paul: welcome to daybreak australia. i'm paul allen. haidi: i'm shery ahn in washington, d.c. sophie: i'm sophie kamaruddin in singapore. we are counting down to asia's major market open. ♪ stories wes the top are covering in the next hour. wall street falls by the most since march on renewed concern on the trade war. oil also drops and havens on the rise. will slide to

washington, but retaliatory measures are being prepared against u.s. goods. the fed reaffirms patience. the policies in good shape and there is no need to move. shery: later in bloomberg googleogy global link, bets on a cheaper pixel smartphone. first, we get you started on how markets closed in the u.s. session. pressure on the stock markets as we have had investor sentiment pretty fragile on those trade tensions. the index down 1.8%. the s&p 500 down 1.7%. we saw a small recovery later in the session to close off, but still materials, industrials leading the declines. nasdaq down almost 2%. u.s. preachers under a little bit -- futures under a little bit of pressure at the moment. to vice premier comes here

washington, d.c. later this week. let's see how things are shaping up with the asian markets with sophie in singapore. sophie: we have had fragile sentiment in asia as well with markets bracing for a selloff. futures pointing to losses. thendx 50 looking to buck trend for the asx 200 with a weak start. steep slump of over 2% and i looking unchanged. more earnings on the horizon from japan. more than 40 companies are to report including toyota and honda. for the agenda in asia, korea current account balance due in one hour. and philippine traded at ahead of its policy decision. we have the rba following through with a rate cut. the midweek data highlight will be chinese trade. export growth moderating in april. paul: thanks very much for that.

let's get the first word news with jessica summers. jessica: thanks. crowds are gathering over the eurozone.the european commission cut its overall growth forecast and slashed the outlook for its major individual economy. brussels says germany will expand this year by less than .5%. it says downside risks for the region remains prominent. the commission notes exceptional weakness in eu manufacturing. sources in the u k cabinet say ministers are losing hope of reaching a brexit deal with the opposition labor party. that talks are stalling and any agreement looks increasingly unlikely. that will mean the government will now turn to plan b, an option that would realistically offer parliament. a no deal brexit or canceling the divorce altogether. malaysia joined asia's easing

cycle with the first rate cut since the middle of 2016. lowering the overnight policy 3%, by a quarter percent to as predicted by a majority of economists. policymakers are bracing for slower growth. the central bank sees expansion this year below the government's forecast of 4.9%. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts. i'm jessica summers. this is bloomberg. paul: all right, thanks. let's get back to the top story. the white knuckle ride for stock bulls, the worst of the second day of trade reletting selling. the dow was down, 2.5%. the nasdaq had fallen almost 3%. a late session recovery helped stocks close off those lows. su keenan is here with more. tell us about the wild ride. su: before we saw buyers come

into the final hour, it was the worst two-day slide of the year so far. many saying really doesn't 2% drop in the market rental experienced investors, but there was a view in the back of the head as one strategist said, here we go again. let's take what we got and not end up losing for the year. stocks down in a big way. 90% of the stocks listed were in the red. the s&p materials index, the biggest loser, down almost 2%. we were down more in futures. so, that is coming off of it as we just reopened at the hour. it looks like some investors have digested what has happened and the fact we ended off the lows which technical analysts say is a positive. let's go into the chemical index because when you ask how bad was it for the chemical stocks in

the last two days alone, it has been a $20 billion loss. throw in the metals, it is a $22 billion loss for the metals and chemical investors alone. into the big movers, take a look at the stocks that moved a lot. many of them are in the bullseye of the trade war, such as dow dupont. one analyst says they are more exposed than any other chemical peers. micron.a lot of the tech companies also heavily affected by the straight concerns. there were some stocks that rally, very few. beyond meat, the ipo that continues to run strong. aig had a very impressive earnings breaking straight quarters of losses. shery: same story with oil futures getting sucked into the turmoil. brent falling below $70 a barrel. wti also falling near $60 a barrel. what is going on there? su: let's go through the

