- [narrator] check out our huge selection of custom t-shirts and more, for teams, businesses, and every occasion. you'll even get free shipping. get started today at customink.com. paul: welcome to "daybreak australia. i'm paul allen and sydney. shery: we are counting down to asia's major market open. -- i'm paul allen in sydney. shery: i'm shery ahn in new york. we are counting down to asia's major market opens. paul: trade talks resume in washington, paving the way for high-level discussions next month. some reports say and interim deal will be struck. the oecd has a new warning about global growth and says rising protectionism is a drag anchor and governments are not doing

enough. and more signs of stress. the fed will add liquidity to a vital corner of funding markets for a fourth straight day on friday. later, huawei unveils an android powered smartphone without any google apps on the device. how the u.s. ban is holding back the techtarget. first, we are seeing u.s. futures at the moment unchanged after u.s. stocks ended mixed on this thursday. we have seen stocks gained ground after positive comments on trade coming from the white house economic advisor, larry kudlow, but then those stocks pared back earlier gains after we heard from a trump advisor hinting at 50% to 100% tariffs on chinese goods. also not to mention energy was under pressure today by the fact that oil stabilize, but we had two sessions of losses for crude prices, so the energy sector was down.

the dow lost more than 50 points, the s&p 500 unchanged and we also had a bond rally for a fourth consecutive session. we have seen, as paul mentioned, the oecd cutting global growth forecast, so still a lot of uncertainty in the economic picture out there. let's get a quick check of the asian markets. paul: new zealand is up and running, been going for a couple of minutes. currently higher by about .1%. that is pretty much the story of the day if we look across futures. modest gains to modest losses, really, with the emphasis on the modest. the nikkei looking pretty flat. we are awaiting cpi numbers out of japan in about 90 minutes' time. we will bring those to you live. futures out of seal -- out of .eoul a little weaker let's check in on first word news with jessica summers. jessica: thanks, paul. president trump is continuing

his criticism of the fed chairman, saying jay powell is safer now, but interest rates should be lower. the fed lowered rates for the second time since july but only by a quarter-point. the president said that is not enough, given that other central banks have acted more aggressively. he said he is very disappointed with powell, adding that he does not know how to play the game. france has repeated threats to impose retaliatory tariffs on the united states if washington moves first in the long-running dispute over aviation subsidies. in may, the wto ruled the eu had illegally supported airbus, hurting rival boeing. the eu had already brought a similar case against the u.s. for breaking subsidy rules with boeing. france says the u.s. should understand that the eu is ready to act. in thes are rising again gulf with the u.s. agreeing the attack on aramco plants was "unquestionably sponsored by iran."

warns anyanwhile, retaliatory strike by the u.s. or saudi arabia would be met by all-out war. president trump ordered new sections on iran but remains noncommittal about military action. endedary of state pompeo a short visit in abu dhabi. >> we think it is abundantly clear, and there is an enormous consensus, that we know precisely who conducted these attacks was rn. -- was iran. i did not hear anyone in the region who doubted that for a single moment. jessica: sterling surged to its highest in two months on a report jean-claude juncker thinks a brexit deal can be reached by the end of october. he told sky news he is doing all he can to prevent what he called a catastrophic no deal brexit. after three days of debate at the supreme court, britain's top judges will rule next week on boris johnson's decision to

suspend parliament. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 100 20 countries. i'm jessica summers. this is bloomberg. trade talks have resumed in washington, paving the way for top level negotiations next month. a sign the two sides may edge toward some sort of deal, but there has been conflicting rhetoric from two white house advisors. conflicting signals out of the white house. what can we expect? sarah: what we know now are these mid-level trade deputies are meeting in washington. they started talks today. they will continue tomorrow, and what they are trying to achieve is to pave the way, lay the groundwork for top negotiators to meet at some point in october. we do not have a date yet, but some point and probably -- in

probably early to mid october for high-level officials to meet. it is more of an exercise in setting the agenda this week and trying to find areas of cooperation so perhaps when these top-level officials meet, they can make some progress. if they can come up with some sort of interim deal or at least an announcement out of those high-level talks remains to be seen, but officials are working right now to try to make a little bit of progress, which we have not seen over the past couple of months. meantime, we are seeing different business sectors in the u.s. feeling the impact of the tariffs. not just the latest tariffs, but also the steel and aluminum tariffs the president has imposed, and also those farmers feeling the impact as well. what do we know? sarah: absolutely. we heard from the fed chair yesterday during his press conference saying for instance, trades. economy on the uncertainty is a real?

