paul: what come to "bloomberg daybreak: australia," i am paul allen in sydney. shery: i am shery ahn in new york. ophie: i'm sophie kamaruddin. we are counting down to the market open. paul: here are the top stories we are covering in the next hour. wall street rose a third day thanks to solid earnings and strong housing data. trade tensions remain high. still in store, the largest losing streak since the year 2000 as prime minister theresa

may agreed to a timetable to resign. election,fore the aussie dollar under pressure amid the ongoing trade war. shery: let's get you started with a click check of the markets closed -- a quick check of the markets close in the u.s. we saw a rebound in risk assets. every sector on the s&p 500 was in the green. we have solid earnings from cisco and walmart, lifting sentiment. not to mention that we have strong housing data and that really lifted sentiment across market. we also had yields higher with a 10 year yield hovering around 2.4%. still, anxiety continues out there over the latest trade headlines. it was not that surprising to see some of that rally fade into the close. the nasdaq closed 1% higher. the dow up .9%, same level as the s&p 500. u.s. futures unchanged.

let's see how things are shaping up for the asian market. sophie: asian futures are pointing to a mixed start. -- it mayy of losses open closed -- it may open higher after a ninth day of losses. ppi on pbi data on -- tap this friday. we are watching for oil producers to move with crude as a two-week high, and semiconductor related players in the region after earnings. a quick check on the aussie dollar, holding below 69 against the greenback. this is as rate cuts rise and strategists recommend going short ahead of the saturday elections. thanks very much. let's get to first word news. ed: oil hit a two-week high as saudi arabia openly accuse iran of ordering a drone attack on a

key oil pumping station and pipeline. futures rose or than 2% as the kingdom's vice minister of tehran said to run -- coordinated the attack. the pentagon is working with defense intelligence agency to release information in support of the trump administration's warning of a growing threat from iran. the evidence may be given as soon as friday, following claims that tehran orchestrated attacks on oil tankers and ordered rebels to carry out drone strikes on a saudi oil pipeline. indonesia left rates unchanged -- ritics -- as the ruby rupee remains under pressure. policymakers choosing not to back out recent heights in the

philippines, indonesia and new zealand. the rupiah is down in the last month. india's mammoth election reaches its final lap in the last month with embrace or -- investors embracing -- the president will fail to hold onto power. concerns amid the trade war and worry that modi will repeat his landslide victory of 2014. the election has seen a surge in opposition and a looming crisis. 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. this is bloomberg. rebounded. stocks thursday, but there was still a shadow over global markets.

the trump administration restricting business with telecoms deemed a national security threat and lacqua sting huawei from doing business -- and blacklisting huawei from doing business with the u.s. itselfing with huawei will be effective tomorrow. for anyone to ship product or services to them, they would need a special license from commerce department. shery: the global reach of huawei prompted investors to .ell chip stocks the semiconductor index fell about 1.7%. among the decliners, sky work solutions. all derive at least 10% of their revenue from huawei. mr. -- bloomberg intelligence senior analyst from new jersey.

great to have you with us. given how big huawei is and its business, what are we expecting the impact to be on u.s. firms and customers? >> thanks for having me on. a couple of things. essentially, suppliers can still sell to huawei, but you need a special license. i want to give you some context. zte was on the list a few years ago and the supplier ban was not put in place until 2018. think you i don't will see any restriction of sale of u.s. chip suppliers to huawei. for a broader context, being on the anstey list does provide -- being on the entity list does provide a framework for a ban in the future. paul: what does this mean for some of huawei's competitors?

is this good news for them? woo jin ho: from a competitive standpoint, you think about huawei is number one on the smartphone side, you can probably see some share shifts from local and domestic chinese smartphone preorders -- providers. they are not going to be able to offset market share, if a supplier ban is in place. on the network equipment side, they are number one or two there. europe is a big the ground. we identified roughly -- a big playground. roughly $5 billion in huawei revenue that may be up for grabs. given some of the geopolitical concerns for one of its major equipment suppliers, i would not be surprised if some of these telecom providers rethink they start working with. providers such as ericsson, nokia, that they could possibly work with. shery: there will be some

winners out of all of this. what does this mean for the rollout of critical 5g business networks around the world? woo jin ho: that is a great question. i think that the rollout has been tempered. if anything, it is going to temper it even more. number one, because, the u.s. allowing other countries to use huawei equipment, and now you have a potential supplier ban that may impede huawei from manufacturing and selling equipment in the future. if i am a 5g telecom service provider who has a pullout in in place, iollout needed to map my strategy and how i'm going to roll that out. i don't forget will be any faster. if anything, it may be slower. -- i don't think it will be any

