>> welcome to "bloomberg daybreak: australia." i am paul allen in sydney. york. taylor riggs in new counting down to asia's market major -- major market open. ♪ paul: the top stories we are covering, wall street closes the regular session in mixed mode as investors assess take earnings -- assess big earnings. apple tops estimates, share buyback is being raised and dividends are on the up. president trump resumes his

attack on the fed, saying a rate cut would plunge the economy. facebook's vice president of partnerships live from the developers conference in san jose, but first let's get a quick reminder of how stocks ended in the u.s. session. a record high on the s&p 500. of 18% year to date. you are seeing a divergence in the tech sector. alpha that was a big loser today , having its biggest one-day drop since 2012. all eyes good apple and other chip -- go to apple and other chip makers. apple to qualcomm, but all other chip makers. apple beats across the board. thanks. let's get a quick check on how things are shaping up this wednesday. as trillion futures pointing

higher by one third of a percent on the back of the strong wind from the u.s.. the s&p hitting another high. new zealand up and running for a couple minutes. 1%, but it is of early days there. we had a little news out of australia, the first of the big banks coming out with a cash at $3.5 billion, a dividend of $.80. retail sales banking remains under pressure in australia for the for seeable future due to credit growth, intense competition and increased compliance costs. share price back to where it was a year ago before the royal commission on this conduct of the banking industry revealed all of those cockroaches under the fridge. taylor: let's get a first word news update. jessica: the trump planned toion has

support the opposition in venezuela. for the mosts serious challenge to the regime so far, but seem to have drawn only limited military support. the events begin with the self-proclaimed president juan short videosing a calling on the army to overthrow the government. indonesian and vietnamese ships have clashed at sea after the interception of a boat allegedly fishing illegally. the indonesian navy says another vietnamese vessel rammed a coast guard ship and sank in the southernmost reaches of the south china sea. 12 fishermen were detained and two more were rescued. indian regulators have banned the nations biggest stock exchange from the securities market for six months and impose a fine of $90 million after ruling that a high frequency firm had unfair market access.

the securities and exchange board says they had an advantage over other investors. the band will delay the plan for an initial public offering. akihito haseror called for peace in his son's reign as he renounced the throne in the first abdication in more than 200 years. his three decade rule ended at the imperial palace. the crown prince will ascend the throne later on wednesday. akihito helped modernize the oldest largest -- hereditary monarchy and was the first monarch to marry a commoner. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. paul: thanks very much. the other big story investors are watching today is president as the fedg the ante

kicks off its two-day policy meeting. he praised chinese policymakers, saying they had a great stimulus , well the fed has lifted rates despite low inflation. trump called for a steep one point cut in rates, saying it would help the u.s. economy take off like a rocket. kathleen hays joins us from beijing. have heard all of this before from trump, haven't we? kathleen: there is an intensity. it is the timing of trumps twitter tirade. as you just said, he is lighting into the fed. can we just call those screens up again to look at the details of what he said and put them in perspective? there is donald trump introducing jay powell to the white house. he has done nothing but criticize fed policy ever since. china has hammered its economy with stimulus. they have cut rates. he has attacked the fed for lifting interest rates, which

started to get us off. he said going up like a rocket, buying bonds, this is not something the fed is considering. the trade war maybe close to an end. uncertainty lingers. consumer spending week in the first quarter. starts, but meeting let's remember it starts with inflation falling further from target. the fed is debating what it should do on rates. officials say they want start hiking rates again until we see inflation rising. no sense that they're going to come out of a meeting and announce anything like an interest rate cut. another thing to add to the pile, which didn't get a lot of play, but farmers income in the u.s. was its weakest in the report we got on monday. doug you think the fact that farmers are suffering from this trade war has something to do with trump attacking the fed? people say he is just trying to deflect the focus from the things he has done, perhaps

