paul: i am paul allen in sydney. we are under one hour away from the markets open. shery: i am shery on. sophie: i'm sophie kamaruddin in hong kong. welcome to "bloomberg daybreak: paul: this friday, a tale of two sectors. amazon and facebook lead a tech rally, while industrials slump. president xi takes center stage

to tell the world he is still on track. live in beijing with the latest. shery: let's get started with a quick check on markets causing the thursday session. stocks were mixed. we had all different earnings, industrial sectors underperforming. that weighed on the s&p 500, which finished little changed. strong results out of microsoft and facebook that lifted the nasdaq, which gained 2/10 of 1%. 100 blue-chip stock index closed at a record high. it has been all about earnings and tomorrow, the focus will shift the first-quarter gdp numbers. let's see how we are setting up in the asian market. sophie: quite a lot on investors mind. losing ground rally kiwi dollar is gaining. the governor is not too concerned about slowing growth for new zealand. this morning, we did get trade for with surplus rising

march. consumer confidence indicator picked up for new zealand. in sydney, potential declines at that rally we saw, after reaching an 11 year high. nisei open after growth concerns, which policymakers are attempting to allay with local bank ceos. on japan, the last trading day for markets until may 7, we could see stocks continue to decline. stocks set for a third day of losses. paul: thanks very much. but get to the first word news. bloomberg sources say the trump administration may concede to a chinese proposal to give less kick -- less protection for pharmaceutical products than at home. that could draw opposition from the jug industry. it is being discussed as part of wider trade talks. it would give u.s. companies

eight years of regulatory protection data in china, two years less than under the new nafta. democratic presidential contender joe says he asked president obama not to endorses campaign. he did offer praise for his vice president, saying they forged a special bond and remain close. biden says whoever wins the nomination should do so on their own merit. a butter base younger, less white, and more female. prime minister theresa may is unlikely to put her brexit bill to parliament next week and will have to accept that the u.k. must hold european elections. despite agreeing to a six-month extension in march, may once to get her deal ratified in time to avoid the vote. program off commons business makes no mention of the bill. the rehabilitation of europe's financial industry is on hold after the collapse of talks between deutsche bank and

commerce. a foreign takeover may be on the cards for commerzbank, with unicredit said to be interested. global news 24 hours a day over the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am selina wang, this is bloomberg. paul: thanks very much. it has been a big day on the earnings front, with amazon's quarterly profit topping estimates. focusing on cloud computing, and other high margin -- it was not all good news. let's bring in our senior technology analyst. let's start with the advertising business, it grew only 36%. the words only and 36% usually don't sound quite right, but we got used to 97%. is the tank running out of gas?

>> actually, there was an accounting change last year which lifted that segment one time and that created a tough calm. the strength is there in the ad business. it is showing in the bottom line and going forward, they are ads, pushingew into free music and things like that. can see more ad inventory opening up. the accounting change makes it look much worse than it actually is. seeing the dollar with incredible strength. dollar index at the highest level in almost two years. we saw earlier that amazon was hurting because of their international sales. how are they doing now? jitendra: they are hurting, so you saw 9% growth in international revenue. that will continue next quarter. with the big change from this

earnings call, it was the goingng going to increase forward. the guidance fell short of consensus. freeare now moving from two day shipping to free one-day shipping starting in north america. is comingntal spend online for this move to happen. it should pay off longer-term in terms of market share. we also have microsoft numbers this week. we saw that they beat estimates because of a new cloud service deal. do we get any sense of whether amazon was hurt by this? jitendra: the cloud computing growth at amazon continues to be strong. -- revenue growth off a back off the back of a strong -- these companies are maintaining market share. the end market growth is strong

enough for all three companies to benefit, my cassette, amazon and google. we expect the spending to continue. shery: jitendra waral, thank you so much. bloomberg intelligence senior technology and less. amazon has been moving in after-hours trade, up 6/10 of 1%. we had other disappointing earnings from intel, bridal chipmakers playing a big role in reports. su keenan has more. let's start with starbucks. they have not been affected by china sales -- they have been affected by china sales in a good way. su: strong sales in the u.s. and china, boosting starbucks. after hours, you can see the stock moving higher. what they said on the conference call is they are well-positioned in china for strong growth. that they have

revamped a lot of their product offerings. they have raised prices and that has certainly helped them glided to a strong quarter. take a look at the big picture chart. , which are a key gauge of success, rose 3% in the asia-pacific and china regions. that is double the estimate. it shows a lot of changes instituted by the new ceo have paid off. i different story for 3m, which sank 13%. the worst one-day loss since black friday in 1987. they are cutting their outlook and blaming china for that. it is a story that has a lot to do with the manufacturing sector. stumblehe manufacturer is restructuring efforts. weakness in automotive and

electronics. there was some pretty exciting action after hours, both hits and misses. it was the size of the moves that was quite outstanding. su: you can tell when you see these big moves that it will be the story, at least for the start of friday training. let's go to the big board and take a look at those. we heard about amazon earlier. intel a disappointment. we're seeing that drag nvidia and amd down. the chip sector has been closely watched because of its large jump in 2018. it stumbled a bit in 2019, so this will be a blow. ford and mattel are turnaround stories. the story would intel, they slashed forecasts amid a decline in data center sales. server chip revenue dropped after years of robust growth, reflected by the chart.

they are working through a lot of product stockpiles. ford climbed back above the $10 mark on a number of improvements under its new ceo. strong truck sales bringing a big profit. they cut thousands of jobs, putting billions of dollars into self driving electric cars, all of that beginning to pay off. they blew past all the estimates. mattel, another turnaround story. barbie to the rescue is a we are calling this report. the new ceo focusing on the brands barbie and hot wheels to take them higher. revenue slipped, but analysts have projected the drop to be three times as big. this was a big win. shery: thank you for the latest on the markets. coming up, the nasdaq 100 blue-chip stock index rising to a fresh record. with marvindig in

loh. paul: later, we break the latest jobs data with analysis from masayuki kichikawa. this is bloomberg. ♪

sophie: counting down to asia's first major market open. japan's future under a little bit of pressure. left itsfter the boj key monetary stimulus settings unchanged. just ahead of that very long golding -- golden week holiday. australian markets will be back in action after a public holiday. in wednesday's session, we saw stocks climbed to a high for 2019.- keeping an eye on resource

