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.

despite encouraging noises from the u.s. and china, the trade talks have had a problem. we are live in beijing. taylor: i want a quick reminder on how the u.s. stocks ended in a mixed session. we are having to reset from where we were after getting some comments yesterday from jerome powell. markets have been pricing in that the next thing we would see is a cut. that may not get the case. -- either the case. we could get a hike. out in thet play bond market with your getting a lift as we are pricing in if we hike.get a futures looking unchanged to slightly positive as well as we are coming into the end of the u.s. earnings season and things are starting to look a little bit better than expected, but of course, all eyes will be on so that's jobs report, is keeping us in limbo. a look at how things

are going in the asian market. limbo land as in well. it has been a relatively quiet week with japan and china both out for the count. we are set for a mixed start with tv sucks getting up earlier gains. we have heavyweight did on the agenda. tv stocks getting up earlier gains. we have heavyweight ones on the agenda. hsbc up to bat later today. looking at forex, we have the yen in wait and see mode while the dollar is extending gains on paperback rate cuts and findings of -- pared-back rate cuts. the dollar could be headed for its third weekly drop. the aussie dollar is hanging onto the 70 handle. we have building approvals due

today, which are likely to deteriorate further according to consensus. paul: let's check in with the first word news with ed ludlow. mark carney says he is ready to raise rates by more than the brexit may expect if goes smoothly. policymakers kept rates on hold. they are prepared to act when the uncertainty is resolved. he said a smooth brexit would require more frequent hikes than the market currently expects. opec is being warned it faces collapse due to the treatment of some of its members. the country's oil minister told the opec leader that's the organization would not survive if some members continue to be threatened. they have had a volatile past week after the u.s. vowed to

tighten sanctions on iran in a bid to curb exports. the number of people killed in the christchurch mosque attacks has risen to 51. a46-year-old turkish national -- a 46-year-old turkish national has died. nine other people remain in hospital but are also to be in stable condition. a man has been charged with 50 counts of murder and 39 pounds of attempted murder. there are fears of cholera in mozambique. this is in the aftermath of the cyclone. drinking water is unsafe. it is the second major cyclone to hit the country in weeks. more than 1000 people bite across mozambique, zimbabwe -- died across mozambique and zimbabwe. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ed ludlow. this is bloomberg.

taylor. paul: i will take it from here. thank you very much for that. throughout all the recent talk that the u.s.-china trade deal may be imminent, we are getting a vaguely written piece that the two sides might have had an impasse. stephen the -- stephen engle is in beijing. what is in this article? stephen: you have to take everything with a grain of salt, whether it is propaganda in the united states or from the chinese media. it always raises eyebrows. in china, it could either be an official point that has been released through the state media for the global audience to digest, or it simply could be more of the same propaganda vaguely written and not with a lot of substance other than trying to of course sway opinion. article is thees mouthpiece of the communist

party, an analytical opinion piece. it cites observers as wondering whether they have hit an impasse. i take a lot of this with a huge grain of salt. the global times regularly posts opinion pieces that may or may not reflect the actual government use so i put that out there and i might add as well that this is the china daily, the front page, and headlines quite -- well, it says talks on productive.en as i have read whole article and there is absolutely nothing new in this, no indication whatsoever that the chinese have so youiece or position, can throw this out like a lot of things that you read in biased media. sorry. taylor: you're making me laugh. i love that you just threw the newspaper across the floor. on a more serious note -- stephen: i call it like it is. taylor: in the last hour, we

heard from president trump. he said they have a chance of having a great china trade deal. he said that "tariffs on working. -- are working." what is the leverage? what are the big issues that we are looking at with the u.s.- china trade talks? stephen: that is what we really have to get down to and drill down into, what are the issues that as the two sides get to the goal line to push the ball across the goal line -- sorry for the sports metaphor -- as you get closer to scoring, you get into the nitty-gritty issues. it is down to enforcement, getting the chinese to commit to a mechanism where the u.s. can verify that they are holding up their end of the bargain, but the chinese have pushed back on that because they say those are already in place in the wto mechanisms, therefore a trade deal with the united states that

commits to verification would simply be redundant. course, the u.s. is pushing on limiting chinese subsidies in key industries and the big question on both sides is will the existing tariffs remain in place following a u.s.-china trade deal? that is being left up in the air right now because you do not want to remove that leverage right off the bat. but again, some of these issues might not be resolved until actually right before the deal is announced and xi jinping and donald trump actually meet face-to-face if that does come to fruition. about hintingn towards possibly walking away. mick mulvaney, the acting white staff, has of suggested earlier this week that maybe it is time to think about walking away if we cannot get a resolution in these key areas. taylor: we do know that this is a story that will continue, so thank you. that was stephen engle in beijing. other news in washington. president trump's second fed

pick has withdrawn from consideration hours after telling bloomberg he was "all in." >> the situation today will be a lot different three months from now when i go before the senate and the banking committee. i am not too concerned about this. taylor: let's find out what is behind all of this with our congress editor, joe sobczyk, in washington. ,e had him on tv and he talked saying he was all in, and hours later, withdrawing. what happened in those hours? >> he also told the wall street journal the same thing, that the president was 100% behind him. what had happened is that, this week, the support for him and him -- him among republicans had seriously eroded. more and more of his past statements, past writings, particularly things he has said about women, minorities, his problems with taxes, his divorce, all these things amount

to sort of a trip cap -- drip. iowa republican who is a member of the leadership team said she could not vote for him, and that if he were to come before the senate, he would not get confirmed at this point. several republican leaders made that same case to the white house that support was not there, and that they needed to do a better job of setting the candidate -- vetting their candidates. there are four fed governor picks that trump has put forward that have been set aside by the senate. so there is some consternation among republicans that the white house is not really taking these -- some of these nominations seriously enough. meantime, we the have got nancy pelosi basically accusing william barr of committing a crime. so what is the follow-up going

to be there? joe: they are going to be proceeding on their next steps. pelosi did not list what she wanted to do. she said she would defer to the judiciary committee, which has jurisdiction over that, and the justice department. they could move to censure him. put could move to seek -- him in contempt of congress. and policy has been very cautious in talking about anyone move -- any move to create impeachment proceedings against the president, which would give some greater legal power to the house in terms of their investigations and demand for documents. now, they are at a standoff. democrats are trying to decide on their next move what is undoubtedly -- and what is undoubtedly going to happen is there will be a flurry of subpoenas both for censure and this will end up in the courts. from there, both sides are going