necessarily on trade the have had a cloud over the u.s. economy. taylor: you talk a little bit about trade, so let's go there further. we know that more trade talks are underway in beijing. what have we heard from both sides? kathleen: absolutely. the treasury secretary, the trade rep in beijing right now starting their talks. i think it will come back to washington may 8. mick mulvaney, acting chief of staff for president trump in california, saying once again, if it doesn't go well, the u.s. could walk away from talks. at some point in any negotiation, we are close to getting something done so we're going to keep going. on the other hand, you have to throw your hands up and say this is never going to get anywhere. you will know one way or other in the next few weeks. this sounds like a lot of trade talk negotiation, because there are indications

that both sides are getting closer. financial times reporting today that trump is dropping demands to get a trade deal with china. this makes sense because the main things he wants to get is intellectual property rights protected. no forced joint ventures. all the kinds of things that president xi jinping talked about brother last friday with the bell and road for him. seems a care getting closer. pressure on both sides. talks: all about those ap -- ip talks. the other major story we're following today is all about apple. shares have jumped in extended trading, as projected sales topped analyst estimates. the stock rose as much as 5% after the close. the company's latest results have stabilized after a tough holiday season. senior analyst john butler joins us now. give me your key takeaway. numbers the

broad-based, looked good. does your analysis agree with that? >> yes, broad-based strength. but week asas weak, expected. -- weak as expected. what really stood out is the cfo said we have strengths across the board in all non-iphone categories. that bodes well for a good year. if they can deliver the kind of growth against a tough year ago comparison, they are doing well. andiphone weakness is known on the margin, china is improving. that is another thing that stood out to me. thesein the lead up to results being announced, we talked a lot about services being the next thing for apple. sales are up 16%. that is a record. where next for apple services? >> they are expanding services right now.

something i really applaud is they are making a move into content in a bigger way. it is something that pairs well with the apple brand. original be launching programming later in the year, along with a redesign of the apple tv app that will allow people to drive other apps within the app. you can presumably be able to control and access hbo and netflix and some of the other streaming services through apple, so it ties you deeper to that service. i liked what i heard on services. they had a good future ahead of them there and more to come on that front. john butler of bloomberg intelligence, watching those apple results. coming up next, we will have more analysis on the fed and find out why advisors say it may

cut rates in the third quarter. taylor: later in the show, live australia future fund to get an outlook on the aussie market. this is bloomberg. ♪ oomberg. ♪

beatr: apple's earnings help -- may do the same for the broader market. been writing the earnings wave to daily records. for an outlook on u.s. and ,lobal -- we turn to matt lloyd advisors asset management chief investment strategist. we are halfway to the earnings season. we have low expectations coming in, but so far it feels healthier than we originally thought. does your analysis agree? matt: it does.

the bark has been worse than the bite. after a great recession we tend to get that. you look at these expectations, look at apple, you can say it was not as much as last year, but we had lower expectations. we were in a slowdown, which matches the gdp expectation, not first quarter gdp, which was overstated. --lor: will we keep talking when we keep topping record highs -- the number of stocks above that moving average looks healthy. it looks sick there is a broad-based rally. does that give you confidence the rally can continue? matt: it's interesting when you start looking at the equity, try to figure out minority. it has been a flow that has rallied. a lot of people have been doomsday prepping. look at the big macro from the fed.

$12.8 trillion in total deposits. that is a big asked up. even a sentiment is showing a little more positive, marvin beer accustomed to, you can see more money flowing into it, which could cause a meltdown, like people are talking about. there is some other value out there in the world other than the u.s. in the dollar is going to be a big determiner. paul: nothing quite drives equity markets higher like a nice full punch bowl, and that is what president trump is calling for. he is saying that a 1% rate cut from the fed would be ideal and throw in some qe for good measure. involved insks creating a lazy economy dependent on steroids, arthur? -- aren't there? matt: he is in a win-win situation. a 100 basisexpect point cut and giving rave reviews about china falls on

