paul: we are under an hour away from the australian open. stephen: -- sophie: welcome to "daybreak asia." paul: our top stories this thursday, asian stocks remain under pressure after wall street slumped to a 12 year low amid growing concerns of a recession. robert mueller breaks the silence concerning the investigation did not conclusively clear donald trump. u.s. fighter jets might be in

the firing line themselves with signs china may weaponize its earth's monopoly. shery: we have an exclusive interview with morgan stanley ceo james gorman. you don't want to miss that conversation at 10:00 a.m. sydney time. let's get a quick check of the market close on wednesday session at the u.s.. with a bit of continuation from the narrative we saw last session in the bond and stock market. three months and 10 year part of the yield curve go deeper into inversion. the biggest inversion we have seen since 2007. we continue to have concerns over trade tension in the global economic outlook. every sector on the s&p 500 was in the red. 500 at the s&p lowest level since march 11, falling through that 2800 level. the nasdaq also down 8/10 of 1%. we are looking forward to data coming out of the u.s.

first quarter gdp numbers out plus the fed's measure of inflation coming out on friday. for the time being u.s. futures out to tenths of 1%. let's see how we are shaping up from the markets in asia. sophie: an hour into trade kiwi shares are falling ahead of annual budgets. we get soft approval data from new zealand that they are looking narrowly mixed with some rebalancing after a painful may. asian stocks are set to lose 6% in what has been the worst month since october. coffee has been a casualty erasing 2019's gains. suffice to say that caution remains. morgan stanley warning of a rising market risk. in new zealander and australia as the treasury gains overnight. aussie yields are back about 1.5%. the pressure is on with forecasters penciling and 50-75 basis points of rate cuts.

yields a sliding to 2016 the lows, we are seeing chatter that the boj will cut bonds again in june. filed intods have korean bonds for the 10 year rate below the central banks key. the yield staying low with the bank of korea likely staying accommodative. the: let's check in on first word news with jessica summers. president trump has tweeted case closed after special counsel robert mueller spoke publicly for the first time about the russia investigation. he repeated his report findings that he couldn't reach a conclusion on whether president trump had obstructed justice. he also said there was insufficient evidence to charge for conspiracy. after that investigation, if we had confidence that the president clearly did not commit a crime we would have said so. not make a

determination of whether the president did commit a crime. softbank's japanese telecom unit has selected nokia and ericsson as vendors for its next-generation wireless network. excluding longtime supplier huawei. they have been urging administrators to ban the company fighting security risks. japan has not made an official decision but local media say its shun whiles will zte.- huawei and it is threatening penalties bodyst the financial created by germany, u.k., and thece to protect trade with islamic republic from the u.s. sanctions. a treasury department letter obtained by bloomberg warned that anyone associated with it could be barred from the u.s. financial system. global news 24 hours a day on

air and at tictoc on twitter powered by more than 2700 journalists and analysts in 120 countries, i'm jessica summers, this is bloomberg. shery: thank you. mighty u.s. treasury bond market rally is rolling on. the trade war undermines industrial confidence. economics and policy editor kathleen is here. treasuries have proven to be a reliable safe haven investments. does this rally have legs? investors moved to highly liquid long-term treasury bonds when they are unsure. that is one of the places they take their money. doing this, is the sense of the trade war continues to escalate, a month or two ago that was not the expect patient. maybe the g20 meeting at the end of the month they could meet.

instead we have china saying they will may be weaponized their earth as the big tool against the fed in this trade war. rallys helping the global pick up steam. we have seen the yield curve, which was already flat and then inverted a bit and the little bit more in the latest trade session. the spread from three month to 10 year notes. see these red bars? those are recessions. see what happens to this curve before the recession. it goes down and inverts deeply. it gradually comes up. the fed starts cutting rates. it happened again before the great recession. here we are. it is not as long or deep. it is making people nervous, understandably. market,looking for bond three rate cuts by the end of 2020. , many executives speaking to bloomberg television today looking for a rift session in

3-5 years down the road. risk arising particularly in highly leveraged corporate bonds. this is something the fed has been talking about recently. let's listen to what scott mathers said earlier. scott: probably the riskiest credit market we have had. it is true when you look at the size, duration, and quality. there is a big vulnerability the credit markets we have had in a long period of time. if things suddenly get moving ahead into deals in the works, since that doesn't look too likely or at least not anytime soon, i don't know if the rally has legs but it may continue. paul: you mentioned there are three rate cuts being priced in by the markets. our things really so bad that the fed would cut rates? have to aspect question. when you see that rally fall so much, so fast. it is important to raise this

question. have things gone too far? we are looking at the chart showing the term premium. what the term premium shows generally is quite positive. if you will hold a 30 year bond versus a one-year bill, you want to have a higher return. inflation could erode the value. right now it is below the target, not moving higher. there are trade war concerns. premium has collapsed to the extent it is negative. you take less were term on longer term then you would on shorter terms. it is showing people expect rate cuts. it is interesting that bloomberg intelligence, our team they're saying the 10 year note yield could test 2.02%. i would say that shows some legs for a while. that would depend on of people get more worried about a recession in large part because of the trade war. bloomberg viewpoints out in a great piece by robert burgess,

after a two year note auction, lots of demand, 5-year note as well. nobody wanted to buy the seven year note. that is assigned may be investors are saying it is overdone. the fed finally has not confirmed this but they are not signaling they are ready to cut rates. maybe the bond market has gotten ahead. for now, we will see what happens, particularly overnight. we will see if other asian bond yields hit record lows overnight. shery: thank you so much for warnings coming from the bond market and heard long and clear in stocks and commodities. the s&p 500 drop below its average for the first time since march before bouncing back. our su has more. it could've been a little bit overdone. stocks now seem that. thought that it was

done in anticipation of a quick resolution to the trade, which now seems far more in the distance. the news from china, particularly has mentioned the weaponizing of where earth is getting more nerve-racking. let's go right in the bloomberg. as we dive in, we could see the front and center issue. it continues to rely on importing minerals from china. look at the huge volume from china. 80% of the world minerals and metals that are used in everything from washing machines, cars, disk drives, products and manufacturing, even jets and lasers. things people don't even think about. let's go through sectors that were smacked down hard. all, footwear stepped into a sales slump. a lot of the shoemakers, part of the apparel industry is getting hit.y several of them are consumer products and related to retail,

hit hard. energy came off its lows. real estate reacting to the moves we are seeing in yields. let's go into some of the individual stocks. a total of 2.9 billion wiped out in the latest session alone. abercrombie down in a very big way. the teen retailer signaling slowing scales. canada goose is that company that has had these jackets that you see everywhere. -- their sales are slowing. capri holdings, the parent company of course also cutting the forecast. let's take a look at some of the others. nike, johnson & johnson, medical companies and health care down in a big way. momentum techt companies was almost double going into the last couple weeks, down in a big way as well.