five-day chart and you will see even as oil started to recover yesterday, it got socked again. five-day chart for oil, there you go. it got socked again. down to 7% in west texas intermediate since the april high. we have been talking about year to date oil has been such a story. i don't know if we have the big picture you today chart for oil. we have come down. the trump factor being blamed, not just for the trade wing on oil, but because of the trump policies weighing on global growth. quickly to copper which is also on the decline. many of the metals taking similar moves lower because of the trade war concerns. shery: thank you so much for that with the latest on the markets. we continue to see investors pretty much anxious and nervous over this. the u.s.-china trade talks

scheduled for this week will go ahead. joe joining us now in the d.c. studio. great to have you with us. we continue to see the trade tensions unfold but at the same time, the response from china so far seems to have been pretty measured. so, when you look at the context of how things stand, can we just say at least the administration's at the moment seemed to be having the upper hand? joe: that is exactly right. a number of occasions in the past, the president has postponed deadlines and possible retaliatory otariffs. right now, the hawks led by robert lighthizer have ascended. they have been pushing the president that he should not accept a deal in which he would compromise's central u.s. policies that they want china to adopt. that has pushed them into this situation. i think if we get to the point

of seeing the tariffs actually friday,at 12:01 a.m. that is going to be a collapse of the talks and something that will start all over again. paul: joe, the trade battle to one side. president trump has another battle closer to home within the house. what is happening there? joe: they are heading to a vote tomorrow in the house about whether or not to cite the attorney general for content. -- contempt. they want the full mueller report and underlying documentation. the administration has been resisting that. there have been negotiations, but they are going to possibly vote on a contempt citation. this would be the first step, likely that would go to court. separately, the white house says they want to block done again from testifying -- don

gahn, that are part of the investigations for the mueller report. they are also going to be get ting into a conflict over that. a number of these things that has been progressing along. the white house has drawn a firm line. they will not cooperate with any house investigations. that is going to be more citations. nancy pelosi today suggested that trump was trying to goad democrats into impeaching him. that could be a political win for him. she has said he has done some things that are possibly impeachable, but she is still holding back in taking that step. paul: all right, joe in washington. thank you for watching those stories for us. still to come, lyft's first post ipo results beats expectations.

meanwhile, demand for uber enough to offer it at the top price of the range. details on what is excited to be the world's biggest ipo this year. shery: coming up, we talk about the outlook for chinese government bonds. this is bloomberg. ♪

shery: welcome back. i'm shery ahn in washington, d.c. paul: i'm paul allen in sydney. you are watching daybreak australia. a part of the treasury yield curve is heading towards and potentially worrying level. however, the fed vice-chairman has told the u.s. economy and monetary policy are in a good place right now. let's discuss that with prashant chandran, comanager of the $1.4 billion western asset opportunity fund.

it returned almost 6% this year, beating 93% of its peers, according to bloomberg. thank you so much for joining us today. let us start with the yield. we have seen that grinding lower. it has dipped about 3.5%. what is the bond market telling you about risks in the economy right now? treasury,the 10 year just the use that as a proxy, is going to behave as a flight to quality. the trade war tensions levering up again. the rally in the yield, overall yield of u.s. treasury's has a lot to do with that. we also feel the overall backdrop is one for bullishness, to be long-duration, long interest rates in the u.s. mainly because of the fed's dovish pitted. with growth slowing down in the u.s., 2.25%. we think that the fed can remain

dovish, accommodative. with all of that, it is not as a prize the 10 year treasuries are where they are. paul: do you agree with the vice chair's assessment of the u.s. economy is in a good place? prashant: we think so. we think it has in many ways moved from the right tale of the dissolution which is high-growth, to more of the middle of the distribution. we just more offer a steady growth. inflation still being contained, and the fed becoming much more accommodated. in many ways, to us, this is not only a bullish time for treasuries, but also overall risk assets. with g10 central banks becoming decidedly accommodated, we think risk assets have room to run and u.s. treasury and the dollar. shery: when we have these latest trade tensions and we don't know where the direction of this trade deal between the u.s. and china will go, do corporate debt

markets care about the trade war ongoing in the background? prashant: surely, they do. there is a certain element of corporate debt or credit spreads. that is definitely related to a equity markets go. we saw that in december and november of last year. we saw the rebound in january of this year. equity markets also rebounded. clearly, they do care about overall risk and sentiments in the market. you lookou take -- if down into trade war and tensions, we think there is a deal to be had. we think despite the volatility we have seen in the last two to three days, the chinese contingent is still coming in this thursday. we think even if a deal does not get announced on thursday, which is the deadline that president trump has imposed, we think there is a deal to be had. we think it comes in the coming weeks and it should be bullish for risk assets.