deaf ears, because they needed to because of what happened. lower rates by 100 basis points. it is one of those things you hope for one thing and get another. maybe get to 25 basis point cut by the third quarter when we see more be nine gdp cuts. he can say i told you so or we should have done that. he is not in a losing situation. are market participants looking at and saying, if we have a 25 basis point hike, it will not be material. the pause for the big inflection point -- you had some restrictive standards rise in december and couple that with the market reactions. i don't see any benefit of him saying that, other than the fact that he is protected either way. if the economy flips into a dull drum, he says i told you so, but ultimately those in the investment world are saying it

is immaterial what he is doing. taylor: they key. that was matt lloyd advisors asset management chief investment strategist. you can get a roundup of the stories you need to know to get your day going on today's edition of daybreak. blumberg subscribers can go to dayb on their terminal. it is also available on the mobile and the app. you can customize your settings so you only get the news you care about. this is bloomberg. ♪ this is bloomberg. ♪

paul: this is bloomberg technology global link. bloomberg technology's selina wang in san francisco. let's take a look at the top global tech stories of the day. selina: sources are telling us that it over has demanded for all shares in its ipo just two

days after the roadshow kicked off. the company will continue to meet potential advisors -- investors as it seeks to raise up to $9 billion. at $40is offering shares to $50 apiece. at the top of that range, that would value the ride hell are -- hailer at about $80 billion. told bloomberg that it found security flaws in huawei products going back to 2009. a company -- agreement the company was supplying for the italian business. but a phone said the issues were resolved that it may further damage waivers for b tatian. -- the stock fell the most in seven years after first-quarter revenue missed forecast. earnings from advertising rose

15%, the slowest pace since 2015. before that, the three men added a combined $20 million in 2019. those of the top global tech stories. allor: of course it is about facebook. they have been doubling down on a successful but controversial part of its namesake app, messaging. the social network has unveiled a redesign focused on its groups feature, and other moves toward more private communication. >> we need to make sure that the service is available everywhere that you are in for a modern messaging experience, that means having a great desktop experience. we have built a great new desktop app, so you will be able to chat and video chat. in a native app, not just the browser. we are launching this on mac and windows. this is one of our top most requested features. taylor: joining us is facebook

vice president of partnerships. great to have you here. i know that we want to do some discussions around your conference. in the meantime, talk to me in the last year and in the year ahead, what are you doing about some of the privacy concerns, specifically as they relate to -- torships and some reassure facebook users that you are taking privacy seriously. >> thank you for having us here. the question you asked is paramount for everyone in the company. partnerships, but clearly partnerships has been a large part of the conversation. i've taken a very serious look into this. a lot of the conversation is around partnerships that exist on our platforms and the mobile ecosystem. lastt on the stage at f8 year and share that we were going to take a hard look at everyone we're partnering with

into different apis they had access with -- access to and take a deeper, finetooth comb to how they were using the apis and ensure that they are using them in a way that people signing up for the applications expected and making sure we were bringing them up to society's expectations. for us as a platform and then as a partner. we have done a bunch of things over the last year. reduce the amount of apis, reduced the amount of permissions developers have access to, shutdown apis and a number of these things we have talked about publicly. we moving in the right direction and the foundation is robust, strong, more secure than it has ever been and we're looking towards the future are ways to innovate on that. taylor: living in the right direction is one good way to put it. outside privacy, what message you hoping to convey to partners today? laid it out pretty clear, the future is private.

we have this privacy focused version and vision of the future that we want to execute on. it is not all the work we have done in creating the public town hall is going away, but it is the idea that whatsapp and messenger will be the foundation for what we believe will be a privacy centered social network in the future and all the ways we can build value for people. i understand a lot of the changes haven't made on the developer and api front, but talk about more privacy when we are talking about the consumer. is this really more than just a veneer? is facebook and other businesses really collecting less information than before? >> absolutely. if you see some of the changes we have announced, including just as recent as last week, the amount of apis we have made available to partners out there has been dramatically reduced.