to be at this for quite some time, probably bleeding into the 2020 election. taylor: thank you. we will have lots more to come. that was joe sobczyk. a little later in the show, oil at its lowest level in a month as some of the top producers are plugging any cap expected to come from u.s. sanctions on iran. paul: plus, we will also find prefersapital company asian securities. the ceo joins us next. this is bloomberg. ♪

paul: we are counting down to asia's first major market opens this morning. we have futures in korea looking a little weaker right now, off and this is daybreak

asia. i am paul allen in sydney. >> i want to take a closer look of u.s. markets stocks, which fell. and the latest ipo made history, so let's bring in su keenan. start with some of the big movers after hours. what are we seeing? su: we are on the scene more action after hours. take a look at the chart. company, -- activision disappointing in a lot of ways, but let's start with shake shack and go through these individually. this burger company just blew out the numbers. their sales came in a 3.6% increase, and that is more times what analysts had estimated. they are crediting a new burger. -- they boosted new burger -- they are crediting a new burger

app. that was offset by the fact that endingond quarter outlook came in short and they provided downbeat guidance that investors were not happy to hear. gilead.lk about it be the highest estimate that really made the day for the relatively new ceo, who took over in march. the new ceo saying he is going to make the pipeline key priority for the next year or so. let's have a look at the regular session. they christened this reset day. changing their minds. there may not be moved to cut rates. right to the snapshot.

the thick a look at how things fared. .e saw energy lower we will get to the oil story in just a that -- bit. it cannot offset some of the declines. the movers of the day, we mentioned beyond meat. it plays into the vegan shift in consumer tastes in the u.s. that tripled in its first day of trading, making it the most successful ipo of the decade. caterpillar lowered even though they came in with some good earnings results a week ago. they announced they were going to up their dividends, but it was less than impressive. tesla announcing they will raise money through the bond market. that also was a big hit with investors, and amd, many analysts think they can steal a market share.

quickly to oil and what we are seeing is a huge increase in oil supplies that put oil under pressure. back to you. paul: thanks very much for wrapping up those u.s. markets for us. u.s. stocks have been the place to be so far in 2019. let's take a look at this chart on the bloomberg terminal. you can see the s&p 500 terminal etf outperforming impressively the etf of the msci developed , emerging, and frontier markets. you can check this out in the chart library. the question is, how much longer will the u.s. stay on top? let's turn to a global investor with some pretty strong convictions on this? cio of anr, ceo, and independent investment firm in san francisco. when you look at that chart, what do you see? do you see opportunities or du feel like maybe -- do you feel

like maybe a longing like it is too late? >> outside of individual stock picks that might have idiosyncratic returns, we are positioning for any economic transition, so our first take on that is we are seeing more opportunities abroad. so that is not just as your talking about emerging and frontier markets, but developed markets. secondarily, we are thinking about how do you tactically transition the portfolio to specific sectors, to specific styles that has started to outperform and we think are going to continue to outperform, but given your chart, we are of the belief that more opportunities are outside of our domestic area that we have been looking at the far this year? paul: i just want to get to that mention you made. overre a tactical player or values. what does that mean for your investing strategy? what do you look at?

nadine: we do two things. we have a macro overlay. if you are going to the mountains and someone says pack a bag, you want to know am i going in the summer, in the winter? right.n pack my bag we are stock pickers. a proprietary framework that has some staff you could find on bloomberg but also qualitative stats. if you look at the style factors, it is part of the framework. we are calling for the u.s. to decelerate in terms of gdp growth. but also inflation to accelerate. also in a better position. what ends up happening is you need to focus on organic growth versus cyclical growth. you need to focus on the leverage balance sheets versus high and low dividends versus high because dividends tend to go hand-in-hand with leverage, and it is also quality versus value so there are various style

factors you need to look at because of our style to be tactical, but underpinning all of that, you have to be a good stock picker, so we recently did it for a third of our returns. aose have actually come from geographic and sector shifts because you have to be tactical. you have to pack your bag right for the mountains. taylor: i feel like the cfa institute is ingrained in my brain to be a free cash flow thing. you cannot fight the fed and you cannot ignore some of these macro factors. from your view, is this the fact that global central banks are now more than ever so involved in the markets, whether it is qe or some of the bond purchasing programs they have that you cannot really fight the fed? you know, their actions are one piece of the puzzle. we think there's three key parts when you are looking to be

tactical. we think it is increasingly important to be tactical because of all the quantitative trading and passive flows, but if you are thinking about having a top-down view, it is about gdp growth. the rate of change of gdp growth. we got tested it. it is very important. and the second part is inflation, so what is going on in terms of the rate of change? the second derivative for the change of inflation. but the third part is policy. the first tonform bring, but they also -- first tw o, but they also inform the policy. they are independent but they also work together in terms of, for example, in the u.s., the growth is slowing. it is not the type of thing where the fed can raise rates. it is also very difficult to lower rates, right?

they are stuck in the box that is stagflation. taylor: were mentioning the you wererivative. -- mentioning the second derivative. example,e stocks, for 3m getting hit pretty hard. as you take a look further out on the scale, where do you see some of the industrials and some of the other sectors that you think can benefit from what you see on the horizon? nadine: the benefit? the nice thing about industrials -- it is a big sector. we actually have tech hiding in industrials in addition to heavy industries having industrials. what we like to do is take a look at what quality businesses -- and they tend to hang out together. nice friends hang out together a good business models

in different industries in the industrial sector. you need that organic growth. you cannot have highly leveraged businesses. you cannot have businesses that need to do m&a to show growth because that will get penalized in a slow growth environment, and therefore, what you need to do is actually look individually at every company what is going on, where do they get their revenues, cash flows, what is the capital structure like? all of those fundamental factors that we were talking about, they matter, but industrials tend not to be well in the scenario i am talking about domestically, but they can do well overseas. we are invested in industrials but they are overseas. taylor: thank you. that was nadine terman, the ceo, cio, and founder. another big interview in the next hour. we will be speaking with the company president. do not miss that. this is bloomberg. ♪

taylor: let's get a quick check now on the latest business flash headlines. is facing anng -- investor revolt. they helped french clients evade taxes. a vote failed to earn enough support, meaning shareholders can reserve the right to take legal action against management. critics -- paul: critics of deutsche bank. to march fellh for the ninth straight quarter and shares are worth less than half of their values five years ago. deutsche's is focused on crosscutting but citigroup is calling for a more radical restructuring including a potential exit from the u.s. market. just ahead, mark carney warns of faster rate hikes as long as

is resolved smoothly. we will have more on that and some of the economic forecasts, coming up next. stay with us. this is bloomberg. ♪ alright boys, time for bed.