faster. if anything, it may be slower. joining us.r here in australia, heading to the polls this weekend. compulsory voting here, and we will potentially continue the revolving door of political leaders that has given australia seven heads of state in the past 10 years. the election takes place in a time of slowing growth, a housing slump and a hiring slowdown. bloomberg news managing editor for australia and new zealand joins us now. the race does appear to be tightening up as we head into the final hours. ed: that is right. a poll this morning has the lead for labor narrowing two points from four .60 weeks ago. the smart money is betting that former union leader bill shorten will lead his left-leaning labor get intovictory and office for the first time since

2006, albeit probably with a slim majority. contest,ightly fought and shorten has been campaigning on a detailed platform focused on redistributing wealth in australia, where many people feel left behind, despite that record run of near 28 years of unbroken growth. he is aiming his tax cuts at the lowest paid australians, pledging to spend more on childcare, on hospitals, on education, and planning to pay for that in part by scaling back tax incentives for wealthier australians. property investors, scaling back negative gearing and -- hearing concessions and the credits enjoyed by many stock investors. shery: of course, the other big political news of the day is that australia's longest serving labour prime minister died yesterday. what has the reaction been so far? ed: that is right. bob hawke was an absolute giant

of the labor movement, winning four consecutive elections from 1983. the news has swept the election off the front pages today. this is the sydney morning herald newspaper. focusing on the fearless reformer and the australian also has it on the front pages today. hawke was extorted nearly popular. bill shorten has come out saying he was labor's proudest son. outpouring of an respect for him. some of the biggest figures in progressive politics around the world, including tony blair and bill clinton. -- hes achievements replaced the prime minister

after challenging him in 1991. they are so long i have had to write them down. they are credited with retooling the us showing economy and providing that bedrock that has enabled such an extraordinary long run of growth. they abolished direct controls on interest rates, opened the banks to foreign competition, removed the currency exchange rate peg and removed and lowered tariffs and reshaped industrial relations. hugely popular and he really did have that common touch. the 1983ralia won bossca's cup, he said, any who sacks anyone for not turning up today is a bum. paul: classic hawke there. he was also famous for dripping -- drinking copious amounts of year. the timing of this is not good for the coalition. do think there will be a sympathy vote?

and combine it with the jobs numbers from yesterday. ed: you can't discount the fact that there might be a nostalgia bank from hawke's death. he did sign an open letter endorsing bill shorten and endorsing his policies. if that is enough to give a little bit of a search behind bill shorten in these closing hours of the campaign, it could make a difference in a tight contest. paul: eddie johnson, bloomberg news managing editor of australia and new zealand. thank you very much. we will lend the results of that election late saturday night. ahead of the election, calls for some game changing initiatives to attract talent for the tech sector. up next, quint tatro is bullish on the global market outlook and tells us why copper is the best leading indicator. this is bloomberg. ♪

shery: i am shery ahn in new york. paul: i am paul allen in sydney. you are watching "bloomberg daybreak: australia." solid earnings and strong housing data helped u.s. stocks rebound for a third straight day, but concerns about the u.s. threat to blacklist huawei technologies did her chip stocks. su keenan got more. where was the most damage done? mentioned, chip stocks, but we did see the market rise for a third straight day. andas risk on until the end at least one strategist says if the market pays attention to the facts and the data, as this latest session shows, it looks like they will be able to stay in the green. the s&p 500 chemical index was of the biggest gainers. that is an area that was in the bull's-eye of the tariffs. it shows relief there, as does the decline in the vix or

volatility index. let's take a look at some of the big movers. cisco and warmer, strong earnings. that was the big undertone in the market. cisco will carry through the day likely. walmart, one of many retailers starting to warn that tourist will hurt. pinterest rallied ahead of its earnings. it moved the opposite direction after hours. let's go to the next panel. all exposed to huawei. either because their suppliers -- they are suppliers or they are in the chip business. that is really biggest damage in the market was done in this latest session. of these declines show that there was resilience in the broad-based spectrum. let's take a look at the after-hours for pinterest. touted one of the highly ipo's of late. has been doing well, even in the recent downturn, because

analysts have been strong on his revenue potential. it's really disappointed with the numbers after-hours. shery: the broader market sentiment was held by strong housing data. expected aprilan housing data and housing starts, which means construction is underway. you also get stronger than expected numbers from the business outlook. notice that translated into increases for the housing starts , but if you go to the bloomberg, we are starting to see a deviation from the way the stocks price in an economic rebound. they are starting to disagree as to how strong the rebound is, according to research. shery: thank you so much for the latest on the market. joining us now is jewel financial founder, quint tatro, with his take on what's happening across the markets. we are seeing the 10 year yield hovering around 2.4%. is there still a chance that we