an easy summary is that the api es data that can make the experience more social has continued to shrink. you mentioned, it really is a's ansumer -- it really is consumer decision. consumers want more private space where they can connect with their close friends, families, loved ones and facebook redesign it completely around communities. that is front and center. people are creating private groups with friends and family are more broadly, groups with communities they care about and are connected to. messenger is making a more simple, more lightweight, taking something like secret conversations, which has been around for two years and making a setting and messenger. -- making it a setting in messenger. selina: there has been some talk about more private spaces, but how do you secure facebook groups? this was a clear method that the

russians used in the election to spread misinformation within these private groups. doing -- to mars conversation here at f8 -- conversation here at f8 will be how we design ethically, create safety in new platforms like vr, how we are designing our ai systems to be fully exclusive. a big piece of that is going to be all the integrity efforts that we put in motion years ago and invested in heavily over the course of last year to make sure that groups can be safe. the way that this information shows up continues to be eradicated if at all possible. a number of the efforts we have been making over the last two years are going to be integral. an automated perspective in keeping states -- giving groups where people can feel safe and secure. selina: how big of a threat is regulation? >> mark ultimately said that

regulation is something we see coming that we want to make sure that as we move into this space where more regulation is coming more broadly that there are different areas where we can be helpful partners for people who are making these decisions in order to make sure that we get it right so we don't curtail innovation. really is a dialogue that we are willing to have and we have people fromnvited areas in the world that we think of the first to focus on. >> that was facebook vice president of partnerships. bloomberg is technology global link. don't miss bloomberg technology a 7:00 a.m. sydni, 5:00 in hong kong and 5:00 p.m. in new york. coming up next, we're digging into apple's first-quarter earnings report with the president and chief analyst of

technalysis research. this is bloomberg. ♪

jessica: this is "bloomberg daybreak: asia." -- "bloomberg daybreak: australia." the white house is ramping up pressure to reach a trade deal with china in the next two weeks. the u.s. is prepared to walk away from allegations. president trump's acting chief of staff -- treasury secretary steven mnuchin are in beijing this week. at some point in any negotiation, you realize we close to getting something done so were going to keep going. on the other hand, at some point you just say we are never going to get anywhere in a think you will know in the next couple weeks. jessica: president trump has

resumed his attack on the fed, calling for a steep rate cut that he says would launch the economy like a rocket. the president posted a pair of tweets criticizing rate policy while praising china for supporting its economy with stimulus. the president wants a cut of a full point, double what his economic advisor has urged. u.k. prime minister theresa may faces a storm of brexit questions wednesday as her critics increase the pressure, as well as prime minister's restaurant in parliament, she will have a 90 minute grilling at a committee meeting and is expected to meet her cabinet to discuss where things go next. talks with the opposition labor party have failed to reach agreements. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i and jessica summers.

this is bloomberg. has been a day of unrest in venezuela. opposition leader juan guaido has declared the end of president nicolas maduro's regime, calling for a military uprising. nations across the world, including the u.s. have indicated support for guaido. our reporter is watching the developments from miami. talk to me about the tone on the ground. how serious detentions feel relative to previous months or even previous years? >> today was definitely different. number of national guard troops wearing the blue ribbon, protesting with opposition supporters. we don't know how many there were, how much support they had. z in the streets. he is taken refuge in the chilly and embassy, but to see him out in the streets is something new

that we have not seen recently. these -- there are a lot of forces at work but internationally and on the ground. how others forces playing out? >> you are definitely seeing a lot of news out of the u.s. today. you had the national security advisor, secretary of state, senator marco rubio with to the many high-ranking officials in the toitary, encouraging them side with what they say is the right side of history. we just saw an interview with the secretary of state and he says maduro had been ready to leave venezuela on a plane to cuba today, but the russians talked him into staying. we're definitely seeing two different sides playing out in venezuela. we don't want to forget the venezuelan people, who have been

pretty much leading this process through the national assembly. reporter inerg news miami keeping an eye on the evolving situation in caracas. we will wait to see what president maduro does next. that's get a check on things closer to home. australian futures up and running, about a third of 1%. new zealand showing weakness off half a percent, despite a strong lead in from u.s. markets. the aussie dollar declined against the u.s. dollar. let's get back to one of our big stories, apple jumping in late trading after reporting quarterly sales topped estimates, which suggests demand for iphones have stabilized after a disappointing holiday period. questions remind -- remain about its services business. let's start with those iphone sales.

