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tv   Bloomberg Daybreak Asia  Bloomberg  April 23, 2019 7:00pm-9:00pm EDT

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paul: good morning. i am paul allen in sydney. we are one hour away from the australian market open. shery: good evening. i have shery ahn. sophie: and i am sophie kamaruddin and hong kong. welcome to "daybreak asia." paul: our top story this wednesday, asia-pacific stocks look set for gains after wall street closed at new highs, but there are warnings the rally may soon come to an end. texas instruments falls after
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warning the chip slump may drag on. demand is down across the board although 5g is a bright spot. and oil rising to a new 2019 high with saudi arabia said to be wary of raising output to offset the impact of u.s. sanctions on iran. paul: let's get you a quick check on markets. out a record high alongside the nasdaq as well, which is up 1.3%. we have some better than expected earnings from the likes of coca-cola, twitter, and hasbro, pushing the markets higher. some warning signs. the 14 day rsi pushing into overbought territory. let's see how we are shaking up -- shaping up for the markets in asia. sophie: asian markets set to join the u.s. with the earnings season upon us. we will get numbers. displaymotor and lg
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among the highlights. we are seeing the nzx 50 extending games. in sydney, we could see the asx 200 extending gains above 6300. we are going to see if energy stocks can help support that rise as oil prices are pulling back from 2019 highs on reports showing rising stockpiles. flipping the board quickly as we wait on australian data, bonds have rallied, pushing the 10 year yield below 1.9% on bets rising of a rate cut from the rba. i think you can count on it, sophie, but we will keep an on things. let's get the first word news now with jessica summers. jessica: the so-called islamic
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state says it carried out sunday's bombings in sri lanka that killed and wounded hundreds. initial investigations were focused on a domestic jihadist group but authorities say it must have had help from abroad. returned --tocks falling to its lowest level in six years. in brexit juggernaut is back motion as you can lawmakers resume cross party talks to seek agreement on a new deal. it is testing support before potentially putting a key piece of brexit legislation to a parliament vote next week. theresa may could also face a leadership challenge with putting boris -- johnson ahead of the pack. the u.s. and china are optimistic of trade talks, saying substantial progress has been made although more needs to
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be done. steven mnuchin and robert litan desert -- lighthizer are expected to fly to beijing next week. the chinese negotiator will travel to washington. larry kudlow says talks are going well. >> we are not there yet, but we made a heck of a lot of progress. we have come further, deeper, broader, larger scale thsn anything in the history of u.s.-china trade. i don't want to make a prediction or forecast, but we have gotten closer and we still are working on the issues. auto regulators are checking more than 12 million vehicles for a potentially lethal flaw that could prevent airbags deploying in the crash. if identified, two major accidents in which the airbags did not deploy and toyota cars. -- in toyota cars. and it is thought
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electrical overstress could make them fail. 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. thank you. let's turn to mark cranfield. this gtv chart on the bloomberg showing you exactly that. on the second panel of this chart, you are seeing the 14 day rsi has entered overbought territory past that level. how long can we expect this rally to continue? mark: if earnings continue to come through on the strong side, the rally can go on for quite a while. if you look back to some of the unloved rallies, 2016, 2017, a lot of people complaining that equity valuations were very
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high. through and come they propel it into another trading range. that is what some people have been waiting for. this is the shoe to drop. a lot of headwinds are being moved. the bond market is being well-behaved. we are seeing a move toward the trade deal with the u.s. and china and now you put good earnings on top of that and it will convince the last few people to come off the fence and to join in u.s. equity market. what you saw yesterday was a pretty significant day. we have u.s. markets rallying in equities. situationvery unusual for them all to come throughout the same time. there is a pretty positive day for u.s. assets and if the earnings season continues to be good, there is no reason why this could not last for a little bit longer. it could not take them into a higher trading range. that is an important factor
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within the whole thing. that has been driving a big part of the market. this is already the longest bull run in history and this is the best start to a year since 1987. are we seeing some omens here? what are the bears saying? don't forget, in 1987, that was a year when we had rate hikes by some of the major central banks. just before we had that significant crash in october of 1987, we had an increase from the bundesbank in germany before the ecb even started. that is not going to happen this time around. it is all going the other way. tcp is very definitely dovish. ecb is very definitely dovish. central banks are not a factor in the way they have been that
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ended previous major moves and equity markets. they don't have to worry about that. there could be other things on the horizon. earnings may not satisfy everybody. oil prices may go to high and start to be -- too high and start to be inflationary. raising interest rates is not on the table. oil prices continue to rally for ur energy shares, which is sold out. what is going on with that divergence? a lot of that is on the forward-looking basis. you have to believe the oil prices are going to stay high for a long time, maybe even moved to an even higher range. that is what will drive the energy sector, so certainly, they will be satisfied that oil prices are going to help to improve short-term earnings, but are they going to improve long-term earnings? that is something analysts have to decide. maybe they are not convinced oil can go back to record highs. maybe they think the rally will
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peter out sometime soon. paul: mark cranfield, thanks very much for joining us for that update. can follow more on this story and all the day's trading on our markets live blog in bloomberg, mliv . you can get a market rundown in one click and commentary and analysis. you can find out what is affecting your investments right now. texas instruments took a hit in after-hours trade after its cfo suggested the chip sector slump may continue. the bellwether chip company says demand is down across the board. a bright spark is 5g. he joins us now from san francisco. we did see a pop in texas instruments. so give us a rundown on what was said. initially, people were
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optimistic. the numbers that texas instruments gave was considerably higher at the higher end. the market had been expecting to look positive. when the executives started talking on the call, they started dampening down euphoria, saying it is one market that brought us in ahead of where they are expected to be. 5g demand will be limping. this is a regular semiconductor cycle. regular, we are looking at four quarters or five quarters of declines before things will get better. shery: we also had a very interesting investor call last ceo, elon tesla's musk, taking a look at semiconductors. the result has been swift. >> that's right. i think a lot of people put this down to the lawn -- elon being elon.
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a lot of hyperbole, trying to state his case for technology leadership and companies working on the semiconductors were less than impressed. it was a false premise that he used to make the comparison, and this is a thorny question and the difficult engineering issue, which is going to take a long time to salt. joining us -- to solve. paul: we have an exclusive interview. we will discuss their strategy and asia and the future of cloud technology. first, the senior md, joins us with her views on china and mainland tech. this is bloomberg. ♪
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paul: this is "daybreak asia."