slowing demand and rising outlook for steel and china. on rio andeye watching flight sensor after the group amended its 2019 guidance, saying overall results will be disappointing. a quick check on the aussie dollar, hovering around 70 after following below that level. the first time since january overnight as it leads back, driven by interest rate differentials. more focus on the domestic economy. likely to see continued softening in data. that will likely add to the case as well. the aussie dollar adding to the 10% decline, making it that years performer -- worst performer. a rate cut now seems entirely warranted. paul: thanks very much. been about 700 chinese companies reporting

results on the back of a rough session. shares turned lower midday thursday, ending downward into percent. shanghai composite is off more than 4%. the culprit is lingering concerns that china will dial back its stimulus. for another look at this, marvin loh, state street corporation global macro strategist. he joins us from boston. weakening shanghai composite's, fewer sugar hits. surely, these are connected. marvin: absolutely. we have to keep everything in perspective of what these indices have done. year to date in seven spectacular. -- and your to date gains have year to date gains have been spectacular. what we saw a week ago called to some spirits, but it was priced

into the market. as the markets always do, we have to consider how much additional stimulus we can expect, given that the data has firmed more than what we saw in the middle of winter. commentshave had some from kyle bass, saying china is in a bad place, running out of dollars flowing in and have been on the biggest credit binge in history. do you share these concerns? does he have a point? marvin: certainly, he has a history of being a fabulous investor. i will say, their reserves are quite robust. they have shown their ability to manage through some of these rough parts in the economy. we're looking for stability out of china. the bigger question for a lot of the em and asian investors is how much those breadcrumbs might fall into other markets the way they have in the past.

shery: our policy in beijing right to be concerned with investors adding leverage for the 10th consecutive week? we have not seen the kind of streak since 2015, at the peak of the market bubble. marvin: it is always a challenge with chinese investors and the use of that leverage. it is worthwhile looking out for. having said that, it has been impressive that this kind of multi-month stimulus has focused where the government wanted to. more internally focused and consumer focus. based on the earnings we heard, the chinese consumer was providing more stability in the manufacturing sector, which is what they were trying to construct. shery: here in the u.s., we are seeing the dollar continuing to strengthen. when it comes to the dollar index, near highs that we have not seen in two years. this gtv chart on the bloomberg showing a four-month high. how does that bode for emerging markets, as we could see more

risk of capital flight? the fliphat is always side of the coin. the stronger dollar is something that makes sense based on the fact of interest rates differentials, based on the fact that it does have a safe currency status. entdon't see much retrenchm happening. in terms of how it will flow down to em currencies, i think we are starting to see negative developments, but they are being limited to countries that have issues and for the most part have problems at the market has known about. that capital flight is moving, but based on lower volatility and demand, i think the better em economies should be able to weather a stronger dollar. there is an extent to that, but we are not at that point yet. paul: let's talk about the fed for a moment. have a comment from larry kudlow

. he is saying the fed would be moving toward a rate cut as he sees it. if these gdp figures are beat, you have to wonder how the dovish tone can persist. marvin: i'm not in the camp that a cut is imminent. this positive is one they have constructed and it could last a while longer. number,think the gdp unless it is an outlier, much weter than 3%, views that continue that 3% into the next quarter, will cause them to take pause on the pause. especially with inflation numbers the way they are. a stable policy going into the summer, into the fall, is something i would expect. shery: finally, let me ask you on that point he made earlier about the china stimulus being internally consumer focused, is that why we are not seeing the spill over from the chinese economic recovery to other markets like south korea, where

they are disappointed big-time on gdp growth? how does that both for the rest forsia? -- how's that bode the rest of asia? marvin: some of the numbers we have seen coming out of other asian economies, it is not spreading as robustly as it had in the past. i think that you need to really understand what markets you are looking for. there are idiosyncratic issues and it comes down to being a stock picker or a country picker at this point. shery: always great talking to you. that was state street corporation global macro strategist joining us from boston. you can get a roundup of the stories you need to know to get your day going on today's edition of daybreak. --erick subscribers bloomberg subscribers on your terminal. you can customize your settings so you only get the news that you care about.

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paul: this is daybreak asia. shery: i am shery on in new york. york.ry ahn in new nomu execs are giving up their bonuses. ra the firm posted losses, the worst -- nom hasur/over 100 jobs overseas. a paul: nintendo shares fell after forecasts missed estimates. the company says it will not introduce a new switch game console at the trade show in june.

shares rallied on optimism that a cheaper new switch or china sales would broaden its customer base. and aill have to wait china launches still some way off. have --il and gas sales helped steady in the third quarter, helping lower overseas output. revenue was marginally down at just over $6 billion. it expects overseas output to rebound on new projects. it is the most sensitive to crude prices among china's three largest oil companies, due to its lack of refining capacity. we are hearing more about uber's ipo plans. it is expected in a price range $55, which could value the company at up to $90 billion. the latest from bloomberg ipo reporter olivia.

that gives us a lower valuation than the expected $120 billion. why the drop? >> significantly lower. i think the uber's bankers want to come out and be conservative on this. they saw that lift had some issues with overpricing its shares. the market is telling over uber bankers that this is the share price. they need to move $10 billion worth of stock in that is no easy task. they need a stock that will sell that much. paul: what can we expect from this lower than expected price range? are we seeing less enthusiasm than expected for non-core businesses? olivia: we are hearing that as a talked to sources and get better understanding of why the price is lower than originally expected. my understanding is that door --, a huge food delivery company here in the u.s. is really

growing into the lubricants -- uber eats footprint. business and it has ride-hailing at its core, but it has these other side uber eats ande mobility like bikes. if there is any sign that another businesses chipping into their turf, that is problematic and it will certainly lower their price. $44 to $50 is rather standing. -- starting. any well-planned ipo would start at a certain range, then amend the filing with a higher range, then come out slightly higher than the updated range as the final price. shery: how careful delay have be, given what happened to lyft?

paul: they want to be careful -- olivia: they want to be careful, and if they learn anything from pinterest -- pinterest has had a successful ipo by any standards. pinterest is extremely conservative. same thing with the video telecommunications company, which we were floored by how successful zoom's ipo had been. people are realizing that in this market, it is good to come in conservative, price it just right. you don't want to leave money on the table, but you don't want to have your price drop dramatically after the first day of trading. reporteromberg ipo olivia, thanks for joining us uber. up next,n insearch of inflation, we are standing by for the latest numbers from tokyo. due onortant data industrial production. we will be breaking that for you