, and we hear that time and -- therom businesses trade uncertainty is a real question market, and we had that time and time again from businesses. it is obviously creating huge headaches. paul: what are we to make of these remarks from the sometimes advisor of the white house, michael pillsbury? he said president trump could still raise tariffs by 50% to 100% if there's no progress. sarah: i think that that again is some posturing. from has gone to places no one thought he would and the trade war. 50% to 100% would be pretty dramatic, and what we know now is that u.s. importers pay those costs, so is having a direct impact for u.s. businesses and

consumers that are starting to feel the ripple through effects of those costs being passed on. to think tariffs could go from 25%, 30% to as much as 50% 100% implausible ats this time. shery: thank you so much, our senior trade editor. says report from the oecd global growth slipping to its weakest in a decade as the escalating trade war pushes momentum toward those last seen in the financial crisis. our global economics and policy editor kathleen hays has the numbers. of course, a lot happening in the markets and the economy, and now the oecd, just one of the many that have now downgraded their forecasts. kathleen: absolutely. this is the third time they have cut the global growth forecast this year. has hadme, it seems it

an impact. i think even more than in the other ones. economist at the oecd spoke to bloomberg and stated pretty clearly what is happening and why. >> we are heading slowly toward slower growth, and the biggest risk we see is largely due to the uncertainty created by the .rade conflicts they could start affecting investment and not only consumers. athleen: we will jump to chart that shows you how this has been diminishing in terms of various countries. you have a 0.3% drop in the world forecast. 3.2%.ow from the euro area cut by .1. nevertheless, that is a 10th that really counts.

we see germany's economy getting weaker. the u.k. is warning that brexit could push into recession. china cut to 6.1 percent from 6.2%, but in 2020, the oecd says that will grow 5.7%. a lot of economists are looking at the slowdown in china. japan stands alone. oecd revisedes the higher. japan's forecast went from 0.7% to 1.0%. bar, youee how that don't see anything weaker than that until you go back to almost the beginning of the financial crisis. what are they saying about this? they are saying uncertainty from businesses is hurting manufacturing. even though the domestic economy from the services side in many countries continues to look good, oecd saying this is going to hit jobs, consumer spending. it has already hurt his and his

investment, and they are urging -- guess what? accommodative central bank policies, reinforcing the idea this global march toward lower interest rates can and should continue -- can and will continue, that it should continue and telling governments they need to step up and spend more. a stronger physical effort is needed. paul: central bankers around the world where acting like they had already read the central bank's -- central bankers around the world where acting like they had report.read the kathleen: let's go to the reserve bank of india chief, speaking at a bloomberg event in mumbai, saying basically he sees room for more rate cuts. the inflation rate in india is low. growth is slowing down. thinks we will probably be

discussing this seriously at the october meeting. he also noted fed rate cuts will be good because of inflows into emerging markets. that is important as emerging markets are cutting their interest rates. moving onto the bank of japan, what an interesting meeting. they did not do any change in policy, but sent strong signals. the governor basically saying if you ask if he is leaning more leaving, they could do it and october. not just yet. they are concerned about the loss of price momentum, things that will not push inflation higher but lower. that clearly came out in that statement. they are also going to review prices in the economy. this is important. i just want to throw one more in the mix because bank indonesia, third rate cut. not everyone was looking for it. preemptive easing continues and they probably agree that fed rate cuts have opened the door for them as well.