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i am paul allen in sydney. shery: i am shery and in new york. we will be watching china's markets later to see if the u.s. rally can lift stocks from a two-day slump. investors have been in a selling mood. the senior in managing director of midmarket securities. great to have you with us. investors like to think policy makers in china could be pulling back now that we have seen growth starting to stabilize? >> we cannot look added just as pulling back. china's debt to gdp is growing. u.s.,in comparison to the japan, and italy, the debt load to gdp is not nearly as high. we are over 100. for the chinese, that is a lot itdebt and they have grown so fast, they don't want to keep putting more stimulus by throwing money into white
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elephant projects. they need to be more careful. really hearde not from other analysts looking at the chinese economy saying this time, the sort of stimulus has been so different that this might be a self-fulfilling recovery, that they will actually get to a point where this will be self-sustaining because it has been targeted towards a private enterprise, not so much towards soe's and those inefficient sectors of the economy. sheryl: they are actually going to be clamping down and rely even more on soe's because they are going to get a lot of drive through their stimulus. they are going to have to take whatever profits they can because they have huge debt burdens all throughout the country and locally and federally, nationally. find other ways to stimulate the economy. the private sector is that perfect area. they have been very sort of
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indifferent to private enterprise in the past few years. i think they realized they need that as an engine for growth. paul: i just want to get your thoughts on the progress of the u.s.-china trade deal. we seem to be counting down to some sort of an agreement being signed towards the end of may. the chinese economy has been improving. do they hold a better hand in the negotiating table and does that mean we might be facing some enforcement and infringement issues down the track? sheryl: it is a very complicated dance between the u.s. and china and it just got worse, more no more waivers being issued by the u.s. government for iran. china obviously imports a huge amount of oil from iran. iran's oilt 50% of exports. if the chinese banks continue to finance the oil imports because there is no way china can all of a sudden stop importing the oil from there. then there is going to be
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questions about what is the u.s. going to do to sanction the chinese banks? are they going to impose penalties? how is this not going to spill over into the talks between the u.s. and china on trade? paul: the timing of it is very interesting, isn't it, just in the final few weeks? does it have the potential to unravel before we get to the end of may? sheryl: i think the trade talks are going to become a more ongoing problem. chinas the beginning of moving into a new era where it really is becoming a much larger global player and both in terms of still remaining as the manufacturing factory of the world, but also they are beginning to move into areas that are competing with the u.s., so we are going to see these kind of frictions much more regularly, and it really came to a hilt this year with trump and he was egging it on,
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but this is going to be the beginning of the relationship that we are going to have to get used to. shery: especially when it comes to technological innovations in chinese ambitions. when you take a look at chinese tech companies, they have been out of favor for a wild. it while -- a while. sheryl: a lot of china's tech companies -- look, they are not all the same. there are lots of different variations. chinese tech companies are focused on the internal chinese market which is huge and still growing. the consumption, especially if they are related, if they are focused on the chinese consumer, there is a huge amount of potential growth still there. thing about mobile internet companies which is different from the u.s. and has not been realized in the stock market recently, but mobile internet is extremely powerful and highly
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populous countries, meaning china versus the u.s.. you take the same mobile internet company in china and it will do far better in the u.s. because of the number of people and the volumes of people. and the data you can collect. shery: you cannot forget the massive chinese economy. are we perhaps overlooking some geopolitical risks in the region itself like the south china sea? sheryl: there are huge political risks both with north korea and in the south china sea, so if you look at north korea, we're actually now moving sort of backwards from where we were in the past year, we're certainly a moratorium on testing and north korea, although they just last week tested a short-range missile and you wonder why they are doing this. is this a message to the trump administration that, hey, you know what, if you do not come to the table again or give us what we want, we will ramp back up. we don't know. has threatened to do
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something like that. in the south china sea, we tense do have a very situation. china has been building military bases in the south china sea unilaterally. it has been a dispute for decades over who really owns a lot of those islands in the south china sea. china has built seven military bases. they have a 10,000 foot airstrip. they are really ramping up, building. that is very scary for everyone around. the question is, you could have an accident in the same way that thatd, you know, a pilot basically fell out of the skies during the george bush administration when he first took them on and we had the situation where, you know, china has this u.s. pilot.
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what if you have an accident like that in the south china sea? is that going to create a situation where we have a conflict between the u.s. and china and there has to be a decision what do we do? it is a real flashpoint. shery: missteps, the key questions and issues. thank you so much for joining us. sheryl wudunn, midmarket securities director. you can get around the of the you need to know to get your day going in today's edition of "daybreak." bloomberg subscribers can go to dayb on your terminals and it's also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪
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>> every single nationality and culture travels through heathrow. we need to adapt the way we serve people to young and old, for many nationalities. paul: it seems the world just cannot stop tweeting. twitter shares surged. let's bring in our tech reporter, selina wang, from san francisco.
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what drove the positive results this quarter and what is working for advertisers? selina: investors were pleasantly surprised by the wide margin. advertisers are flocking back to the service as they grow the number of daily active users on the platform. twitter is investing heavily in new ad formats like video advertising and as they make the product easier to use and experiment want to make it more conversational and chat-like, this is what is driving the users back to the platform. however, given the positive numbers, twitter has not proven ofcan grow this overall pie users significantly beyond this 130-some million users. investors have not seen proof they can grow this overall pie significantly. shery: what do we know about jack dorsey's priorities in the coming year? selina: he has reiterated
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quarter after quarter that improving the health of conversation on the service is his number one priority. with its social media peers have been under escalating fire and criticism for failing to prevent misinformation on the service as well as toxic content, abusive content, and harassment, and there is still a long way to go for twitter. some of the early numbers are showing that they are making sums areas improvements. for instance, they recently of theed that about 38% content they take action on has been surfaced through its algorithms and that is flagged to human reviewers to look at. every single piece of abuse they took action on had to be reported by an actual person and that was putting the burden on the victim to report this abuse of content so that is a big step forward for twitter. shery: jack dorsey just tweeting about his meeting with president trump today, saying thank you
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for the time. twitter is here to serve the entire public conversation and we intend to make it healthier and more civil. we know president trump has been complaining about twitter for what he perceives to be biased against republicans. what do we know about this meeting? selina: putting a little bit of context in front of that, this morning, donald trump tweeted has tons of followers but he would have more if it was not for the actions twitter is taking. twitter has been removing millions of accounts that are deemed to be fake profiles, spam, abusive platform, content, and trump had an issue with that. controversialther that jack dorsey decided to take this meeting with donald trump. from what i heard from the , as you saw from jack dorsey's tweed, this was a talk about prioritization -- tweet, this was a talk about prioritization and how twitter is helping to combat the opioid crisis. for: selina wang, thanks
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joining us on the twitter story. let's get a quick check of the latest business flash headlines. snapchat parent eat estimates with first-quarter sales rising more than one third on one year ago. than $300d in more million and sides first increase in daily users in a year. shares have risen more than 140% from december's record low. coca-cola shares were given a -- thanks to asia. shares volume fell. surging numbers in china tipped the balance, beating the company's own forecast. coca-cola says bottled water in traditional coca are performing well. still to come, softbank said to be considering a stake in a firm.uered we will give you more details, coming up in a moment. we do of course also have the asx opening at the top of the hour. futures pointing higher at the
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moment. stay with us. more to come on bloomberg "daybreak asia." ♪
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jessica: this is "daybreak asia ." i am jessica summers with the first word headlines. north korean state news says kim jong-un has left on his private train for a meeting with president putin. russian media say the two leaders will hold talks and will concentrate on kim's nuclear program. the meeting follows the collapse of kim's second summit with president trump when they could not find agreement over sanctions offered for disarmament. hasapore finance minister been promoted to deputy prime minister, a move that puts him on position to succeed the current pm.
