergoing some vetting, but so far, republicans have not been quite the same. they are waiting to see the nomination and the results of the report. he may have enough support to get through if the nomination proceeds.

>> bloomberg's commerce editor, joe sobczyk. gets set tooda release its latest policy decision on thursday. chief economist richard who told kathleen hays that trump's trade wars make the boj's job tougher. that bywere hoping keeping it as low as humanly possible and with the u.s. economy doing well and normalizing interest rates, that the interest rate differential widened and it would be weaker. that was their hump -- hope and hen mr. trump came along and thesed talking about other balances.

while u.s. president started talking about these issues, the focus changed. issue, people an tend to look at interest rate differentials. they say japanese rates are remaining low -- 100 to the dollar -- you remember those ,orecasts from some years ago but the trade issue is put on the table and the u.s. is writing a massive deficit, with -- with that the challenges that it should be weaker and not stronger. only since 1995. they don't know this world. those in the foreign exchange market before 1995, like myself included, that period 20 years

before 1995, where you are very concerned about the university rate friction. onthat time the dollar kept appreciating even though the whole time the u.s. had higher interest rates than japan stop politics -- what if politics gets into the play and trade issues become a big issue? changes trading market and we are in a different world now and that is something the boj wasn't thinking when they were trying to keep rates low. can but what can the boj do? >> not very much. i don't think they should deal with these issues. they should tell the government to deal with these issues. the central bank can do a lot of things when there is a problem with the supplier fund, but that is not a problem they are faced

with today. they are flooded with cash which is why rates are so low. when there is a demand for funds, the government has to provide that to keep the economy going. >> that was richard cu speaking to kathleen haynes. lanka blames a jihadist group for sunday's bombings. this is bloomberg.

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paul: sri lanka is blaming a radical domestic jihadist group for sunday's bombings and is asking if they had help from abroad. they had warnings ahead of the attacks but authorities did not pay enough attention.

authorities are leaving the island in droves and hotels are bracing for cancellations. very important for that economy. let's discuss the implications of all of this with alan our analyst. that this may be the work of a previously unheard of, homegrown jihadist group which bigs the question, where they helped? >> yeah. this group was very little-known . looking back, on the internet and to other networks, one can detect its presence or clearly. it was principally thought to be more of a problem for other muslims. was often threatening other

divisions in the islamic traditions and was widely reviled by other muslims. it was not taken seriously as a threat to other communities rhetoriche incendiary ells and so forth. when this truth, which by all accounts was never very big, could they have pulled off this type of powerful explosion and coordinated attack? it took a lot of planning. if this small group could have done that, a lot of people are wondering. what will come up when there is more evidence, it remains to be seen. paul: what is the government response going to be to this? previously, the iron fist approach worked when it came to dealing with the -- tigers. what approach will the government take this time >?

that the iron fist is not the answer here. it took care of the tigers but not the issues that led to that. they have just declared a state of emergency with extra powers to the president and security forces. investigately to what that works led them to attack. that is quite important and legitimate. but the fear is that these stokes will also anti-muslim sentiment among other communities which has meant violence in the past. shery: paul: the official has said that they needed assistance from security officials abroad.

what sort of multinational effort is needed to deal with this situation? >> i don't know the details on that but there are lots of countries that potentially have an interest and an expertise to help, beginning with india which was apparently the source of the warnings in the now infamous briefing by the police to other officials which was unfortunately ignored. perhaps russia and china and all the other countries -- major powers had an interest in monitoring these resources. they are all friends with sri lanka. we will see what they can come up with. paul: we are used to seeing tension between the tamils and the similes.

somehis been happening for time? can but it surprised me, almost everyone that i know. not just the brutality and the horror of it, but the explosive power, the coordination. i think that it is really important to say that the evidence suggests that this wasn't an expression of existing ethnic,an dynamics, linguistic, whatever. so far the evidence continues to be supported to be about the importation of the far end of international global discourse which had -- existed within sri lanka. with this group and in other organizations and activists, but had never taken violent expression in sri lanka.

there has been interim muslim violence toward other muslims that are not as fully islamic, but never attacks on others. it was completely unprecedented. i think it was an accident rather than an indigenous product. what happens is that this violence will feed into existing tensions, particularly the widespread fear and suspicion of muslims, particularly in the buddhist community. much. thank you so we have breaking news out of south previa. we are hearing that creditors will inject 1.6 trillion yuan into the embattled airline.

this according to news that sites that the south korean minister aims to sign and deal and that creditors will inject 1.7 6 trillion yuan into the embattled airline which would be around $1.4 billion and it is much higher than was speculated before. hearing from the finance ministers thing that creditors will inject 1.6 trillion yuan. this group will sign the memorandum of understanding on the financial normalization under the condition of the sale going to local media. we have seen the stoxx rally over the last couple of weeks on news of normalizing business there. more than a 50% jump in the preceding week. more ahead on daybreak australia.

this is bloomberg. ♪

paul: i am paul allen in sydney. shery: i'm shery ahn in new york. let's get a quick check of the latest business flash headlines. replacing his is ceo in the hopes of resolving a prolonged slump following the bid for unilever. they artan again ash they are areng miguel patr -- they naming miguel patricio. heinzl take over at kraft july 1. t-ridden chinese to seedrates have plans assets in the u.s.. scheduledd to make

repayments on a $180 million loan taken out in september. sold billions of dollars in assets to fund a corporate debt pile. shery: in february, bloomberg reported that the beijing company wanted to raise $300 million in the offering. pocketed 150y million dollars from blackrock and other investors. born in 2017 and has more than 2000 outlets in 20 chinese cities. we will discuss fixed income investment strategies when we are joined by the international portfolio manager -- patel. paul: that is it from daybreak australia. we will have the markets opening here and one hours time. four=day easter

break. more to come on daybreak asia next. this is bloomberg. ♪

paul: good morning. under an hour late from the australian market open. shery: good evening. i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." paul: our top story this tuesday, asia-pacific stocks looking at modest gains as wall street closed higher. the musk talking about self-drivinge,