. stay with us. this is bloomberg. ♪ so with xfinity mobile

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right now and waiting for those breaking numbers out of japan in terms of the jobless rate, right now coming in at 2.5% for the month of march. that would be a bit higher than the expected 2.4% jobless rate. the job to applicant ratio coming in at 1.63, 153 applicants from 100 jobs. that is in line with estimates and the same as the month of february. when it comes to be tokyo cpi april, for the month of which is forward-looking and a good gauge for japan inflation for the month of april. 1.4%or tokyo coming in at

year on year growth. that is an acceleration more than expected. the acceleration was at 1.1% higher than march. core cpi, which excludes fresh food also rising more than expected, 1.3%. also an acceleration from the previous month. let's get some reaction to the latest economic data from japan and turn to masayuki: --masayuki kichikawa, sumitomo mitsui ds asset management chief macro strategist joining us from tokyo. there have been a lot of doubts on whether or not japan can reach its 2% inflation target. we didn't really get a positive number when it came to japan's cpi. tokyo cpi seems to be better than expected. what are your takeaways? masayuki: of course, it is a little better than expected, but and even is far away

the relatively moderate wage growth, and we are expecting some downward pressure on the cpi from the telecommunication costs, which will be reduced in the near future. -- higher energy costs would be hovering around 1%. excluding that, less than 1%. shery: the jobless rate coming in at 2.5%, higher than expected and higher than the month before. still, would you say that this is a tight labor market, and what can we look forward to in terms of jobs when it comes to other policies? actually, it is strange to say, but unemployment of 2.5% is not very

surprising. it is in line with the view that it would stay very low. not just because of the demographics, but reform under the administration requires people to work less hours, so this kind of reforms would keep the labor market very tight. in about 15 minutes, we will have more numbers as well. we are waiting on industrial output now. that is expected to be unchanged. weak exports continuing to way there. weigh it down there. masayuki: it is taking a little ,onger for exports to stabilize probably because of the delay of

adjustment in important industries, such as information technology. judging from the data from other countries such as germany, probably adjustment in manufacturing is likely to continue until the middle of the second quarter. then, we would begin to see some stabilization, but probably, we need to wait one or two months before we start to see that. paul: we have seen weakening in the yen this year. do you think the era of the strong yen is going to come to an end and might some more expensive imports help the story? masayuki: of course, still it depends on the strength of the u.s. economy and monetary policy by the fed. the economy is showing some weakness, which would make people have cutbacks in their results. still, the yen could approach 100. at least given the recent structure change, such as a

slightly positive inflation in japan, and also trade balance, probably upward pressure on the yen is now weakening. weakness, the best thing we can expect would be somewhere between 90 and 100. over the long-term, it is likely that japan would be kind of a slightly weakening trend. shery: right now, we are hearing from japan's economy minister saying that he has confirmed last weeks talks between the u.s. and japan. he is saying that he had frank winks on how to achieve win- results. he has had no talks regarding currency. will they include a clause on that trade talk? what are you expecting in terms of what could come out from these trade negotiations and how would that impact the japanese economy? course, we would

buy more agricultural products from the u.s., making the tax condition equal to our country, who are members of the ttp. goods and weore probably need to talk about some regulation about those things. bearding currency, that will a matter of the negotiation between the u.s. treasury, whether it is a good negotiation. there might be some talk, but at this moment, is unthinkable for the boj to tighten monetary policy. on the other hand, u.s. economy looks reasonably stable, so even if some talk ticks place about foreign exchange rates, the impact on the market should be very in the -- very limited in my view. shery: thank you for joining us.

masayuki kichikawa, sumitomo mitsui ds asset management chief macro strategist from tokyo. breaking news, nintendo saying that they are working with china's tencent to sell the switch in china. we have had some disappointing numbers out of nintendo when they set their earnings guidance. it came well below earning estimates. not to mention that they would not introduce a new model of the switch game console at a june trade show. now we are hearing from nintendo that they are working with tencent to sell the switch in china, coming after nintendo launchesid the china still far off and there is no plan to unveil a new switch in that trade show in june. nintendo now saying that they are working with tencent to sell the switch in china. we will be analyzing what this means for nintendo and other tech companies in japan later in the show. do stick around. paul: thanks. let's get to first word news.

--selinaitendra waral wang. selina: the british government has agreed to have economic talks with china, despite tensions in the south china sea. the chancellor said the london talks would continue what he called a golden era of relations. he is in beijing for him, where president xi speaks on friday. wall street banks are close to a win with the latest moves to over fall -- to overhaul the volcker rule. , cleare seeking a narrow definition of what types of trades are brevity. bankers blasted last year's attempt at a revamp. regulators are now focused on erasing the so-called accounting 2018 that was a centerpiece. sri lanka's government has lowered the number of people known to killed in the easter sunday attacks.

died,als say 253 people down from an earlier toll of 359. they say chaotic scenes after the attack made it difficult to count the exact number. is u.k. foreign office advising against all but essential travel to sri lanka, seeing further attacks are likely. mozambique has been hit by another major cyclone. asleast three people killed the storm moves toward the east african coast. officials are urging residents to prepare to evacuate and are warning of potential flooding. six weeks since another cyclone cost massive -- caused massive damage. macronpresident emmanuel says recent street protests will not change his plans for reforming the country. debate, macron has called for a return of public order, following months of yellow vest protests. he says he wants a bigger place for referendums in french

democracy and greater decentralization of power. global news 24 hours a day over the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am selina wang. this is bloomberg. shery: coming up, president xi gets set to sell his revamped infrastructure project. live at the belt and read forum in beijing. this is bloomberg. ♪

shery: this is "bloomberg daybreak: asia." york.hery ahn in new paul: belt and road 2.0, that is what the audience are waiting for today as president xi jinping gets ready to open the event. kathleen hays is in beijing to set the stage for us.

to be veryis going important china's government. why? kathleen: it certainly is. it is a major event for kicking things off. it kicked off around 9:30 this morning. president xi will be addressing some 5000 attendees from around the world, including 37 heads of state. panel,g yesterday on the the people's bank of china. this is a big event. this project, which was started with such fanfare just six years ago has created complaints. now, the idea is clean it up, make it more efficient, make it work the way the chinese intended and that is a president xi will address today. they're already promising to improve funding terms of products -- projects for belt and road countries.