quickly to oil, this is something many investors are watching. it is tied to the u.s. trade with china. it came off its low in anticipation of thursday inventory data that is expected to show a surprise drop. keenan there, i don't that we saw a single grain number on any of those boards. ahead, our guest joins us as we talk fx near the end of what has been a tough month for emerging-market currencies. wells fargowe ask asset management co-ceo which names to watching in a volatile market. this is bloomberg. ♪

asia."his is "daybreak u.s. stocks fell to a 12

week low. bondersisting concern the market warning is growing lower -- louder and the trade war shows no sign of easing. joining us now is wells fargo co-ceo kirk hartman. we have seen time and again bonds are the only safe haven investment. even gold has been pretty much meandering. we have seen currencies not being that reliable. this makes sense that when you have so much in diet the -- deity all over the world this is the trade to go for. kirk: you finally have the disconnect between the stock market in the bond market. i have wondering that for a while. it is a risk environment. you are going to the safe havens. it will be interesting to see if this continues. clearly, the bond market once the fed to ease. it will be interesting to see if the fed follow suit.

if the fed does not cut, if there is momentum for stocks to go higher, the gtd showing the earnings yield of the s&p 500 is now more than three percentage points above the 10 year yield. a spread rising above that, we have seen positive returns. these high stock prices and bond yields could only coexist if the fed cuts rates to run avoid -- to avoid or session. what are you expecting with market moves? kirk: i think we will be a sideways market for a while. i think 2.2% or 2.3% on the 10 year. a 16 on the 18 pe. i'm not in the camp of imminent recession. i think we will be sideways for a while. to your point, earnings continue to be pretty good. you have an interesting dichotomy going on.

terms of earnings, the next quarter will be the one to watch. that will really coincide with the heating up of the trade war. what are you expecting to see? utilities, technology have had a great year. ishink what you are seeing rotation to the quality stocks is something that will be expected and rotation back to dividend yield. to the want to return bond market quickly if we can as well. predictor,ly it is a not always of imminent recession. i'm just wondering what you think to what extent qe and then qt has had on the critic the ability of the yield curve? kirk: a central banks have had a dramatic effect on the yield curve. i wonder about that. i think that is something that gives me a little bit of pause

what inverted curve indicates. it will be interesting to see what happens. the other thing that continues dollar strong environment. either the u.s. economy is going to slow, the fed will lower rates, in which case some would argue the dollar would come down or the fed will continue to be on hold. the u.s. economy continues to go along at 2% gdp. the dollar stays strong and you have the continuation of what we have seen for most of this year. shery: can company profits hold up of the dollar strengthens from here? kirk: it is very much what happens to the trade war. no question that the increasing terms will have an effect both in the u.s. and china. everyone loses in a trade war. thequestion will be what is impact of that on corporate profits, especially technology. as you know, a lot of the profitability of the big

industries has been driven by the tech company. we will see if that continues. likeve seen some sectors utilities do pretty well. can we rely on these bets to continue to play out in the rest should we ber aware of stocks in the specific year? kirk: i was thinking about it a lot in terms of sectors. the better way to play is to own cable, the amazons, microsoft pepsi, coke, the more what you would call quality companies is the better way to play this. trade you are of optimistic there will be a deal in the near future. in the meantime, china really digging in. is getting -- huawei stomped on pretty hard. from tweet wake up

from president trump saying it is all over? aware of have to be all that. it is very sobering. we are all concerned about this. thereing person would say will be some kind of deal. we were all hoping it would be by the g20 summit. now i think we are all thinking later in the summer. we will havertman, to leave it there unfortunately. thanks so much for joining us. you can get around up of the stories you need to know to get your day going on today's edition of "daybreak." bloomberg subscribers can get this on the terminal. this is available on mobile in the bloomberg spapp. this is bloomberg. ♪

asia."this is "daybreak paul: china's dominance in the rare earth's market could be devastating for the u.s. if beijing pushes forward with threats to use the metals on the next front in the trade war. is using everything from cars, dishwashers, key american weaponry as well. let's bring in jason rogers in tokyo. tell us more about the implications of this for the u.s.. jason: we have a situation here where as you say rare earths, they are about 80% controlled by china. used inre earth's are applications across industry. is everything from autos, magnets that power your windscreen wipers or allow you to wind down your windows.

they are used in the u.s. defense industry as well. if china does follow through on its threat to curb the supply of bige things it could have impacts and disruptions to american history. shery: we know these rare earth's are not really that rare. it is the concentration that is the problem. could the u.s. get ahead of this and try to prevent this from having an impact on their businesses? jason: that is an interesting point. in 2010 there was a maritime dispute in japan and china blocked the rare earth's. there was a spike in prices. it was a wto case. it prompted a flurry of activity industry looking to secure additional supplies. that is a risk that could happen. here we are in 2019. even after almost a decade, it

has been difficult to get any traction. we spoke to people who indicated it would take years for the u.s. to gain significant traction. paul: the u.s. had years, i think this popped up in 2012. why was nothing done to diversify the supply chain? i can't comment too much on american politics. once the wto case was won by the americans, prices started to subside, there were other supplies coming online. here we are in 2019, coming back to the u.s. -- could come back to bite the u.s.. shery: thank you so much. let's get a quick check of the latest business flash headlines. bloomberg is being told top

justice department officials want t-mobile and sprint to lay the groundwork for a new wireless carrier with its own network. that would be as a condition to clearing their $26 billion merger. one source said an anti-justice aief said it would create stronger competitor to market meters. paul: the two biggest trading houses on wall street are warning of a slump. citigroup says trading revenue has declined this quarter, joining j.p. morgan chase in reporting a downturn. city ceo michael corbett says the trade war, brexit, and iran tensions have played into it. jamie dimon said trading was down up to 5% this quarter. isry: united overseas bank betting southeastern asia will be escalated from the trade war between the u.s. and china. it ceo told bloomberg that

