paul: welcome to "daybreak australia." sophie: we're counting down to asia's next market open. paul: here's the top stories we're covering in the next hour. wall street falls for a second day after the fed's latest rate signal. tesla jumps after making an thepected u-turn, tapping

market for cash. get a quick check and a reminder for how u.s. stocks have ended here. it was like you said, sort of a second day of losses. i'm calling this a reset day where we are resetting expectations after we heard from jay powell yesterday in terms of perhaps not seeing a cut in rates but seeing a hike. this is as we are awaiting what should be or what most analysts expect to be a relatively number tomorrow. you are seeing this in the bond market as well, sort of figuring out where to go next, but we could see a little bit of a reversal. i will call s&p futures mostly unchanged, but a little bit of green on the screen. this comes even as you have seen a big drop in commodities, big drop in oil prices, but perhaps a little bit of a buying

opportunity in the futures market. let's also see how things are shaping up in the asian market. sophie: china and japan still of for extended breaks. korea is headed for the first three rise potentially in . we're also watching for weakness in the commodities sector. cmiill have from australia releasing its latest pmi reading and building approval for march which unexpectedly showed a steep decline up 12% on a monthly basis. pmi reading from singapore and at midday, malaysian trade data is due a week before the government their marks one year in power during which assets have had a tough time.

paul: thanks very much. let's get to first word news now .ith ed ludlow ed: the bank of england governor mark carney says he is ready to raise rates by more than the markets may expect. if brexit goes smoothly, after policymakers kept rates on hold as expected. he says they are expected to act removal from europe is completed. hong kong grew less than expected as the week mobile economy and ongoing trade war dampened sentiment. throughnded by the .5% much compared with a year earlier with analysts looking for growth of almost 2%. hong kong is seen slowing further this year amid continuing trade tensions and weaker property prices in the city.

facebook is banning a number of controversial figures including alex jones. the social network blocking personal accounts, associative fan pages and instagram accounts it says break its policies on hate speech and violence. the legislator louis farrakhan is also barred for his anti-semitic views. band follows similar moves by twitter against the same individuals last year. bezos' blue origin has successfully completed a launch taking 30g microgravity payloads into orbit . the first manned flight is scheduled for the end of the year. global news 24 hours a day and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries.

taylor: thanks. back here in new york, u.s. ofcks off for a second day earnings, continuing to dominate the action. beyond meet had the first day of trading for an ipo and more than a decade. su keenan joins us. i'm calling this hour reset day, sort of digesting what jay powell's comments mean for the market. put it atrategist different way, the market saying i guess the fed is not going to cut rates next time. stocks down, bond yields rising because of that realization, if you will. seestors looking forward to with the jobs data says. the dollar up, notice energy, the commodity lower which will get to. energy shares lower, health care one of the winningest sectors, but not by much. let's look at some of the big movers and what is in the spotlight.

an ipo trickling in its first day, making it the most successful ipo in more than a decade. they sell plant-based protein food products, burgers and sausages, obviously without meat, and that is capturing the sort of move toward vegan and plant-based foods in the u.s.. caterpillar down. they announced a record dividend. did not really in class -- did not really impress investors. the company came in a week ago with a profit that beat expectations, but as you can see, that did not really carry the day. tesla rising on the announcement they were going to seek to raise money. even though there were bloomberg stories on how the ceo himself has seen his credit line drop a little bit. apparently for a billionaire, he is rather cash poor, and advanced micro rallying strong. a lot of analysts think they can

come in and take away from intel, capture some of the market share, and that had a positive effect on the stock. paul: we get to some of the after the bell earnings. there was a popular fast food chain buying over the estimates. su: shake shack. apparently they have a new app where you can order burgers and they are killing it on the sales front. shack has same-store sales that were up at her than 3.5% in the last quarter. look at how well the stock has done. here to date, it's up almost 40%. again, they blew away estimates on their sales. take a look at activision, which move onncing its first the call to duty league, which is positive, but notice what happened when they said the second quarter earnings outlook came up short of estimates.