everyone will more details. xik in 2013, when president unveil this, he called this the project of the century. rebuilding the ancient silk road trading across asia. aliens of dollars -- billions of dollars, projects from africa to the south pacific. if you go to the second ld and road forum for international -- forumcond belt and road for international cooperation website, you can see how it lets people out of poverty, works for the common good of all people. it is a very high-minded, well-intentioned project, but critics are saying not only have some of these projects backfired on countries who have gotten involved, many of them poor countries, they say this is just part of president xi's quest to expand his power and influence across the region.

there is a lot brewing in the background. when there is so much of a spotlight, so much focus on president xi today. shery: what exactly went wrong with those projects and what does president xi plan to do about them? a lot of projects have gone wrong in a very prominent one is malaysia's east coal rail project. they backed out in january. they are trying to get budget deficits in line. the cost was just too high. china went back to the table, renegotiated the deal. they will be spending some $44 $55 billion.ad of it was not working, and the chinese government responded. bloomberg news has talked to government officials and they are already taking steps to get

more control over the program. there are more things they are saying they will do. tone down the publicity, don't let hype get in the way of people's judgment about what kind of debt they can take on. there are rules for state owned enterprises, they feel their gun too much good treatment. rethinking the use of the belt and road brand. very importantly, build a better auditing and anticorruption mechanism. that is the biggest complaint. this is a necessarily china's fault, but on the side of the borrowers, the people doing these projects, there are many instances where you're seeing corruption. shery: we will see if those efforts helped turnaround sentiment. thank you so much for that. kathleen hays, our global economics and policy editor in beijing. we will have some big guests joining us to talk about china's belt and road initiative throughout the day, including and's vp, diane wang,

hannah rider. turning to the markets, japan about to take an extra long vacation. while it might sound like a relaxing break, it has regulators worried. we look at why. >> market volatility, cash shortages, or even currency flash crashes, these are some of the risks on investors minds. the mostone of generous companies when it comes to national holidays, but this year's golden week is extra long. in therown prince is next, as well as a new constitution, and children's days. the result, a 10-day stretch that wipes out six trading sessions in a row. that is the largest market closure since the and of world war ii. while japan grinds to a halt, it is business as usual elsewhere with economic data on the agenda. paul: speculation of a yen and attack is adding anxiety ahead

of the holiday in japan. what are the odds of a flash crash? sophie: it is not out of the realm of the possibility to see the yen push toward 110. just a month ago, given the key events happening, such as u.s. japan trade talks, which may so volatility during times of the market liquidity. suggest that yen has the tendency to strengthen during the golden week, as it did in six the past 10 spring holidays. thursday, the yen reclaim some ground in the face of dollar strength and even as the boj decided to extend its low rate regime. --a recent note, golden risk golden week risk runs both ways. check out yen opposition against the dollar. you see those before the january 3 flash crash. a big move lower if the

greenback strengthened significant way during this time. shery: thank you so much. for more on trader concerns at of japan's golden week, let's bring in bloomberg's cross assets reporter. there has been a drop in trading activity already. aboutn you are talking the yen, we're seeing that kind of activity on stock markets. taking a look at activity on the topix index, we have had nine straight trading days with less than one percentage point increase or decrease. we have also seen last friday through tuesday, trading volumes of less than one billion shares turnover. people are already anticipating or getting ahead of the holiday starting next week. that also comes as the wider asian rally is losing steam. eric: when you look at the really strong rally we have had to start the year worldwide, concentrating in asia, most of those gains came back in january.

we have had upticks in march and april a little bit. the majority of those came at the start of the year. when you look at what was driving the market, the feds about pivot and optimism a trade deal, they've had to wrestle with greater concerns about slowing economic growth. as you say, those gains have teetered out. red out.d shery: power financial -- howtions preparing are financial institutions preparing? of not taking steps ahead of the holiday when they're not able to get into domestic market. record his are allowing -- brokerages are considering technology or other factors to get around that issue. being as prepared as possible to react to things externally while

the domestic market is on holiday. shery: is this why the boj did not do much in its policy decision yesterday? boj, when it comes to the the statements they give from meeting to meeting our almost saying the same things over and over. it was interesting that they brought up the possibility of an etf lending facility. that was perplexing for traders. it seems to be addressing concerns about the lack of liquidity in the market, but on the other hand, the most likely .se is for shorting i could introduce some risks to the downside. bloomberg's cross assets reporter, eric lam in hong kong. out of japan, a real mixed bag. industrial production for the month of march a bit of a miss. retracting 9/10 of 1%. we were expecting a flat number on industrial production.

4.6%.cting retail sales was a beat. much of march coming in .2% growth, giving us a figure of 1% on year. we were expecting a flat number for march. 1% on year for retail sales, but a big contraction in industrial production, 4.6%. 111.54 against the dollar. don't forget tv , you can watch us live and catch up on past interviews as well as dive into securities or bloomberg functions. you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

paul: this is "bloomberg daybreak: asia" i am paul allen in sydney. in newi am shery ahn york. sources say uber is expected to price shares at $44 to $54 each. att would value the company around $90 billion. earlier estimates have evaluation of up to $120 billion. uber is expected to start the ipo as early as friday. 3m has tumbled to its worst loss since black monday in 19 news seven. the maker displays -- since black monday in 1987. blames major headwinds in china and says it will need to

cut about 2000 jobs. in latentel tumbled trading after slashing its second-quarter and annual sales forecasts. both estimates were below expectations, undermining confidence in the company's services that demand for computer processors would improve. is strugglingntel with the hangover of its growth and customers are working through stockpiles. markets in japan, south korea and australia get underway. let's get a preview. sophie: we're looking at a soft start to cash trade, with tokyo futures looking at declines to start as we digest this morning's data. industrial output numbers coming in down on a monthly basis. abe's meeting for with trump. it is a busy day for earnings. we have already had pharma players report boosting its

four-year outlook and raising dividend forecast. a netse shipper posting loss for the third quarter and booking a ¥30 million charge. it is forecasting operating income in line with estimates. intel slashing its sales forecast, but sales have not changed. watch for reaction to that. bonds, an eye on korean seeing a test of last month low in the next few weeks after the gdp miss, which is boosting rate cuts. in a rate cutng at the end of this year and another at the start of 2020, cutting the gdp forecast. paul: thanks for a much. coming up on the next hour, jeffries senior equities analyst atul goyal will be talking all things nintendo and sony. stay tuned for that and markets

opening. here in australia, japan and korea at the top of the hour. this is bloomberg. ♪

paul: i'm, in sydney where major markets just opened for trade. shery: i'm shery on. sophie: i'm sophie kamaruddin in hong kong. welcome to daybreak asia. ♪ paul: our top stories, japanese stocks in focus as industrial numbers disappoint. bye to bonuses. top executives giving theirs up after the worst results of any global investment bank.