will become a safe haven where he will be planning to use digital technology and artificial intelligence to expand in the region rather than that. frompproach tdiffers rivals which took over hong kong lenders as a gateway to china. coming up next, special counsel robert mueller breaks his two year valve silence. we are still looking forward to the opens in japan and south korea. we have seen the japanese yen strengthen over safe haven demand. we are seeing the japanese yen -- just below 110. we will have more coming up. this is bloomberg. ♪

outlinedboeing has plans to ease the 737 max back into service. the is when they lift grounding of the best-selling jet. the ceo says it will take around three months before flights will resume. in the meantime, teams are preparing to take almost 500 jets out of storage, including around 100 new planes that can't be delivered until the grounding is lifted. israel will hold a new election after prime minister benjamin failed to hit the midnight deadline. it is the first time a prime minister designate has been

unable to put together a ruling coalition after the election. the six week deadline expired with partners unable to agree on a proposed military draft law. overionwide strike austerity measures has halted dozens of trains and flights, banks, courts, and many schools were closed. hospitals offered only emergency services. organizedr strike was by labor unions. two luxury new york condos beonging to fugitives will sold as part of u.s. forfeiture lawsuits. he was accused of buying them with money stolen from malaysia estate investment fund. it is not clear who will keep the proceeds. earlier this month, prosecutors and lawyers jointly asked for permission to sell another luxury mansion in l.a.

global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in 120 countries. i'm jessica summers, this is bloomberg. shery: let's head to hong kong for stocks to watch this morning. watchingn tokyo we are nissan on a nikkei news report that the carmaker will announce cost-cutting plants as -- plans as soon as july. chip stocks are amid more potential consolidation and samsung is in focus after it stockpiled as much as 2.9%. that could accelerate with the trade war. samsung competitors have started offering cheaper chips. raising hotel sheila, it could boost margins for

retailers, particularly hotel sheila and the household which are relied on spending by chinese taurus. the dealer seem to be positive for shares in the near term. much, sophie.ery the trump administration is escalating a battle with europe over iran's nuclear accord threatening penalties. it was created by germany, the u.k., and france to protect trade. let's bring in jody schneider. what is the u.s. threatening to do? they're threatening to take action against this body. to up the ante in terms of trying to isolate iran's regime

economically. by thedy was formed u.k., germany, and france in january as a way to allow countries to continue to trade and sort of a workaround after the u.s. started imposing sanctions following the trump administrations decision to leave the nuclear accord. which those european countries continue to support. raising tensions between european allies and the u.s. over the iran nuclear accord. this faction trying to further isolate iran and have those sanctions be working in a more effective kind of way. -- already they have threatened to scale back some of the accord with europe.

they are not going to like this. jodi: this will not make iran happy. what we have heard is that the u.s. is basically taking unfair action. toy are trying to continue really push these european countries to continue commitments they made under this accord. this is putting them in a more complicated position. paul: let's switch gears to special counsel robert mueller making his first statement today. tell us about the political implications of what he said? jodi: pretty interesting to hear from him after it several years of not hearing from him at all. what we have now heard from him is that the main piece of information that is really causing the political discourse in washington is if they had confidence the president had not

committed obstruction. it really leaves open the question for obstruction given his report. the president doesn't see it that way. he said case closed. this puts democrats in an interesting position. now they have heard from mr. mueller that he does not clear the president on obstruction, what today do from this point on? reallyink they should accelerate the investigation. impeachmentiously talk. some want to go on with proceedings. several other presidential candidates including cory booker from new jersey saying this does accelerate the clause to start the impeachment proceedings, which started in the house of representatives. shey pelosi still says doesn't think impeachment is the

way to go. fuel the could really president's reelection campaign. see they prefer to move through subpoenas and try to do more investigations with the house committees that the democrats control. is mr. interesting mueller says he does not want to testify before congress yet there are calls from some who control committees that he should testify. they want more information about the report. shery: thank you so much for the latest on the president and special counsel. pimco sounding alarm bells saying the firm is preparing for more volatility ahead. saying it is time to sit back and be patient. we spoke exclusively with the ceo from their offices in newport beach. >> there is less willing this

for market participants to step in and provide a buffer when investor views change. more often and that -- than not, it is about lining up a buyer and seller on the other side. does that happened to be there? you end up with the overshooting dynamic. liquidity management from the standpoint of an asset manager needs to be top-of-the-line today. that is going to be likely one of the rude awakenings that we refer to. >> that is one of the things we explored. the fact that when you extend to a different business cycle you set off a recognized pattern. this looks like 1991, this looks like 1998. what changes is you have a whole generation of people with assets going up since 2009, really steadily follow very long time.

do you see the difference in the terms of the investors within pimco based on the age, demographics? is that something you see clearly? >> we noticed differences of view. it is athat is bias, little bit of both from time to time. -- it hasrry that his been a long long time since people went through a period of volatility. that is why sometimes as an asset manager, you sit back, be patient, and read economic history books as opposed to being on your terminal trading every day. is we do like companies who eventually makes money. it is ok to lose money for a while. it is even ok to lose money for a long time. at the end of the day we are hoping people make money.

there is a generation of people who clearly think it doesn't matter. >> eventually you are looking for what you consider to be liquidity providers, not the mentors. there is a period of time you are waiting for, that is building. could be several years away. are you willing to sit out the period of access that could develop? are you willing to underperform or say something your peers could be delivering in terms of gains by being defensive? >> the answer is yes. the good news is there has been enough localized volatility, dislocation over the last couple of years where you could be defensive. you could be patient. you could be relatively liquid and still generate incremental return. if you get to a point where we were in in 2005 or 2006 with a direct trade-off between short-term performance and being defensive, we are absolutely willing to do that. it is essential and consistent

with generating strong returns. >> that is correct. maybe you see the box analogy that this is a counter punching type market. patient, and wait for others in the market to ask for liquidity and provided you are getting sufficiently compensated. be patient, be more liquid. look for lots of little trades along the way that generate incremental returns. strike when you have the volatility. we haven't had much of that the last decade. going forward, we think it is a type of environment with the style of management winning out of the end. >> i very much agree. i think we are sort of hoping for a more difficult environment. once again, whether it happens in six months or two years it is hard to call. for theearing the firm market and making sure we have a

game plan. i think having a game plan and thinking about various options and opportunities is what we get paid to do. representatives from pimco speaking exclusively to bloomberg. have our guestl joining us to talk about the outlook for asian currencies. this is bloomberg. ♪