it should be bullish for overall market sentiment. shery: we have seen explosive growth in asian high-yield markets, so where do the credit markets go from here if we are still waiting for those trade negotiations to continue? but at the same time, you are still seeing global growth. prashant: right, exactly. we take a medium to long-term approach in some of these risk assets. betass we trade liquid around that medium to long-term view, we think with a steady growth in global economy, slowing of the margins nevertheless, we still think steady as she goes. with inflation being contained, we think central banks will remain accommodative. this is where it is important. as spreads have tightened in to start looking into the index and saying what parts of high-yield or corporate do i like? what sectors do i like, what do i not like? just today -- just to dig

in our portfolio, we like financials, high-yield and industrials. we think there is more infrastructure spending to be done globally. metal think that overall, and mining companies, industrials in general are good subsectors. this is where it is important to start looking into the index overall and saying what subsectors what i rather be long even as i am -- overall ong, but non- -- long, but not as long as i was in 2017 or 2018. paul: quickly, i know you are optimistic on trade and the long-term picture, but is there a political risk that to fully appreciate? the president is turning, beating up on china into something of a policy essential and that will be true of other candidates into the 2020

election as well. what is the political risk? prashant: there is that. there is geopolitical risk, as the president has pronounced. action against iran. venezuela poses geopolitical risk. coming back to the trade war and tensions. we think the announcement that comes into effect on friday, the increase in tariffs -- it is not without teeth. we think that is to make sure both sides, the u.s. and china, are diligent in moving towards the longer-term solution. we think that is close to happening. it might not happen in the next day or so, but we think in the coming weeks, there will be diligence or movement towards that to that final deal. shery: we will be watching those closely. thank you for joining us. western asset management portfolio manager prashant chandran. we have some big guests coming up today from the jpmorgan china summit, including an interview with ceo jamie dimon.

that is at 10:30 a.m. this is bloomberg. ♪

shery: this is bloomberg technology global link. i'm shery ahn in washington with paul allen in sydney and emily chang in san francisco. let's take a look at the global tech stories. emily? emily: thank you. uber has enough investor demand to price its ipo at the top of its range, but we are told it is likely to target a midrange price to ensure strong aftermarket trading. lyftime, rival ride hailer with second-quarter revenue that beat analyst estimates. but investors are still worried by slowing growth and more than $1 billion of losses in the first quarter. singapore's mobile carriers are being asked to take a step towards introducing 5g wireless

services as early as next year. the government plans to allocate spectrum for at least two networks. singapore has been slower in moving towards 5g than south korea and the u.s., which began limited commercial services this year. general motors self driving unit has attracted more than $1.1 billion in new investment. t. rowe price is joining existing investors that includes honda and softbank. the business, gm cruise, says it is now valued at $19 billion. those are the top global tech stories we are following. paul? paul: thanks very much. google is looking to make its pixel line of smartphones more attractive to consumers with a cheaper price tag. it has so far failed to sell in large numbers. we have the details. tell us more about these new phones, the pixel 3a and pixel 3a xl. >> they come with quite a few

compromises. there is a less powerful processor that will run them. some of the materials were a little cheaper so you don't get a fancy glass back. there also is a head jack, an old-school thing that some people still like. the main point is the smallest one is $400 which is half the price of google's prove he is pixel phone -- previous pixel phone. emily: earlier, i spoke to the head of google's pixel division and asked about the strategy. take a listen to what he had to say. mario: basically, what we set out to do is design a product from the ground up at a much lower cost and really rely on on artan -- on our unparalleled software experience to bring that lower price. emily: there are some compromises here, potentially slower chip, cheaper materials.

