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-driving future, but

investors are underwhelmed. spotlight in the after falling on its folding phone crossover. the launch is now on hold. shery: let's get started on the session.lose still awaiting tons of earning results. we have the dow falling .2%. a verynaged to eke out small game. u.s. sayingwell as they will not renew waivers on those sanctions on iranian oil. what we had was data available -- weighing on existing home sales. nasdaq up .2%. fulle: we have the complement today with australia and hong kong reopening. .2 percent.dding

we are setting up marginal gains after the lackluster showing. the chinese stocks falling the most in three weeks. the 10 day holiday looms for japan and the kospi could advance. we are watching the airlines on reports that creditors are going to inject $1.4 billion into the carrier, more than expected. they are seeking to sign a deal later this year. venture players are those affected. flipping the board for a quick check on the agenda for this tuesday, singapore and -- reporting inflation. a quick note, the philippine

aims to trade this tuesday. paul: thank you. >> foreign intelligence shared warnings before hand. the government is questioning how a small, homegrown group could have struck across the country and are looking at possible assistance from abroad. the blast killed 290 people and wounded almost 500 more. several foreigners are among the victims. in a a people were killed powerful earthquake in the philippines. the trimmers struck north of tremorsnd about -- the struck north of manila. the airport was ordered to close for 24 hours.

company is said to be at the center of a payments linking nissan and no -- renault . prosecutors in japan have .ndicted ghosn he denies any involvement. any program will introduce a publicity drive with several western countries weary of the global influence in china. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.

i'm jessica summers. this is bloomberg. take a closer look at the last close. there were some small gains in the s&p 500 and nasdaq with energy stock leading the way. those investors are still waiting for earning reports. su: kicking off the big mound of oil earnings this week, but yes, three-dayend of a weekend. all the players are not yet back. we saw a lackluster day in terms of moves for the bond and dollar. notice the energy stocks were the big gainers. real estate is the decline or. you have housing data that came in much weaker than had been forecast. the big movers, there were some sizable moves.

zoom video launching late last week with a 72% increase on the first day and had another big increase. the similarly named hong kong .enny stock was up some 70,000% .hat is a penny stock netflix is also high as the focus continues on the video streaming services. tesla, disappointing autonomy day. tesla 22 --m on the 2020 taxi plan was at times confusing in the latest pitch. marketol spooked the with its gloomy outlook and managed to pull this one out of the fire. investors cheering the positive results. let's go back into bloomberg. this one is called stocks and

commodities. oil living in the same direction. the dow was down and oil was way up. you are starting to see a divergence. of oil, six subject month high is pushing energy stocks higher. the u.s. is flexing its muscles. what is su: the story there? we did have the second -- what is the story there? it has largely traded in the u.s. the five-day jumped big in the most recent session. if you look at the bigger picture, we are close to 40% year-to-date. the bulls have room to run further, now that the u.s. will halt any waiver of sanctions, oilh will reduce further

imports from iran and other countries. take a look at the roster of countries such a report right behind halliburton. they did have some 20 results. they have a bumpy road ahead and see growth at a slow pace. they see the bottom price deteriorating. let's get more on that wheel story. president trump's decision to has upset some. watching from tokyo, what is the impact we are expecting for asian oil can numerous? -- consumers? >> they were really caught off guard by this. many of them expected the waivers to be extended to some

degree or in some manner. i think the immediate impact for them is that they could see prices. we spoke with a refinery who said they are looking for alternative supplies. they believe that they can find supplies. i think, clearly, that is one impact you might see for these countries. one other facet to this, on the other side of the globe, u.s. oil producers gain market share yesterday after this announcement. abel tried to expand market share. that mayu.s. producers see a benefit.

shery: president trump would not have let these waivers expire if they had not gotten commitment from saudi arabia that they will keep the markets adequately supplied. what does that mean for the opec plus deal? that is a good question. we will have to see what happens going forward, but it is more andicult for saudi arabia its allies, including russia, to ask their partners to maintain these supply cuts. opec implemented these cuts in january. thatwere -- they have said they can boost supplies as much as 1.5 million barrels per day to make up for any shortfalls from iran. the u.s. is hoping to cut iranian exports from about 1.1 billion barrels.

we will see the impact on the opec production cuts. i think it will be much more difficult for saudi arabia to maintain discipline and ask its members to maintain those production cuts, if they lose production to make up for shortfalls from iran. thank you so much. we have breaking news. resources planning to cut as much as 5% of its work to save at least 70 $5 million. not as the fund continues to see outflows. we know that they have $712 billion, as of march, when it comes to assets under management. sincetflows every year 2014. they are expected to report warnings -- earnings. share for the quarter. they still plan to cut as much as 5% of its workforce to save

at least $75 million, as it continues to see outflows for the fund every year since 2014. says thatd, elon musk tesla has the best chip in the world, but analysts were unimpressed. we will look at the key takeaways. paul: first, tragedy. he will join us next. this is bloomberg. ♪

shery: this is "daybreak: asia." am paul allen in sydney. president trump's decision to

end waivers to buy iranian crude. it pushed inflation expectations to the highest and little more than a month -- in little more than a month. into this a little more. i want to start with japan, if i can. oil will help the inflation story, but what will the impact bond market be? these are all countries that we have seen rates coming down. the exception being japan, as you mentioned. japan is a very economy that can bit of from a little inflation. maybe that will help policymakers get a little bit of breathing room as they tried to march it up in the economy. the rest of the region, inflation will start to be a little bit of a risk.

we will start to lick for inflation and countries like china and india, taiwan, countries that have really benefited from oil imports, where we could see a little bit of reversal. course, thesia, of president elected to another five-year term. this is putting him in a difficult position, isn't it? it really does put policymakers between a rock and a hard place. a country like indonesia, where policymakers have tried to ease back on subsidies that they are giving the economy and trying to shore up the fiscal picture. higher, that will put policymakers in a position of calling for structural reform country like indonesia.