shery: this is "daybreak asia." paul: while the u.s. china trade tensions have been rough on emerging markets, some investors are finding opportunities shorting fx or buying into the less volatile markets. we are joined by our guest from singapore. i just want to start with the u.s. treasury report that we had that on wednesday, a few

countries out of their, vietnam, singapore, malaysia, added to the watchlist of currency manipulator's. what have they done to earn their spot on that list? lemon: nice to be back. list was published earlier country has been labeled a currency manipulator. the u.s. treasury has labeled three criteria to be on the list. the substantial trade with the u.s.. think those countries match one or two criteria of the three, they put them on the fx. the new one currently will be small. we are watching closely with the asia central banks. the domestic currency

appreciation. the asian currencies will be highly impacted despite the fact it only meets one of the three criteria. that limits the central banks from the depreciation if any. it will be limited. we watch that closely. another interesting thing about that list was the removal of china. if we take a look at this on the bloomberg. this was china's line in the sand at about 6.9 with the offshore trading at about 6.93. it looks as if china will have to engage in some sort of intervention. policymakers stopping it from reaching the seventh level. what is in the armory?

we think it will keep a strong defense in the near term. not want to break the deal despite the fact that there is not much progress going on in the near term. , could even go higher. they put themselves at risk of being a currency manipulator or being involved in the discussion of adding tariffs on those countries. from that perspective we think it at the cap. shery: despite the fact that we could see china continuing to hold the seven level, given the treasury department seems to be tweaking that criteria here and there, we have seen this time around that they lowered the threshold for having to monitor this country on fx manipulation.

are we headed eventually in that direction if the china-u.s. trade tensions continue? where you will see china be manipulated -- be labeled a currency manipulator by tweaking some threshold? said, theyou adjusted some of the threshold to include more currencies on the list. . china is not on that yet. thehey are tweaking criteria or thresholds, china can be limited -- be labeled as a nip you later. then, china with the fact that they could be labeled as a manipulator, it spells out much further. i think china will allow it to go beyond seven. that is an extreme scenario. not our baseline case. shery: that is good to hear.

let's look at other asian currencies with the function on the bloomberg. it is also showing throughout the month, really asia and em currencies have been the biggest losers. we have seen that japanese yen remain supported. look at the j -- gains on the japanese yen. are these safe havens going to hold for the yen against the dollar as we see the uncertainties spread? i do see the appreciation of the yen against the dollar because they have been driving inflows. think we have both come apart from that we are helping to emphasize the differentials between the u.s. and japan.

we also have the correlation between the currencies and the real yield differentials. we think now we ca modest gradual appreciation through 2019. shery: always great talking to you. missed part ofou that conversation, tv is your function. you can watch it live or catch past conversations. also dive into any of the securities or bloomberg functions we talk about. become a part of the conversation. if you have any questions you could ask the guest questions on the lower left side of the screen. this is for bloomberg subscribers only. tv , this is bloomberg. ♪

shery: hong kong is getting a second chance to land the one that got away.

with alibaba mulling a massive $20 billion listing on the stock exchange in the city. in an exclusive interview, we were told he is happy alibaba may finally be coming home. this report isf indeed correct that they are planning to come. is not ao come, it surprise to us. i have said when you travel far, you come home. everybody does that. you give up mean your new home. i'm sure they will come back and keep whatever they are doing in new york at other places and they will be coming back to asia. they could be here, or they , wed be shanghai, shenzhen are very happy they are coming back. we are happy for whatever

decisions they make. secondarys around the listing in hong kong that, as the trade war is escalating between the u.s. and china. are you assessing the strategy in light of this? war is a global event. it is going to affect all of us in very deep ways. nobody likes it. we are all watching on the sidelines, praying that this divorce is not to take hold and maybe there are ways to scale it back. we will have to see. >> what message are you hearing issuers in hong kong or elsewhere? at thisbody is looking and asking the question, what does this impact mean? ipo's,ot only about investment, even 70 that just wants to start a business.

should i wait? uncertainty of an that this created. it is very costly to the entire economy. i think the political leaders need to take the responsibility. quickly define what is really wanted. a we can probably agree. if you want b we can probably work something out. if you want something that is unacceptable to the other side, then we are going through a divorce. we should go into a civil and peaceful, hopefully a process that will allow everybody to get on with their lives. hkex chiefwas executive charles li speaking to us. let's get a quick check of the business flash headlines. alexa is updating its

voice software it uses so it deletes voice recordings at its request with a voice command. this is as criticism of the privacy practice after report some amazon employees listen to voice recordings as part of our aunt d work. ahead of a planned ipo it is trying to raise $2.75 billion. chase -- j.p. morgan chase is leading the potential funding. it looks to become one of the world's most valuable startups with backers including softbank group. its ipo is touted as being the year's biggest offering since uber. talking tosia is potential partners to build and e-commerce app that may overtake the size of its airline business. southeast asia's largest carrier earns $240 million a year and expects 20 times more as it expands into an app to offer

lifestyle goods and services. shery: japan and south korea get underway at the top of the hour. how are we looking? sophie: we are eyeing a mixed start to the section -- session while u.s. futures nudge higher. it is looking fragile after slipping to a five-month low. analysts are further trimming earning estimates. looking steady. taking a look at bond markets today, we are seeing the bond rally take a breather with 10 year yields recovering a touch from record lows. treasuries may continue to pair gain. this is boosting that's the boj make cut its june bond planned when it announces details on friday. it illustrates that while market stocks are getting cheaper by the day, that is not really with investors even after the correction last week. down 10%.

paul: thanks very much. stay with us, plenty more to come in the next hour of "daybreak: asia.:" this is bloomberg. ♪

♪ paul: good morning. i am paul allen in sydney. major markets just about to open for trade. shery: i am shery ahn in new york. sophie: i sophie kamaruddin. bloomberg to " daybreak: asia." recession, with silence concerning investigations did not conclusively clear donald trump,

robert mueller. shery: and japan maybe hanging saying others may shun the company for 5g, and in a few moments, we will have an interview with the morgan stanley chairman and ceo james gorman. you will not want to miss it, but first, let's go to sophie in hong kong. sophie: japanese stocks are opening lower, extending declines we saw on wednesday when the nikkei five 225 lost. we will be waiting to hear details from the boj. bets are on for bond purchasing aven recent yields, with 10-year rates two -1%, and shares opening higher, some optimism after the cost be wiped out gains on wednesday, which prompted more commentary -- after the kospi wiped out gains on wednesday, and the korean won