revenue there better than expected. tim pointing to the highest ipad growth in six years. the hole left by declining iphone sales, to be overestimate that? bob: i think we did. iphone sales were down 17%, but that number is baked in and when you look at the challenges google was talking about for their high-end pixel funds yesterday, you recognize that apple did reasonably ok. the big challenge was china, but they talked about the fact that they started to see some pickup at the end of the quarter, even in china. i think the bottom line is we are walking away from this saying this is better than we thought. the other good news is, we are seeing apple execute on something they have been talking about for years, which is to drive services revenue. i saw some calculations, iphone revenues are down to 54% of total revenues. the number used to the north of 70%.

smallerthat down as a piece because the services revenue grew as much as it did sorry, a long-term good sign. paul: sales hitting a record. there is part of the world were apple's services are unavailable, so there is potential. china, there are challenges there as well. can you run us to those challenges -- run us through those challenges? bob: there are questions of what will be available, questions around apple pay. a law of the services revenue is probably going to be outside of china. you have the outs -- you have the app store in china, but some other things you will not have. a lot of services revenue is independent of china. with china inouth terms of trade agreements with the u.s., which has been a big? , then there is a little

insulation on the services piece in china. the bigger question on services is we have all these new services coming which is great, but how much will they be able to contribute, how many people will they get to sign up for this tv service? in a lot of points in the world, those services are not available yet. you could argue that that has good and bad sides, but to me, the question is can these new credit -- these new services continue to deliver to offset what will continue to be declining iphone sales? taylor: part of that offset is iphones, services, wearables. integratingased on health analysis on your watch. how much of that growth you need to see to get excited about wearables? is: the wearables growth huge. it is still a smaller piece of the overall puzzle, but it is an

important part. if we look at it from a macro is about balancing the portfolio of revenues that apple has and they are doing that. that was the critical question, because there was so much emphasis in the past on iphone sales and basically being called an iphone company, that if icon -- if iphone declines continued, it would be a problem. we are starting to see interest in the air pods, the watch continues to do well. it has been a slower but nice growth there. as you mentioned, there is a lot of discussion around adding health care data onto the watch and working with healthcare services. that will probably roll out in the u.s. first. i think we will see more of a u.s. focus initially, but it is an important long-term area. i don't think it has as much

near-term impact for the company or the stock, but good sign of that differs vacation -- that diversification. taylor: what is really interesting is boosting the dividend and share buybacks. are you concerned that this means they have no better use of cash ban to buy back their own stock -- van to buy back their own stock - than to buy back their own stock. abouthey have been vocal these stock buyback programs. if you are conservative, you say that is great, because they are putting money back in there. there have been questions about, what is the big purchase they make? seen netflix floated, tesla floated, all these crazy ideas. instead, they have tended to focus on smaller pieces, but i don't think it is a big concern. fundamentally, it will be good. it continues to drive the value of the stock. we didn't talk about this

revolution -- resolution of qualcomm is a big deal longer-term, because there is this cloud above them about what is going to happen with regard to qualcomm and what does that mean for 5g. we will not see 5g apple fun this fall. that will be 2020. there were questions about that in the past. i want to get your thoughts on some announcements from facebook. communication among former private groups. that addresses some of the concerns, how are they going to monetize it? bob: the other big question i have, it feels like the integration of different sort of aplatforms is preemptive move to avoid the regulations. they are frayed it is coming in a lot of places. once they are integrated, pulling them apart will be much more challenging.