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>> this is "daybreak asia." i am ed ludlow. another a president trump said picks -- fed pigs has bailed. has bill.out -- pick he pulled out. herman cain also jumped out. allyld bloomberg's biggest with the white house and he was feeling confident. >> the situation today i think is going to be a lot different three months from now when i go before the senate and banking committee. i am not too concerned about this. a numberook is banning of controversial figures, including out jones and miley

annapolis -- alex jones and milo. they say they break the hate speech and violence roles. -- rule. as ban follow similar rules twitter. hong kong drew less than expected in the first quarter as the weaker global economy and the ongoing trade war dampened sentiment. with analysts looking for growth of almost 2%. hong kong is seen slowing further amid continuing trade tensions and weaker property prices in the city. bezos's blue origin has completed a launch and landing. the rocket blasted off from west texas, carrying a range of items including a 3-d printer and medical devices.

you want to take humans into space. the first manned flight is scheduled. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ed ludlow. this is bloomberg. taylor: we have a half hour to go. sophie, what are you watching? sophie: we are in the early innings of south korea's earnings season. it has been a mixed bag in terms of performance. a surprise recovery in profit and revenue for the first quarter and that turnaround is seen gaining steam on improving shipbuilding prospects. lg also delivered a recovery in profit growth despite rising appreciation costs, yet there are lingering hurdles. hsbc is taking a cautious stance, downgrading the stock. we are washing samsung on a report that hedge fund elliott management is claiming losses

against south korea from the 2015 merger of two samsung units. sk networksorks -- may sell 338 gas stations to its affiliate, sk energy. the value of assets estimated at more than one trillion won. paul: thanks very much. itstumbled to lowest in a month. investors saw the u.s., russia, and saudi arabia potentially filling the gap. let's check the prices with james in sydney. could oil have even further to run? james: could quite possibly. trace it back to wednesday, we have the inventory data out of the u.s., the official government data, which shows crude the highest in two years.

it has done quite a bit to offset supply concerns that have been the setting the market -- besetting the market. if that trend continues, there might be scope for the pullback to continue. the next data point to look out for would be the u.s. oil rig count. that has been going up slightly in recent weeks and if that continues to rise, could be scope for another leg lower. the other thing, as you mentioned, is the u.s. oil sanctions on iran. were removed. people thought that might be a positive influence on prices. huge. not proved to be the expectation is the shortfall will be offset by saudi arabia most likely. a huge impact.g it remains to be seen a strictly the u.s. will impose sanctions again and we will see how that plays out. paul: there's quite a few known unknowns in geopolitics and the

weather. what are some catalysts you are keeping an eye on? cyclonee have this huge threatening off the coast of india and there are oil -- facilities offshore. that will be something traders will be looking at. as i said, there is the end of those iran sanctions. horizon, the-term big factor looming in the market is the expected meeting in june with the opec plus nations on whether they will extend those production cuts. we had some data overnight which showed russia was perhaps sliding a little bit on its commitment to those cuts. there's been question marks over whether russia will want to continue with those cuts. it is a big unknown in the market. taylor: that was james thornhill. we have a very cool thing on the terminal. we are talking about indian oil supplies perhaps potentially taking a hit from the massive

cyclone set to hit the region. it could be a category four. we are hoping it de-escalate's the people on the ground to maybe category three. people have been evacuated from the southeastern state of odessa. you can track all of this of course on the function here. we are waiting to hear what goes as that potentially makes landfall. you can get a roundup of the stories you need to go to get your day going in today's edition of daybreak. bloomberg subscribers can go to dayb on their terminals and it's also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪ >> mark carney of course tried the bank ofo sell england's you that it could hike rates more than expected this view that it could hike

rates more than expected this year. kathleen hays is here. given the u.k. needed this extension from the e.u. in this ongoing drama within brexit, not surprising that the markets are not quite convinced. kathleen: absolutely. i mean, at least the threat, the sense that there could be a no deal chaotic economy clenching brexit is behind us. nevertheless, there's a lot of negotiations to go before people can say this is it. we have got the deal. and it is going to be done potentiallythose damaging spillovers. mark carney holding out for the possibility there will be a smooth brexit. a lot of people think it could happen. the bank of england is upgrading its forecast for the economy to 1.5% on gdp to 1.2%, which is what they saw earlier. based on all of this, the message from mark carney is listen to me come investors.

we could hike rates a little more this year and next year and he wants to give them the warning. let's listen to what he said. something like this forecast comes to pass, a period of time where the economy is growing in these domestic inflationary pressures are continuing to build even though we are going through this period of uncertainty in the run-up to the resolution around brexit, it will require interest rate increases over that period. it will require more and more frequent interest rate increases than the market currently expects. kathleen: more rate hikes, more frequently. that is the message from mark carney. the pound did not extend a rally. u.k. gilt yields held steady. whatms up and encapsulates the bank of england is seeing.

go way back, the first redline exception on the far left, that is when the brexit vote occurred . it has gone through some weak spots according to growth and inflation, jobs in the u.k. economy, another red spot. it popped up into positive territory. isther thing mark carney looking at is talking about global tensions easing and thinking about the potential for a trade deal with continues to ease those tensions. revisions of central-bank outlooks, he is referring to the federal reserve looking to hike rates and pausing for who knows how long. this helps these financial conditions around the world and brings down u.k. bond yields as well. look out. there could be some more rate hikes then thought. -- than you thought. paul: it has been a data rich week. what is the jobs report going to

mean for fed policy? kathleen: the focus is on inflation in wages, average hourly earnings. but even if they come in do notr than forecast, expect the federal reserve to come out saying we can raise interest rates again. inflation being low, average hourly earnings are supposed to rise 3.3 percent year-over-year. in april, they were up 3.2%. jump into the bloomberg library. we are going to look at the chart that shows unemployment, average hourly earnings, and the turquoise line cutting steadily , the recovery from the financial crisis. it is down to 3.8%, almost like a 50 year low. along the bottom, you have the yellow line, which is the pce core deflator year-over-year, 1.5%. it is going in the wrong direction because it is supposed to be rising to 2%. in the middle is the paycheck growth. it has come up.