at the same time, google is pushing privacy. privacy has been the theme of the i/o conference today. do you think customers will buy into that? alistair: the privacy issue is a really interesting one because google, with google, there is always a tension between convenience and the great stuff you get, and what you have to give up, personal information. really, some of the new stuff that was announced today, especially with a digital assistant google has, will require people to still become double to share personal information -- to be comfortable to share personal information like your address, anniversary date. in return, you will get an assistant that response much more naturally when you ask things like where is my mom's house without actually telling the assistant her name. emily: there is the broader issues with android and that only a small percentage of the android phones actually have the latest version of the operating

system. as google is making some of these software updates, the vast majority of android users still don't have them. how big of a problem is that? alistair: they updated the numbers on that today. last year's operating system, that has been installed in 10% of all android devices. that is incredibly low compared to iphones which have probably about 70% of those devices have the latest os. it is still a huge problem. all these great new software features that google is announcing, they probably will not hit more than about 40% of android phones out there. paul: alistair, what is the reception from the analysts' community towards all of these announcements? wall streetthink will be fine with them as long as there is not a lot of restrictions on the information that google can collect and use to target ads.

advertising is still the main business for google. going forward, as long as some of these privacy suggestions that google is making -- as long as billions and billions of tople don't use the tools reveal their data, google will be ok on the business side. emily: alistair barr, thank you so much. back to you. shery: thank you so much for that. that is bloomberg technology global link. don't miss bloomberg technology at 7 a.m. in sydney, 5 a.m. in hong kong, and 5:00 p.m. new york. coming up on daybreak australia, the fed's vice chair tows the party line, pushing back against executions of a rate cut anytime soon -- expectations of a rate cut anytime soon. more of our exclusive interview next. this is bloomberg. ♪

wednesdays a 8:30 morning in sydney. futures, not surprised to see them pointing a little lower. quite a lot lower. three quarters of 1% after a rough ride in markets on the u.s. shery: i'm shery ahn in washington, d.c. where it is 6:30 p.m. let's get the first word news with jessica summers. jessica: thanks. china has confirmed top trade negotiator vice premier will join the latest round of talks in washington this week. the news is seen as a sign that beijing is fighting to keep negotiations on track after president trump said he is raising tariffs on friday.

at the same time, sources tell bloomberg that china is are paring retaliatory -- preparing retaliatory measures if new tariffs are imposed. law enforcement from the u.s., malaysia and singapore meet this week to coordinate their approach to goldman sachs over its work for the investa ment firm under scrutiny for helping the fund raise $6 billion in bond sales that generated more than half $1 billion in fees. last week, david solomon told us the firm had begun talks with the doj over its role in the scandal. thailand's election commission has confirmed the party linked to the exiled former prime minister took the most seats in march's general election. constituencies in the lower house of parliament, with a promilitary party taking 97 seats. that means both missed an overall majority. they are now competing to form a

workable coalition. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts. i'm jessica summers. this is bloomberg. shery: thank you. let's head over to singapore for what to watch in markets this morning. sophie. sophie: when it comes to stocks to watch, bhp is the focus as the miner defends itself against a $5 billion class-action lawsuit in the u k over the 2015 dam disaster in brazil. bhp is facing legal action on multiple fronts over the incident, including brazil and australia. checking in on what is happening with the kiwi dollar. continuing to slip ahead of the rba policy decision. extending losses for the third straight session, going to a two-week low. volatility also jobs for the kiwi.

we have other stocks to watch which we will get back to later in the hour. paul: all right, thanks very much for that. we are joined now in sydney by hagueobal markets adam to get more on what we're watching. equity markets in the region looking like they will have a rough ride. what should we be watching for? adam: it looks like a poor set up. if you are looking at there was some signs of stabilizing yesterday, it may come as a surprise to people. the thrust of it was the poor session in u.s. equities. the breadth of the declines were particularly notable overnight in the u.s. we had at one point 90% of stocks down in the major indexes. what you are seeing is the expected tick up in imply the volatility as people try to reassess the hedges and the ability for them to price in any future downside that is coming. that is what's happening.