that really is leading to a selloff after hours. and names like gilead, the drugmaker, really coming in strong. take a look at how their chart has done year to date. they are actually saying that drug jewel sales in the adjusted eps beat the highest estimates out there. >> think the other big story we have the talk about his oil. the bloomberg commodity index going back to the lowest since january. su: if you look at the five-day chart, you really see how it was just a kaboom, a drop. of oil, really tells this story. look at the build up here in oil. this is the highest we have seen since 2017, and that led to the drop off. later on, we look at the big

picture for oil, the fact that you've got the russians apparently pumping above their output. we do have a lot of the asian countries and >> go to the big picture. you can see we were up some 36% year to date, but the trend is coming lower. a lot of concern about the expiration of the waivers. asian countries, as we know, asking for more oil, looks like they are asking from the saudi's instead of the iranians, so that may be a positive, but again, the overproduction in russia combined with the u.s. surge in supply maybe negative in the short term. paul: president trump's latest selection for the fed board of governors is withdrawn, just hours after he said he was all in. >> the situation will be a lot different three months when i when i go before the senate and the banking committee and the full senate. i'm not too concerned about this. paul: that get behind this with

our editor in washington. that was an impressive high-speed handbrake u-turn. what changed in the hours since that interview? >> he was at a breakfast meeting here in washington saying that he was full ahead on a nomination, but what was very clear was that he was rapidly losing support among republicans over pastate statements about women and minorities, his tax troubles, his divorce, and it had hit something of a real slide this as an iowa republican and a member of leadership said that she would not vote for him and she did not think that he had enough votes to get confirmed if the nomination were to go through. this is a message that republican leaders said they told the white house, that there is not support for him and they admonished the white house to do

a better job of vetting candidates for the job, so it was clear that he was rapidly losing support and was not going to make it through the process. dominatedlines seem to -- those headlines seem to dominate our news flow today, but we cannot gloss over the story of nancy pelosi coming out and accusing william barr of a crime. the problem is there was not sort of any follow-up. what can democrats do? >> the losey said they would refer to the judiciary committee. they could impose some -- they could begin impeachment proceedings, but it looks like we are a few steps away from that. right now, they are going to be pressing on subpoenas. this is liable to go into the courts. today refused to show up

for a house hearing called by democrats. there are a number of fights left over from this and from his testimony yesterday in the senate. democrats are going to continue to put pressure on him and the white house for documents and materials related to the mueller as well as his testimony related to other matters going on at the white house. there's not a whole lot of movement toward taking additional action against the president, who pelosi said was clearly obstructing the house and their investigation are refusing to turn over documents, so at some point, it's going to have to come to a head and likely will end up in the courts. also aresident trump potential issue on his hands thing be foxconn plant happening in wisconsin. what do we know about his

meeting? >> not a whole lot. it was shrouded in mystery and surprise. there were rumors floating around earlier in the week that he was going to be coming to the white house to meet with trump, but we're told by the white house press office that they have no information. he showed up -- he was the one who essentially said -- leaked information about the meeting. he is running for the presidency of taiwan, which is a sensitive subject. there is also an issue for president trump and that the foxconn plant in wisconsin, which the president touted very highly early in his administration as a job creator, is well behind schedule and has become a political issue in , a state president won

in 2016, but where he may be having trouble for the 2020 reelection campaign. both men have some self-interest here in this meeting, but again, the white house has not given much information about it. that is where they have left it, so we may get more out of taiwan on this, but at the moment, it seems to have been sort of a drop by meeting. paul: thanks for joining us this morning. ahead, elon musk making a u-turn on raising cash for an expensive quarter. >> the first, it's all about jobs. we have a preview of this month's nonfarm payrolls and the likely impact on the equity market. this is bloomberg. ♪

taylor: you are watching "daybreak australia." secondocks fell for a day. investors are all eyes on friday's jobs number and any news on trade talks as well. on jobs can number be relatively boring. you dig down into that release, wage numbers, average hourly looking, what are you for tomorrow? >> the big surprise is less than expected wage pressure so far this year. the year on year numbers peaked a few months ago. tomorrow, the consensus is .3. we are actually looking for a little less, but the key is even a .3 rise does not give you that

new high in year on your wages, so we have really modest wage pressure this year so far. outlook ont into the the bond market. it seems like bond markets really had to reset expectations. to getds are continuing a little bit of a lift. does anything about tomorrow sort of change your outlook on how the bond friendly market really could be? >> yes, i think this is the beginning of a series of news that will lead to lower rates, particularly at the long end. the reason for that is already, you have seen inflation breakevens moving down and that's because the fed effectively yesterday said we would be tough on inflation because we just don't believe that inflation is falling, right? but at the same time, this morning, we saw better-than-expected productivity numbers, and what that means is that companies can afford to pay people more without raising prices, so