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he will chair the future theomic council and national research foundation. he suffered a stroke and 2016 but returned to work three months later. new zealand and france are to cohost a meeting of world leaders and checkboxes next month on how to stop social promoteing used to terrorism and online violence. the talks aim to really think pledge -- aim to release a pledge to eliminate extremist content on the internet. leaders will meet two months after a gunman killed 50 people at two mosques in christchurch. elon musk things the days are numbered for newspapers. speaking to young finance, he said the decline of advertising has turned the papers from monopoly to nearly competitive -- merely competitive. he added the world has changed dramatically and most papers are toast. berkshire hathaway has been cutting jobs.
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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. thank you. we have some earnings across asia as well. sophie kamaruddin with the latest. off with aking it preview of sunday motor, expected to put in a solid performance at the start of the year. a net loss at the end of 2019. that is seen rising 9.1% year on year. helped by decent domestic sales for that period, up eight point 7% thanks in part to the extension of the vehicle purchase tax cuts. softer appetite from chinese customers may offset some of those gains. after a bumper fourth quarter, profitability was likely than combat the start of this year. on a quarterly basis, revenue is seen falling 16% and lg displays
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gross margin is expected to narrow. for this company, headwinds are continuing to squeeze profitability in 20 as steel and iron ore prices converge further. iron ore9 as steel and prices converge further. chinese appetite expected to stagnate this year on trade tensions. that's flipped the board for a japanese robo machinery maker. demand for machine tools in china continues to drag on orders and the fiscal fourth-quarter's operating profit is expected to drop 29% for that period. the outlook may be brighter. paul. much, sophie.ery oil will climb to a new high for the year so far with saudi arabia said to be wary about raising output to offset u.s.
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sanctions on iran. aaron clark joins us from tokyo. exactly what has been saudi arabia's response? think you are seeing a very cautious response from saudi arabia. a sort of wait and see approach. like you said, the u.s. said earlier this week that they were halting these waivers that allowed eight countries to u.s.t iranian oil despite sanctions. as part of that announcement, they said saudi arabia and the united arab emirates were able to boost production and exports as much as 1.5 million barrels to help offset iranian exports which were about 1.1 million barrels a day. athink they are probably little bit more surprised by saudi arabia's response. it is very muted. basically holiday off the lead said-- khalid al-falih they would work with other producers and ensure a stable
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supply into the market. that is standard language and i think it is because of what happened last year. last year, the u.s. said they would impose sanctions on iran, but then at the last minute, they granted waivers to eight countries. meanwhile, saudi arabia boosted exports to the market. and then you had this oversupply because you had iranian oil and saudi oil both flooding the market and you saw prices plunge. saudi arabia is trying to avoid that situation and they are taking us wait and see approach and they will wait until they see a decline in iranian exports before loosing their own supplies into the market. shery: of course, we know asian countries are the ones that import the most iranian oil. the chart on the bloomberg shows china takes the biggest jump in the, japan, and turkey. have we seen any reaction from these consumers? aaron: i think a lot of these countries were sort of caught off guard by the u.s.
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announcement. i think many folks expected the waivers would be extended at least in some form, so i think that is a bit of a surprise. goingy how they react is to impact oil markets. bloomberg did speak to a south korean refiner and they said they are looking at alternative supplies. they said those alternative costs forould boost them, so clearly, there could be, you know, an impact to some of these refiners. there was a story out today from bloomberg showing an increase in u.s. oil exports to china. those basically ground to a halt with the trade dispute, but we are beginning to see those pick up again now so that is something that we will watch and that could be another knock on effect from the end of these waivers. one thing that is a bit tough to measure is of course the black markets. how important is that going to if iran starts exporting on
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the black market to india, china, and turkey? aaron: that is something we will have to watch. there have been different reports about venezuela getting some of its crude out through russia. you know, that is pretty difficult to assess. oils clearly something the market will be looking at. they will be looking at overall supplies and overall demand, and i think when you step, we are in a much tighter market than we were a few months ago. you know, the market is going to whereverg for supplies they come, and that is going to play into prices. aaron", thank you -- clark, thank you so much. the beleaguered german payments jumped ind car new york after bloomberg broke the news that softbank is considering an investment. let's get more details from sarah mcbride in san francisco.
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how much is softbank expected to put into this company that has had its share of problems recently? it could be softbank puts in as much as 5%, and it will do so according to sources via convertible debt, which is kind of a smart way to do a transaction in a troubled company like this. if the company really has put its problems behind it and its softbank gets a lot of upside, but because of the convertible debt structure, it will not lose too much on the downside. shery: so why have they chosen wirecard to invest in? what is the benefit for softbank here? sarah: because wildcard's -- wirecard's share price had fallen so dramatically, it is considered a little bit of a
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bargain right now. and softbank's vision fund likes to have an investment in any sector it things will be transformative and disrupt existing industries. so right now, they do not have a huge presence in electronic payment processing. and that is just catching hold. order, the bulk of financial transactions will be processed electronically through companies like wirecard. this investment could get it into a fast-growing area where it does not have a big presence right now. in sanarah mcbride francisco. thanks for joining us. there is plenty more to come on "daybreak asia." stay with us. this is bloomberg. ♪
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paul: this is "daybreak asia." i am paul allen in sydney. shery: i am shery ahn in new york. david hunt says there are bigger issues than tariffs that need to be addressed between the u.s. and china. he told bloomberg how markets are perceiving the ongoing trade war. havethink that the markets largely decided that there will be a trade deal and that it will not matter very much. in general, the history of trade deals with this administration and others has been that there is an awful lot of handwringing and emotion and drama that is around it, but we end up sort of close to what we had before. i think the market is not expecting this to be dramatic. i'venk what we hope long-term investors is that once an agreement is reached, that actually, that will lead to much more emphasis on one of the really important issues between the countries. security issues, technology transfer issues, the fact that we are very large customers of
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each other. that really needs much more focus rather than tariffs and trade. >> talking about long-term issues, one thing we might see in the 2020 election, this is a big talking point of years, isn't it? that you think this is a role institutional players should play in, bringing in less inequality into the world. how? a muchi think it is larger issue in some ways than simply inequality. as i travel the u.s., what i am struck by is that this is a rich country that is not feel prosperous. and why is that? part of it is an equality without a doubt. that is a major theme. i would say as important is the sense that social mobility has gone down. the economic dynamism of the u.s. economy has gone down. perhaps most importantly, the sense of vulnerability of many workers has gone up. 40% of americans would find it very difficult to meet an
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unexpected $400 expense? of thoseput all together, i think you can understand the kind of cocktail of emotions that are now at play in this country and why it does not feel prosperous, and i do think it is time now for private sector leaders to step into this in a big way to help try to solve it. shery: david hunt. if you missed out on any part of that interview, you can watch it. your function is tv on the bloomberg. you can also watch us live and dive into any of the securities or bloomberg functions we talk about. and become part of the conversation. send us instant messages during our shows. we will try to get to them. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
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shery: this is "daybreak asia." i'm shery ahn in new york. paul: i am paul allen in sydney.