help they stay disciplined and continue to let market forces -- we hope that they stay disciplined and continue to let market forces dictate. we expect the stability to continue to be in place. we will get to see whether policymakers -- where policymakers stand when push comes to shove. heard from sri lanka after that tragedy day. sri lanka is in a good position to meet debt obligations, not to mention the fact that he acknowledged that tourism could take a hit. what is your assessment of the economy in sri lanka, going forward? it was a tragedy over the weekend, but we continue to light the fundamentals of the economy over the long run. in the short-term, tourism will

come under pressure. it directly contributes to a tent of the economy. it helps policymakers build up fx reserves. as we see a little bit of that was there -- reverse in the short run, we could see reserves coming under pressure and the sri lankan rupee come under pressure. theontinue to like potential. we have seen policymakers do a lot of difficult and productive things. we have seen them decrease the tax burden. we have seen them change monetary policy to be a little less reactive to short-term inflation and the exchange rate, little more long-term in its nature. have seen them push exports to try to get for inflows into the country. country willhe face short-term headwinds .hrough tourism

we think, over the long run, the fundamental story continues to be one with a lot of opportunity in sri lanka. shery: we have seen bond barriers gaining ground for the most of this month. given the latest economic data across divisions, was the fall in yields two extreme last year? >> we are in a sweet spot in the economy. as we take a longer-term view, we remain constructive on fixed income classes in asia. we think they will continue to perform. they will continue to be stable. as we look to credit markets, we still see guild credits 50 basis off of their average. continue to see the opportunity. -- we continue to see the opportunity.

despite the headwinds that we have seen creeping up over the short-term term, we continue to be pretty constructive over asset classes. are keen on you indonesia. what is it about that market that appeals to you right now? >> we see a country that looks fundamentally strong on a lot of different levels. we just had an election there with the number -- result that a lot of investors will be happy with. a lot of people were looking forward to a second term. u.s. look across the dollar denominated high-yield universe at indonesian corporate's, we see a lot of interesting companies and sectors. we find companies with strong balance sheets and good management teams in the coal sector. we see them in the apparel manufacturing system and sector in indonesia.

we have strong companies and an economy that is heading in the right direction. we have yields that a relatively high compared to other countries and industries in the region. as we look at the opportunities, we really like the return volatility profile that we get from indonesian corporate. paul: thank you. thank you for joining us on "daybreak: asia." you can get a roundup of the stories that you need to know to get your day going on this edition of daybreak. bloomberg subscribers can go on their terminals. it is also available on mobile. you can customize your settings so you only get news on the industries and assets that you care about. this is bloomberg. ♪

the latest check of business flash headlines.

samsung is delaying the launch of its folding smartphone amid reports of ailing screens and other faults. the galaxy full was opposed to roll out on friday, but that has been postponed with no new date announced. several reported problems with the device after only days of use. shery: kraft heinz is replacing its ceo with the hopes of resolving its failed bid for unilever to years ago. will succeed his predecessor. he will take over at kraft heinz on july 1. the agent day group has

seized some of its assets on the mainland and in the u.s. it includes properties in golf courses. agent day has sold -- h& a has one of the biggest corporate debt piles. shery: analysts declare themselves underwhelmed. elon musk was determined to be optimistic. not just by a small margin but a huge margin. it is in the cars right now. old tesla's have this computer. we switched over about a month ago. threetched over to model a few days ago. all cars being produced have all

the hardware necessary for full, self-driving. craig, how convincing was elon musk on their self driving technology? >> the presentation got off to a bumpy start. they started 40 minutes late, which is characteristic to be on the late side. he jumped during the presentation about following through on his big promises. some of the analyst reaction that we got of it being underwhelming was earlier on in the presentation. it was very technical. the chip comments were significant. i also think that once they started talking about a more in detail about plans for robo taxi fleet, that is where some of the goods came through in the presentation. paul: on the subject of that robo taxi fleet, what were the

details there? how is that received? this will be midway through next year. is a mixcribed it, it of uber and airbnb business model. just like with uber, you call a car. you can call a tesla and you can fleet to put it in a taxi . your car can make money for you while you are not using it. you can put limitations on that and say i only want to share my car with my friends. new use case for this car and helps people afford tesla, otherwise they might not be able to. shery: thank you so much for that.

he leads our u.s. auto team. why samsung has decided to fold on the market evidence samsung tablet crossover. this is bloomberg. ♪

jessica: "daybreak asia this is "daybreak asia." -- this is "daybreak asia." i am jessica summers. reacted after the trump administration said it would not waivers ontions countries buying iranian oil when they expire on may 2. it is 20% of the crude. oil hit its highest level in six months as washington announced an end to waivers. paul's have closed in egypt after a three-day vote on amending the constitution and allowing president lcc to remain to remain inl-sisi power. a widespreadave

crackdown on dissent. the apparent spontaneous in shanghai has prompted investigations. circulate onto social media. they said one of the cars caught fire while being repaired. china recorded at least 40 fighter related incidents involving new energy vehicles. fire-related incidents involving new energy vehicles. over the weekend, it's dragon crew capsule was an golf in -- its dragon crew capsule was engulfed in flames. spacex hoped to launch a manned

dragon caps off as early as july. 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 jessica summers. this is bloomberg. much, jessica. for what to watch now, as markets get up and running, with earnings upon us, let's get over to sophie kamaruddin. sophie. sophie: as the earnings daily caps off -- deluge kicks off in japan, about one in 10 topix-listed firms have reported to the downside. we could be facing another soft reporting season after profit fell 17% in aggregate last quarter. with global investors remaining cautious about the profit outlook, a survey indicates global funds do not intend to overweight japan over the next 12 months. investor japan for japanese stocks at the weakest in two years.