therefore, if you then take lower-than-expected wage gains, put that together with stronger-than-expected productivity, that implies even lower-than-expected inflation, and when you put that together with a tough fed, it spells low bond yields, so i think it's just a matter of time before the entire curve is pressing downward again. -- downward again. paul: is the phillips curve still a useful tool for the fed to be using, despite all the criticism? chris: i have been among the most critical of the phillips curve, but we did take a good, hard look at it at the end of last year, and you will find it is still a terrific predictor of

wage gains. the big drop in unemployment last year was coupled with a big rise in average hourly earnings growth, exactly what you would expect, but the unemployment ate bottomed in the u.s. it has been almost a year at that level. wages trail about nine months behind, and sure enough, in just the last few months, we have seen stability and wages. i think that is useful. the thing is, do not try to an inflationt into forecast. that part does not work. paul: you are not really buying into this whole argument from jay powell that the lack of inflation is transitory, right? chris: i do not buy it at all. rereading the transcript of yesterday's press conference, the biggest objection i have is -- well, too. the first one is that any time inflation slows down, there will be something that is down the

most. you can always pick on that one thing and say there is here one, that is transitory. thing is that the increase in inflation last year acyclical mostly by factors. the increase was just as transitory as this year's decline, and when you look at the average rate of inflation over the last sheet of years, it's running at about 1.7%, which is -- you know, it's a than wherent lower the fed wanted to be, so i think thefed is still erring on side of being too tough on inflation. i think they are pressing inflation expectations down and that is exactly what inflation breakevens in the u.s. bond market show. they show expectations that inflation will be running at 1.75% in the% -- long-term.

>> talking more about the productivity levels, like you said, businesses are coming in. they are being able to increase capital investments, lowering costs, whichr mickey leavy over at barron capital says this is a boost for profit margins and we are seeing this, profit margins on the s&p 500 in aggregate, rising out up above 10%. do you buy into that as well, are increasing their spending, investment, and reducing their labor costs, that they should be supportive of profit margins? >> absolutely it is. if the fed were to shift its focus from fighting a war against wage gains and instead focus on getting inflation where they want it to be, we would see a bigger share of gdp going to workers, but right now, fed policy very much favors sending the share of gdp to shareholders . >> very interesting.

great conversation. thank you. to bring some breaking news we are getting across in the terminal. sinclair is said to acquire forced networks from disney. we know this is all according to "the wall street journal." we have not independently verified this. sinclair is set to acquire sports networks from disney. this is bloomberg. ♪

thanr: tesla jumped more 4% after doing something elon musk said it would not do and that's borrow money. planning to raise about $2 billion. no one at bloomberg knows more about tesla than janet in san francisco. $2 billion -- you are looking at a company with only $2 billion of cash on the balance sheet. you have spending of $2.5

billion projected this year. i think my first question to you is -- is $2 billion enough? >> it seems like it's the minimum they needed to raise, right? if you look at the forecast and fact cash balance and the that any ceo wants to operate with a cushion in case there is a recession. $2 billion is at the low end. we will see how it prices. i don't think it is priced quite yet, but this is the ongoing thing with tesla. they are always raising money. there was a period where musk insisted they were going to be sustainably profitable. they had two profitable quarters, that could negative in the first quarter, and now they just have really big ambitions. they want to do autonomy. they have the whole idea of the .utonomous robot taxi fleet they have a lot of expensive projects on their to do list. paul: musk's comments were meant

to drum up support. what did he had to say? >> this was a sort of invite only call with investors that took laced today with elon musk invite only call with investors that took place today. musk says that autonomy is going to be what will make tesla a $500 million market cap company, that it will be this force multiplier, the cars will appreciate in value as you have this autonomous robot taxi fleet, so he is pitching the autonomous future as the reason and rationale for this capital raise. paul: she covers all things elon musk andg spacex. never a dull moment. coming up, we will look at what wage growth numbers will look like and what they will mean for

inflation expectations. we will look into all that next. this is bloomberg. ♪

paul: it's eight: 30 a.m. friday morning here in sydney. the market open about 90 minutes away. futures modestly high right now. withore group just out full-year earnings, a slight beat, a little more than estimated. the cory -- mcquarrie getting some tailwinds from a weak so narrow beat, but the outlook for 2020, they are expecting things to be a little bit tougher in the next