, after weakness we saw, trading at around two-year lows, and we do have 10-year yields looking just above that, 1.7%. this is ahead of friday's meeting. to bexpect things accommodative, which will keep yields low. stocks opening lower, the aussie dollar trading steady, while the 10-year yield has climbed back above 1.5 percent, and investors ss -- investors assess rate cuts. and one copy has suspended zealand,and in new kiwi shares are set for a fifth day of losses, while the 10 year yield is recovering for a record low that we hit on wednesday. paul? paul: ok, thanks, sophie. at exclusive coverage of the

morgan stanley summit continues -- our exclusive coverage continues. we cross over to tom mackenzie, who is standing by with the bank chairman and ceo. tom? tom: paul, yes, thank you very much, indeed. i am very pleased to say i am joined by james gorman, who is the ceo of morgan stanley. it is there anniversary of them operating in china, your annual summit, and, of course, china and u.s. trade tensions. it seems to be factoring into the markets now, the s&p 500 closing below its 100 day moving average for the first time since february, yields down on the 10 year. are the markets finally waking up to the risks of a full-blown trade war? charles: first of all, tom, thank you for doing this again. summit, aboutfth

600 corporate, and it was important to do this, particularly at this point in time. china 25 years with over 300 employees, and we have done, i think, 300 billion dollars in equity raises and about 500 billion dollars in equity transactions, so it is a great story, great to celebrate with clients, and we are here for the long run. the trade talks and what is going on, we have a lot to talk about, so i will start wherever you like, but clearly, with the 10-year doing what it is doing, the s&p i believe was -- i am not sure where it finished, while i was asleep, but a lot of anxiety in the market right now. the when you look at chinese and u.s. stocks, it seems china is digging in. they have threatened to cut off, trump making a comment a couple of days ago saying he was in no rush to get a deal. where do you put the chances of getting a deal between these two

countries right now? the thing about rare earths is that they are not rare. china, more seriously though, the u.s. economy is a $19 trillion economy. china is about a $12 trillion economy in terms of nominal gdp, against our world economy of $70 trillion, so 40% of the world gdp is tied up in these two countries. to have a major trade war will be very bad for both countries. everybody understands that. i certainly hope they do. ceo'sf the u.s. understand it. chinese ceo's understand it. there is a resetting of this relationship, which makes sense after 30 years of incredible economic growth in china. there needs to be a resetting. there are certain things on the trade side that need to be addressed, are being addressed. do i think this is going to devolve, as a betting man, into

a trade war? i do not, because there is too much self-interest in keeping this on the rails. someone said if it does not happen by the g20 which is late june, i am not sure about the exact timing of when we need some form of resolution, but, clearly, the negotiators need to come to the table and figure this out. not everything. that will take decades to get done. but we need to get the train back on the tracks. tom: what are the global, economic implications if we get a full-blown trade war and trump-pence the trigger on more tariffs on the $300 billion of -- and trump pulls the trigger on more tariffs on the $300 billion of chinese goods? unfortunately, it is not isolation. we have got brexit going on in the background, and the political environment, elections coming up, so there is a lot of macro noise right now.

i cannot predict exactly what will happen if that tariff number kicks in, but the bottom line is the two largest economies in the world do not serve themselves well by engaging in a full-blown trade war. the u.s. runs surpluses in services. china runs a surplus in goods. there needs to be more adjustment, more transparency, particularly about technology, and we need to get this thing back on the tracks. tom: consumer sentiment in the u.s. has held up until now, and corporate earnings and corporate profits? james: it is interesting. the market psyche is fragile. i would say the market itself on core fundamentals is fine. u.s. unemployment is 3.5%. who thought this was possible one decade ago? we have got very muted inflation. there is plenty of the community in the market. the market sentiment, the issue is the market psyche, and there is more downside risk than upside risk. more people think the market is

heading down and we are potentially heading into a recession, which the inverted yield curve would suggest, than the reverse. that is not a good thing. that is why you are seeing at any point in time when these macro stories at the news, whether it is prime minister may in the u.k. announcing her resignation, you know, the resignation -- the election results in australia -- around the world, you're seeing things that are triggering market reactions, and it is more negative news than positive news, which is driving it. tom: that in version. how concerned are you when you look at that? james: it is concerning. last 50 years, but on the other hand, i saw former chair yellen, i think it was last night -- it could mean that, or it could mean it is time for the fed to cut rates. that surprised me, frankly. is beinghe fed decidedly neutral at the moment,

which i personally feel is a prudent thing to do. to cut rates ahead of hard evidence that the recession is really coming is using some of your firepower, and they do not have a lot of firepower, but that to your core question, tom, it is concerning. look at what the 10-years in germany are doing. it shows how anxious the markets are, and there is more news to be anxious about than there is to be positive about. tom: in terms of recession and the likelihood and the timeframe, are you able to give anything on that? james: i would be doing a different job if i could do that. no. i guess we will have a recession at some point. it used to be priced in every year. i think the fed does about 15%, one in every seven years, roughly. we have obviously gone longer than that. it is not that bad. it could be shallow and short, which, given the strength of the economy, that would be my expectation, but i do not want

to get ahead of things. these are trade talks. know, if the others get together, come to the table, get us back on the track, this could turn very quickly. dire anxioushe scenario yet. there are enough warning signs to say we need to get serious here. tom: do you see more downside to --ities here james: it is hard to make the case for the s&p moving significantly higher. i always try to think of the probability of something happening and the magnitude of that outcome, and right now, the risk is the equity markets have more downside than upside. the magnitude is not so big.

i do not think we are looking at a collapse. we are looking at some of the excitement being taken out of the market that has been building. the trade talks happen to be the catalyst driving that right now. do you put more aside in cash? is that a way to hedge some of these risks? on what theds clients are. they are professional investors. they are going to do whatever their strategy is based on the money they are managing. for the retail investors, i told them the same thing all of the time. markets go up and down. long term if you stand back, certainly in the u.s. and global equity markets for the last 50 years, it is a straight line from bottom left to top right. if you are coming at a closer look, it is constantly jigsaw jigsawing, bouncing

up and down. right now, i would not encourage people to move one way or the other. there is too much uncertainty. there is nothing to be gained from trying to be clever. leave that to the professionals. it should hold for the long run. tom: you talked about the fed. they are facing three cuts. is that appropriate? james: i mean, they say you cannot fight the fed preview also cannot fight the markets. in the short run, the markets can be really stupid. in the medium-term, they can get it wrong because they overweight different macro factors which do not pan out the way people think they will. in the long run, the market is always right, so right now, to predict three rate cuts, by 2020, from my perspective that would surprise me. i do not see an environment that would drive that kind of outcome. in fact, i am still in the camp that i would be surprised if we have a rate cut this year.