thosehave citigroup among .keptical of the recovery game to the topix have been capped. the faa is not pessimistic, saying a lot of buying could kick in with the right trigger. it could boost demand for financials as well as cyclical stocks. selling downve -- in the first three months of 2019. a quick check on some names in the electronics space that are to report this week. post a declineto in sales and operating profit in the fourth quarter, but it may be it's -- beat a slower profit guidance. well ase way as mitsubishi electric fourth-quarter results. hitachi is expected to deliver

flat sales growth. we also have these companies reporting. shery: thank you so much for that. one stock you are watching, samsung, which is delaying the launch of its folding smartphone amid reports of failing screens and other faults. mark gurman had his hands on the device and joins us from l.a. following your tweets and the pictures really did not look good. what were the key problems with your review unit? walk it might be best to you through it in a simple manner. we got the review unit in new york last monday, and this phone comes with a screen protector. it is plastic. one wouldmething think you would just feel a lot like on any other new samsung phone, iphone, tv tablet you might buy it the store. if you peel that layer off, the phone will basically become

completely destroyed. within 48 hours of me peeling it off the phone, which we did not know we were not supposed to do, the phone completely stopped functioning. incredible issue. the issue is really capturing so much discussion. it is so amazing because of how simple it is to create and how easy it is to explain. paul: after initially sinning to brush this off, their launch is not going ahead. how much of a setback is this for samsung? setback from a marketing, pr, and branding standpoint. they are mired by two flaws. the battery fiasco where they were exploding in 2016 a few 2019,ago, and now, in this issue. the only financial impact they are going to get, there are people not trusting their other

devices and funds in the future because of this. this was going to be an extraordinary low volume, low revenue-generating product. directlye forecasts from samsung they were going to sell one million of these in the next year. for samsung, such a conglomerate, that is not going to move the needle on the stock price. if this image expands, that is where they are going to see the financial impact longer-term. shery: what is next for the galaxy fold and the industry of these foldable start loans -- smartphones? others were looking into this technology. mark: the galaxy for the was supposed to be released this friday in the u.s. and in may in europe, asia, and other regions within a few weeks. now that they are delaying the launch, they are going to announce a new street date for the device in the coming weeks. i don't believe that is actually going to happen. i lost a lot of confidence in this device. if they are able to turn this thing around, that would be

hugely surprising. i think they need to go back to the drawing board on a few things here. they might be best served by saying this was a mistake to announce it this early, but i think they have too much pride to do that. paul: bloomberg technology's mark gurman. thank you for joining us for the latest on that samsung fold phone. ongoing tradehe war is making life tougher for central banks with the impact spreading across various industries. we spoke to bloomberg in tokyo about whether things will kick up again. >> we have to find out what kind of deal it is going to be. a minimum of disruptions. that scenario comes true. if the deal turns out to be content, andin its a lot of meat things have to be

adjusted on both sides, maybe you might take a little longer to get back to where we were before. time, withsame president trump is doing is trying to correct this huge imbalance. suppose china starts buying a large number of products. there will be a lot of other countries that used to sell products to china that are no longer selling. so there will be a lot of trade divergence as well, which does affect other countries that are involved in this thing. china might turn out to be ok. we have so-called collateral damage in other parts of the world. >> should the fed be cutting rates? is that what you are saying? done a: no, the fed have beautiful job bringing interest rates to where they are now, which is why they can take this rusting period, as it were. the u.s. inflation rate is almost around 2%. if the fed did not do what it closend if the rates are

to zero, and the inflation rate is close to 2%, we would have seen a panic in the bond market, and a lot of problems because then, people realize the fed might be forced into abrupt tightening, which yellen weren't so many times and even jay powell. but because they took this very difficult step, tightening when inflation was not obvious, now, they are 2%, 2.25%. and inflation is around 2%. no one is panicking, which i think was a beautiful job, and that is what allows the fed to wait and see what happens next. shery: the chief economist, speaking to kathleen hays. u.s. businesses have sent a letter to the trump presidency asking for the removal of tariffs. will the president listen? this is bloomberg. ♪

paul: this is "daybreak asia." i am paul allen in sydney. shery: i'm shery ahn in new york. business groups or when president trump against keeping tariffs on chinese good in the event -- goods in the event of a trade deal. they are worried tensions will linger. let's discuss this with a former director of the world economic forum and the founder of -- great to have you with us on the show. our business is right right now -- are businesses right to worry about tensions lingering if and after a deal is signed? >> absolutely right. it is gloomy. terrorist attacks to brexit and the u.s.-china

trade war. i believe we might enter a new face of global disruptions leading to a new economic crisis. the u.s.-china trade were might be the trip -- war might be the trigger. i am quite pessimistic. i think president trump is turning his attention after the mueller report to china and it is uncertain what is happening. shery: talking about a potential type or -- coming between the u.s. it tech war between the -- between the u.s. and china. the revenue jumping almost 40% in the first quarter. how much of president trump's strategy against china and against some of the big companies is working? well, the trade war is linked to technology and who is leading the road in terms of technology.

have seen google feeling the impact in china, apple feeling the impact, and now, president trump is fighting back. huawei might just be the start, and it is really the question is who is leading the world in the future? with the rise of populism, protectionism, and nationalism, we have less collaboration in the world. we will see really a new economic crisis on the horizon. your your view or skepticism on the trade deal between the u.s. and china is almost contrary and really. we have talk of a signing ceremony happening in late may. do you think that is not going to happen? what could derail things at this late stage? >> i don't think it will happen. there will be a big summit in china, the belt and road summit, in a few days time. 40 heads of state attending.

the u.s. is not being part of it. find't think the u.s. will this the week after. negotiations are going on. i cannot really see a deal in the making. there are so many issues like intellectual property rights, the investment framework, and the technology sector. it is still very unclear. paul: we have seen some very good economic it out of china recently as well. does that strengthen the hand of the negotiating table and is that data sustainable? >> china's fundamentals are still very strong. china is betting on the future. indigenousk about innovation in artificial intelligence and investment in ,nfrastructure and urbanization china is a strong partner on the negotiation table. i don't think china will make

too many concessions. shery: we have seen companies the foxconn diversifying manufacturing a with from china and into india. are we going to need more moves such as this one? be athere and -- there need for supply chains to adjust? frank-jurgen: this u.s.-china trade war will definitely disturb the global supply chains and many companies moving many fracturing out of china to places like india but also indonesia and other parts of southeast asia. might be impacted by maybe 1.5% to 2% if the trade war is really coming through. we also have other tariffs in place as well. for the u.s.,inum not to mention the u.s. administration has been threatening tariffs on cars and car parts from other countries,

not just china. do you expect to see these tariffs in place as the u.s. becomes more protectionist? frank-jurgen: i think europe is in the same boat. trump also president a strong manufacturing sector, and it is not only china. it is the whole world, and we believeateralism, and i to strengthen multilateral institutions, if you think about the crisis in 2008, all countries work together. there was the consensus that we have to fight the crisis that is notd happening now. and protectionism will just lead to the country. and we might face a new recession. paul: let's send on a really -- end on a really horrible note. the next crisis being worse than

the last. what will bring about an way will it be so bad -- and why will it be so bad? frank-jurgen: the prices will be triggered by the trade war and brexit. it is totally unclear what is happening in the u.k. deal, which isno impacting the european union. already, we see a very soft close in europe. italy is in a technical recession. some other countries are following. germany might have less than 1% gross this year without the double whammy of brexit and the trade war. fight anl arsenal to economic crisis as we have almost zero interest rates all around the world. there is not much stimulus we can expect, and i would see the economic crisis happening maybe by the end of the year or in early 2020.