year. taylor: it's 6:30 p.m. here. you are watching "daybreak australia." ed: another of president trump's fed picks has bailed hours after telling he was -- telling bloomberg he was all in on the process. afterthdrawal comes days the president's other fed choice also dropped out. he had earlier told bloomberg his biggest ally was the white house and that he was feeling confident. >> the situation today, i think it could be a lot different three months from now when i go before the senate, so i'm not too concerned about this. opec is being warned it faces collapse due to treatment of some of its members. the country's oil minister told the opec leader the organization

would not survive if some members continued to be threatened. oil prices have had a volatile past week after the u.s. vowed tighter sanctions on iran in a bid to curb exports. people killed in the christchurch mosque attacks has risen to 51. 46 you'll turkish national has died and has been in critical in intensive care since the march 15 attack. nine other people are in hospital but are said to be in stable condition. there are fears of cholera in mozambique in the aftermath of a cyclone that has killed more than 40 people and devastated wide areas of the country. thousands have been left homeless and severe flooding has wells, has contaminated leaving drinking water scarce.

global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. over tolet's head on hong kong to see what is going on in the markets over there. sophie: when it comes to what we are watching in australia, no surprise. reaction to mcquarrie earnings .hich just dropped we did see a beat, but looking ahead, they do see results slightly lower in 2020 and when how it has performed, it has outperformed the big lenders. we did see them boost their final dividend as well. a medical equipment maker beat on revenue and adjusted eps, which also came in higher than forecast. growth margins saw a bump.

on the deal front, shareholders of -- the in favor deal is to be completed on may 15. paul: thanks very much, sophie. let's get more on what we should be watching is trading gets under way with bloomberg's global market editor. at least one fund manager is worried it might be a good time to take profit off the table when it comes to risk assets. what is the rationale? >> i think it is a view worth listening to. my colleague spoke to the multi-asset guy yesterday, early in the week and his view is interesting because they went pretty early trade on when the fed initially pivoted. if you remember back in january, and they have obviously

benefited pretty well as bonds and stocks have tested, really, the strength of the rally over the last few months, so people have then positioned during market moves of the last few months like pataki. they are saying now you want to be a little more cautious. markets essentially have run ahead of fundamentals is the key thesis of the market, especially in equities, he says. things have run a little bit too far. we have obviously tested fresh highs in u.s. equities, but also another parts of the world, equities have been relative outperformance. have a look at what markets have done, to pare back some of that risk and look for the next couple of quarters, really, with what we heard from the fed in the last kind of 48 hours or so. it is still a very finely balanced opportunity and for risk assets going forward, so you don't want to be leaving too much on the table now, given that markets have run so hot.

>> i come to the world currency monitor here and i flip over to south korea and it looks like the yuan is off. you're seeing big weakness relative to the u.s. dollar. it was interesting that you noted deutsche bank coming out with a note and weighing the worst is not over yet. how to you stop the slide of the south korean yuan? >> certainly for the folks at deutsche bank and indeed, momentum in the market would show this as well, that there is more further weakness ahead for .he korean yuan you can see how it has been underperforming but also how bond yields in the country have kind of continued to come down in line with the global average but also particularly threatened by the domestic growth case within south korea that still also incredibly fragile, the size of that supplementary budget gap that some people say

is very disappointing. what you would need, deutsche bank says, is some kind of recovery in the semiconductor sector, really, to get the economy moving again, to get any kind of stabilization in the currency and indeed to help put a floor in bond yields that may indeed retesting 2019 lows again in the not-too-distant future. if this continues, kind of weakness and fragility around the economy continues to put pressure on it. paul: thanks for joining us. check out our fee for some of the charts adam has been theing about on gtb go on bloomberg terminal. the bank of england governor mark carney has a tough row to willelling investors he raise rates more often in the event of brexit, when that looks further than

before. does mark carney really expect a smooth brexit? >> if he really expects it, he is certainly holding that out as a possibility for the bank of england, moving rates a bit more aggressively this year potentially in 2020 as well in the markets seem to be showing right now. markets pricing in at best a 35% chance the bank of england would be raising rates this year in the face of the brexit that everybody knows we don't know what's going to happen. that's all you can say. so far, theresa may's labor party, the opposition, her own party, nobody seems to have gotten any further towards the ultimate deal that will get this passed. mark carney facing reporters, thiso explain why he sees potentially happening of this is what he said. >> if something broadly like this forecast comes to pass, so a time where the economy is