risen, looks have at that yellow line. it is still pretty flat. when jay powell spoke to the world yesterday after the feds meeting at his press conference, he made it clear we do not think a drop in inflation will last. we think it is transitory. there are special factors that will reverse. another thing for the federal reserve in terms of continuing to think maybe the door will open to rate hikes will of course be payroll. with the recently month moving average. unemployment steady. you cannot get much tighter than a 49 year low. we will see how the market response to this, paul. wagesrprises on jobs and in either direction could move the markets. we will see what happens. paul: we will have our answers soon enough, kathleen hays. things for joining us. up next, tech ipo's create a lot

of billionaires and that is good news for the job market. this is bloomberg. ♪

paul: we are counting down to asia's first major market opens this morning. korean futures are looking a little weaker right now. a bit of a mixed bag at the moment. aussie futures pointing higher by about .1% and japan still closed. this is "daybreak asia." i am paul allen in sydney. taylor: i am taylor riggs in new york. it is jobs day tomorrow. markets are awaiting the latest payroll numbers. they expect solid growth in jobs and wages within the tech sector. our next guest sees employment growth for years to come. casey while is the founder and ceo of a japanese startup that uses ai to help companies understand what motivates employees. casey joins us from san francisco.

let's start broad-based. what are you seeing? what is driving and motivating employees these days? >> what a comes from is the intrinsic motivation. motivation can be external or intrinsic. onare really honing in people's intrinsic motivations. what are the factors that are going to drive them on a cold monday morning to get out and get up to work and kind of really go in and put in a full day for that? what we are seeing across our data, we have customers all over the world in big and small companies as well and what we are's eating it is pretty consistent. even if you have different cultures with different communication and systems with the way they interact and how they go about their daily lives, what is motivating people across those individual markets is pretty consistent across. typically what we see, the last time we pulled data quite a large level, is we were seeing almost 50% of people are motivated by competition and financial needs and status.

that's part of the 11 motivators we pick up. those do not seem to surprise me. it is the one that the lower end. we are seeing people are not really motivated by autonomy. we see this in the news. we see articles about the younger generations coming up into the workforce that they need a lot of autonomy and decision-making. our data shows that is not really the case. taylor: talk to me about that. we hear about millennials who are more focused on a worklife balance and less motivated by money, so to speak. are you consistently finding that it is about a worklife balance? how does it differentiate from some of the older generations and the new millennials coming up through the ranks? casey: we don't have the ability to parse it so nice but where we can see from the hundreds and thousands of millennial respondents that we do know exactly the ages, it is pretty consistent with previous generations. statistically, there is very little variation between what is going on in their intrinsic

motivations. trends making the workplace better so there are moral purpose on call, that a worklife balance, and those should be attractive. it is really getting those individuals. every individual is a unique flower. there's 1.7 million combinations of intrinsic motivations people can have and that is why management is so difficult. there is really nothing statistically different between what motivates millennials versus previous generations. unique flowersl in our own way. more broadly, talking about the jobs market, you are pretty bullish on tech investments. cycle ofhis rich with millionaire employees becoming the angels of tomorrow, right? casey: absolutely. you took the core message. we are seeing a lot of ipo's going on in the u.s. right now uber.yft and living --

all of the employees and the early investors, they are going to be new millionaires and they are going to be putting their into new startups so we will see the next generation in four years, five years, six years from now. they will be founded over the next couple of months. there are funds in the states looking to invest in founders that have out scaled these companies that have just gone public and back those vendors to build the next unicorns. in japan, we are seeing the same thing. now areations right really big. some of these founders are putting their money into the next generation. we are seeing people with this knowledge base to be able to really scale companies that it is growing in tokyo and that will create even more startups over the next few years.

over the next three to five years, it will be very good for both creating new companies and creating job demand. paul: in the broader jobs sense, thch giveth and tech take away. japan,at least in because of the aging population and what you have going on with the demographic issues is ai and robotics are a godsend because you are losing huge chunks of the population over the next decade and the amount of people who are able and willing to work is shrinking. ai needs to take that over and robotics needs to take that over as well. they are taking over some of those repeatable paths, some of the white-collar work where people do not really enjoy it. it is a mindless type of thing like that. i do not think people should be scared about ai taking away jobs as some of the kind of feeling

is out there. paul: speaking specifically to japan, you started up there. challengesome unique facing tech startups in japan. can you describe them to us? casey: japan is a very unique market. it is a relationship-driven market. there's a lot of capital for startups about a lot of founders. what i found in my firm 10 years ago, there were very few startups. over the last five years, we oom. seen a startup b there are hundreds. they don't know how to scale them. we have not seen too many japanese unicorns. couple behind that. the ability to scale, and what i particularly see is we do not see this fine coming in and out of the market during the different stages of a company. the type of people you need an early stage are not necessarily the type of people when you're

getting onto that gravel road, starting to figure things out a bit, and they are not the same type of people as when you are on that highway and let's scale as much as we can. in japan, you have this carryover work for life mentality. even though they are joining a startup, they are still expected to grow through all of the stages with it, and that anders a lot of the growth in tech in japan -- hinders a lot of the growth in japan in tech. taylor: that is casey wahl joining us from san francisco. more ahead on "daybreak asia." good morning. this is bloomberg. ♪

paul: sri lanka's finance minister has said the country will consider forgiving taxes for the tourism industry as it seeks to restore normalcy after the easter sunday terrorist attack that killed more than 250 people.

our guest spoke exclusively to bloomberg in fiji. andhey have already made -- they have given some of the requests which will be considered. in fact, i am hoping to read them as soon as i get back next week. give thell certainly request serious consideration. >> what are you planning to do? >> many of them have been asking for examples, duty-free waivers, etc., on bringing security. so all these requests will be given serious consideration so that we could get back to normal in the tourism industry. the tourism industry can get back to normal as soon as possible. similarbeen studying

things in other parts of the world. india, bali. in all those places, with the right kind of action, i would say tourism could bounce back to normalcy within a short period, maybe a short as one year, 1.5 years. >> is there reason to think you may have to tap into the emergency fund of the world bank? mangala: no, no, no, no. we're basically all right. what do you deem as the biggest risk to the sri lankan economy? mangala: the biggest risk would be -- but now, we feel that we can manage it and hope it does not return again. moving lankan economy is slowly but family forward -- sou

ndly forward. we do have a very sound, firm economy based on fundamentals. andbased on the rule of law democracy. >> can you give investors the assurance that the terror network has been contained? mangala: yes. i would say that it has been ,ontained, but as someone said the terrorists need to be lucky only once. but on the other hand, sri lanka , we are working hand in hand with a global network to ensure that he sort of attacks by these hideous terrorists do not happen again in our country. lankan that was the sri finance ministers poking

exclusively to being berg -- bloomberg in fiji. let's get a preview of the market open in south korea and australia. sophie: we are seeing a potential mixed start to the friday session with shares and a pleasure in what will likely be another light volume day. the focus turns to the u.s. jobs report. money manager qic has sweetened its offer to my telco infrastructure player super loop, raising its shares, which is a 7% premium to the last close. from korea, plenty of earnings to wade through. we are going to be watching the group. plus, he and a motor is on -- hyundai motor is on watch. yeard profit posted last with net income rising 17% to 2.1 billion dollars. shareholders have been rewarded with a boost to the dividend

payouts. the lender is forecasting a slight drop in profit this year. continue as ito grapples with min misconduct woes. we focus on outlook for emerging markets. ♪