this chart here on your terminal, it really continues to be that context against the market that has done very well this year. u.s. equities in particular, but equities around the world have done very well. you have to see the moves of the last 24, 48 hours in that context. people looking to lock in some of those gains, as well as some of the economic news and tariff related issues that have come front and center. now it is about whether people want to lock more into those profits, whether they are really dialing down risk, or kind of tweaking around the edges. the start of the asian session, it looks like sentiments are very fragile. shery: adam, how well would you say traders are pricing protection in the auctions market -- options market? adam: well, in a sense, there has been an increase in the cost of protection for downside

protection on equities. a chart here in your library which shows it pretty well, and that is the skew. that is relative bets of a 10% decline, relative to a tencent increase in the options market. that skew has shot up in past days. what it has not done is if you track the chart back over a number of years, it has not really got into any elevated territory. we are at the highest in a little while, but it is not really panic station. what this speaks to really is people wanting to lock in those gains they have seen this year. they saw pretty poor figures coming out of the european commission in terms of growth. of course, the tariff worries themselves continue. it is enough to make people expected that even in the short-term, we might be in for a few more declines. shery: adam, thank you so much.

bloomberg's global markets editor. you can find his charts on the gtv library on your bloomberg. the federal reserve's never to officials says he is not worried about falling inflation in the u.s. because sooner or later, the current policy will boost it to 2%. kathleen hays is here with what fed vice chair richard clarida told bloomberg tv in an exclusive interview. so, still no rate cut on clarida's policy radar. kathleen: speaking exclusively to bloomberg television, rejecting the idea that any kind of rate cuts are needed right now. he echoed what jay powell has said recently. the economy is in a good place. there is no need to move in either direction on rates anything's any change in inflation will prove to be temporary -- any reduction, that is. richard: inflation has been running on the soft side recently. we think there are some temporary factors to alleviate some of that. our baseline view is inflation

will move up towards the 2% objective. we are certainly looking at the data closely. kathleen: into the bloomberg library to look at the chart. the fed main index. the core rate picking up food and energy. both of them moving far below 2%. that one is 1.5%. fed officials say it is not an issue because will eventually move higher. the big monetary policy review, he would not comment on any specifics, saying he does not want to opine had of that. randy coral op[iined. he said so what if it is running at low interest? that is almost 2%. if it is 1%, he would be concerned. he says the fed's content and not make any heroic moves to boost it higher. paul: ok, richard clarida saying things are in a good place. let's go to the other end of the central bank spectrum, certainly

in terms of patience. it will not wait until another round of the trade war will have the economy. kathleen: absolutely. they made it clear they are watching the big risks globally even though they cut their key rate for the first time in nearly three years. let's look at a chart and see what is going on. you can see this is the last cut, july of 2016. they are moving it up last year. now, this cut, about half the people bloomberg talked to expected it, but some thought they might wait. here is what they said in their policy statement. there is down right -- downside risk in the uncertainties of the global environment. trade tensions and commodity related sectors. inflation is barely above zero now. the fed's policy positive opened the door to asian central banks to cut rates if they need to. malaysia the second after india, to cut their key rate this year. we will be getting results from

the reserve bank of new zealand. the philippines meeting this week to cut too. later today, we will hear from the bank of thailand. they are expected to hold their rates steady. they have an election coming up. and inflation and growth. others are opening the door if they can. paul: plenty of central banks to keep an eye on at the moment. kathleen hays, thanks for that. one of those central banks, the rbnz. policymakers expect it to cut rates to a record low today. economists and traders are divided on whether the governor will actually go ahead and do it. our wellington bureau chief joins us now. why so much uncertainty this time around about which way the rbnz will go? say, theas you majority of economists do expected cut today but the

markets seem to be pricing a much lower probability of that now. i think there are broadly two schools of thought. one is having adopted an exquisite easing bias in march, the governor will get on with the job and cut rates. data recently on the domestic side has been weaker than expected. in a sense, he has been delivered the conditions he's needs -- he needs to go ahead and cut. on the other hand, the economy is in pretty good shape. growth has slowed but still above 2%. some people are saying there is no real urgency. the central bank can afford to sit on its hands and see how things pan out. that is exactly what we saw the reserve bank of australia do yesterday. shery: you spoke to the governor himself last month. what were the biggest takeaways from that conversation? think it was, i for everyone really.