paul: all right. on that note, we will leave it. thank you very much for joining us this morning. don't forget, tv . catchn watch us live and up on past interviews as well as dive into any of the securities and bloomberg functions we talk about. you can become part of the conversation and send us in the messages during our shows. this is for bloomberg subscribers only. you can check it out at tv . this is bloomberg. ♪

paul: this is "daybreak asia." i am paul allen in sydney. shery: i'm shery ahn in new york. the new indictment accusing carlos ghosn of redirecting millions from the company to his personal accounts may not only extend his time in detention but also threatens to undermine his

argument that he is a victim of corporate intrigue. has -- dave mccone's has been tracking mr. these arguments are different from the previous ones. you're talking about real embezzlement here. we certainly are. the nature of the allegation is quite different in that, initially, we were talking about situations that could be described as poor judgment or exceeding his authority in some way or taking advantage of his position, whereas this much would look much more plainly, embezzlement and fraud. this is a different stage of the allegations and it does change the nature of the case. broadlywe have to look at this and say it changes the for thef the case prosecutors.

one thing that has not changed is that the way these allegations are presented has been consistent. basically, you have a nissan leading the way and coming out we haveng here is what found evidence that ghosn has done. and then you have the prosecutors coming in and launching an indictment for those charges. yet at the same time, where is the concrete evidence this took place? when you have these kinds of allegations, embezzlement and fraud, you need stronger evidence, right? it is a different situation. initially, the very first allegation was that he had and hed compensation, had failed to declare that failed compensation, so that is a different nature. this is something where you would need documents showing money transfers. nissan has suggested they have those documents but have not produced them. david, so the nature

of the case is changing as is the approach of the prosecutors. how about ghosn or his lawyers? are they shifting the way they are responding to these new allegations? dave: yesterday, we reported het ghosn's lawyer has said is not answering questions. he is not, i guess, one way to describe this is playing ball anymore. they have him behind bars. he spent 104 days dealing with lots of interrogations and responding to lots of allegations. he has now taken the path that he is simply not responding. and he is reading and his heels and sticking -- digging in his the --and sticking to that it is an attempt to move remove him from power. paul: dave mccombs in tokyo, thank you very much for joining us with that update. let's get a quick check of the latest business flash

headlines. beyond meat is preparing for a tasty ipo. the maker of vgean chicken -- vegan chicken and beef substitute is backed by big names. planning to sell almost 9 million shares for up to $21 apiece, which would give the company of valuation of more than $1 billion. shery: a chinese starbucks rival has filed for an ipo in new york. bloomberg reported the company wanted to raise about $300 offering. the last week, he pocketed $150 million from blackrock and other investors, which gave it a valuation of almost $3 billion. it was formed in 2017 and has more than 2000 outlets in 28 chinese cities. paul: chinese videogame streaming platform -- is filing for a u.s. ipo.

it comes one year after its biggest competitor listed in new york. the two of them backed by more than $1 billion of tencent year.ment in the past they have reported revenue of more than $500 million last year and saw the paying new third base -- user base increase this year. shery: japan, south korea, and australia come online at the top of the hour. sophie, what are you watching? sophie: after that break in sydney, we could see a slightly positive start to cash trade amid warnings that the market is looking -- japanese investors may stay on the sidelines ahead of the long holiday that kicks off on april 27. in seoul, the coffee may hold off in the face of soft export data and -- we are keeping an eye on samsung as it delays the launch of its foldable smartphone and on elon

musk announcing the company will manufacture the in-house designs in austin, texas. rising crude prices. watching korean game developers on china outlining a new approval process which samsung requires firms to significantly revise their content. a report citing the south korean finance ministers as creditors ofasean airlines -- of asean airlines will inject money into the carriers. the airliner's largest shareholder submitted plans. an m&a deal will be signed this year. shery: will also be watching the japan-u.s. summit this week. we are hearing from the economy minister. he will travel to the u.s. this thursday to meet ambassador lighthizer. coming up on "daybreak asia," we have an exclusive with a

software ceo to talk about their strategy and outlook. this is bloomberg. ♪ moving is hard.

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♪ good morning. welcome to "daybreak: asia." ♪ paul: our top stories, asia-pacific stocks look set for modest gains after wall street closed higher viewed oil jumps after sanction waivers. and the device of the galaxy

phone has been delayed. >> investigations looking at possible support from abroad. but did you straight to the market action -- let's get you straight to the market action with sophie. sophie: the nikkei 225 doing up slightly better, the yen trading -- positions ahead of the extended golden week holidays in japan, especially with the risk of big moves and reaction to events like a fed decision and jobs in japan. in seoul, forcing the cost to gain ground up a 10th of 1%. even as we got more signal that the economy is facing headwinds. thekorean won against dollar. aussie stocks, seeing gains at the start of cash train them even as del potro wants to one for a selloff and make it the

aussie dollar is holding gains after rebounding from the softest level in a week. stocks,check on kiwi heading for another fresh high, trading above the 10,000 level. we are keeping and i on asiana airlines. that the creditors will end the carrier $1.4 billion more than anticipated. this after the company submitted restructuring plans. --te ryan k. dickey will state run kdp will buy bonds from that carrier. samsung under pressure this morning, they delayed the launch of the galaxy fold after issues. also watch reaction from elon musk saying samsung will manufacture a chip for tesla. paul: thank you for that,