>> i'm paul allen in sydney. asia's major markets have just opened for trade. taylor: good from bloomberg's global headquarters, i'm taylor riggs. sophie: i'm sophie kamaruddin in hong kong. will come to "daybreak: asia." paul: our top stories this friday. asian stocks face another mixed day as investors await payroll numbers. volume will be right with japan and china on a break. mixed messages, despite encouraging noises from the u.s. and china.

there are reports trade talks have hit a problem. taylor: rewriting the script. the avengers director says the success can shake up hollywood's role in china. withm haslinda amin live policymakers and corporate hotshots gathering for the annual meeting. we will be joined in just about 10 minutes. you don't want to miss the interview. taylor: let's get straight to the market action with sophie. this friday, let's check in on what's going on with stocks in sydney. a new zealand first off. we have china off of trading. wellington stocks are still on a retreat. the kiwi dollar had a crash low. stocks are opening in sydney slightly higher. the aussie dollar is coming under pressure, hovering around

a 70 handle against the u.s. dollar funding approval data that is expected to show further deterioration in that data. when itbe for the rba meets at its policy decision next week. checking in on how the mood ease in south korea. the cosby is under pressure. looks like thursday's optimism may be a blip. he also see pressure for the korean won. we have plenty of earnings to consider from south korea, it including hyundai. it did offer an unexpected recovery in both profits and revenue. we just get across to breaking news from tesla. said to price this stock offering at $243 per share. at the close, $244. this is on the back of the news of elon musk saying there would

1.3 5iling to sell billion in convertible notes, $653 billion in shares. now we have more news, the upsized stock priced at $243 per share. let's get the first word news with ed ludlow. ed: another of president trump's fed picks has failed hours after telling bloomberg he was all in on the process. he pulled out amid growing objections senate republicans. it comes days after the president's other fed choice, herman cain, also dropped out. said his biggest ally was the white house and he was feeling confident. >> a situation today that will be a lot different three months from now when i go before the senate and the banking committee. i'm not too concerned about this. ed: bank of england governor mark carney says he is ready to

raise rates by more than the markets may expect if brexit goes smoothly. policymakers kept rates on hold is expected. they are prepared to act when uncertainty around the u.k.'s split is resolved. a smooth brexit would require more frequent hikes than the market currently expects. hong kong grew less than expected in the first quarter as the weak global economy and ongoing trade war damaged sentiments. gdp went 5%, compared with a year earlier. analysts were expecting somewhere of almost 2%. hong kong has seen slowing further this year because of trade tensions and property prices in the city. day,, onws 24 hours a air and at tictoc on twitter, powered by more than 7700 journalists and analysts in more than 120 countries. i'm ed ludlow, this is bloomberg. storylet's get to our top

this hour. there has been recent talk a u.s./china trade deal is imminent, signs from chinese state media show the two sides may have hit a snag. derek wall bank has been following this. what is the word from the chinese state media? is thererd from them is a question of whether or not this has hit an impasse. we are not saying it has. people areting some suggesting there may be trouble in paradise. sidely after the u.s. said talks were going positively. there has been no change in talks between yesterday and today. this is not coming off of an actual development. it is a sentiment question. propose this with other reporting coming from the u.s. politico said they are nearing a

deal to possibly roll back some of the tariffs, particularly 10% on $200 billion in goods. further comments from president trump actually saying there was a good possibility for a deal to be made. there is a little bit of injected question coming in from one of the sinds. it is also -- sides. it's possible it can be gamesmanship, both sides, as we come down to a critical point in the u.s./china talks. two hours,the last we have had president trump coming out and saying the u.s. has a good chance to have a great china trade deal. also touting u.s. steel. it kinds of brings up the question, what is at stake? is it steel, ag, intellectual property theft? what are the key issues we are hoping to get resolved?

>> it is a really good question. one of the things i have seen following president trump closely is you will see people seniorething, and a administration officials say something, but there is a very senior administration official. it is much smarter to pay attention to what he has to say on any topic. to yourr directly point, the same issues we have seen, i think enforcement is one of the things you have to keep an eye on. even if people say there is a lot of agreement towards enforcement, the exact details are something i am watching up until the second it is signed. the other thing is intellectual property always has been the issue, the issue of fraud, copying, patent enforcement. that is all really thorny bramble of things. those are 2 areas i watch

closely. taylor: that was bloomberg's asia senior editor derek wallbank. i want to take a look at what asian investors will be watching as trading has been kicking off. we are joined by mark cranfield. i'm all ears waiting for the u.s. payrolls report coming out. i wanted to pivot on what we just heard from derek over in the previous segment about trade. are the trade fears overdone, or is it still sort of playing out in the market? mark: it is definitely a factor. what investors don't really like is to reassess something that they thought they put to bed. what you are seeing are 2 in particular where people thought they knew what the outcome was. you have the fed, some investors were hoping they would re-instill a dovish tone, they would give them the ammunition they want to keep the rate cuts

in the curve and move on that basis. the fed have not done that. they have backtracked slightly. that has unnerved people. also have people thinking the trade deal with a done deal, there was nothing more to worry about, the china and u.s. are working towards a good deal and it would happen soon. now there are doubts being thrown in, as well. investors need to take a step back and reconsider what they believe in and how it affects their positioning. when we are going through that, you start to see volatility come in and nervousness. the oil price slid last night. treasury bonds backed up. people are having to rethink what some of the positions they really liked just a week ago, maybe they are not liking them so much now. plus, the jobs report. it could be a lively day in wall street on friday. taylor: you took me where i wanted to go, u.s. jobs day. what are we hoping to get come in terms of strength?

and the read through into your markets tomorrow, as well. mark: it would be surprising if we don't get a decent number. themselves payrolls will be not too far away from 200,000. and the unemployment rate will be below 4%. average hourly earnings may go up. participation rate is likely to unchanged.uch overall, it will be a strong report. it will be surprising if it was not. it would need to be a very big miss to disappoint the market at this stage. it reinforces the view that the fed is probably right, to be on an extended pause and be patient. the market needs to take that into account. it doesn't mean a rate cut is coming any day soon. a rate cut is a long way off. the unemployment report will probably give them a clearer picture on the fact that a hold is a hold for a long time. paul: another big variable is oil. we have seen the price slip.