governor orr certainly confirmed a rate cut may be a possibility. we know we are dealing with a live decision today. at the same time, he said it is a tough call and there are reasons not to cut rates. you think there are constraints in the economy. in terms of trade, near record highs. one thing he said that did stand out that is potentially significant was that he doesn't want to keep waiting for one more piece of data. or keep looking in the rearview mirror. at some point, you have to make a call. so maybe that suggests that he wants to get on with the job. shery: thank you so much for that. matthew brockett in wellington. coming up next, the battle of the ride hailer's. uber is set to go public this week. lyft reports its first earnings. later wednesday, drivers go on strike. which will be the last one standing? bloomberg contributor david

kirkpatrick makes the call. this is bloomberg. ♪

paul: i am paul allen in sydney. shery: i'm shery ahn in washington, d.c. aftert shares fell first-quarter earnings. the ride hailer is rejecting a second quarter revenue of up to $810 million, exceeding the $782 million analysts had forecast. lyft also reported an eye-popping net loss of more than $1 billion in the march period which is more than its loss in all of 2018. joining us now is david kirkpatrick. always great having you with us. at first glance, it seemed like the numbers were good. and then you dig into the numbers and investors did not like what they see. what stood out to you? david: what's that out to me is the company is losing an

extraordinary amount of money. even though on the call with investors, the cfo adamantly said they see themselves on a path to profitability, i personally have a hard time seeing it. think of it this way. they lost nine dollars per share and the stock is that $60. is that a stock you really want to own? it sounds like an awfully big loss for a company that is just trying to get its feet on the ground as a public company. shery: would you say their desire to beat uber out of the gate is not paying off now? david: very much so. it is strange they felt they had to go public first, but it clearly as a gamble did not work because the stock is down 18% to 20% since the ipo. it has been bouncing around since the earnings came out this afternoon. it is still in the vicinity of $60. that was not a good gamble. paul: david, what could lyft potentially do to turn a profit? it could charge more but that

will not be very popular. david: that is what they will almost certainly have to do at one point. we will see uber and lyft both raising the prices in the not so distant future. very similar companies. uber is just the four times larger version of lyft in many ways in terms of its economics. they are huge money-losing enterprises. they could raise prices. i think many people have come to depend on their services. a certain percentage of them would pay more. they have been gambling on this long-term possibility that self driving cars will come in and that is there salvation -- their salvation. an analyst quoted in a bloomberg article today was saying once that happens, they will have to clean the cars, repair the cars, store the cars, and it becomes more like an airline business. they would have to take those costs on that are currently done by the driver. it is not a pretty picture long-term financially for these companies. paul: self driving cars, even if

you believe elon musk, still about 88 weeks away. it looks like uber and lyft do have the drivers firmly in place, but they are not terribly happy. we have a drivers strike coming up soon. what are their demands? david: tomorrow, they are striking in new york. a total of eight u.s. cities. l.a., thel day in drivers feel like they are not making a living wage. they are very upset that the executives of the company's are getting huge payouts from this ipo and the drivers, many of them struggle to live on the amount they make from lyft and uber. the companies continue to insist -- the cfo said a lyft driver averages $20 an hour. that is not the experience of the drivers that are more often surveyed. i think it is a problem they have. they treat them as contractors,

nonemployees. they don't have benefits, except for very limited benefits. they have to keep these drivers happy because self driving cars are not coming anytime soon. to pay them more, they will raise fares. there is no other way around it. shery: in new york, we saw uber having capp the number of drivers they cane add. are we going to see more regulations to these companies? david: i think it is can cross -- across the entire sector we are seeing a huge friend towards regulation that will affect these companies in transportation as well as other sectors. the answer on his regulation going to be greater? absolutely, it will be. these companies kind of took off because they were cheaper than taxis in addition to being more efficient. i think the efficiency factor will stay with them. they have a lot of other ways they do operate, like with