-- even though traders are pricing in the rate cuts? quint: there is always that possibility, but we are starting to see investors become a little bit more intelligent, which is not always that normal. dissectess, starting to who has risk to china and the tariff situation and the trade negotiations or lack thereof, and who doesn't. the market is starting to reward those you have mitigated that risk or have no risk at all. it is refreshing to see, quite honestly. shery: we had solid earnings today from walmart, but we are now hearing not only from walmart, also macy's, ralph lauren, that if we continue to see tariffs go up, they could be passing along those costs to consumers. could these tariffs might out earnings growth if it continues? quint: great question, but it

does boil down to the actual company. , basically the vast majority of the goods come from china. they will have to pass on those prices. what is walmart doing? why are they trading at 21 times forward earnings? not because they sell a bunch of stuff to china and irritable mitigate that risk. the going into new areas. 37% increase in e-commerce. one-day shipping with a 1000 store radius. now they are advertising one day shipping with no membership. you know who they are going after there. not because of what is happening with china trade, but because they are going into new areas. i am not bunting when i say it all depends, but it really does depend on what the company is doing. if they do nothing and we continue to see these tariffs, they will be hit. there is no question about it. int, we have seen one

sector getting hit today due to china u.s. trade tensions, and that is the u.s. tech sector. is there anything in tech that you like right now? quint: i'm going to answer that two ways. i will type exactly what i like in just a second, but this is a great example of investors selling first, then going back and asking questions later. hitentire summer space was was hit today, not because they have exposure to huawei, what because they might have retaliation. a painful day for micron, but the belief is china is going to retaliate. that is 50% plus of micron's business and that is gone. i'm not so sure that is the case, some not selling that stock yet. back to your original question, what do i like? i like a name like twitter.

has zero name that exposure to the ramifications of china trade. if anything, it is upside, because of the intention put on twitter. fundamentally, this is a company that has $260 million in free cash flow last quarter. they are going to earn one dollar and 2019, on the low side. they will get additional ad spending. that is an interesting stock here. it is fundamentally attractive and something in the tech sector that i like. cisco, 3.3% exposure to china. a stock in my opinion that still has room to run and still fairly valued, in our opinion. stage, in in this late know you still see opportunities there. what could be a catalyst for the tide to turn? i know you're watching the copper price. quint: cover has been a great indicator -- copper has been a

great indicator, and it got hit as we increased tariffs and had continued tension. it did not get back to last year's low. and iange is a big level think you have to keep an eye on that. as long as that stays in the $2.60 and $3 or breaks above, that's a good sign. we have been cautious early in the year. we traded, but got cautious too early. we were concerned about the fundamentals and the economics changing, and that has not happened. in fact, just as we saw today, a lot of strong economic data. as long as the economic data stays strong, we will continue to look for buying opportunities. regardless ofs, the headlines, we'll head the other way. copper is a great way to see that in advance. shery: thank you so much for that. joule financial founder. we have analyzed for you on the bloomberg.

china's starbucks rival coffee chain is set to sell shares at $17 each. $551are set to raise million in a u.s. ipo. the company has been doing well with revenues soaring to 71.3 -- $71.3 million dollars for the quarter ending in march. they will be selling shares at $70 each. roundup ofan get a that story and others that you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to dayb on their terminals. it is also available on mobile on the bloomberg anywhere app. you can customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪

shery: let's get a quick check of the latest business flash headlines. boeing has finished an update

for software linked to two fatal crashes of its flagship 737 max regulatorsking with to address remaining questions before submitting the update for final approval. boeing says the max has flown 360 hours on more than 200 flights with the new software. shares rose on the news. paul: investors are losing interest in pinterest. shares slumped in late trade after the social media company gave an annual sales forecast that fell short of estimates. that shook the seemingly unshakable confidence that investors had shown following interests ipo. -- pinterest's ipo. is the hardestp hit of the banks that will pay eu fines of $1.2 billion for colluding on forex trading. bs will pay $278 million and jpmorgan, $255 million.