nevermind the supply concerns we are talking about with libya, venezuela, the sanctions on iran, we have rising u.s. crude stockpiles, signs russia may slide on the production curve. where is the oil production going from here? mark: it will be pretty choppy. if we have any breakdown in opec -- if they are not keeping to some of the cuts they expected, and russia may already be doing more than it should be, if saudi arabia joins with that under pressure from the u.s., there will be downsides for oil. you take the other factors, like venezuela, hoping to keep the price up, it will be choppy trading. oil is at high levels. it has had a good rally this year. under those circumstances, it is not surprising it will get pushed around. we may be around $60 and $70 for while.

ultimately, it's what saudi arabia does that will define the direction for the medium-term. takings relax, they are the wait and see approach. if it is pushed into higher production, there will be downside for oil. bloomberg and live strategist mark cranfield, thanks for joining us. let's get to a big mover in sydney right now. sophie kamaruddin will tell us about it. mccourypaul mccoury -- dropping. this after the bank flagged a slight drop this year after reporting record profits. the fiscal 2020 guidance supplies results about 7%. the drag expected from an anticipated fall in investment related income. even the boost not stroking positive sentiment. they tend to start of the year conservatively before updating profit targets through the year. paul: still to come, we are going to dig into the alpha for

emerging markets. taylor: first, we are headed over to 52nd annual meeting of the asian development bank. we get the latest, next. this is bloomberg. ♪

paul: this is "daybreak: asia." i'm paul allen in sydney. taylor: i'm taylor riggs in new york. the 52nd annual meeting of the asian development bank is starting. the institution has been discussing whether an increased interest rates on financing to countries such as china, that now exceeds a certain income level. let's cross over to the event and our chief international correspondent, haslinda auman. what do you have for us? inlinda: just to put it context, some discussions among some countries that perhaps china no longer needs loans

because it is dispersing loans themselves to imagine economies through the likes of the belt and road initiative that has been going on for some time. there has been a lot based on that. prospects for the growth for the asian region. good to have you with us. what are the priorities of this meeting? what do you hope to achieve? -- we want to .howcase the development is very well-managed. haslinda: infrastructure. one of the interesting things right now is china's role in dispersing loans to its belt and road initiative. there's discussion about a debt

trap? >> the initiative is a very natural idea. linked between europe and asia and central asia. it's a very natural idea to expand the productivity. because of the lending to these countries, there is a debt issue. i think china is not discussing the importance to carrying the issues of the country. it is progressing. haslinda: how confident are you the issue of sustainability of debt is being addressed by china? met the chief at a meeting,

the imf has been told for many months with china to address the issue. he expressed optimism. to theve also spoken to -- aboutating grants fornce of projects. if we invest in the project, it must have enough for repaying the debt. china -- in a sense, lending to these countries supporting these countries. care that the sustainability are subsequent. haslinda: staying with china. some countries have thought perhaps the agb should stop its loans.

china can dispense its own loans. is developing quickly. it can be a model for many countries. we are now decreasing lending to china over the years. lending was becoming smaller. we are now concentrating lending on issues like climate change, emissions, and also some environmental issues, like pollution in the air, the water, so on. we are forecasting our support to these areas. i think that we still have a case to make to china. there is no idea for it needed. there is reason to continue. haslinda: what is the strong

case for lending to china? >> one important issue is these lendings were forecast to be reasonable public goods, even like climate change. reduction of emissions. is a reason, issues, --uss some so many issues. we are also lending to china by funding costs less the fed. those are the cover of our new post. supporting for our country. tore are reasons to continue support china in a limited way. haslinda: you're talking lending less to china. when do you see it decreasing

even more? is there a time frame? >> it is difficult to tell. maybe the next five years, starting from 2021 to 25. -- 2025. china already has a big population, 1.4 billion people. it is one of our larger borrowers. some of them are still very poor. haslinda: how closely are you watching the u.s./china trade war and its impact? there are signs a deal could come through? >> it is a bit of a concern. hasall, i think asia potential overgrowth. memberst the developing on this side -- excluding hong kong, it is

growing at a pace of six point succession. can double it. is not terribly of applied to asia, because of some consumption from investments. haslinda: it is an interdependent global economy. the global supply chain is pretty much interconnected. we have seen so much slowdown in the u.s. impacting emerging economies here. how resilient our asian economies? , capacity is there -- how much capacity is her to react? [indiscernible]

>> they are passing a very prudent method. even more than this. it is much deeper. they have the falling reserves. they have more resilience. too many discussions on the slowdown. of course there is in flux from slowdowns. maintain while the sun shines. what should the asian economy be looking at? any improvements they can make? >> there are many things we continue to do. the continued investment in infrastructure, which has quality and supports our mitigation and other climate change.

we must continue to invest in human capital. education, vocational training, education for women. they are now using financial inclusions through the mobile phones and so on. we are supporting them to andort smaller enterprises the women. national continue to and there are many distributions -- there are many distributions. [indiscernible] haslinda: thank you so much. takehiko nakao.

economy seems resilient, but a lot of work to be done. paul: haslinda amin with takehiko nakao. thank you very much for that. plenty more to come on "daybreak: asia." this is bloomberg. ♪

let's get a quick check of the latest business flash headlines. tesla routed on plans to raise about $2 billion through debt and stock offerings after elon musk overestimated the model 3's ability to generate cash. sydney priced a 243 dollars each. tesla no longer needs to raise capital. the message was changed when it slumped the first quarter. taylor: headwinds in the midst of this corporate turnaround, forecast for 2021 week after cutting outlook for the year. selling is northern ireland and

focusing on luxury jets and trains. american spine fever is wreaking havoc on the chinese culture industry. who is getting hit the worst. this is bloomberg. ♪

paul: this is "daybreak: asia." i'm and -- ed: this is "daybreak: asia." i'm ed ludlow with the first word headlines. warren buffett is not just a fan of amazon, he is a shareholder. he said his portfolio managers have been buying amazon shares recently, and he was "an idiot for not buying shares in the company sooner." it gave shares in the company a bump in after-hours trade. opec is being warned it faces collapse due to the treatment of some of its members. the country's oil minister told opec's leader that 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 to tighten sanctions on iran. the number of people killed in the christchurch mosque attacks has risen to 51. 46-year-old turkish national thine after being in critical condition and intensive care since the attack. nine other people remain in hospital, but are said to be in stable condition. been chargedas with 50 counts of murder and 39 counts of attempted murder. there are fears of cholera in mozambique in the aftermath of a cyclone that killed almost 40 people and demonstrated wide areas of -- devastated wide areas of the country. flooding has made drinking water unsafe. it's the second major cyclone to the country in weeks. more than 1000 people died in march. news, 24 hours a day, on air and at tictoc on twitter,

powered by more than 2700 journalists and analysts in more than 120 countries. i'm ed ludlow, this is bloomberg. a market want to get check with sophie. after days of losses, what are we seeing a broad? sophie: we see pressure from asian stocks, trading mixed. decline. resuming its the korean won under a tree, slipping towards 1169. the yen is looking steady ahead of the u.s. jobs report due this friday. checking in on stock movers across the region. some movers in sydney. a quarry group is the biggest drag. henderson sliding after cutting to neutral on the quarry. investors pulled money for a sixth straight quarter. resnick shares are rising after its update. beatedical equipment maker estimates on revenue. gross margins sought a 100 basis points bump.