sophie. thus check in on the first word news. blaming ari lanka is domestic jihadist group for a bombing, and midst foreign intelligence giving warnings forehand -- beforehand. the country is looking at possible assistance from abroad. the blast killed 290 people and wounded almost 500 more come with several foreigners among the victims. at least eight people were killed by a powerful earthquake in the philippines. the magnitude 6.3 tremor struck northwest of manella late monday afternoon in about 30 people are feared trapped in a collapsed supermarket. power outages, and an airport was ordered to close for 24 hours, that the manella stock exchange will trade on tuesday. is said to bepany

at the center of alleged payments linking lease on -- nissan and renault to carlos ghosn and his son. they facilitated transfers to the pair reportedly. is underosn allegations of financial misconduct, which he denies. the apparent spontaneous combustion of a tesla and shanghai has triggered investigation by tesla and smaller chinese rival neo. after, neo said one of its cars caught fire while being repaired. last year, china reported 40 from newted incidents energy vehicles. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers.

this is bloomberg. shery: thank you. president trump decision to end waivers on iranian oil threatens to upset major importers such as china, india, and japan. our editor is watching this from tokyo. as this chart on the bloomberg shows, china is the biggest consumer of iranian oil, followed by india and japan and turkey. what will be the impact for these asian oil consumers? decision copk the a lot of these big asian consumers off guard. i think many of them expected to waivers to be extended and some form, so it is a bit of a surprise. the biggest question is going to be china, can the u.s. get china on board to eliminate its iran oil imports? there has been speculation by will notthat china

eliminate entirely the iranian imports but may reduce them. that is a big question the market will be looking at, to what extent china does or does not cut its iran imports. bloomberg did speak to one south korean refiner and they said they are looking at alternative supplies, but they did say it is likely to increase cost, so that is one factor you can see impacting asian refiners. the flipside, if you look on the other side of the globe, a lot of the u.s. shall produces are benefiting. of dollarsbillions in market share yesterday after the announcement, and as prices rose, so we are seeing some winners and losers in asia and north america as a result of this decision. paul: let's talk a little more about the supply-side. how will this affect the opec-plus deal, the production cuts? aaron: that's a big question. along with this announcement,

saudi arabia and the united arab emirates said they could boost supplies to the market by 1.5 million barrels per day. that would potential he -- thentially supplement market if iranian exports of 1.1 million barrels per day are eliminated. but clearly it is going to be harder to ask other members to continue to cut supplies is saudi arabia boosts exports and production. opec and allies, including russia, began curbing supplies from january, and that deal was expected to last through the first six months of this year. tois much more difficult continue with that deal and maintain discipline for opec and its allies is saudi arabia and the uae boost production in response to this. paul: all right, our asian energy editor in tokyo.

is delaying the launch of its revolutionary folding smartphone amid reports of failing screens and other faults. our asian tech reporter joins us from seoul. why exactly was this delayed? sam: initially, there were some reports last week that there were problems with the screen. obviously the screen is the most innovative and revolutionary part of the galaxy fold. with review units, including our own reporter, found that when you play with the screen and the film over the top of the screen, there will be problems. if the film is taken off. it looks like something that can be peeled off, and once you purely it off, the screen will go -- once you peel it off, the

screen will go crazy. one user reported the left side of the screen flickering. this has led to samsung recently saying we are going to have to review the unit and investigate more thoroughly to see what is happening. shery: but sam, samsung has spent eight years developing this phone. how will it affect the company and also the broader smartphone industry? eye this is clearly a black for samsung. like you said, it has spent eight years developing this thing alone. for them to say at the last minute, we're going to pull it act because we have not completed development, it is a disappointment and an embarrassment. especially after the note seven fiasco several years ago, where some batteries started to explode. there is something

that has been learned, there has been a lesson, but not learned fully by samsung. samsung is the biggest smartphone maker in the world. forthis is also a black eye the entire industry given the size and status of the company. paul: all right, our asian tech reporter. thank you for updating us. still ahead, at least eight people are dead as a powerful earthquake hits the philippines. we go live to manila for the latest. shery: next, the jump in oil prices putting pressure on emerging-market currencies. we discuss that and more with the chief economist. this is bloomberg. ♪

♪ shery: this is "daybreak: asia." currenciesing-market prices a jump in crude

weighed on oil importing nation such as india, the philippines and south africa. joining us from singapore is the dbs bank chief economist. let's start by getting your reaction to the news that waivers on sanctions for countries importing iranian oil will be a thing on -- a thing of the past. impactbe some of the in countries such as india. >> good morning. this can help. the usual high-yielding places like indonesia fall under the gun when we have oil market volatility, and something hasn't changed in the dynamic or the heavy reliance on in ports to change that. in the case of india, you have iran linkage. in indonesia, you have linkage to oil prices. either way, crude going into the 70's raises questions about

where will it go this year, how will they get financed and will exchange rates be stable around a volatile iran scenario? we have seen this layout repeatedly in the last decade or so and here we go again. paul: yeah, it will put the new presidency in indonesia in a difficult spot. one of the campaign promises was cheaper fuel prices. what did they do now? introduce subsidies? that will not be good for the economy. taimur: right. this feels like deja vu. five years ago, someone came to and he took a popular position to reduce subsidies and the country took appeared as of the lesson is -- and he took it. what will happen if they pass kill prices to the retail level? i don't think the people of most

countries are oblivious to what is going on around the world and they know countries rely on imported fuel. it might not feel good but i don't think they will punish politicians for an external shock. ,his is borne out repeatedly also in countries like taiwan and the philippines where there is less automatic beat through fuel prices. we have to deal with politicians relying on subsidies, causing a lot of confusion on when will they let go and what will it mean for the exchange rate? i think it exacerbates the situation. you just have to absorb the shock. shery: just this week we got export numbers out of south korea for the first 20 days of the month, and they did not look pretty. -- 8.7% vol a .7% year on year. recovery in see the the chinese economy being translated to the rest of the region? taimur: this was discussed at