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coca-cola shares rose after the company posted a profit beat. bloomberg spoke with the ceo about the impact of brexit and coax business started -- coke's business strategy. >> using coffee as part of a rolling outform -- later in the second quarter. and then, we are working with the management team to really update the plans and the visions we saw for accelerating not just the ready to drink coffee but the vending machines, beans, and machines, and stores in europe and asia. and we will be pulling all that together in the course of this year and you will start to see more as we go forward. for: staying with the u.k. a moment, one of the things we have seen over the last couple of months is building inventory in advance of brexit. now that we have a six-month kind of hiatus -- that is the
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inng word -- we have a pause that potential exit coming through, how are they going to handle that inventory? james: the inventory build was very related to brexit but is very specifically related to the potential disruptive or a no-deal brexit exit. it could have been the end of march, and now of course has been postponed at least until october. i think the approach we're going going to probably center around keeping that inventory on hand through to october. at least until there is some clarity on how and when brexit will occur because this is inventory not just because brexit is going to happen but the idea of a disruptive brexit, particularly if there were problems at the ports in the u.k.
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it travels to some other european countries. at that is what we are protecting against. disappear,k were to then obviously, we could wind down that at you inventory. that has not happened yet. for now, we have to assume that will keep it through october. shery: there is a high dividend payout ratio, 73%. any source as to what you might beinstead, if there would better opportunities, looking for some acquisitions and internal investments? james: we got a high dividend coverage ratio. like our dividend. we are focused on having that continue to grow into the future. we believe our capital structure has enough flexibility and space within it to both funds the dividend and future growth of the dividend as well as make the acquisitions we need to make. reinvest organically in the
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business. we look at that, but really, the ongoing plan is invest in the core business, fund the dividend, and the bolt on m&a, and we believe those three things can be done within the current capital structure on an ongoing basis. >> where am i looking in terms of all-time m&a, and would you be considering expanding your interests in energy drinks? you have a stake in monster beverage, for example. james: i mean, our strategy is really in a way filling in. more regional. we are number one, number two in the broad categories across the world. world, ourts of the strategy tends to be about filling in in certain categories where we have less developed positions around the world.
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that is the focus of our m&a strategy going forward. shery: james quincey there. china mobile reported its biggest profit drop in two years after an end to domestic roaming freeze and a decline in data tariffs put a dent in income. ve mccombs has- da this story. how did it end up with lower numbers? dave: the government has mandated a reduction in roaming charges. the elimination of roaming charges. that has hit china mobile hard because they have the massive subscriber base and most charges would accrue more than it's too rivals.ls -- two big that is a continuation of a couple of trends. one is government pressure for them to lower the amount a charge customers. also showsat this
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the specific government policies have been favoring its two smaller rivals. the picture the government paints is it wants to bring up these two rivals to be better competitors to the dominant told, if youch all count all of its customers, it is almost 900 million. it is a really big race may have got. -- base they have got. when you have the roaming charges, that hits pretty hard. that is the past quarter. not so great. how about the future? what are investors expecting for the rest of the year? dave: if you look up a 12 month price target for the shares, the consensus for that is 88 hong kong dollars. they are trading at $75. there is some room for these shares to gain a bit. that is just on general optimism for growth in china. it is a very general way. when you look more specifically at analysts who cover it very
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closely, it looks a lot flatter. we have christopher lane at bernstein. his price target is $75. there are a lot of reasons to go with that case having to do with the challenges this company faces as it implements 5g. there are signals that the government will play a big role here. in china, it is pressuring to have the two rivals rollout 5g yet the same time that china mobile does. that is quite a different picture from 4g. previously, china mobile had a big lead, six months to one year, in building the first 4g network in china. they beat the benefits for that. the benefits for that. with 5g, it looks like it will be more of a simultaneous rollout someone focus for investors going ahead is how much they will have to spend to get that done. shery: did we get any more details on 5g spending or plans
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this time around? indeed, that is what investors were scrutinizing this report for. there were no further details provided. by contrast, they reported on the same day. they had a decline in revenue. the profit was better and they had a big increase in fixed line users, but they do a lot of information about their 5g rollout. for example, they have a big introduction and they plan to be the biggest 5g network and the earliest five g network in the city of shanghai, which is strategic through the certain business capital of the country. they have specific information and some of their investment will be to get the 5g up and running. dave mccombs, thanks for that update on china mobile. let's get a quick check of the latest business flash headlines.