up next on "bloomberg daybreak: australia," china's biggest online search engine posted its first loss since going public. this is bloomberg. ♪

paul: 8:30 a.m. friday morning in sydney. the market open 19 minutes away. futures pointing helpfully higher following another positive session on u.s. markets, which were up for a third consecutive day. i am paul allen in sydney. shery: i am shery ahn in new york, where it is 6:10 p.m. you're watching the rate for shire. let's get to the first word news. ed: the aussie dollar is under pressure. the escalating trade war a faltering domestic economy. isber a is -- nomura recommending going short.

the latest polls ahead of saturday's vote put labor opposition marginally ahead of the national coalition. australia's longest-serving labor prime minister has died at the age of 89. he overhauled the economy in the 1980's through deregulation of trade in the financial sector and is widely credited with initiating the economic changes that paved the way for decades of growth. environmental, social, and governance -- hawke defeated malcolm fraser and went on to win for elections. he was described as, "our greatest son." byresa may has been forced her party to set a timetable for her departure. she will try one last time to push her brexit bill through parliament next month and then leave office under a deal struck with conservative mps. it is unlikely her bill will pass, as she needs the backing

of the opposition labor party who says her departure deal make some increasingly wary of supporting her. twa'sn aviation name back, at least on the ground in jfk airport in new york. the twa hotel is back open after a $300 million makeover. it's futuristic design is dedicated to the new jet age of the 1950's. the twa has 512 rooms and features a vintage plane serving as a cocktail bar. 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. this is bloomberg. shery: for what to watch in us china markets, here is sophie. sophie: i want to start on an analyst call.

jpmorgan has downgraded the stock to underweight and raised its price target to $53 aussie, which implies a 12% decrease from the last close, indicating some concern after the stock jumped to a record on thursday on a solid set of earnings. the free cash flow forecast not offering much confidence. we are keeping an eye on miners lookingy, with iron ore to $100 per ton. is just aat iron ore shock away from topping that price next quarter. fortescue is set to double its market value this year after raising dividends. paul: looks like we could have a positive start to friday trading. bloomberg's global markets editor, adam haigh, is here.

is there enough support for equity prices longer-term, as the markets are gunning for a policy in the u.s.? adam: there are a couple of arguments that are the mainstay traders are talking about. the first is that the repricing you have had in the bond market, this deliberate grind lower in bond yields, is being quite stimulatory for the economy. 2.4% andar yield at 100 basis points reduction in mortgage rates, you are having an economy that is already feeling the looser affects of the market, looking for fed stimulus. that is one key argument, but you also have people saying that what is happening in the equity is that you have lower inflation, growth slowing, but still positive, and the fed reversal and fed pickup from q4

of last year. it is not a good economy story that is driving equities. it is this sense that inflation is not a worry, and with bonds looking increasingly less attractive and more expensive, people are incrementally adding to stocks positions. back to your question about whether the rally can continue, if there is anything that sways the fed over the next few months, then potentially, but as every day to point comes out, it feds to lend itself to a sitting on the sidelines. you could be in a situation where equities continue to grind. -- we have seen yields rebound, but this after 10 year yields fell to the lowest since march. how long can this last? extent that the rally in bond markets has

surprised some people, whenever we hit new lows in yields, people seem to suggest that you can even get further lows in market pricing for that. this chart in your gtv library shows where we are in the world now. this spread between german ten-year bonds and japanese, those yields are getting even more negative. german yields are even more negative than yields in japan now, but the sense that the u.s. could never even get there is still part of the picture. 2.4 on the 10 year. some people, that has just gone too far. the people at goldman sachs asset management are saying look at the economic data in the u.s. there is everything to suggest that we get a decent rebound, getting up to 2.7% levels by this year. nothing in the data to show that the fed is going to cut rates anytime soon. shery: interesting. thank you so much for that. adam haigh, you can find charts

on the gtv library on your bloomberg. shares of chinese internet search giant are searching in after-hours in the u.s., after posting its first loss since going public in 2005. -- north northeast a asia correspondent is looking at the numbers. how bad was it? >> exactly right. trying to stay relevant in this mobile age. it used to be, not too long ago they were considered one of the upstarts. i am showing my age. they did go ipo in 2005. they are a veteran now and not keeping up with the ever-changing internet space in china. we have not only got the first loss since the ipo in 2005, we were expecting a loss, but it was worse than expected. billion yuan loss,