length during the imf meetings two weeks ago. this time is a bit different as far as china is concerned. tax cuts tobout help domestic consumption, not necessarily to boost investment that will lead to a pickup in intermediate goods imports or commodity imports. we may be cautiously optimistic about the stimulus helping stem china's domestic demand a slide that doesn't mean it will be a massive pickup in imports, particularly with respect to china's supply chain. we have two components, china's domestic demand, and the other is china's external demands for chinese products, that might not have turned. when will china pull the rest of the domestic economy up? it might be slower. be beneficialis for the chinese economy in the long term even the stimulus has been targeted and will not be

efficient for parts of the economy that don't work? taimur: there will always be pockets of inefficiency and china. i don't think one stimulus, whether it will targeted or not, will resolve the issue. but you are right, on the margin, this is a healthier stimulus. when you have a lot of debt, don't push on the credit lever too much, it will not help. we have seen this play out elsewhere in the past. injecting more liquidity does not help. but if you give tax cuts and invest in targeted, good multiplier type targets, you get a better return. moving away from a monetary multiplier or monetary stimulus to a fiscal stimulus i think is the right case to do in china. paul: at some point, don't we all have to get used to weaker growth in china? grow atconomies do not 6%, and there is an aging

population question as well. taimur: right. i can also argue it is not growing at 6% in any case. i think structurally, china ought to be declining from a potential growth perspective, what you believe in the 6% number of something lower. the fact of the matter is the trend is downward could that is something that the world needs to get used to. considering china has growthuted to global gdp around 40% over the last two producers,r many china has been the buyer of last resort and that might not be the case going forward. that is something to keep in mind, especially with respect to intermediate goods. this put europe under the gun, in my view. progress going forward, if it lowers gdp growth and investment, your model of i will take whatever china can buy, it might not work as well. on a positive note, last

of positivea series numbers when it came to retail sales, not only from the u.s. but also china, u.k., canada and south africa. what does this tell us about the health of the global consumer right now? taimur: it is telling us that the data from december to march was extremely noisy. we had, whether it was the u.s. with government shutdowns or in europe, a huge amount of declining demand out of turkey and uncertainty about china. those things combined to create a noisy data flow in the last month of last year in the first few months of this year. the noise around this data settles down, i think what we will find is that the world economy is more tepid in terms of growth is not as dire as the markets are pricing in three or four months ago. i think the markets will price out an imminent risk of recession in the u.s. or a major risk of inflation in europe. i don't see ten-year bund yields

in negative territory. shery: always great talking to you, thank you for joining us. dps bank chief economist. you can get a roundup of the stories you need to know to get your day going. bloomberg subscribers, go to your terminals, also on mobile. you can customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪ this is bloomberg. ♪

♪ ."ery: this is "daybreak: asia at least eight people have been killed by a powerful earthquake in the philippines. the magnitude 6.3 tremor struck west of manila monday afternoon. our bureau chief joins us now. what is the latest from the

ground? deaths have risen to at least 10 people according to authorities. the rescue is ongoing for about two dozen more trapped in a collapsed supermarket north of manila. the president has suspended government work today, while most schools in the capital region and nearby provinces are shut and authorities are assessing the damage. shery: we are talking about alsoe, power outages, suspending government work. how long are we expecting these effects to last? cecelia: it is still too early to say. they are assessing the extent of the damage, but as i said, some structures like roads and bridges were destroyed. they have resumed

operations, but in the meantime it will be business as usual for international markets. the central bank governor said they will be clearing and settlement and the stock market will be open as scheduled this morning. manilaour bloomberg bureau chief. let's get a quick check of the latest is this flash headlines. reports from korea say asiana airlines is getting an injection of almost $1.5 billion. creditors are chasing a merger or acquisition for the airline, and a deal is wanted to be signed this year. they are in the middle of a restructuring plan after reporting a net loss last month. mattersit will improve fight closing less profitable roads -- routes. paul: warren buffett is trying to resolve a prolonged slump at unilever.

an executive has been named to the previous. he was the anheuser-busch chief marketing officer and will take over at kraft heinz on july 1. shery: lenders of a chinese conglomerate have seized some assets on the mainland and u.s. they are owned by cwt international unit and include properties and golf courses. they have failed to make scheduled repayments on $180 million in alone taken up in september. an ipo seeks to raise more than $180 million. the maker of vegan chicken and boasts some famous names.

to selleet is planning 9 million shares for up to $21 a piece, it and that would give the company a valuation of more than $1 billion. shery: let's get a quick check of the major averages trading in asia. we are seeing the nikkei gaining a 10th of 1% and we are looking forward to the boj decision this thursday. about half of economist expect the bank of japan's next policy move to be more easing. we have seen significant weakness in the japanese yen, which is now trading near lows of the year. at theorea unchanged moment, although we continue to see energy shares across asia gaining around the asx gaining cap percent. we have seen barclays also say there could be at least a five dollar upside for print if iran exports no oil.

the u.s. is not bringing any more waivers on iranian oil. paul: let's take a look at the oil price. we have crude trading in new york climbing. gold meanwhile losing a little bit of ground at the moment, as is silver. copper futures looking reasonably strong as well. we have seen some good performance on iron ore, solidifying the $90 per ton range. we are seeing at least a five dollar upside for print if iran exports no oil, and upside risks. plenty more to come on "daybreak: asia," stay with us. this is bloomberg. ♪

♪ they: this -- jessica: that --tates has said would be unacceptable. after the united states said it would not extend waivers on countries buying iranian oil. the straight carries more than 20% of the world's crude. a lebanese company is said to be at the center of alleged payments linking nissan and renault to affirm related to carlos ghosn and his son. they facilitated transfers to related to the

pair. carlos ghosn has been accused of misdirecting funds and other abuses. he denies any misconduct. the apparent spontaneous combustion of the tesla and shanghai has triggered urgent investigations by tesla and its smaller chinese rival neo. the video continues to circulate on social media. neo said one of his cars caught fire while being repaired. lester, china reported at least 40 fire related incidents involving new energy vehicles. 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 referendum is virtually certain to be approved. authorities have waged a crackdown on dissent since the