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reports from japan's a nissan will announce it cut in its earnings forecast today -- a cut in its earnings forecast today. falling sales in north america and china are to blame. nissan has named a longtime executive as the coo that would bolster its ranks following the fall of carlos ghosn. >> reports from london has given one way green light to work on part of the country' 5g network. sthe telegraph says the council has agreed to let huawei build antennas and other non-core infrastructure. it defies criticism from washington and comes with the head of the u.k. intelligence agency set to one about the unprecedented scale of cyber threats. paul: the interim ceo was heckled and interrupted a dozen time during his address to shareholders as frustration at the bank's recent scandals
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boiled over. one activist denounces him and other executives as frauds while another complained that the bank simply cannot be trusted. troubles include revelations that it charge customers for services they did not receive or even request. shery: and we have breaking news out of south korea. we are getting the latest numbers out of algae display saying the operating loss came in at 132.0 2 billion won, higher than the estimated loss of 96 billion won. their first quarter loss, 60.9 3 60.93 billion won. it is higher than estimates of only growth of 5.82 trillion won. operating loss higher coming out of lg display. the market open in south korea
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at the top of the hour. we had tons of earnings out of asia this week, including canon, sanuk, and-- another company. sophie: we do have futures pointing to gains across the board. while the yen is holding steady as we brace for more earnings from japan, aussie stocks could extend gains above 6300 points while the aussie dollar is trading near a three-week low. flipping the board for a quick check on stocks to watch in australia, the commodities space, very much in focus. energy, given the rise in oil prices, we are keeping an eye on lithium minors as one player warns of missing profit estimates. ian w is to buy them material directly from australia. gold producers on the radar as the precious metal clips to a low. demand waivers amid better than expected earnings and a firmer dollar. we are watching more than start
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in particular after they maintained forecast while boosting its sales volume outlook for the third quarter. there is plenty more to come on "daybreak asia," ahead with plenty of earnings on the radar. this is bloomberg. ♪
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paul: our top stories this wednesday, asia-pacific stocks set for gains after wall street closed at new highs. there are warnings the rally could come to an end. new 2019 high with saudi arabia said to be wary of raising outputs, looking at the impact of u.s. sanctions on iran. shery: millions of new users for china mobile but still dialed up disappointing numbers. welcome to daybreak asia. let's get to the market action with sophie kamaruddin. sophie: seeing green shoots in tokyo with the nikkei adding
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.4%. not seeing divergence with the topix but that benchmark also gaining ground. season soft reporting far with more surprises to the downside. nissan expected to announce a cut in its earnings forecast citing declining sales in north america and china. the yen looking little changed, seeing above 111.50. muchlden week pretty serving as the payment day when it -- when people buy dollars. let's look at the mood in korea with the kospi adding .4% and a busy day of earnings. they are set for a fourth day higher and the korean won is losing ground in the face of a firmer dollar. we will get reports from hyundai motor and costco. check posted a loss in parts of cell phone parts.
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looking at australia, the asx 200 is adding .1%, adding further gains above 6300 points, eyeing the highest level in 10 years. giving a closer eye on the commodities level the aussie dollar near a three-week low. c.p.a. expects a breast fall in the currency if underlying inflation surprises to the downside. let's check in on new zealand. kiwi stocks are building on gains above 10,000, set for another fresh high with signs of the new zealand economy bottoming. 10-year yield our study, holding a four-day decline while the kiwi dollar is under pressure for a third straight session with no local drivers. expect the currency to remain at the mercy of offshore moves. looking at lg display after results, gaining ground in seoul despite reporting a wider loss with first-quarter operating alien, coming in at 132
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.ne -- 132 billion won expect margins also to take a hit. paul: thanks very much. let's check in on first word news. here is jessica summers. reporter: the so-called islamic state has carried out sunday's bombings in sri lanka that killed 321 people and wounded hundreds more. initial investigations focused on domestic jihadist groups but authorities say they must of had help from abroad to carry out the coordinated attacks. sri lankan stocks return to trade on tuesday with the colombo index falling to its lowest level in six years. the brexit juggernaut is back in motion as u.k. lawmakers resume talks to seek agreement on a new deal. putting a key piece of brexit legislation or of --
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legislation to a vote next week. theresa could face a leadership challenge with one poll putting boris johnson 17 points ahead. u.s. auto regulators are checking 12 million vehicles for a potentially lethal flaw that could prevent air backs deploying in a crash -- air bags deploying in a crash. there were in major incidents where it didn't deploy in toyota cars. they are looking at fiat chrysler, sunday and kia. -- hyundai and kia. minister hasance been promoted to deputy prime minister, a move that puts him on position to succeed the current p.m.. he will maintain the finance role and share the future economy council and national research foundation. he suffered a stroke in 2016 but returned to work three months
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later. the u.s. and china are both optimistic about trade talks, saying progress has been made but more needs to be done. the treasury and trade that's treasury secretary and trade representative will go to and the viceweek premier going to washington the week after. larry kudlow said talks are going well. we have made a lot of progress, coming further, deeper, broader, larger scale than anything in the history of u.s.-china trade. i don't want to make a we have gotten closer and working on the disc -- the issues. 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. ♪ shery: let's get back to the
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markets and all of the action today. i am bringing the mliv strategist mark cranfield. we saw the rally in the s&p 500 and the nasdaq losing at a regular high. that positive sentiment, being carried over into asia. what should we be watching? viewom asia's point of they would like to see what happens in the chinese markets. they have gone through pressure, but assuming that china is in themuch of a deterrent, tailwind from the united states is good. we are finally seeing people justifying the valuations. earnings are a big fact your especially with -- factor especially with the tech sector driving the rally. there is more confidence some of these numbers coming through just fine -- through justify the rebounds. good performances from tech
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companies, more to come this week so people are watching that. these are the kind of things that can drive markets into a trading range when you justify this with earnings coming through. china is the big one to watch. there have been signs that china is happy with the way stimulus has gone in the first word of the year and maybe it will not do too much more. see how this handles and feeds into the economy. strong factors here for the asian markets. really it is a nice situation here. what the traders are doing, they look at china and the united states area with the united states, it is positive, more cautious if they are worried about the direction of china stocks. paul: we always hear president trump calling for a lower oil price. he has removed the sanctions on iran, [indiscernible]
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my that tap the brakes a little? -- might that tap the brakes a little? cpi goes higher because of energy prices, and there are signs if you look at the united states, how much it into the driving season in the united states, it has been high enough for a while. we might see inflation numbers .hich are not pleasing people are watching closely to see whether or not it feeds in to the price of other goods as well. oil is a big factor in that area. if oil prices stay firm for some time, it will affect other things. for now energy stocks are helping to lift the market and people are behaving as though they think it will be reversed quickly. a summer of higher oil prices could be a factor that weighs on american stocks in the months to
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head. shery: he mentioned chinese stock market and the need to watch them especially with the csi 200 having its biggest fall. we might see policymakers pulling back on stimulus measures. what will that do for the rest of asia? it is dependent on china. asia would be looking at what it means for the real economy. of china data last week. when you see industrial for making a big rebound in china, that is good news for the countries that do trade. supply chains when it is part of the equation, lots of countries are involved in the process making -- china is one part. others benefit as well. industrial production numbers are turning for the better. that is ringing hold of asia.
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bringingll become -- hold of asia. people are concerned there will be pullback from the stimulus. the effect can go on for some time. in terms of being a major headwind for markets, it is early for saying that. moving into the second half of the year, it could become a factor if we see china data members slipping back to the low range, which we saw at the beginning of this year. paul: in terms of china, is pressure holding on the yuan? rates in china are rising and rates in the u.s. are pulling back but the yuan isn't moving much. the chinese authorities are happy with that. the talks with the united states on trade, they seem to be coming to a conclusion but haven't signed off on a deal yes. china will be happy to see the sidelines isthe not do much because it could be disruptive and draw attention from the united states.