says the beltt xi and road is still on track. new zealand back online after public holiday. let's get straight to market action with sophie. sophie: we are seeing stocks on the back foot, nikkei and the topix off .7% after he got industrial output number from japan. we so much data falling 5% on a yearly basis when it comes to factory out what and the yen firming up a touch, edging back towards 11 after the surprise in data, likely finding support from short covering ahead of the global ecology. the kospi is edging lower, up .5%, potentially while the korean won is eyeing the 1160 handle. extending its decline.

greatnger policy push and cuts. policymakers are trying to partly fears, saying the economy is in a difficult situation, but the central bank does not expect it to continue. we are seeing stocks edge slightly lower after closing an 11 year high on wednesday and the aussie dollar hovering the 70 handle after falling below that for the first time in three months as it looks to be driven by interest rates differential. off ahave the index 50 quarter of 1% while the kiwi dollar is matching higher after governor or said he is not worried about slowing growth. we had data showing the trade surplus growing more for that month. that is a look at how we are kicking up the session. paul: thanks. let's get first word news with

severe. >> wall street banks close to a win for the latest move to overhaul the brutal rule. they are seeking a narrower and clearer definition of what traits are prohibited. baker blasted the attempt by president trump's appointee. regulators are focused on erasing the accounting prong. europe islitation of on hold after the collapse of merger talks between deutsche and commerce bank. the amount -- they will force deutsche to come up with another plan. thereign takeover may be on -- deutsche bank shares fell in frankfurt while commerce bank declined. joe biden says he asked president obama not to directly endorse his campaign. obama did offer praise, saying

they forced -- forged a special bond. but biden says whoever wins the nomination should do on their own merits. he enters a crowded field, but faces a voter base that is younger, less white, and more female. sri lanka's government lowered the number of people known killed in the easter sunday bomb attack. died,als say 253 people down from an earlier toll of 359. they say the chaotic scene made it difficult to count the number. the foreign office is advising all but essential travel. further attacks are likely. global news, 24 hours a day on air and at tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm selina wang. this is bloomberg. chinese president xi set to lay out his plans to clean out the controversial

initiative with 40 global leaders in attendance in beijing. let's go there now where kathleen hays is standing by with the next guest. kathleen: a very special guest because this has been very big forchina, certainly big this whole move to invest in foreign countries to connect parts of the world through belt and road. we are speaking now with someone toan organization, trying achieve many of the same goals .arallel to the belt and road that is danny alexander. danny, welcome. xi, is built for president belt and road 2.0. there have been complaints and missteps. what do you think he's going to

say? been interesting already is the way that the chinese government is also updating some of its thinking around belt and road. we heard from the finance minister about a debt sustainability framework to make sure the project is more attentive to debt and the financial position of countries receiving them. that's a good thing. that's a step forward. from the point of view of the aib, a separate institution, we maintain high standards. we advocate for those standards here. this is good and helps to ensure the infrastructure projects are well constructed, well delivered, and creates opportunities for countries to develop, but also for companies around the world to get involved. kathleen: because the organization is involved in the same kind of work, the people's organization worked at other organizations, lots of experience.

when you look at complaints, projects right with corruption, -- rife with her option, is it -- corruption, is it a rookie mistake? danny: we had these high standards, good government looking at anticorruption policies, high environmental social standards, in common with other multilateral institutions. of course, there are always difficulties with some projects. what is important is to learn. i think that's what is starting to learn. kathleen: interesting how you got involved because you were actually in the british government and you were one of the people responsible for the u.k. becoming a member of the aiib when it was getting off the ground. what did you see with aiib that said no, the u.k. has to do it? danny: what we saw was an effort

to create a new multilateral institution focused on the challenge of infrastructure and improving connectivity, economic development in asia. the view we took was, we value multilateral corporation -- cooperation. we want people to work together. we see it as a serious effort to do that. we want to be a part of creating an institution. i came to work at the bank at the start and the way the aiib is working is fully living up to aspirations. kathleen: what kind of projects are you working on now, broadly? we're working on -- kathleen: any specific projects? danny: particularly things like renewable energy, urban infrastructure, urban light rail, projects in bangalore and india. we're investing in roads and railways, pipelines also. i was in oman, investing in a

port facility. now we have $8 billion with the financing, 39 projects in different countries. that will expand this year. kathleen: any belt and road project's that you are getting ready to invest in? danny: we don't look at is it belt and road or not. we look at the quality of it. is it going to bring benefit to the country? we look at deposition, the standards applied to the project. some are belt and road, others are not. what matters to us is a great project. second help bring forward more quality projects we can be involved in financing. kathleen: certainly the u.s. china trade war over economies, hanging over decision-makers. as it made your job difficult? danny: certainly the case some economic uncertainties affected prospects of member countries.

almost enhances the importance of institutions like ours investing for the long-term, an infrastructure that's a sustainable way to build over a long period of time, and multilateral institutions, we invest for the long-term. these short-term fluctuations have a big effect on the country's. for us, can we make a difference by choosing projects that will help lift up prosperity over the long-term? kathleen: one of the observations that the belt and road project are another way for china to deal with overcapacity, loss of workers. this is very good for china. but it doesn't fulfill the promise of creating jobs and building the firm the money is invested. is that a fair criticism?

danny: the way we look at it, when we sign up for the project, companies from any part of the world should compete to take part. we're seeing that more and more in other projects, too. we heard yesterday about mobilizing private sector capital. to meet the infrastructure challenge of asia, government resources from the world bank or china are not enough to solve the problems. you have to have private capital. you have to run projects openly. we've heard more about that this week, as well. kathleen: have they had these conversations with belt and road projects, decision-making? danny: we see a big role for the aiib here. good government, high standards. we had an interesting meeting monday in beijing with a lot of chinese companies and others around the world talking about

why operating to high standards is not just good for the country's. it's also good for the investment. there's a really receptive audience for those arguments here. kathleen: thank you for joining us. we'll see how president xi works those into his speech around 9:30 this morning here in china. daniel sander's vice president for the -- danny alexander is the vice president and corporate -- we will report on it as we need to. shery: thank you. we will be looking forward to that. we have breaking news. we are not hearing that elon musk and the ftc are asking for more time to resolve their fight over elon musk's tweets. we know they have been trying to come to an agreement after the sec accused him of violating a