of whattally, the ideas they are describing and moving towards more privacy is important, but the company has a horrendous record on this and the privacy they are focused on is the encryption of the message, not privacy are using your data to continue to sell you advertising. they are still going to be doing that. it depends on how you interpret the word privacy. privacy, the buzz word. thank you. that was bob o'donnell, technalysis research president. we will speak live to the head of australia's future fund to get his outlook for aussie markets. this is bloomberg. ♪

taylor: i am taylor riggs in new york. paul: i am paul allen in sydney. you are watching "bloomberg daybreak: australia." let's get a quick check of the latest business flash headlines.

early: andy some profits rise as lending slowed and compliance costs increased. cash profit asteroid is number three bank rose to $2.5 billion u.s. self-proclaimed conservative lending policies took a chunk out of growth. berkshire hathaway putting $10 billion -- some analysts saying chevron's offer is unofficially dead. they will receive 100,000 preferred shares at a crude dividends of a percent annually. the move came one day after moved to talks, despite having accepted chevron's offer. us chile's future fund has grown billion with strong

gains over the past quarter to help push ten-year returns over 10%. health wealth fund said strong returns for probably helped by easing china trade tensions. let's cross over to the milken institute global conference and our reporter, eric. >> thanks very much. i'm here with the chief investment officer at future fund and it is a rare opportunity to talk to you. nice to see you. >> thanks. fund,a sovereign wealth you can look at the world a little differently. you've got permanent capital, no calls on the capital, so i would like you to explain to me if you would how you are looking at the investment strategy of the future fund and what kinds of things you expect to allocate overtime to fulfill the goals objectivesves -- and

>> you said. >>our objective -- objectives you set. >> our objective is quite aggressive. technically -- typically a fund would buy equities and bonds, what that portfolio relies on economic growth continuing and on the cost of borrowing staying cheap. we just don't think that's a good bet. there are a few things going on in the world at the moment that make us quite concerned. >> such as? the financial crisis. i'm sure all your viewers would be aware of that. years since70 or 80 world war ii of increasing leverage in the world. fund consumption bring a fourth economic activity from the future. those days are more or less over. the world can't sustain the amount of debt anymore and from

this year or next year, very soon, we will have to be in a state where the amount of leverage relative to economic activity is falling. it won't be a tell wind anymore. more than that, we have had huge population growth. everyone knows about the baby boomers after world war ii. gen x was a big population. here in the u.s., the middle classd r ii. we have had huge population growth through asia and that is all coming to an end. not tomorrow, but over the next few decades, population growth is rolling over in china and in most of the developed world, populations will be in decline. a global investor, immigration is just shuffling the cards. we don't have that tailwind either. in the last 10 years, we have had this rise of populist politics fueled by the wealth

disparity. it has been good for people who already own things, but not so good for working people. >> good if you have capital, not so good if you don't. there areans that more populist politicians everywhere in the u.s.. brexit,resident trump, more populist governments across asia,, in some parts of and irrespective of your politics, those types of polities detract from economic growth. less trade, more protectionism. makehose things together it hard to build portfolios that are resilient to lower growth. how do you do that? you need to add value. >> that is a gloomy vision of the future. i'm not suggesting that that is wrong. you believe that it's realistic. >> i do. i don't because gloomy. i am an optimist.

i just think we have to change. .e have to question norms the average pension plan here in the u.s. has equities and bonds. , and a lot of equities equities will be ok. i'm not saying economic growth will disappear or stay in a perpetual recession, but it will be much lower. they return from equities will be much lower. >> that is a bet on gdp growth. >> starting today from an expensive position, real interest rates are really low and in many parts of the world, negative. there is no foundation to start building. >> we need -- we need to build for phobias that are focused on value add, on creating new ideas and there are other things going on in the world that are also relevant. one is a huge generational change as the generation disappears and the boomers are retiring and becoming less