growing, not quite at potential, and domestic inflationary pressures continue to build, even though we are going through this period of uncertainty in the run-up to some resolution around brexit, it will require interest rate increases over that period, and it will require more and more -- interestrease rate increases in the market expects. >> the bank of england also getting more upbeat on the u.k. economy, looking for gdp to rise 1.5% this year instead of one point 2%. they expect a .5% in the first quarter. let's jump to the bloomberg terminal and look at one of my favorite charts when it comes to the u.k. and brexit. it is to bloomberg brexit barometer made up of jobs, growth gdp, inflation, and you can reign he day at the far right-hand side of your screen, the red section with all those numbers pointing toward a weaker economy. it is not just below zero, it is of back above zero.

that is what is important here. he sees easings global tensions around trade, around so many things, and also central banks getting to the point where they have shifted their outlook, obviously looking at the federal reserve, for example, going on a cause. he says this has helped lower u.k. bond yields and is also easing financial conditions in the united kingdom, another reason why he is more upbeat on the economy. , confirminga move the kind of vision he has, at least not yet. from jay powell yesterday, saying the labor economy in the u.s. looks strong . anything we can glean from data? w's jobs kathleen: i think everybody is .atching wages bottom line, though, and a lot of people are saying even if you get stronger wages, it probably

does not change jay powell's mind just yet. we are going to look at a chart that shows unemployment, shows average hourly earnings, and it shows what the core deflator is doing, the fed's inflation gauge. we know that average hourly earnings, which is the white line in the middle, are supposed 3.2%.up to three .3% from look how unemployment has come down so much. that means we should get bigger paychecks. they have not risen that much even with unemployment now around 3.8% and look at the dce core deflator -- that yellow up to two barely gets and goes back down again. the core deflator right now at only 1.5%. jay powell said yesterday he thinks the drop in inflation is transitory. he knows the labor market is high. he is counting on that to ultimately boost wages more to help create a stronger economy. payroll up a good number in

april, not quite as strong as much, but that will harden the fed, make them say yes, we got solid growth and we could maybe continue on this path. unemployment, as i said, at three point it present. watch wages, though. i think a downside surprise or upside surprise could have an impact on the market. >> thank you. that was our global economics and policy editor. the indonesian president is on aurse for reelection and business tycoon says his pledge to focus on human resources in his second term will benefit companies are writing education, health care, and entertainment. he spoke exclusively to haslinda amin who asked about the threat of a legal challenge to the result. >> i think my view first of all i don't think is going to be bad for economics and politics because we've seen it before. when we look at the last 10 years, standard division is

about 1%, so not much at all, and everybody is welcome. the same time, people already know the direction, right? 45 -- 55-45 in favor of the president. anyone can always contest, but there is a process to it, but movedvernment has always on and i think the public knows the results. they are respectful, but at the same time, i think they have focus. prioritiesuld be the of the next government? >> he will definitely focus much more on human resource, which is very important. in the first term, which was pretty brief, he focused a lot on infrastructure. is upd clearly that gdp -- debt to gdp is only 30%. thet of critics say

trickle-down effect is not really happening yet because it takes time. in the secondat, term, i think he will focus on human resource, education, find solutions, and those will bring basically what smart social populism, but at the same time, you bring good capitalism along with it, and i believe a lot of focus on theat same issues of entertainment, , there and education will be quite an interesting business in the second term. >> does he have the team to push through the reforms he has in mind? you see cabinet changes? >> i would say cabinet improvement. who would have about 66% of arliamentary support, so

super majority, so to speak. he has the help of the parliament, but at the same time, he has to choose the right people, professional people, but i think in a second term, he would not have any baggage whatsoever. not quite sure, but i not surprised the change of cabinet will happen before the november due date for the second term. >> he was speaking there exclusively to bloomberg's haslinda amin. net income, 1.0 5 billion singaporean dollars, a beat. billionmate was for one , so a narrow beat. they did flag ongoing global uncertainties, which is expected to weigh on future results, so that result is important.

net interest income, also 1.50 9 billion, so.5 9 looks to be a rebound in the first quarter. stay with us. there is plenty more to come on "daybreak australia." this is bloomberg. ♪

paul: chinese stocks are down more than 6% from their april 19 .ighs our next guest still sees plenty .f opportunities .et's go a little more in depth thanks very much for joining us. off gettingto start the temperature, as you see it, of the earnings season so far.