previous settlement in october about one tweet that he made about his plans to take tesla private. earlier this month, a judge told tesla to come to a resolution to the latest dispute. that kept being delayed. the deadline was a paprika. now -- was april 25. now they're asking for more time. this comes on the back of tesla's earnings, that disappointed investors. trading continues in asia. let's see some of the early movers. sophie: i want to highlight 2.4%,, which dropped easing declines after a 96% plunge in fourth-quarter. profit we saw weakness in retail and wholesale business. after the first loss in a decade, analysts are optimistic they could return to profit this fiscal year. let's check in on nintendo,

falling 5.2% as earnings missed estimates. investors remain skeptical about the long-term success of the switch consul, nintendo saying it is working with tencent. to check in on yahoo!, japan climbing above ¥300. we do have adventists losing ground, operating income missed estimates, the chip player seeing a drop in profit and orders for the market entering a slowdown. it is forecasting a recovery in the second half. one last mover, let's check on this mover. weaken look at the board once more. -- we can look at the board once more. no? bondsmpany may sell up to as the chipmaker forecast recovery after posting a sharp drop in profit. paul: thanks very much. still ahead, as football fans

await liverpool's semifinal with barcelona, we speak to the club's ceo on how he plans to build on massive asian fan base. shery: nomura trying to right the ship after reporting a earnings pledge. will bonuses send the right message? we get the views of s&p global next. this is bloomberg. ♪

shery: this is daybreak asia. i'm shery ahn in new york. paul: i'm paul allen in sydney. nomura is scrapping bonuses two top executives due to poor results. they saw net income dropped 96% in the final three months of the year, the worst result of any global investment bank and the first full-year loss for the firm since the global financial crisis. is the s&pfrom tokyo

global ratings services director. thank you for joining us. numbers,a nasty set of 60 executives of forgoing bonuses. how is this affecting credit worthiness for number of? -- four nomura? -- for nomura? >> from a credit perspective, we do not believe this would be -- no more is ratings. this is -- nomura's ratings. it's not quite a huge amount. we have already incorporated the ofential risk of implement good news or intangibles. and also, for the weak earnings last year, we also have earningsted nomura's

coming from its native business. so, you mentioned short-term volatility. do you see earnings stabilizing? what is the picture going forward from your? -- from here? >> the key will be whether implement from the structure platform. nomura announced its strategy to stabilize earnings in early april. i think this strategy is reasonable if they can successfully implement them. for example, nomura plans to resize, optimize its fixed income flow for market business. -- the revenuehe

vanilla tea -- validity and fixed income is high and at 50% more than equated business. so, if they can successfully optimize this business, it may help destabilize earnings. shery: these banks in japan have been suffering for a long time, given the boj's policies. how can they offset those headwinds? lower volatility on nomura's costngs, as well, so the could be one option to stabilize its earnings. shery: thank you so much for that. we'll have more analysis on

nomura's results later in the day. michael joins us. this is bloomberg. ♪

paul: this is daybreak asia. i'm paul allen in sydney. shery: i'm shery and in new york. surprise --osted a $22 billion in new money. the ceo added his voice to a chorus, citing tough market conditions. we spoke to bloomberg's manus cranny. >> if you look at the first two months of the quarter, i would say probably even the first one or two weeks in march, they were quite challenging. in the second half of march, market conditions and investor sentiments changed for good,

both in the absolute and relative to last year. we had a very strong finish to the quarter, which is now coming a little bit -- as well that has changed at the end of the day. they have been recovering in the quarter, but there was no transaction volumes behind it. manus: could we define it as a conviction shift or definite shift? sergio: more of normalization. you look at q4, people were shocked coming into q1. manus: $22 billion, that's what the market is going to focus on this morning. what i want to know from you is putting that money to work. our clients still hesitant? sergio: i think we are very pleased with the results. they are strong and aligned with our strategy to grow in the altar space and in the way we do it. the market is overly focused on new money.

it's an important metric, but not the only metric that counts because of the quality is important. i'm pleased with results and i'm pleased we are back to our growth rate, and we are going to continue to focus on making sure we do it in a sustainable way for investors. manus: the debate i'm having with what's going on in china, that impacting the confidence, specifically on the wealth management side. what can you tell me about the recovery or lack of hard landing? sergio: if i look at asia and clear it is indeed quite sign that the correlation between the recovery of the equity market we saw in the first quarter was definitely head of the investor sentiment recovery. volumes were down 25% in the asian markets, but also very important indicator, cash levels. the clear cash levels by asian

investors were up to 35%. we see this number around 32%, which is quite astonishing. u.s., 25%. if you look at that one of an indicator of how careful asian investors are in the first quarter, it's a pretty good benchmark. manus: how is the change in the i.b., where is the product shift in the i.b.? which product area saw the best? sergio: the comparison was very challenging, not only because everybody had a good first quarter last year, but we had an exceptional first quarter. therefore, you know, our performance was affected by that. the changes we saw in sentiment was on the equity side. in the second half of march, we sell volumes coming back and conviction coming back on the

i.b. side, particularly with more risk on their asset allocation. manus: the buyback restarting, target $1 billion. do you feel assured you can hit that number this year? sergio: i think our ambition is to reach $1 billion, and i think we're going to implement and start the buyback in the second quarter. it will depend on market conditions and the business outlook, which will determine how we do it. maximizetment is to short order returns without compromising our ability to invest in the future. ermottiat was sergio speaking to manus cranny. coming up next, we'll dig into nintendo's disappointing earnings report. a look at why the game maker will not be producing a new model of the flagship switch

and talkn june, about the disappointing earnings guidance, as well. this is bloomberg. ♪ berg. ♪

selina: i'm selina wang with the first word headlines. the trump administration may concede to a chinese proposal for less protection for pharmaceutical product -- products than a home. -- at home. the chinese offer is being discussed as wider trade talks. it would give drug companies eight years of regulatory data protection in china, two years less than nafta. the british government agreed to host economic talks with china in june despite the vice from your expressing regret that relations have fluctuated over tensions of the south china sea's. chancellor philip hammond said the talks would continue a

golden era of relations. hammond is in beijing where president xi speaks later friday. a british government official says prime minister theresa may is unlikely to put her brexit bill to parliament next week and will have to accept the u.k. must hold european elections. despite agreeing to a six-month extension, she wants her exit deal ratified in time to avoid the vote. the house of commons makes no mention of the bill. mozambique has been hit by another cyclone. at least three people were killed on the island as the storm moved to the east african coast. officials are urging residents to be prepared to evacuate and our morning of possible flooding -- and are warning of possible flooding. global news, 24 hours a day on air and at tictoc on twitter, powered by more than 2,700