pooling and delivering food. --reality, if they are not if they are not at least price competitive with a taxi, i think the businesses are not likely to be gigantic profit opportunities down the road. it's not going to happen. shery: we are now hearing from sources that uber may have enough investor demand to price at the top of the ipo range. will they do that given what happened to lyft? david: well, i mean, uber is a much bigger company. it is a more diversified revenue stream because it is much more global, but it still loses on every fare. that is the problem both of these companies, they cannot make it up with volume because the more volume they have, the more money they lose. they really both need a structural change, which long-term, they believe will come from, again, self driving cars. uber has the food delivery business, but ultimately, i

don't think the structural changes that are necessary for either company are in the short-term prospects. uber is a more solid, bigger company. it has a lot of backing and much bigger scale. i think it will probably do well out of the gate, a little better than lyft, because it has a bitter -- btetter brand. long-term, i don't think these are companies to buy and hold. paul: david kirkpatrick, thank you very much for joining us. you can watch us live and see our path interviews on our interactive tv function. you can also dive into any of the securities on bloomberg functions we talk about, plus you can become part of the conversation as well by sending us instant messages during the shows. this is for bloomberg subscribers only. you can check it out. this is bloomberg. ♪

shery: i'm shery ahn in washington, d.c. paul: i'm paul allen in sydney. let's get a quick check of the latest business flash headlines. ferrari is racing over the bumps. the supercar maker delivered a rise for first-quarter profits that beat even the highest estimate with a 14% jump in adjusted earnings. deliveries are strong with shipments to china, hong kong and taiwan rising almost 80%.shares rose the must ost in three months. shery: china ever grant is back in the bond market with a day, issuing china's largest ever public yuan bond sale for a property developer. it says the key unit raised almost $3 billion from an offering on monday, with the bulk of the price a little over 6%. china evergrande last tapped the onshore market in 2016 with a

three-year issue. paul: boeing shares fell after a downgrade. the fallout from the playmaker -- planemaker's two fatal crashes is being estimated. public reluctance to fly on the 737 max will be a bigger problem than anticipated. the stock has dropped in seven of eight sessions and down almost 20% from a record in early march. most: the world's valuable is shifting strategy. the new chairman wants to refocus on its original cask out. ultra premium liquor that is bought by the elite and growing middle-class. non premium alcohols are being shut down and halting customization business that allows big spending clients to put their logos on bottles. paul: we have 10 days to go until election day in australia.

polls suggest the opposition labor leader has the lead. energy and climate issues are high on his agenda. policies could antagonize the coal industry. again, why isoal, it such a big issue in australia? jason: it is such a big issue because it is such a big business in australia. of course, that business seems to be colliding with some voters concerns that the use of fuel is exacerbating climate change. coal is basically australia's biggest export earner at the moment, 60 billion australian dollars a year. also, obviously, gets a lot of support from people in mining communities. traditional working-class voters. also, conservative voters, mainly conservative voters who see the use of the field -- fuel

has reduced their electricity bills over the years. have gonetric bills up in recent years. the prime minister scott morris's government has bailed - - blamed renewable energy and caused lack outs and risen up across -- the cost. the labor leader, who you say is on target to eventually win the election in a couple weeks time, he wants more renewables. he is saying australia should have about 50% of its total byrgy supplier being used renewable energies by 2030. shery: just quickly, a carmichael line becoming such a focal point for anti-coal activists. why? jason: it is really on the front line.

it is a huge project potentially that could open up the basin which has enormous resources of coal. it could potential double australia's coal exports if it gets opened up. that has become a focal point of environmental concerns. itsi has had to cut back plans for the project. it has drifted down from a $16 billion australian project to a $2 billion australian project. if it does start running, the infrastructure to get the coal to the port will be used by potentially other miners as well. it could really exacerbate australia's coal exports. so, it is a concern for environment to lists. -- environmentalists. shery: jason scott, thank you. plenty more still ahead. later today, don't miss our

interview with jpmorgan ceo jamie dimon. that is coming up at 12:30 p.m. sydney time. this is bloomberg. ♪

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anchor: welcome to "daybreak: asia." i am paul allen in sydney. shery: i am shery ahn. .ophie: and i sophie kamaruddin we are counting down to the major market opens.