47.5 million dollars u.s. it was worse than expected. first quarter revenue was in line with forecasts, or just below it. second-quarter revenue outlook misses even the lowest estimates. second-quarter revenue between -- 25 billion yuan and 30 billion yuan. ed charge of search is stepping down. the company is trying to diversify into other companies like ai and autonomous driving. that is a long road ahead. search is their main business. they have 70% of the market and the guy who has been in charge of that for many years is stepping down. i might add as well, the board has authorized a $1 billion stock buyback program. paul: where does baidu go from here to stem those losses?

the timing is not great in terms of the trade war dampening confidence. stephen: absolutely. i want to bring up this chart that compares the three best companies. the triumvirate of the three leading listed chinese internet companies. of course, baidu, alibaba, and tencent. we got alibaba and tencent yesterday. tencent has more weakness, but look at that break out 6-7 months ago. these three used to go lockstep as far as stock price, but baidu breaking out to the downside. they need more urgent need to attract younger smartphone users and keep ad revenue growing. upstart rivals are taking ad spend away from the traditional companies, like baidu. paul: stephen engle in hong

kong, thanks for joining us on that story. up next, another chinese tech story. huawei fighting back against the u.s. as trade tensions continue to dominate market

part of the president's campaign to try to leverage the chinese into an agreement? you felt with zte that there was a lot of leverage going on. not quite as many facts on the security side. here, we don't really know. there will be more negotiations, talks, the two presidents, it looks like, will meet in osaka at the end of june. that will be an important meeting, because what has happened is the two presidents have taken over the negotiations. they are clearly in charge. they feel free to overrule their negotiators. they are going to have to get together to see if they can solve it. shery: candy national security reasoning ring hollow when you steel andy seeing aluminum tariffs on national security reasons, not to mention potentially alter tariffs?

tariffs?ially auto quint: -- bill: it is hard to make the auto tariff case on national security. it is not impossible, but hard to make this deal case. the huawei case is different. telecommuting occasions is a critical element of everybody's defense. our telecommuters and's security people believe that huawei products are covered by's -- if our telecommunications security people believe that huawei products are cause for concern, that is reason for pause. shery: we have seen the renegotiations of nafta 2.0. president trump doesn't necessarily need to get everything that he demands, as long as he can claim victory. dynamics- have the

changed as you head toward the 2020 elections? bill: politics in china are the than politics in other issues. the main difference is not be hawks. the main difference has been the virtual disappearance of support for china. in the past, the business community would reliably come to china's defense, urge compromise, urged working these things out, emphasize the importance of the bilateral relationship, and now they are being very quiet. nobody is defending china. the result is all of the oxygen is being used up by the hawks. trade disputethis does get resolved as quickly as thatcalated last weekend, is potentially not the end of it. can you imagine scenarios where enforcement become major sticking points further down the road?

bill: yes. that is we have been talking about at csis. people tend to look at the short-term, they reach an agreement, there is a big bump, you guys will have happy announcements. the real question is, where really be a year from now? president's path to political success is very narrow. have success on the fourth technology transfer and the trade deficit front, and the chinese have to comply. those are both big assumptions in a think the most likely outcome is one year from now, we're pretty much right where we with benchmarks not having been met, compliance standards not having been met, and the president once again talking about tariffs. shery: quickly, we are continuing to see more tariffs. how good leverage are they in these trade negotiations and give you a sense the president is using them more as an end goal?

bill: i think he sees them as leverage. in the beginning, they didn't amount to the loss. the political impact, the -- the political impact is greater than the economic impact. additionalfor the 300 billion dollars, i think the impact will be significant in both countries. past tariffs have avoided a consumer impact, so the next will have a much bigger impact than the previous ones. shery: thank you so much. great having you with us. bill reinsch, csis senior advisor. see past interviews on your interactive tv function, tv . you can dive into the lumbar conscience we talk about. this is bloomberg. -- live into the security functions that we talk about. this is bloomberg. ♪

shery: i am shery ahn in new york. paul: i am paul allen in sydney. you are watching "bloomberg daybreak: australia." the aussie election just a day away and an industry group is