journalists and analysts in more than 120 countries. i'm selina wang. this is bloomberg. paul: thanks very much. let's get a quick check at how markets are trading half an hour into the session. the asx weaker. we have the kospi also weaker. some news from the bank of korea today. lee does not expect first quarter negative growth to continue. the nikkei sliding the most there, off more than three quarters of 1% after we saw disappointing industrial production numbers for the month of march, coming in much weaker, 4.6 contraction. retail sales did surprise to the upside. it is a busy friday for earnings. let's get it over to sophie kamaruddin for what we should be watching and what were the highlights. sophie: i want to highlight the

korean company mondo, sliding after first quarter profits --sed estimates it was missed estimates. it was set to sell to boost demand for autos, but they continue earnings weakness. in sydney, flight center sliding new the 12%, over 12% after the group amended its guidance, saying overall results will be disappointing. that's something to check in on -- falling 15.2% after forecasts missed estimates. they see the biggest share price drop since 2008. checking in on yahoo japan after reporting fourth-quarter numbers, we have stocks gaining ground this morning. we have forecasts in line with of the top end, the company announcing plans to transition to a holding company. quickly a check on nintendo, a double dose of disappointment. the stock down 3.3% with

earnings missing estimates and no new console planned for june. the market wanted more from nintendo. the conservative forecast is leaving a negative impression. shery: let's discuss nintendo and other tech firms. always great to have you with us. no new switch in june. also, the china launch could still be far off. how disappointing is this? guest: this is not disappointing. whichr is the forecast, was expected to be conservative. the gutted software growth, it's a mockery of the whole guidance word and the process. to answer your question about no new switch, you can't say that unless you're ready to sell that. they are planning that in

september or october. the best place to showcase that is one or two weeks before that. they shouldn't be talking about that unless they were leaving. the drivetime will be just before pokemon, which gets in youngsters, and the affordability would be slightly low for them. you want to launch a version around that time. i'm not disappointed with that or the china thing. just the way they are gutting software sales, only 5% after having 85% growth last year is unreal. it's a joke. shery: ok, so what about that relationship with tencent? how would that help nintendo going forward? so, china, for the longest time, they have failed. they started in 2015. nintendo major they didn't just

want -- made sure they didn't just want to sell the consuls. they want -- consoles. they wanted to sell the games. they have put in these applications for a long time. when they are approved by the chinese government, only the chinese government knows. there must be a few more applications for the games. the more number of games come out, the more we find out about them. that is just on the switch. however, nintendo is also clear that their ip cannot reach just two consoles. the way to do that is through mobile. whether it's tencent, we don't know as yet, but the partnership is not just limited to switch. it's much bigger than that. like thenow you nintendo story. short interest has been pulling back, as well. but your support notwithstanding, do you think

this will embolden nintendo in the results of the announcements we've had? atul: the guidance, the way they have guided, yes. it does embolden them. the company admitting only a 4% drop in growth. my forecast is a 50% drop in growth. growthd massive profit and mario kart tour coming in on mobile next year. there are questions on the numbers, but it is already expensive. on numbers, i do disagree. my numbers are different. i stick with my numbers. but you can start to argue on valuations. there is a company called communicate. what kind of multiple do you want to give it? the question could be raised on that side. there is reason for the bears to be feeling confident about the stock not going much higher from

here. i believe there's a lot more upside, but again, that will take a while for them. this is something sony did last year. sony gutted horribly. the stock was down on day one. you lower the bar so much, and this is not just sony on nintendo. i've seen so many companies. a lot of companies in japan do that. nintendo,, much like also not coming to market with a new console in the near term. but you have a buy rating. what is your thoughts on sony? atul: that's a slightly different angle. buted to like it a lot, growth has been genuinely slow over there. --t nintendo only competed completed two nintendos, that consul is ready -- console is ready to change a. sony has some other businesses,

as well. overall, growth not impressive. business withone horrible position and losing almost $1 billion. they are not willing to exit that. with the announcement that people are adjusted, i think this will put more pressure, global scrutiny, that will drive management to do the right thing. that will drive upside. i don't expect large upside, unlike nintendo. if it goes through with the mobile success, as well, i expect 75%, 80% upside. sony, 15%, 20% upside. shery: what about their movies to your unit? -- movie studio unit? atul: i don't think sony is going to do that. they didn't do it last time, rightly so. we argued they should not and we still argue they should not.

they are on track to generally turnaround this business. this was only dependent on spiderman. but you might recall jumanji, venom, a few others. the movie studio is on track to turn around. this is not the time to exit that at all, unless you get very rich valuations from bidders. shery: let's zoom out and talk about the tech center -- tech sector in general. what growth are you seeing in the industry? atul: across the board, experiencing significant declines in earnings. there's only one subsector, which is an exception. if you look around, most of the tech companies are seeing earnings decline. sony's last quarter was down 25% year on year. you are not expecting much growth going forward. most of the earnings decline are down. guidance on company

the other hand, quite conservative. atul, i just wanted -- i just wanted to ask you about spiderman. loan to theout on marvel cinematic universe. there's a lot of money tied up with this character. but can he survive without the support of the mcu? 2017,well, until about sony used to produce spiderman movies themselves, all of them. in the last two years, they have changed the strategy. they are partnering with marvel. that's what -- really good. marvel, avengers characters show up in spiderman movies. spider-man shows up in avengers movies. they are collaborating. going forward, they are

launching a lot of spiderman characters. they will monetize that. it looks good. the strategy of this new management, sony pictures management, is actually very impressive. i really like the team that's managing. tom rothman, running the movie studios business, doing a very good job. paul: alright, we'll leave it there. atul: thanks for having me. paul: thanks for joining us. coming up next, we take a look at chinese energy earnings. steady oil and gas sales. this is bloomberg. ♪

shery: this is daybreak asia. i'm shery ahn. paul: i'm paul allen in sydney. oil and gas sales held steady in the first quarter as it gained

it domestic production helped ease output and drop in crude prices. having a look at the numbers and other chinese oil earnings, we've got ivan. first-quarter sales fell slightly. capital spending rose 45%. what is your take on the report? >> yeah, good morning. i feel like it is sensitive to oil prices because they have no refining operation at all. if you look at brent price, in the year on year, the brent oil price fell 5% from your before. it doesn't look that bad. oil and gas production in the fourth quarter was 120 million barrels, a quarter of their annual target of 480-490 barrels. the output part physical doing that math and they have probably

spent more money in the first quarter compared to years ago, but still the spending is lending to their annual target. billionan to spend $70 to $80 billion is less than 20% of that number. yesterday, in the press conference out of first-quarter earnings, the ceo of see knock promised -- cnooc said they will find a way to make sure they will spend that kind of money, $70 billion, $80 billion for the year 2019. , according toging this plan, no major supplies -- surprise. people still watching for the spending plan going forward. shery: will we get surprises from petrol or china tech? aibing: probably wouldn't be many surprises because cinematheque is one of the big