the revised takeover offer offer has been sweetened to 195 aussie dollars a share. switching the board to check into seoul. korean air space falling after first-quarter sales missed the operating profit, coming weaker than expected. extending gains for a fourth straight session, rising to an august 2018 high after the stock was raised. the company is due to report results next thursday. a quick check on the commodities board, iron ore rising in singapore. all of them continuing to tread water after tumbles because of u.s.. slippage continues. indian oil supplies may take a hit from a massive cyclone set to hit the region friday. about one million people have been evacuated from the eastern state. you can track the storm on

bloomberg's map function. you can also get a roundup of the stories you need to know to get your day going on today's featuring "daybreak," the progress of the cyclone. bloomberg subscribers go to tv on the terminals. also available on their mobile. what started with a few did pigs in northeastern china is now saying the calling of about one million animals. they've threatened to remove 100 million more in china. dan murtaugh has been tracking this. talk us through the have it -- of habit of effort -- havoc african swine flu. >> the first outbreak was last august. since then, there have been over 100 more diseases across china, into mongolia, cambodia, and vietnam. china is a particularly sensitive place to be hit. it's one of the biggest consumer

of hogs. because of its population, it has more than half of the world's pigs in farms there. depending on how bad it spreads, it could be calamitous on a global scale. taylor: how calamitous are we talking? it could potentially impact the global supply chain. any signs of it impacting the broader economy? do we have numbers? >> we were seeing a little bit -- the first thing is pork prices are surging in china. they have also surged in places like america and the eu. analysts expect it will have a knock on effect to other types beef, poultry, eggs, any kind of protein it used to replace the pork. pork makes up the largest portion of china's consumer product basket. risingpork prices mean

inflation. citigroup raised its inflation 2.6%.st from 1.9% to if things get worse, it can get worse. higher inflation in places like china or poland, that gives countries, central banks, let's leeway to work with -- less leeway to work with monetary stimulus efforts to spur the economy. it can have wrought ripple effects through the entire economy. taylor: we will keep our eyes peeled. that was dan murtaugh in singapore. i want to turn back to earnings. hsbc is set to report friday. results should show whether the ceo has managed to bring costs under control. bloomberg's china finance reporter joins us from beijing. educate me a little bit. in the u.s., bank earnings felt better than expected. bank managing turned. things around.

i know it is a very different story when we go to the european. some of the asian banks, as well. what are we expecting? >> it continues to be all about jobs. whether revenue growth will outpace cost increases. it is not as job cuts are on the line. inrces have told us that march, the ceo gave senior executives a piece of his mind when he called out there incompetence and inability to control expenses. around, january was a good month. the question is have february and march been good? if they haven't, what jobs are on the line? maybe it is reinvestment banking section of the bank. that is where the highly compensated employees are. are notareholders happy. what about investors and analysts?

because it is such a are bank, some investors saying they don't hold this in their portfolio, because it is understand. it is the uk's biggest lender, most business is in asia. it is the draw, in terms of buys and sells. it has skewed more towards buys. the bank in the long-term has outperformed its european peers. this time around, it is a complete draw. we are waiting to see what their earnings will show. quickly, a lot in the u.s. was focused on the trading environment. you had subdued volatility within the vix, the equity markets, the bond markets. any idea on how the trading environment has shaped up in q1? lucille: not a lot of

information on that at the moment. in terms of liquidity in the market, we know that lending has surged in march. in terms of trading, i think we are still waiting to see. paul: bloomberg china financial regulations reporter lucile li u, thank you for joining us. china may pull back on stimulus. we talk to an investor who says the markets and economy have not felt that stimulus yet. this is bloomberg. ♪ omberg. ♪

taylor: this is "daybreak: asia." i'm taylor riggs in new york. paul: i'm paul allen in sydney. the window for asian central banks to lower interest rates remains firmly open next week. having policy decisions in australia, malaysia, new zealand, thailand,

and the philippines, as signs growth of new easing in the region. after fed chair jerome powell pushed back against pressure of 4 rate cuts. let's bring in a partner and asset manager at east capital. it focuses on emerging and frontier markets. she joins us from hong kong. i mentioned 5 asian central banks making policy decisions next week. probably 4 our lives. how closely are you watching those? >> we are watching this, but we don't spend a lot of time. forhink the trajectory global markets, in terms of monetary policy, is more important than what's happening in each and every company. markets we are focusing on like china, we have seen there is no specific surprise to expect. it is clear how things will be developing. we spend more time looking at earnings, reforms, what is going

on, in terms of geopolitics and the central banks. paul: in terms of some of these emerging markets in the asia region, we have gotten interesting news. the bubble of everything and are going torates take some profit from the risk assets. what are your thoughts? once again, it depends on how you look at it. mean cheapw rates money. usually when you have cheap money somewhere, it creates issues where you have met the location of capital, which is not great when you are an equity investor. i guess it is difficult to make headline statements talking about all of these markets and sectors. there are specific places where we see interesting stories emerging in china, for instance, related to the cuts and tax cuts

the government has decided on and what the implications are for different sectors. we also see in china a continuous momentum for the environment, with a lot of things happening in sectors related to this war on pollution and so forth. more detail. a bit we spend a lot of time meeting with companies and discussing these things with management. you clearly see the overall macro story is not that important for the entrepreneurs and companies around asia. taylor: so much of our conversations have been u.s. versus the rest of the world. u.s. equities in white, going back since early 2018 through present day, really continuing to outperform. is that part of the reason why you like china? it has been the relative underperformance on the last

year, and sort of the undervaluation you are seeing in the opportunities, given the big run-up we have had so far in the u.s. karine: capital is especially emerging for markets. we do not invest in the u.s.. what is interesting to see is the fact that you have this year, more investors looking into emerging markets. we can see that in conversations with our clients. people think about the plan to increase their location to emerging markets. a verynitely offers interesting valuation level, especially compared to the u.s.. the underlying stories -- the u.s. macro has been quite strong. a lot of it has been related to tax reforms in the u.s., financial engineering, and so forth. in a number of these emerging

markets, you have true long-term stories about reforms, opening up the markets. are more tangible stories than what's going on in the u.s. it is indeed time to look into emerging markets. taylor: when we take a look at the long-term storage, some of the conversations we are having relate around trade. we had headlines from china saying they may not be quite sure a trade you will get done. president trump says he is hopeful they will make good progress. how much of a headwind is trade? how much can you factor that into your analysis? if there are positive developments, how big of a headwind does it remove? trade has definitely been a major issue for all investors. something that everyone is watching very closely. we don't know yet when there will be a deal, we know we are closer to the final round than the start.