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it is certainly a positive from that point of view. at some stage it could come back into the picture. volatility has been low and people could speculate on the next direction of the currency. for the time being the focus is on china equities, the china bond market going into these indices. the other assets markets, taking the attention away from the moment, the yuan is not a key factor. shery: our bloomberg mliv strategist there. you can find his commentary on markets live blog. you can get a rundown in one click your there is commentary and analysis. you can find out what is affecting -- in one click. there is commentary and analysis. you can find out what is affecting you. seeingso far we are nissan losing ground as much as the on a tv tokyo report
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company will announce today a cut in its earnings forecast for the fiscal year and its march, citing decline in sales in north america. we are also looking at kos a under pressure that its yearly income did rise but the company ¥56ed its guidance of billion because of sluggish sales in north america. the mystic sales are looking good on inbound tourism. innotech, the lg stock gaining ground 4%. this one despite posting a first-quarter loss on weak sales of smartphone parts. there is a drop, according to any melt statement. that is around of some of the big movers. come, singapore
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got a new deputy prime minister and he is being tipped for the top job. the latest from the lion city. shery: the outlook for chinese bonds as the government might stunt the stimulus. this is bloomberg. ♪
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this is daybreak asia. i am shery ahn. paul: i am paul allen. china's tenure sovereign bond yield touched a five month high after officials signaled less amenable to adding stimulus. this as the best investors digested monetary policy needs to be prudent if a proper balance will happen for tightening and seasoning. best easing. -- tightening and easing. here is the head of asia-pacific fixed income at ubs asset
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management. let's start there. outline your argument. why are chinese fonts looking like an asset? hayden: we are struggling to find yields that offer any yields at all. europe is close enough to zero and japan is at zero. investors are looking to move assets and find income. it has behaved like a safety assets so negative correlation with risk assets, that will remain going forward. had a bit of a selloff here. felt as if the domestic market really was thinking players into ae far players index expected lot larger flow. they didn't get it. you had positive numbers without a backup in yields. at the end of the day, the chinese government is trying to put a face on the economy and forth look like a good bye. inflation will pick up a we will look through that.
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that is because of peak prices and feeding through into the cpi which is a large component. somewhere around this 53, 60 zone, bonds. selling off. -- bonds will stop selling off. paul: if there were to be a financial crisis this year, would you pile in the chinese bonds or is it too early? are you looking at traditional havens like gold in the swiss franc? hayden: chinese bonds act the same as u.s. treasuries and other safe havens. when we see it selloff dramatically, chinese bonds rally strongly. they are one of the great safe haven assets that are massively underground today. -- under-owned today. as you touched on previously, it will be a test. this is a different transmission mechanism. the stimulus that has gone in has gone into the private owned enterprises.
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small, medium enterprise, very different from the last episode with the stimulus which went into infrastructure and the housing markets. going to clear this is boost the economy. we feel putting a base under it it is a long l shaped recovery. it is not a v or u like we have had traditionally. andmarket could be reacting taking a misstep. it will give is a big u or v shape recovery around the world. shuffling into the first quarter of the year, the back half as it is touching on now, the officials, it will be a lot more subdued in the landing. we will have to take stock and the market may have taken a misstep. shery: will china continue to dominate issuance, or will we see more supply from non-chinese countries? hayden: it will still dominate.
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wars the powerhouse, a huge coming up where the need to roll over the bonds in the dollar market. they will continue issuing. it has been the standard -- standout performer. tostill think that is going continue to be a place you want to be involved in. spreads, 150 basis points. are going into this lower yield environment which tends to be what is happening in the u.s. , the markets today and what it is bleeding us to believe, you want to be involved in asian high-yield spreads. what high-yield markets are you looking at now? hayden: a standout is chinese property. the chinese property market looks in good shape, got housing price restrictions in lace which tells you something. demand is outstripping supply and companies have been under
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pressure with deleveraging and reregulation of shadow banking. they are getting access to those markets again. they sit in the private owned enterprises that are able to get access to the regulators that are trying to push money in two. you can fund in renminbi and dollars which is unique high-yield, different investor bases in renminbi and dollars -- there areook unique features here. there is further to go. i want to get your thoughts on malaysia. how quaint -- how closely are you watching that? there is weak inflation, the worst-performing equity market in asia, the biggest bond rally in three years, where is all of this going? the key with malaysia is one of the index providers says they may be kicked out of the indexes. they have got until later this
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year when they make the index change around september to address that issue. that is around the currency hedging. global bond investors don't like what the malaysian government has done in terms of limiting our access to the currency. they need to improve that otherwise they will be kicked out of the index and global investors are a large holder of those local bonds. that is why the currency is under pressure. there is water under the bridge that happened here. that happens around september and they are on notice. briscoe, right, hayden thank you for joining us. you can get a roundup of the stories you need to know in daybreak. bloomberg subscribers go to dayb on their terminals. also available in the anywhere app. customize settings so you only get news on industries and assets you care about. this is bloomberg. ♪ this is bloomberg. ♪
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nissan shares are falling and the 8 -- the automaker could announce a cuts. achieve has the story. -- bureau chief has the story. more ahead for nissan. reporter: it keeps piling on. it shouldn't come as a complete surprise in february, they had a rather large cut to the outlook for this year. the report suggests it would be followed by -- they won't even make those targets. the year in question ended at the year of march. they might not even make the billion dollars in operating profit is what they were targeting. as a report suggested, what nissan said in february, sales continue to be poor in china and north america.
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aroundheir troubles carlos ghosn have been well-publicized. how much of an issue is the leadership void proving them? reporter: it is a question. addressecall his video that he filmed before he was rearrested, when he was planning to hold a press conference but it didn't materialize, he brought up the issue of nissan's leadership void and the troubles with the leadership and how that was impacting sales. we couldn't -- shouldn't be surprised after such a time of control and essentially by one person, we are seeing something of a lack of leadership for a company that is in flux at the moment. the current ceo has suggested he may not be there for long. nissan is embroiled in the
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allegations surrounding carlos ghosn. we'll see where that has to go. there was a management shakeup with the new coo appointed to replace in other longtime executive to parting. -- another longtime executive departing. we will see what they have to say. paul: our digit -- deputy borough chief, thank you. -- deputy bureau chief, thank you. a german payment service jumped on a report that softbank is considering taking a stake. masayoshi son has enlisted financial advisors to work on the deal to buy bonds that could be converted into wirecard shares. softbank could boost investment after they reported alleged misconduct in singapore. sayy: reports from london government has given huawei the
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green light to work on parts of the 5g network. the telegraph says national security council has agreed to allow quality to build antennas and other non-core infrastructure. this defies criticism from washington and comes with the head of the u.k. intelligence agency warning about the unprecedented scale of cyber threats. paul: will be watching china mobile after they reported the biggest fall in two years. income fell almost 10% to $3.5 billion because of the end of the mystic roaming fees and -- the end of domestic roaming fees. they were downgraded to neutral by goldman sachs. we will get over to singapore next, a country shuffling its cabinet and a new deputy prime minister being tipped for the top job. all the details and check on the markets next. this is bloomberg. ♪ bloomberg. ♪
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this is daybreak asia. i am jessica summers. south korea is preparing a big cash injection to boost growth. they are planning $6 billion to tackle a wide range of challenges from job creation to air pollution and forest fires. that adds to a record budget for 2019, but this extra is still only two thirds of the required level for growth recommended by the imf and rias central bank. central -- korea's bank. the u.s. and china are optimistic about trade talks. more needs to be done though.