-- cinematheque is one of the biggest refiners so it will come from their unit. in the first quarter, because of higher oil prices in the last quarter of last year, and they probably will witness an inventory loss because they have to purchase crude oil two or three months before. that will be one loss. then in china, they have a competitive retail market. they have a lot of refiners in china. they are privately owned. they have a fierce competition with sin opec and a lot of markets across the country. markets will be squeezed and sin inc will probably lose money the production because they lost money a year ago when oil price was much higher in the first quarter of 2018. this year it is reasonable to continue to lose money. theirtrochina, most of income came from offscreen oil

and gas production. there earnings -- of their earnings should be loner -- their earnings should be lower. the government allowed petrochina to relieve gas prices willthat extra income reduce their income from oil and gas production. so everything should probably fall in line and i don't think there will be a major surprise because it's on fourth-quarter results, not a full year. i don't think a lot of surprises may happen for the short three months. shery: we'll be looking forward to those numbers. thank you so much. of course, don't forget our interactive tv function, tv . you can watch us live and pat -- catch up on past interviews and download any bloomberg functions we talk about. become a part of the opposition by sending us instant messages during the show, for bloomberg

subscribers only. check it out, tv . this is bloomberg. ♪

shery: let's get a check of the first word headlines. about $44 tonge of $50 each, as the valley of the ride-hailing company to $80, to $90 billion.

early estimates have been up to $120 billion. uber is expected to set the terms for ipo as soon as friday before a roadshow to markets for potential investors. microsoft is back on top, reclaiming its crown of the largest u.s. stock and entering the trillion dollar market cap for the first time. shares jump to for a record on stronger than first quarter results, to boost it above apple and amazon. apple will get its chance to catch up when it releases earnings on tuesday. a liverpool football club is fighting for double glory, preparing for champions league. that's got them looking for ways to capitalize on their 700 million strong global fan base. ahead of the big match against barcelona, ceo peter moore told us how he plans to leverage technology to sell the club in china. peter: technology is key.

we believe third-party independent research will tell us we have about 700 million fans around the world to put their hand up and say i follow liverpool. being able to physically get to this people is impossible. if there's one thing i learned in my days in ea and running the xbox business from mike -- for microsoft, is building social engagement platforms that allow people to get closer to the thing they loved. in my old days, its games. now it's the football club that i loved. it was easier in those days. your dad took you to the game. in today's marketplace, i need to reach out, particularly when we think of mainland china, and use social media chat platforms to build wechat's. how do we do that innovatively in which we bring liverpool football club closer to that young chinese football fan? >> how are you using it to

harness technology? there are people that might not ever be able to go. peter: there are millions of people who love this club deeply that will never go to liverpool. you have to take it to them. virtual-reality, augmented reality. we're just finalizing 360 degree cameras they give a look and feel that you can circle the action. partners are working on that. we're working with ibm to work on mobile platforms. studios cranking out content 24 hours a day, seven days a week. it's about engaging. i lived in san francisco, thousands of miles away from the city in which i was born. information.i for wanted to know who was injured . i wanted to see the press conference. more than that, i wanted to consume content. i wanted to get to know the players better as human beings.

and what we do is we provide that bridge for the fan, who might not ever get to the field. that doesn't diminish their love for their passion and their ability to contribute to our growth. technology is the bridge. david: since we are in china, have you been approached by any group for a partnership, collaboration at some point? peter: a lot of approaches all the time. we're very courteous in managing those. i think the club has been very consistent. the club is not for sale. if there is meaningful minority investment opportunities that come along that can add to the value and help us win on the pitch because there's an influx of capital, the club is always open to that. we've been consistent in that message. david: you're up for a double against barcelona. i'm sure you say you'll fancy your chances. and a lot of people say you match up nicely. you're favorite across some.

we are still very competitive. it's tremendous. no matter which team wins, its record points total. it's been a phenomenal premier league season. we're the only team from last year's semifinals and championship link to the in this year's semifinal. that indicates consistency on the pitch. it's really the product of consistent investment on the pitch since fenway sports group acquire the club back into any 10 -- into 2010. it is really starting to pay dividends. it is getting behind the manager, building the squad, holding onto the squad, and i don't think anybody likes to play against liverpool at this stage in the season. shery: peter moore speaking to us exclusively in hong kong. let's get a preview of what to watch in markets later this morning. sophie: we are watching stocks

after intel's outlook cut its semiconductor players. we'll see the rally could be dented after a jump on first quarter profit, which triggered positive stock ratings. losstronics are posting a after low-power prices, which hurt earnings earlier in the weeks. flipping the board, keeping an eye on china light after profit jumped. it did see a recovery in value growth. analysts are bullish. cicc and was cut at air china posted stable revenue growth for the first quarter and a stronger yuan. plus, traffic growth. margins are at risk on higher fuel costs. i want to highlight morgan stanley, listing alibaba pictures price target as entertainment -- entertainment spending across china.

morgan stanley says it expects positive returns on a better lineup of hollywood films, including avengers and game, which is awesome. knows whether's. -- no spoilers. shery: i do have to watch it. i've been looking forward to it. before we hand it over to bloomberg markets, a quick look at how markets are trading right now. the nikkei is down 9/10 of 1%. we had a huge ip data miss earlier today. the kospi also down a tenths of 1%, while the asx 200 are falling a quarter percent. plenty more to come. the china open is next. this is bloomberg. ♪ moving is hard.

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♪ bestse it is not a steve: it is 9:00 in beijing, stephen engle. yvonne: we are counting down the minister "bloomberg markets: china open." david: investors hold tight for a frantic friday in china, with many companies set to report earnings. japan leading a drag after a big industrial production miss. > and buckle> up, as president xi jinping tells the world his latest plans for a revamp of the belt and road pr