>> things are actually reasonably positive compared to last year. we are seeing earnings increases of something between 9% upwards for 2019 versus a very abysmal 2018 when earnings growth was 1% to 3%, so this year, it's quite ok. i would point out that although we mentioned chinese stocks recently dropped 6% year to date, nevertheless, chinese related stocks are the world's best performing with a gain of something like 30% so far this year despite the 6% recent setback. paul: the run up on the shanghai composite has certainly been very impressive, but how sustainable is it? do you think it might be time to take a little money off the table? i believe the last part of those investors who wanted to

,ash in have done so recently hence the recent 6% retracement. the next important piece of news coming out quite likely will be an announcement of some kind of an agreement to between the u.s. and china on trade. that almost certainly will be a positive, not a negative. taylor: talk to me about your call, which i loved reading through your research note, about being underweight u.s. equities. so often we have strategists come on and there is such a big fear about missing out on the rally we have seen so far. why are you underweight u.s. equities now? is it purely because we have had such a big run-up or do you see something else going on? >> the fact of the matter is that the u.s. has outperformed markets like china for quite a number of years already and the p/e ratio right now of about 18 times earnings, american stocks

do look somewhat poppy. there is a financial engine going on in america were companies have had a lot of share buybacks. to some extent, the strong performance in the u.s., up another 16% year to date, is based on a shortage rather than any real economic fundamentals. >> i want to switch over to the world of commodities and we were taking a look at the bloomberg commodity index today, back down to a one-month low. you have oil and brent closing at one-month lows. what else are you seeing in commodities that makes you nervous since you are coming in a little bit underweight. >> commodities at the moment is what are the areas where we are

seeing inflation simply refuse to appear. using a lotasically less stuff than they used to. it is a world where a lot of activity through digitalization and internet and also, we have effects, but when you look find chineses, you ownership costs do not look very good going up the way we thought they would. the use of bright sharing has reduced the necessity -- the use of ridesharing has reduced the necessity of people to own cars. taylor: great conversation. that was wonderful. thank you. more ahead on daybreak australia. good morning, asia. this is bloomberg.

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paul: more promises of easing monetary policy have sent australian shares soaring the highest in more than a decade, but earnings results from big banks and third-quarter trading updates could cause that to sputter. why have australian stocks performed so well this year? due to of the reason is strong commodities prices. that has lifted resources stocks higher. stocks benefiten from the dovish/we have seen from central banks all over the world, these promises of easing monetary policies. those have lifted stocks higher and markets all over the world, we have seen a global rally in equities amidst promises that the easing policy would boost earnings. we have seen that in australia as well. last week when the latest inflation numbers came out, stocks jumped to the highest and

more than 11 months. >> the financial sector within the s&p 500 has been one of the best out performers year to date. what is the financial sector in australia doing? are you also seeing strength their? >> well, no, we are not seeing much strengthen the financial sector. financials are among the most underperforming sectors in australia. banks in particular are facing very weak conditions. being also seeing banks hit by conversation costs. so far the banking reporting season is getting under way. we had macquarrie this morning. overall, we are seeing weakness that could predict over the next few quarters, so the outlook for financial stocks is looking

pretty bleak. paul: financial stocks also a portfolio favorite among australians, looking pretty cheap. could that maybe stir things along a little? >> it's possible. what analysts say now is the bar is being set pretty low for stocks in the broader market, but also for financials in particular, but there is some risk to that if stocks get to cheap. paul: thanks very much for joining us there. plenty more to come ahead on daybreak asia. bankll be hearing from the president. let's have a quick look at what we are expecting markets wise. new zealand already up and running this morning. we saw a little bit of a selloff in the u.s. areing like aussie futures kind of flat ahead of the open. stay with us. all the action next in

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paul: good morning. i am paul allen in sydney. >> good evening from bloomberg's global headquarters in new york. i am taylor riggs. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this friday, asian stocks face another mixed day as investors await april's payroll numbers. all you will be light with japan and 10 on a break. -- china on a break.