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steven mnuchin and robert lighthizer will fly to beijing next week. a top chinese negotiator will go to what -- go to washington the week after. talks are going well. are not there yet, but we have made progress, further, scale, larger, broader than anything in the history of trade and that is a good ring. -- good thing. i don't want to make it forecast but we have gotten closer and we are working on the issues. reporter: new zealand going to cohost a world meeting with leaders on how to stop social media being used to promote violence. callwas the christchurch to eliminate extremist content on the internet. they will meet after a gunman killed 50 people in christchurch. north korean state news says kim
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jong-un has left on his private train for a meeting with president putin thursday. casey in a and russian media -- kcna and russian media say they will concentrate on kim's nuclear program. as follows the collapse of his second summit with president trump when they couldn't find agreement on disarmament. owns a printt media empire but he thinks the days are numbered for newspapers for he said the decline of advertising has turned the vapors from a monopoly to merely competitive. he added the world has changed dramatically and most papers are toast. berkshire hathaway has been cutting giant -- cutting jobs to cope with declining ad revenue. 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.
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i am jessica summers. this is bloomberg. shery: thank you -- paul: thank you. here is a check of the markets. sophie: asian stocks are mixed to mostly higher your the asx ledat a december 2007 hi, higher by health and tech sectors. there is pressure in the materials space. aussie dollar losing power. forokyo we are seeing gains the nikkei 225, fast refiling running the -- retailing providing the bulk of that support. fast retailing gaining ground. in sold the kospi is off -- kospi is off. switching the board to check in
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on specific stock movers even this earnings flood we have across the region, i want to highlight she motto -- shimano after they cut their forecast for the year with guidance missing the lowest estimates. and this manufacturing group slipping after their outlook income also missed forecasts. they see global car production remaining flat while expenses are on the rise. we are seeing northern star take ahit in sydney with disappointing update and weakness in bullion prices weighing on the gold space today. lyons is -- line is gaining ground. they will post an operating loss in the first quarter despite trying to get more users to their mobile wallet. , off 1.7%.lg display
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this as the company posted a wider the forecast operating loss in the first quarter. the average drop in average panel prices. step up it is going to efforts. oil shery: -- oil under pressure but after climbing to a new record high for the year with saudi arabia said to be wary of raising output in response to u.s. actions on iran. our energy reporter is watching this in singapore. the u.s. came through for saudi arabia when it came to curbing iran. now the question is will saudi arabia come through for the u.s. on keeping the market supplied? closest sources in the government are tentative about raising output to say the least. there are reasons for that. last year the trump administration said the same thing. they would move iranian oil exports to zero and wanted saudi
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arabia to fill in the gap by boosting production. saudi arabia listened and boosted production to record highs. of trump administration sort hold the rug from under there and decided to issue waivers allowing nations to continue importing iranian crude. that led to a massive drop off in the price of oil and the saudi government was burned. so they want to wait and see. they want to see the output, they want to see exports fall before boosting production. they made a pact to bring byough, cut production millions of barrels a day, try to bring balance to the market. by boosting output, they could hurt the relationship and have built with russia over the last few years. there will be an opec plus meeting with russia next month
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and also an official meeting the month after that. perhaps we will see some more kind of direction as to where saudi arabia will go after they meet with the partners in the middle east as well as with russia. paul: this is a decision from the u.s., obviously not going to well with some important oil consumers, thinking china. how has the reaction been? china has been the biggest push back to the trump administration. the u.s. government is stepping up right of line. you are also seeing turkey echo that message. while the government said they will work with the u.s. government to extend, potentially expand -- extend these waivers and do negotiation, the companies, the importers of crude from iran and china, japan and south korea and
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india are looking at other options. they see this as going to stop the exports from iran, putting pressure on them. the companies are looking in other places. were they are looking a saudi arabia as well as the united states to say one. while the government's in china -- stayingeing competitive about what they have done, the companies are looking for different options going forward. asia energy reporter, thank you. -- staying with singapore, giving us their hints about who will be the next part minister. the finance minister has been promoted to deputy prime minister and is in a pole position to succeed the current prime minister.
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michelle, what does this say about how the ruling party is preparing for the next election? michelle: we see it as a cementing of the finance minister has the next prime minister. when you in november he was the assistant general of the party -- we knew in november he was named the assistant general of the party. we don't know when the elections will be. we were told by the prime minister this could be the year. there is symbolic importance with 2019 being the bicentennial of what they consider the founding of modern singapore. there is symbolic importance. we don't know if they can get the vote together. they have to call those elections by 2021. the prime minister signaled eagerness to get that generation in place. he is approaching 70 years old, on theou like to pass baton to the next generation. what we saw yesterday in terms of a reshuffling of the cabinet,
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not just moving in but the current deputy prime minister's will now move into senior minister roles. this is a bigger symbolic gesture the younger generation and theg to the fore elders are stepping back. what kind of prime minister can we expect them to become? >> he has had quite a history, started out in the police force and held serious positions. finance minister for a few years but also managing director of the monetary authority of singapore, the central bank to my considered a high post and one that is preparatory for bigger things to come. he has been education minister. well-rounded
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person in the government but also seen as resilience. in affered a stroke cabinet meeting in 2016 and returned to work three months later and is by all measures, in good health now. very hard-working, dedicated, trusted and well-liked by others in government, other ministers. a lot of them had nice things to say about the recent promotion yesterday. to be thatct him disciplined hand but also one thing we are looking out for an cuts across many issues for officials is how is he going to navigate singapore's place in the world? trade,f issues with syntax, singapore -- fintech, singapore trying to be the smart nation, where does it stand on the international stage? he is fresh on the international
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stage so we will see how he moves that forward, promotes singapore but also brings good ideas back to the city state. shery: thank you so much for that, our asia economics reporter in singapore. coming up next, we will look ahead to the bank of japan policy meeting with former minister of finance for international affairs -- this is bloomberg. ♪ - this is bloomberg. ♪
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asia.this is daybreak i am paul allen in sydney. shery: i am shery ahn. half the economist surveyed by bloomberg -- economists surveyed by bloomberg thing japan will be easing this week. kathleen hays is in tokyo for the meeting. should we expect some fireworks this time around?