listen. i am not a trader. i cannot predict how the fed is going to be behaved. they have consistently said they will respond to economic data. if the trade talks really do derail the economy and that appears in sentiment really and then in corporate activity and investment in the very short-term, sure, we could be open for a rate cut. tom: when you look to the u.s., are you concerned about risks? jay powell said this is under control. collateralized loan obligations. is this a systemic risk? james: definitely not systemic. i understand what systemic risk is. there are credit bubbles. frankly, there is a bigger bubble in student credit than --re is in that, so i am not that is not major anxiety.

tom: a slowdown here? it is an extraordinary economy. i said earlier it is a leaven trillion dollars $12 trillion economy. when it was 10% growth, it was a 5-2 lead dollar economy. -- it was a 12 trillion dollar economy. china has enormous reserves. they have shown their willingness to act, and that is one of the benefits of a planned economy. you getting any concerns that your business will be hindered, could be hindered, due to the trade tensions customer james: no, no, friendly, the opposite. to chinese are open hard open the markets. they understand. they become public companies and want to raise equity capital.

they want to attract global investment. we have now 49%. we moved to 49 in our business. time, but idict the am quite confident this point we are going to move to 51% relatively soon, so -- tom: within this year? james: i would hope within this year, and we will leave that to the regulators to determine what is appropriate, but we have positioned ourselves well. we have been key participants in the chinese equity markets for a long time. it is a natural evolution to bring the global investment banks into this market and let them control. tom: focusing on the overall business, would there be estimates around $10.4 billion? what are you seeing in terms of trading revenues? some are pointing to a downturn for the second quarter. is that in line with what you are seeing? james: firstly, go back to the quarter before. we had a record year in the

first quarter. likeve never had revenues that in our history, 85 years. three of the fat -- past five have been. the firm is in great shape. whatever the trading movement, it is about $3.5 billion. maybe 3.7 billion. it is too early to predict. i saw some of the commentary. the volatility in the markets gives you a little bit of pause, no question, but is this a disaster scenario? no, it is not a disaster scenario, and the beauty about wealth and asset management, we produce over $5 billion of revenue for most businesses every single quarter, so between those, the capital markets, investment banking, our core equities business, where the brokerage is very stable, the actual volatility on the trading

pieces, trading macro, trading credit, is relatively small, so, no, i am not concerned. tom: how is the investment banking pipeline looking? james: this kind of anxiety gives us pause. there were big transactions announced recently, big transactions in the payments business. there are things going on. money remains cheap. the economy is growing. global growth is still solid. are overall more optimistic than not. they'd like to get things done. tom: increasing willingness to bring ipo's to the market? james: a big pipeline. you have seen how some of the pipelines have traded recently, more complicated by the fact that many coming into the market are very large businesses that have had multiple fundraising's over many years leading up to this, so it is almost like a secondary coming to the market, but, yes, there is a tremendous pipeline, both here in china and in the u.s..

still, people want to come to the market when the market is their friend, and in these kind of volatile weeks, it gives people pause. i mean, this is there one shot to go public. they want to do it well. tom: m&a, mergers and acquisitions. are you seeing a pickup in that right now? james: i would not call it a pickup. sovereign m&a, not our strongest quarter, to be candid, and i expect we will be due being better for the rest of the year -- we will be doing better by the rest of the year. a lot of people lose money with predictions. i would have hoped that what we are seeing now is, you know, a short-term funk. i would have thought at the beginning of the year, we would be close to 3%, you know, so somewhere between 2.5% and 3% is what i would be looking at as an expectation. i would be very disappointed if it stays at these levels, and if it is at these levels, then we are talking a different thing.

tom: thank you. james gorman, the ceo of morgan stanley, talking to me at the fifth annual china summit. they have been in china for 25 years, and they celebrated that anniversary last night. shery? be lookingill forward to those interviews. do not miss our exclusive coverage of the morgan stanley china summit. we will be live in sydney next tuesday and wednesday, and we have more exclusive interviews from the morgan stanley china summit in beijing coming up severalnd including guests, include the head of morgan stanley fixed income. this is bloomberg. ♪

welcome back. the u.s. treasury continued a rally, falling from where it

started in 2019, as the fed's favorite yield curve gave a stronger signal of potential recession. our editor, kathleen hays, is here with us in the new york studio. we just heard from the morgan stanley ceo, and he thinks yields will rebound. a terrifichat was interview that our own tom mackenzie did with james gorman, and i think mr. gorman was so clear and forthcoming. for starters, he asked about a recession. someid, it will happen at point, but his conclusion is, look. he still thinks there is too much at risk for both of these economies, the u.s. and china, too much at stake for them not to come to some kind of trade deal, and he said when that happens, he thinks it will lift sentiment. it will reverse declines in stocks, reverse the big, big rally in bonds, and, of course, when we are talking about recessions, one of the reasons

we are talking about it is the bond rally that has taken the 10-year note 50 basis points lower than it was at the beginning of the year. it has raised this question of recession a little bit more, because, once again, the fed's favorite age of recession -- excuse me, for the yield curve, has started inverting, and this is something. let's call it a chart, one of our charts from the bloomberg library, chart 832, to be exact, and what you see here, which is why tom mackenzie was looking at this so closely with james gorman, you can see that the just barely below zero. nevertheless, down below zero, it stayed there for time, and it has preceded some pretty good recessions come the last one being the great recession, and what james gorman said is, yes, it is concerning, and it shows right now there is more anxiety out there, and there are more reasons out there to be anxious than not anxious, but here

again, he is not looking for recession. he is not looking for that to be a problem, so you get a rather optimistic view of something he saidgain, shery, this probably reverses. he says if it does not, that is different, and we are seeing something much worse. i thought that was interesting, and that is how they concluded the interview. paul: something so bad, they will have to cut rates, or is this rally overdone? kathleen: a couple of things to mention. the federal reserve has not signaled it will cut rates. the market is looking for three rate cuts by the end of next year, and that is when james gorman said he would be surprised. he does not see that happening. people sitting on the bloomberg intelligence team, if the trade were continues, if expectations keep falling, bond traders the next few days are going to be looking at a few things, like what happens to the trade war, of course, at the top of the list. even things like weekly jobless