important in the economic fabric, and millennials, who are getting much more attention now, are coming into their prime in terms of how they are going to spend their money and act. , the new generations are very collaborative. they are socially aware. that is not a pessimistic view, but they spend on services, on experience, and don't accumulate things. the sort of corporations and businesses we're invested in need to adapt or die and be replaced by new ones. waveast big trend is the of new technology, which is leading to disruption. that is both an opportunity and a threat. my core messages, we can just ,ook at capital asset pricing portfolio optimization and say, if we hold more equities, we

will make higher returns and everything will be fine. we have to understand that things will behave differently in the future. the correlations won't be the same. different things will protect us and we have to work hard. deleveraging, demographics, populism, millennials, technological distraction. let's talk about what that means in practical terms. right now, what percentage of assets are allocated to public equities? >> about 30%. >> that will good on to what? >> -- >> that will go down to what? >> that depends on what happens with equities. there was a big selloff, but we hope not to own them through that process. >> as part of this vision-- >> we would find better things to invest in then equities and we would expect that proportion to fall.

if we came back in 10 or 20 , it might be summer between 20% and 30%. >> what about public debt? >> we on very little, because it is not a good bet to lend the u.s. government money for 10 years at 2.5% return. which is really fairly positive from a real point of view. >> the asset classes you are predatory ties in -- you are prioritizing are what? >> equities or equity like investments. we don't like that, so we are looking for other things. 8% in private equities, but that is hugely tilted to venture capital and growth. these are new ideas. ideas that are riding the innovation wave. things that people want to buy that make a difference to society. you don't need economic growth for a good idea to make money. >> it is great to see you here. >> thanks.

>> taylor, that is the chief investment officer at australia's future fund. taylor: thank you. joining us from the milken institute conference. watch us live and see past interviews on our interactive tv function, tv . there, you can dive into securities or bloomberg functions and become part of the conversation by sending us instant messages during our shows. bloomberg's of servers only. check it out, tv . this is bloomberg. ♪ s bloomberg. ♪

paul: i am paul allen in sydney. taylor riggs in new york. let's get a quick check on the latest this is flash headlines. mcdonald's be estimates in the first quarter thanks to domestic demand, a new breakfast menu, and bacon. to 3%are up 4%, topping

expected gain while global sales climbed more than 5%. labor and food costs are rising and mcdonald's says it expects commodity expenses to increase as much as 3% this year. struggling commodity trader noble is seeking reinvention after posting a rare profit of $30 million. the group has suffered years of losses and turmoil, including claims that inflated net income. restructuring had control to creditors, although singapore's regulators refused to allow the new entity to list in the city. got $9 billion wiped off their net worth as apples tumbled on slowing ad sales. the stock fell the most in nearly seven years after first-quarter revenue missed forecast. earnings from google advertising rose 15% at the slowest pace since 2015. before that, the three men had added $20 billion in 2019 so

far. huawei is in the spotlight after facing months of allegations it violated u.s. sanctions in iran. a source told bloomberg found security flaws going back to 2009 in equipment for the carriers italian business. vodafone says the issues resolved and the revelation may for the damage huawei's reputation. paul: that is almost it for "bloomberg daybreak: australia" this morning. we do have trading in new zealand underway. currently in negative territory, despite a decent lead from u.s. stocks. the kiwi dollar also looking weaker. sydney futures poised to open higher by one third of a percent and when we get going, keep an eye on the bank, the first of the big banks to report earnings this season. cash profit up 2%.

one to watch at the open here. aussie dollar weakening a little, one of the few currencies to do so on the back of the u.s. dollar weakening as well. this is bloomberg. ♪

>> it is a 7:00 a.m. in hong kong and singapore. president trump has resumed his attack on the fed, calling for steep rate cuts that he said would launch the economy like a rocket. with the fomc holding its latest meeting, the president posted a pair of tweets criticizing policy, while supporting china -- while praising china for supporting its economy. white house is ramping up pressure to reach its trade deal with china in the next two weeks,