when you look into the markets themselves, except if you're looking into exporters, there has been less of an issue for domestic equity markets then you could expect. it has had a huge implication on the sentiment for investors. taylor: that was darine hirn of east capital. don't forget our function tv . catches on past interviews and any functions we talk about. become part of the conversation by sending us instant messages during our shows. just promise to be nice. this is for bloomberg subscribers only. check us out at tv . this is bloomberg. ♪

let's get a quick check of the latest business flash headlines. critics surrounding deutsche bank for having no plan b after the collapse of potential merger talks with commerce. revenues through march fell for the night straight quarter. shares are worth less than half their value five years ago. deutsche's is focused on cost cutting, but citigroup is calling for a more radical restructuring, including potential exit from the u.s. market. >> -- paul: investors were underwhelmed by the largest dividend on record worried before the market opened, the company aimed to raise the pay

out by "at least a high single-digit percentage." analysts characterized the plan as rather than revolutionary. caterpillar has slumped for concern about demand. taylor: movie fans have been flocking to see the epic finale of the marvel franchise "avengers: endgame," which rewrote box office records. joe and end of russo joined bloomberg to discuss the movie's success and importance on the international markets. >> we travel with these films and promote them. we pay attention to each and every market. china is a market that we have a lot of connection with. we started in partnership with partners out of china. we have a very close relationship with chinese markets. i think it is important to make sure that as film makers, you

pay attention to the global market. it is delivering on an incredible level for us. we have traveled the world over the last 4 films and probably been to 10 to 12 different markets. >> with regards to the global market, "engame" and a lot of movies are released at the same time in asia. how does that effect it? joe: for a movie like this, it is literally required. there are a lot of secrets in this movie. one market gets ahead of the other market, the other market may feel left out. you will go online and they know it happened. it can hurt the box office. it is critically important in a movie like this, especially a conclusion. everyone wants to celebrate at the exact same time, have a conversation at the same time, you give the movie to them together.

>> when we talk about globalization, we talk about cultural differences. also, it's a very diverse cast you have. how have you thought about diversity in the films you make, behind the cameras and in front, and ensuring the needle is moving? always arsity is value. as we travel the world with these movies and you see how go on cultural boundaries. they are popular everywhere. it becomes even more important to represent everybody that is andom of these films. there has been growing diversity in the marvel cinematic universe. we have been talking about it. the focus is on this epic conclusion to the 22 movie run up to this point. going forward, marvel will become even more diverse. paul: that is joe and anthony rizzo, the directors of "avnegers endgame."

let's stick with hollywood. trade talks. bloomberg's anish is a cory joins us from los angeles. how big is the film industry featured in trade talks between the u.s. and china? been low down on the list. the access of hollywood and media companies, from disney to netflix, is a huge issue. it is a controlled market, but the second-biggest market in the world. it soon can be the biggest if it overtakes the u.s.. their box office is currently $9 billion. the u.s. is nearing $12 billion. it could be overtaken. u.s. studios are focused on increasing not only the access to the market, the number of films, but also the level of conversation they get for those movies. taylor: talk to me more about this. much about the

chinese film industry. it says the u.s. receives about 25% of ticket sales from china. the trump administration wants to push it up to 40%. what is the film industry saying? are they on board? >> what we have been reporting that this is one area where the u.s. and china could find concession and a win for both sides. they have failed to reach much agreement elsewhere. china agreed to allow 34 movies from the u.s. and offer them 25% of ticket sales. now, it could move up -- and the for,-- the u.s. is hoping closer to international norms, around 40%. it can lead to several billion dollars for the u.s. movie industry. this is,important as it is hard to imagine a failure to agree on it will trip up the whole trade deal, or is it?

anousha: it is an area where you could get a win. at the same time, it is hollywood, not necessarily a priority on this administration, the top of president trump's agenda. there have been more pressing issues for him. they are more supportive of his agenda rather than catering to hollywood. it can be space-saving, in terms of china and america can be positive of their businesses, and which can get cheerleading for the trump administration in the u.s. from hollywood, not something that usually happens. taylor: it doesn't usually happen. very good to get your take on how ticket sales and movies are affecting trade talks. that was bloomberg media reporter anousha sakoui. let's get a preview on what to watch in the markets that are opening up later this morning. sophie, what do you have? sophie: in singapore, uob is on

the radar after they posted an 8% rise in quarterly net income following dbs in delivering higher lending and trading income. analyst expect it will benefit ocbc when it reports next week. flipping the board in hong kong, hsbc earnings on the board. hong kong and the u.k. in focus. cosco shipping may move, as well. we are also keeping an eye on the towel gaining stock. this as more analysts reckon april marks the worst of it for the gambling hub. with signs returning of china's economic stabilization. bernstein expects growth raising revenue between 2% and 4%. flipping the board for when hong kong markets open in half hour. the hang seng will be put to the test at the 35 level, being difficult to breach with catalysts continuing the best start for the year since 2015.

the weak first-quarter gdp print may be a dampener. it is among those anticipating a correction, unless there is good news. before we hand over to "bloomberg markets: asia," let's check out how the markets are trading. south korea's cosby also one third of 1%. we are in positive territory. 1/10 of 1%, one of the worst performers, the cory group, in line with estimates come but flagging a challenging year. zealand, the internet's off a third of 1%. plenty more to come. the news will be live. this is bloomberg. ♪ the latest innovation from xfinity

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>> hello. it is 9:00 a.m. in beijing, shanghai, and singapore. welcome to "bloomberg markets: china open." i'm stephen engle. > i'm david ingles. we are counting down to the open of trade here in hong kong. so far as quiet investors await the newest numbers and earnings. we have updates on trade talks. >> chinese tech firms are setting a record for convertible bond offerings with sales this year nearly double. -- double 2018's total. david: tesla makes a u-turn. elon musk's plans for china may be hit by traditional automakers.