army toppled a divisive islamist government in 2013. suffered a serious setback in its effort to send astronauts into orbit this year. over the weekend, it's dragon crew capsule was engulfed in flames during an engine test in florida. the capsule flew to the international space station last month and was supposed to be reused in a launch test in june. spacex had hoped to launch unmanned capsule with astronauts on board as early as july. 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 am jessica summers. this is bloomberg. paul: thank you. let's check in on the markets. here is sophie. it is a lackluster session with the ndx 50 leading gains, primarily above 10,000 points. the kiwi dollar under pressure

with the aussie, and the asx 200 is being led higher by energy stocks as oil extends gains at a near six-month high. or seeing energy players gain ground in tokyo and seoul, but it is not helping lift share sentiment too much. the nikkei 225 marginally higher. it is weighing on the benchmark. in seoul, looking little changed after a two-day gain. tech weighing on the benchmark it lets check in on some movers of no. in seoul, i want to highlight this company, jumping by a record of more than 120%. it may indicate investors see improvement in the company's financials. you will recall the stock was suspended february 13 two to capital erosion that reflected losses at a philippine shipyard. they posted a $1.2 billion net loss in 2018. today's massive surge may also be optimism that they will see

process in negotiations with creditors, given the injection that aussie on a airlines -- aussie on airlines have secured. airlines has secured. tokyolectric climbing in on a report that its operating profit will probably rise 5% on a yearly basis, exceeding the company forecast. it would be a record. earnings are out on thursday. shery: thank you. let's turn to the outlook for oil as president trump's decision to end waivers on iranian crude purchases threatens to upset importers such as china, india, and japan. joining us is our senior energy analyst. we are hearing already from barclays saying they see an upside risk to their 2019 forecast for brent at $70 per

barrel. already trading above that at the moment. are these gains going to be sustained? immediate, crude prices will go up. day laston barrels per month, and that supply might go off the market. we could expect prices to go beyond $80 in the medium to short-term, but meanwhile, higher crude prices and demand might come into play. we saw this last year in the fourth quarter, when demand slow down and oil prices reached about $85 per barrel. that could play out again. in the short-term, we expect crude prices to go up to at least $80 again in the short-term. paul: let's talk about the supply side. there is plenty of production available. where does this leave the

ongoing opec-plus plan to balance the oil market? kunal: we feel that with this announcement by the u.s., the opec-plus accord will probably be abandoned for now. account for oil from iran. , abouting the cuts 300-400 barrels would come from allies. that would be important because were seeing a lot of supply in the market from venezuela and libya, and markets could risk opec cuts could be abandoned for now. shery: will rising exports of u.s. shale help? kunal: they would, but shall supply growth is basically steady and steadily rising.

it would not immediately offset a supply loss from iran. supply would be there, about 1.5 billion barrels per day in 2019 and 2020, and it could be slightly higher. that will continue to increase. it would not immediately offset the supply loss. paul: all right, our senior energy analyst. thanks very much. south korea's second-largest carrier is slipping despite news that in may have one a funding lifeline. reportsnce minister that creditors will inject almost $1.5 billion. our editor is tracking this. iana getrihanna -- as into trouble in the first place? the blows was the entry of low-cost carriers into the market that undercut the business quite a bit as the second-largest carrier, and they

did not have a rapid response. they were not able to stay in cut theirof gain, it capitalization. lester, they used -- last year, they use less than half of their capacity, they ended up with a $1.7 billion lost for the year. those were big blows. after that, they had an accounting scandal, in which the top executive ended up resigning , so this is a company that has been under the gun quite a while, trying to clean up his act -- clean up its act. more broadly, is the crown jewel of a family-run conglomerate. those ine biggest of south korea have been under pressure from the government to stop relying on interlocking shareholders and family connections to try to keep the business going even when they are losing money. shery: and yet the government is leading the rescue. why?

dave: this is, as i mentioned, a pretty important conglomerate in the country. it represents a lot of jobs. there is value to be saved. an airline is a big asset, a strategic asset. there is a chance it could be revived with the right kind of restructuring. with these the case conglomerates, it comes down to who is going to take the haircut , which shareholders and how much control as the family willing to give up? it seems like now that they are in a position where they are going to actually lose control of this key element in their family group, it would allow the government to come in and do the kind of restructuring necessary to set it right, and willing to put some money behind that. shery: thank you so much, our asia companies editor. coming up next, sri lanka blames a jihadist group for sunday's bombings, and investigates

possible help from abroad. we will assess the potential fallout for the economy. this is bloomberg. ♪ ♪

♪ lankaauthorities in sri are planning a domestic jihadist group for sunday's bombings and are trying to ascertain if it had support from abroad. follow-up from the attacks sees tourist cutting holidays short and hotels bracing. let's look for the implications for the island's economy with a former u.s. ambassador to sri lanka and middle very college -- middlebury college resident. that until agroup couple of days ago was extremely obscure. if they did, as many are saying, have outside help, where do think it would have come from? >> we assume from an islamic

group in southeast asia or the middle east, isis or al qaeda, in pakistan or afghanistan or syria or iraq. paul: the response from the government will be closely watched. there is some tension between the prime minister and the president. how important is it that the government comes together and formed a united front against the threat? >> the tension between the president and prime minister goes back several years and is very intense. they are each blaming the other for the events. it will be difficult for them to cooperate, that sri lanka has a very professional police and security service, and one hopes that they would be able to work together. shery: you served in sri lanka in the early 2000's, so you know of a history of violence in the country. in the three decades of the civil war, we rarely saw attacks

against foreign tourists. what do you think changed? >> this is totally different from anything we had seen before. there were many suicide bombing attacks during the war. they never targeted foreigners and they were very careful to avoid targeting foreigners. they certainly never targeted catholics or christians. it is an on juxtaposition of attacking large hotels and sri lankan christians. that he was an islamic group or similar group doing this seems to be probable. shery: we are seeking this government curfew in the country, not to mention on social media platforms. what will it take to stabilize the nation? peopleously a number of have already been arrested, we have heard that. it is important that there be no

further events like this. thats been commented on the security forces were able immediately after the bombings to rate a safe house of the group in the rest of number of people, which implies they have them under surveillance and could have prevented this. the security forces will have to show they are on top of this to change things. paul: that long civil war was brought to an end eventually by an iron fist approach. that sort of approach, will it be useful this time around? >> i don't think so. it is important that the -- bement became from careful, and so far they have in not blaming sri lankan muslims in general. in the past several years, there have been a number of incidents s led bydicals, buddhist

some firebrand monks, have led attacks on mosques and muslim businesses. it will be very important the government act to prevent that and not go overboard and sweeping up muslim men. that approach is been used in the past, not against muslims, but against others. and conveying the since it is not all muslims, assuming it was an islamic group, not all muslims are to blame. shery: thank you so much for joining us today. >> thank you for having me. shery: next, we look at the growth of mobile banking as we speak to the head of one of the leading innovators in the sector. our exclusive interview is next. this is bloomberg. ♪