claims are going to be closely watched. pc core inflation, the fed gauge on friday, closely watched, and mortgage refi's, and as bond yields fall, people want to refinance, and that can create more demand. there is a lot out there, but it was interesting to hear james gorman, someone in the business a long time, saying he is not worried yet, not unless things do not get on a better track soon. and policyconomics editor kathleen hays, thank you. escalating the battle with europe over the iranian nuclear accord, with penalties against a financial body credo by germany, u.k., and france to protect -- created by germany, u.k., and france to protect trade. let's go to jodi snyder. yes, as you pointed out, it is this body that was created in january by the u.k., germany, and france, basically

to allow there to be trade with iran without going through american banks, without having to go through the u.s., which, of course, the u.s. pulled out of that nuclear accord with iran even though its allies still remain in it, so now, the u.s. is escalating those tensions that divide what to do about a ran by saying they are threatening penalties against the financial body, and saying that, basically, and this is according to a letter obtained by bloomberg, that there basically could be sanctions against anyone associated with it, and they could be barred from the u.s. financial system, so this really is escalating those tensions. that divide has grown since the u.s. has left that accord, and, of course, the sanctions against iran significantly in recent months increased.

in the u.s.,here we saw special counsel robert mueller speaking for the first time in public. he stopped from fully exonerating the president from obstruction of justice. what exactly did he say? jodi: yes, he came out and said if they had confidence the president had not obstructed justice that they would have said so, so this basically is taking and underscoring the fact that they did not clear him in that report of obstruction of justice. now, the president thinks otherwise. he tweeted "case closed," but this really does ramp up some of the calls from democrats in the senate and in the house to move ahead with the impeachment proceedings, to start the impeachment proceedings, which would, of course, begin and the house of representatives. nancy pelosi, the house speaker, has not wanted to go that route. she has wanted to have further

investigations with the committees, but she thought that going that route could hurt the democrats going into 2020. thank you so much for that on the latest on president trump. plenty more to come. this is bloomberg. ♪

this is "daybreak asia." ceos flight there i've israel will-- election. a prime minister

designate has been unable to put together elation after an election. a nationwide strike in argentina to protest a government austerity measures has halted trains, buses, and bikes. banks come up, ports, and schools were closed. it was organized over plans by labor unions to slash subsidies. two luxury condos will be sold as part of u.s. forfeiture lawsuit. them accused of buying with money stolen from malaysia state investment fund. prosecutors and lawyers asked for permission to sell another

luxury mansion in l.a.. global news, 24 hours a day, powered by more than 2700 journalists and analysts. this is "bloomberg." >> let's get a check of the markets now. the global look at market movers, asia shares lower. the nikkei extending losses as retailers weigh in on the benchmark. the kospi gaining ground. still in the red. the korean won looking for market. other currencies on course for a fourth monthly decline. , hovering around 693 as we prepare to round out the worst month for chinese

stocks. bonds, seeing yields rise from lows. recovering a touch as traders assess sliding yields. in the commodities space. iron or futures sliding. that is weighing on minors -- m iners in sydney. chicken in, up 7%. surging the most in some time. rare earth very much and focus. the lowest level since 2017 after cutting profit guidance. i want to highlight players which are jumping. as the companies open merger talks. byns to merge the two

october, 2020. >> thank you so much for that. let's bring in bloomberg strategist. it has been a miserable month for the chinese yuan, losing more than 2% against the u.s. dollar. how much longer will beijing be able to support the currency? >> in the near term, i don't feel like anybody thinks china cannot control it. they are able to get the market back into the range where they want to. without too much effort, really. see a bit ofe to theity, it comes back range the pboc is happy with. medium to long-term term, it is different. moreere is a chance of risk is thats, the

ways in economic growth. they will not be able to achieve gdp numbers they want, 6%. they are going to do stimulus, keeping rates low. some people are pointed to the worthhey have $3 trillion of reserves. if they see a risk of a prolonged dispute with the u.s., it will affect the economy well into next year, they may not want to deploy to many of those reserves. they want to support the domestic economy. it is likely sometime in the fourth quarter of this year, china will have to make a decision to allow the yuan to weaken. it will probably get close to the seven level the chances of keeping it in a tight range

indefinitely are limited. >> the aussie dollar, very exposed to whatever goes on in china. stating something of a modest recovery. going to have a big week next year. >> it could be the interest rate market has priced in a bit too much in terms of rate cuts. we were looking at the 30 day contract this morning. it is beginning to move towards 325 basis points, cuts in the next year. they are certainly going to do something next week. it is likely to signal more rate cuts to come. they probably don't want the market to get over excited. they don't want them thinking this is an open-ended policy.

startant the market to raining that back in. this asraders may see more distressed than they have been pricing. there's a chance the aussie gets more support next week. longer-term, the aussie is going to be subject to the direction of the chinese economy. if the economy weekends, it is not going to help the aussie over a longer time. tothere has been a tendency link at latest trade tensions as causing the weakness. i wonder how much it has to do with other fundamentals and perhaps a cyclical dynamic such as the sluggishness in the semi conductor industry. >> of course. investors, they look at the potential for growth expansion. if trade flows are being affect it.

they see whether consumer demand is falling or rising. as far as asia and particular, you often get the case money flows into asian securities markets, particularly bonds and equities as it flows toward currencies. if the move toward the equity markets is tapering off, that will affect the markets as well. you get a double whammy effect. people become defensive in the market, the currency as well. intende often going to them. that is the picture you are seeing. until people turned positive in asian equities generally, it will be hard for the currencies to sustain a good bid. korea is a good example. it is weak. at the same time as the kospi is underperforming. that is a good example of what is going on. >> bloomberg's mark grand field -- cranfield thank you for joining us. while way takes another hit.

excluding longtime supplier while way every joining us now is a tech reporter. how significant is this? >> we don't have much to go by with the two statements. we know nokia has been selected as a strategic partner. erickson is a supplier of network equipment. mumbank is keeping mom -- on the issue. we know why way is out of the running. it is a stark turnaround. while it is not a terrible keen.se, they were very at this point, it seems like there is no room for a chinese supplier. it is ironic erickson gets the

second seed. with the problems with their software which knocked out the global network for hours, before the company was about to go public so that must staying. >> we have seen them using chinese equipment for the 4g network. does this have implications for their 5g network? >> they chose them as the key providers. mostly out of cost considerations. the recent earnings, what happens to the existing equipment? what choices lay ahead? he put a number out there saying replacing existing equipment would cost ¥5 billion, which is not a great sum of money. he didn't go as far as saying that is what has to be done.