calling on the next government to adopt a string of what calls game changing initiatives to ensure that australia attracts higher-paying jobs of the future. acs represents 45,000 people working in the tech sector. its president, joins us now. president, yohan ramasundara joins us now. when it comes to crunch, there has not been a lot of action. is that your sense of things? yohan: there hasn't been discussion about tech sector and a potential attack that could transform this trillion economy. the tech sector has been doing a fantastic job. you have heard of our own thing equivalent. those organizations are doing well. we need government to focus so that the right policies can be in place. paul: just run us through what that is, for viewers who haven't heard of it. yohan: the five largest

companies that are listed in the equivalent of the facebook, amazons, googles in the u.s.. that is actually transforming the tech industry and the economy in australia. paul: if we talk about policies around tech, the immigration -- the immigration debate is one thing that has been weighing things down. that had a profound impact on the tech industry. have things improved since then? yohan: what we are calling for is the election manifesto is australian tech workforce is really important and we need to up skill it. that tech workforce needs to be augmented by the foreign workers. we don't have all the skills at home. what you are basically calling for is graduates to come to australia. a fast-track process where the

top 25 university graduates can call australia home and come here, working for a short time, leading to permanent residency. bringing their networks, bringing their experience, their knowledge to add to the australian. shery: in silicon valley, we have seen private capital being the driver of this growth in the tech sector. how would you compare what is happening in australia when it comes to private investment in the sector? access to early-stage capital continues to be a challenge for australia. one of the things we have actually called for is, we have had $2.3 trillion in overseas investment. australian money going overseas and investing over there. what we have called for is if you can try and get that to be internally focused domestically so that the tech sector can benefit from that investment, it

is extremely hard to measure. 2017 in silicon valley and and obviously, i think is about 10x-100x difference in the availability of capital in the tech sector. shery: now that we are headed toward the elections in australia, have you got a sense, have you been able to gauge the policies from the two parties in regard to the tech sector, and do you get a sense that they actually get it? yohan: this is an ongoing conversation. associationsional and the leading body for the tech sector industrial area, we continue to have discussions. this year, we have put out an election manifesto that talks about 17 game changers. it is pleasing to see some of the parties are picking up the aspects of a policy that we have outlined.

not all of it, but it is an ongoing conversation. postelection, we will continue to work with the incoming government and the other parties to make sure that we educate and advocate for the opportunities in tech. paul: how optimistic are you that that will happen? we have seen a number of false starts on this. i merrily, the national broadcast -- broadband network has been a political position. it is not progressing perhaps as anybody had hoped. are you worried that some of begin changes you mentioned are -- to become political footballs? yohan: i would not hold that as an exemplar of what we have done. there is room for improvement. i am optimistic. i think there is a growing understanding of the opportunities in the tech sector , and at the acs we continue to work with the parties to -- the

parties and the decision-makers. i am optimistic. there will be some policies that might not be implement it properly, but there are policy initiatives we have outlined that are quite clear, quite easy. one of them is, could australia attract the r&d sectors, the deep tech sectors from multinationals we're the third -- from the multinationals? where the 13th biggest economy. that could be limited easily. paul: thank you for joining us. yohan ramasundara. shery: china starbucks challenger has raised more than $560 million in an expanded ipo in new york. sold shares at $13 a piece, after marketing 30 million shares.

luckin is spending heavily to unseat starbucks us china's topkapi company. it has almost 2400 outlets in 28 cities across the country. paul: singapore airlines aims to improve passenger and cargo demand as the trade war and slowing domestic growth send fourth-quarter earnings down 20%. the u.s. and china spat is hurting trade traffic, cargo yield rising 3/10 of 1%. 3.5% in to a gain of the previous quarter. passenger demand from china is also week. shery: walmart rose the most since christmas after meeting sales estimates and indicating it will passed on the price of tariffs to consumers. march,limbed 3.4% in marking walmart's best performance in nine years. that walmart's response to tariffs will set the tone for other discount retailers. plenty more still ahead in the next hour on "bloomberg daybreak: asia." we will be hearing from jpmorgan's chief economist on the us jillian election.

-- on the australian election. what we will update you on is going on coming up in a moment. this is bloomberg. ♪

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paul: good morning. i am paul allen in sydney. we are one hour away from trading in australia, japan, and korea. shery: good morning. i am shery ahn. from -- i amso sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this friday, asia-pacific stocks look poised to extend a rally on wall street. futures point to -- global tech suppliers are in focus.