♪ shery: germany's number two software company is planning to and is aiming to grow the business back to its former size and beyond. ag isre -- software expecting more than a billion dollars in sales in 2023 at the latest. joining us is sanjay brahmawar. how much of this growth will come from asia? asia is a very significant geography for us and

we expect this geography to contribute to growth. 30% per yearng at the last two years, so this will grow to be more than 10%-15% of the company's total revenue. i'm looking for to investing in this djokovic, but also our team is doing a fantastic job and being able to capitalize on the growth in the market. shery: yet every country in asia is so different from each other. are there any particular market you are looking at? sanjay: yes indeed. this is quite a widespread be does widespread geography and you have to understand the individual dynamics of the different countries to serve our customers, but we serve global customers and it is important we are present in these geographies. in terms of investment, we are looking for significant investment in china and japan, and we have a strong presence in singapore, australia, etc.

we are putting more investment in china and japan to capitalize on significant growth for ourselves. paul: in terms of china, do you find some of the laws their restrictive in any way and one of the challenges of working within those? think in china, first and foremost, we have to support our customers out there. aat we are doing is adopting strong partnership strategy in china, making sure we got a good partner on the ground who will be able to help us navigate all of the requirements for privacy data and security in china. that's what we have done with our partnership with mines fear and alibaba.here paul: what are you working on? internet of things, cybersecurity? what is your main focus? sanjay: first of all, we think

the biggest challenge for companies today is to have so much data sitting in disparate locations, and they are adding even more new data with iot. there is no value in the data unless we can free it up and bring it together to be able to apply intelligence and analytics. our objective is to help our customers integrate, reimagine integration across applications, clouds. -- clouds, iot devices, and data. then to apply the analytics so that business users can use the insights to make decisions. shery: given what you are saying, what kind of asian companies are your target customers and what demand are you seeing? wejay: we have four sectors are very strong in here, financial services, manufacturing, supply chain and logistics, and also retail. if you take some examples, we have commonwealth bank of

,ustralia, we have woolworths we have a telecom in japan. onse customers are relying software ag to bring data from different disparate sources across applications and the cloud. that's how they are able to create insights on of data and turn the data into value for their operations, improving operational efficiency, developing better customer intimacy, and creating new business models. for example, shipped from products or services. shery: you mentioned financials. we are seeing huge changes in the banking sector with more digital transactions. what can a changes are you expecting in this sector and what are the opportunities for you? sanjay: we live in a connected world. the customer is very demanding now, they want to be able to

have all the information at their fingertips on their mobile come a but they also want a certain amount of personalized attention, whether that is through what i would call frictionless movement, being and being able to transact. we have to be able to create a free throw -- free flow of data so we can create 360 degrees around individuals, customize the customers. that goes into mobile banking today. in theore broadly industry, do you see much consolidation going on right now and could you see yourself becoming part of a larger company? sanjay: i think, you know, you going to see a lot of partnerships and ecosystem place. no one company consulting problem of internet of things or artificial intelligence or, for example, age analytics.

we are doing the same, we are partnering with eight players like -- with the big players like microsoft, but also companies like siemens mindsh phere. platform foran iot machine builders. i think were going to be able to serve our customers better through partnering and creating these ecosystems that bring together the best capabilities but also allow the customers of freedom of choice so they don't have the challenge of a lock in. our tagline is, freedom is a service. we believe customers deserve the opportunity to not get locked in as the business environment is changing so rapidly. paul: all right, sanjay brahmawar, thank you so much for joining us on "daybreak: asia." we have some breaking news right

now from samsung, samsung to retrieve all galaxy folds that have been shipped to the u.s. and europe, so breaking news for you on the troubled launch of the galaxy fold. retrieve those phones that were shipped to the u.s. and europe. let's check on the business flash headlines. we start with samsung, no we don't. the financial times says barclays is planning to cut investment bigger bonuses. the paper says rewards for the first quarter may be cut by double digits from a year earlier. payments will be more closely tied to performance. the move is part of efforts to deal with pressure from activist investor edward bramson. video gameinese streaming platform is filing for u.s. ipo, almost a year after its biggest competitor listed in new york.

by morehave been backed than $1 million of tencent investment in the past year. they reported net revenue of more than $500 million last year. it saw is paying user bank -- base increase in the first quarter this year. let's get a preview of what to watch in markets later today. sophie is in hong kong. we have hong kong markets reopening this tuesday. we will be gauging reaction to china allowing for the inclusion of dual class shares in the stock market starting this july. it would permit mainland ,nvestors to trade in names stocks off of debut prices. down about 45% in the our range, hitting a peak in july. we will be gauging reaction as well to a report that they may approve three more virtual bank licenses this month.

onare also keeping an eye the philippine markets. ,rading will continue government work is suspended. we have philippine bankers saying that no fixed income trading will happen this tuesday. paul: thank you for that, sophie. that about wraps it up for "daybreak: asia." our markets coverage will continue as we look ahead to the start of trading in hong kong, shanghai, and shenzhen. marketsions higher, broadly of three quarters of 1%. china open is next. this is bloomberg. ♪

♪ >> is 9:00 a.m in beijing, shanghai and singapore. welcome to bloo,berg markets: china open, and stephen engle. >> and i am yvonne man, getting ready for the open of trade in hong kong and the mainland. >> oil is another big market stories, rising to a six-month high as president trump removes waivers on a ring in crude. and energy stocks are outperforming. in the some saying spotlight after putting on hold the u.s. launch of its own tablet.