saying, if we have to, we can. competitiveness over the network will depend on what happens in terms of vendors. >> how do other carriers stand on this issue? >> officially, nothing has been said. the expectations are there is no chance to get any of the business. the only two countries in the world have come out and said we will not allow equipments. new zealand and australia. japan took a more diplomatic we will not allow vendors with security issues. mean --ey

>> thank you so much for joining us. singapore's, property market was red-hot. the government had to cool things down. we will find out how those have been working. speaking next. this is bloomberg.

this is "daybreak asia." >> let's get a quick check of the latest business flash headlines. amazon updating software to followings -- criticism of the privacy practices after reports some employees listened to voice recordings. previously, the only way to remove recordings was part of

the alexa privacy -- >> bloomberg has been told top obile and want t-m --int to lay the foundations one store says an antitrust chief has not been persuasive. the merger would create a stronger competitor. wants four major characters. >> we work is in talks about arranging a credit line of $2.75 ipo.on ahead of a planned leading an chase is potential ipo. backers include softbank group. as -- toutedrted as being the biggest offering

since uber. >> air asia talking to partners to build a trendy e-commerce app. earn $2.40 -- billion a year from current engines and expect to earn more. tony fernandez says the market will triple by 2025. >> united overseas bank is ceo told- the bloomberg they will become a safe haven. planning to use digital technology and artificial intelligence to expand in the region rather than acquisitions. this approach differs from rivals. lenders as hong kong a gateway to china. >> pimco chief investment officer says he expects more volatility and lower returns over the longer term.

told bloombergr it is a punching market right now. that means being patient and striking during bouts of volatility. >> by far, the area of most concern is the credit market. related to corporate credit risk. are gettinge we more concerned about fundamentals. >> with the population rising, government working on a plan to open a world underground let's go to singapore. let's put it in perspective. singapore is way small. the u.s. is 13,000 times bigger than the lion city.

let's speak to the man in charge. good to have you with us. expect from this grand plan? >> we put together a master plan. looking atys expanding land options because we are such a tiny little island. toare looking for new ways reimagine and rebuild our city. we want new ways to stay competitive and relevant, provide a sustainable and livable environment. we are doubling down on connectivity links by expanding our airport and landing strip. building new growth areas around these hubs. of land, whattion are the plans there? >> it continues.

if you look at singapore today, and compare it to 1819, we are 25% bigger. where it is necessary, we will do reclamation. we are doubling the capacity of the ports. >> let's pick up in the city areas. >> people will be closer. what do you see -- role do you see the private developers plane? vibrantnt them to be a space. it has to be a mixed use area with residential housing and a broader range of activities.

i think developers buy into this vision. we have in place development incentives. will reposition their properties. >> what kind of mix are you looking at? unitsny residential should there be? flex we don't have specific numbers. not all property owners and developers will do this. if they are relatively new buildings, there is no reason to tear it down and repurpose them. olderare a number of developments. rejuvenation and redevelopment. singaporeans are obsessed with property as a survey indicated among the top three in the world. implemented additional

measures to put a lid on hot property prices. additional measures were implemented a year ago. >> the survey said singaporeans spend more time searching for property than reading bedtime stories for the children or speaking to their parents. that is quite worrying. the property market last year, before the cooling measures were put in place, we saw prices rising sharply. there was a risk they would outpace fundamentals. lead to a eventually destabilizing correction and everybody would be worse off. the measures in july last year, not to bring down a bettert to stabilize cycle. >> current fright prices reflect

the fundamentals? >> if you look at price increases, not the absolute level. the pace of price changes. growth,that to incoming we are always monitoring these indicators. price changes and income growth to make sure they keep pace with each other. >> what did they suggest about where prices will be for the rest of the year? are they likely to stabilize? >> no one can predict what property prices will be like. if you look at the supply side, the figures are quite clear. a supply of units coming on stream for government land sales. were developers have approval. demand-side is difficult to predict. it is dependent on income and economic growth.

jean --redict projecting growth but there are dark clouds over the horizon every not to mention issues with china and america. on the other hand, if interest rates remain low, there is a lot of liquidity in the system and investors will be looking for assets to invest in. this interplay between demand and supply, we will have to see how prices pan out. >> you talk about the possibility of easing growth rates. are those enough reasons for the government to ease some of these measures, putting a lid on property prices? easingcost of monetary over many years in the past, you have a lot of liquidity in the system that is still there. still as they are.

possibly an asset -- in asset markets. we monitor the trends very closely. andant to maintain stable sustainable property markets. >> hong kong property markets have continued to rise. kongull market in hong property will continue for the next 10 years. despite measures they implemented. there are expectations buyers will be flocking to singapore. are you can -- concerned about a possible trend? will be foreign investors looking to buy singapore property because they perceive the market as stable. it is a good investment. we welcome investors to our property market read what we

demand,ensure is regardless of whether it is local demand or foreign demand, does not cause the prices to move at a pace that outstrips the fundamentals. we watch these different indicators very closely. we have a suite of measures we have put in place that allow us to ensure stability in the markets. >> one final question before we let you go. what do you deem as the biggest risk for the singapore economy? the tensions between america and china, that is a big unknown. the tradeing out in side. it will become a full-blown trade war between the two countries. singapore will be impacted. we are small and dependent on the external environment. that is the biggest risk. >> thank you so much for that. lawrence wong, singapore

minister for national development. back to you. >> thank you very much, haslinda. investors will be watching for big calls as the investment conference kicks off in hong kong. david ingles is there. from theoming up seventh annual conference. big investment call ups, a lot of these hedge funds will be announcing later on this afternoon. to preview some of these key themes, we will be joined in set in the next hour. big names in the hedge fund industry. we were talking about samsonite. some of their other shorts they have put in place. just in case, we will try to ask them as well. later on this afternoon what

they might need. we will try and see if they might want to chime in. lots comingasize, up here on the show. back to you. >> we will be looking forward to it. thank you so much. and before we hand over to bloomberg markets, let's take a look at the markets at the moment. seeing the nikkei following 0.8%. the cost be, up 0.3%. the afx falling for a second session. this is bloomberg. the latest innovation from xfinity

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