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one thing that is important is they were not necessarily talking clearly about the meeting that wraps up tomorrow. they say if they look down the road when the bank of japan finally makes a policy shift, the majority of those serving say it will be towards an easier policy. what can the boj do that it hasn't done yet? as the trade war hangs over the japanese economy, looking at the fact inflation is barely halfway to target, we will bring in our special guest. this is the governor and ceo of japan bank for international corporation. welcome. hiroshi: good morning. kathleen: let's start with the boj. it is important to listen to what governor kuroda says at the press conference. can a single -- signal any kind of move because they need the 2% target? inflation isn't there and they
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have downward pressure? kuroda doeshink mr. believe in a short-term [indiscernible] it takes a little more time, but also they will keep the inflation target. [indiscernible] also the last two years was some kind of official from outside. moveey are going to tightening, the ecb will fall away to that. [indiscernible] changed, so now they have stopping operations in some market people say they will -- letter half of this year they will have some opportunity of lowering. you have to totally abandoned such normalizing policy issues. the boj, --
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mainly from the united states. kathleen: i wanted to ask you about the u.s.-china trade war because the economy has been doing well. it looks like inflation might be entering -- gathering slightly higher wages. be -- would the economy be better or closer to its target if it were not suffering from cancer in tn direct impact on production from this trade war? hiroshi: if you compare with the japanese position and south korea, south korea is more dependent on trade with china. the china trade, it means even the china economy is going to
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strength -- going to shrink. with the [indiscernible] still theut consumption with the people is very stable to that. now each company has a strong appetite for new investment. expandingt the really investment. that is going to be the basis. kathleen: there were a couple of officials close to prime minister abe that said it should be delayed and then the statement was, we will go through with the tax hike. do you think they should take that off the table, given the uncertainty and it was not as strong as it was?
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some kind of disastrous [indiscernible] but i think even the spring meeting and world bank said we have some kind of slowing down this year. some recovery in the latter half of this year. [indiscernible] some kind of operation. -- every position doesn't have the rates -- there is some negative news, information coming, able to react [indiscernible] kathleen: do you agree it is a threat to the economy and it is fine to raise consumption tax? hiroshi: it is a short-term negative impact. there will be no such kind of
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illusion. more taxation give more good economy. but in the long run we have to make some kind of stable solution system. in the very short term [indiscernible] the more taxation. i think it could be [indiscernible] we already did some discussion and also this year different from the last hike [indiscernible] eight to 10. now the government is going to make a more adjustment of the policy would be taken. and -- we prepare kathleen: are you can -- are you concerned about the application? is there concern? hiroshi: we have some concerns. we have long holidays in the summer.
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the last 10 years, we have the target, so this year we are open. 10 year holiday, 10 days holiday. [indiscernible] but i think currently the market itself is very much stable. the stock market is somewhat -- the full exchange market [indiscernible] i don't see any good reason to have big change. my be a small change [indiscernible] inflationthe boj's target, 2%. you have criticized that in the past and thought they put too much emphasis on it went that economy of the world is so advanced, inflation not showing strong tendency to rise. is it time for the boj to change that target, make it a long-term range, do something to make it
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less of a factor in what they are doing? hiroshi: changing it, it will be -- not only one country do it. the markets [indiscernible] mr. powers has suggested every country is enjoying low inflation. we should not just only focus the inflation rate as the [indiscernible] component that is adequate. the comprehensive discussions are needed. in the future i think every japan, therope and 2% inflation will not be so adequate. lowering the target to buy every country. i think maybe 2% is very much is the two accept. we keep the target.
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make anyould not misdirection. we are going to research 2% by putting more money into the market. this is not the mission of the boj. the boj has to focus on the market. but the boj should raise money for inflation. there will be some kind of misunderstanding held by many people not only in japan but [indiscernible] i think mr. corrode it will make korea, what would be the target. [indiscernible] explained by to be him at the meeting. kathleen: i can hardly wait. that would be interesting. i hope we do here that. of -- i willceo send it back to you. it will be great to hear governor corona explaining that tomorrow.
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thank you for that interview. getting you across breaking news, looking at details on a u.s.-china trade talks. steven mnuchin, the secretary, bribery lighthizer going to beijing on may 8. they will talk about forced technology transfer, non-tariff barriers. and most crucially enforcement. 8, thescheduled for may trip to beijing. shery: we are getting lines out of tesla. they are going to introduce, reintroduce a lower entry price ,or the model s and the model x they will come with new drivetrain designed that they didn't -- and they will travel more without the need to recharge. we are awaiting tech stocks to report quarterly earnings
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tomorrow after the close of u.s. markets. the estimates have been really cared back significantly after tesla reported disappointing delivery figures early this month. in other news, the most profitable distiller posted fourth-quarter results -- will post fourth-quarter results on wednesday. our senior global business reporter joins us. are we likely to see any surprises with their earnings? enda: reporter: mao tied doesn't seem to disappoint investors. they typically lowball, go low on their forecasts so it wouldn't be surprising if the numbers exceed what the company forecasted. they expect fourth-quarter hit 40% growth from a year earlier and revenue increased 20%.
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company projections topped annulus estimates and we did see brokerage estimates upgrade because of that. probably not a lot of surprises but how high it will go, we will have to see. some luxury brands suffering in the slowdown, the moutai isada, but doing well. choice are the leader of for a lot of business executives and government officials when they have their official functions. it has been a cloudy and mixed picture with china's consumer market. signs oftick, stabilization and ego data from a few weeks ago, driven largely by consumer demands. said itst month, prada
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sales in china have been hurt by china's slump because chinese art traveling and spending as much. but the luxury brands that have focused on the chinese domestic market like lvmh, they have done well and see strong demand. they cited chinese demand -- shery: thank you so much for that. senior business reporter joining us out of hong kong. we are getting the latest lines that secretary mnuchin will go to beijing starting april 30. this is bloomberg. ♪ s bloomberg. ♪
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♪ >> welcome to "bloomberg markets: china open." we are counting down to the open of trade. david: here are your top stories. asia higher after gains on wall street. japanese stocks headed for the longest advance in two. yvonne: oil hitting a high with saudi arabia wary of raising output. >> the world's most profitable distiller posts fourth-quarter results later. will it be drinks all around at ei

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