global economics and policy editor kathleen hays, thank you for joining us. still to come, strategic alliances in nasa. shery: up next, investment strategist kate warren says banks are returning to higher volatility. her markets outlook just ahead. this is bloomberg. ♪

paul: i'm paul allen in sydney. shery: i'm shery ahn in new york. you are watching "daybreak australia." the s&p 500 ended the day little changed and within 1% of a record. bonds arose, the dollar fell, and two ipo's surged. data dog and pig identity have given new life to the ipo market. wework has been put on hold and of aand lyft sort

disappointment. that gives the market a boost, but it was sort of an unchanged day. take a look at where we ended the day. health care stocks among some of the movers. pretty flat going into the friday session. let's go into the bloomberg real quick. gtp is where you can find our library of charts. club -- thisar focuses on apple, which is trying to join microsoft as amazon is left behind in the trillion dollar valuation. interesting to note that apple tumbled in an annual report on china's top brands, given concerns over tariffs and the recent dustup with huawei and other issues. however, it is doing well and climbing toward that trillion dollar valuation. let's look at oil. that is an interesting mover. you look at big movers right now, i should point out that diamond offshore is down because .f the gyrations we are seeing

thank you so much for the latest on the markets. joining us now is edward jones' principal and investment strategist. great to have you with us. how much higher can stocks go when they seem to be pretty addicted to money at the moment, but there is a huge gap between what the markets are seeing and what the fomc is seeing at this point. >> i think overall, stocks can continue to rise because they are supported by solid and pretty sturdy fundamentals, but i think there will be a lot more volatility along the way, so it will not be a smooth path. the reason i think stocks are supported is we are seeing consumer spending not just in the u.s. but around the world, we are seeing the fed cut rates, other central banks cutting rates, so a lot more monetary stimulus is coming into the system.

even earnings are supported not because they are growing quickly but because we are seeing earnings call higher. stocks are likely to keep rising. that figure is going to be a lot of back-and-forth, even as we saw within the day today, where you get good news and bad news, it is sort of back-and-forth, but the trend we think is higher. quadrupleday is witching day and this chart on the bloomberg shows the extreme volumes of volatility we get when we see the expiration of futures and options on indices and stocks. even without this once and a quarter event, you are saying we should be ready for all these risks out there. what does that mean? en?we go defensive th >> know, we think you keep a good mix of sectors and the right mix of stocks and bonds. investors get nervous when they hear stocks are down. if bonds are rising, that keeps their portfolio more in-line but basically less volatile than the overall market. it means investors can stay

invested even when they see big swings day today. no, i do not think the volatility is just quadruple witching days. i think there will be a lot of days where we see unexpected news, if it's good or bad. stocks have intending to move very -- stocks have been tending to move very sharply in response. earnings andint on growth, you say this is all non-spectacular, but i wonder if you are being perhaps a little generous. i remember yesterday some of the reaction we heard to the fed's move 25 basis points lower. everyone expected that, but there was a lot of disappointment that the easing bias was not stronger. is that almost an admission that the fed is all the market has left? >> i don't think the fed is all the market has left, but i do think there are a lot of hopes pinned on the fed and a lot of fedidence placed on the

being able to execute when it it is going to extend the expansion we have seen. i think powell tried hard to make sure he is saying our view is the economy is in good shape, not as weak as many are fearing, and that may mean fewer big cuts, but at the same time, i think he was trying very hard to be sure that investors understood if the economy did weaken, the fed would do more. that's not a bad place to be where the fed has the downside, and yet as the economy comes in better, we should see stronger earnings as stocks rise based on that better stronger economic growth. paul: if you do have good expectations around stronger earnings in the quarter, which particular sectors do you think are likely to perform well? >> i think we are continuing to see consumer sectors perform well because consumer spending has not let up at all. consumers remain optimistic and

their balance sheets are in great shape, so they are able to borrow if needed. i would say the consumer sectors are likely to once again deliver upside surprise. i would say in addition, if we get any kind of good news out of trade negotiations, which is a big if -- that is not a prediction. there is some hope they are. while that will not help earnings and industrials, it help othersy recycling pessimistic expectations for tariffs and the expectation of this no progress situation on the trade front. thanks very much for joining us. we have plenty more to come on "daybreak australia." stay with us. this is bloomberg. ♪

this is "bloomberg technology global link."

i'm shery ahn in new york alongside paul allen in sydney and taylor riggs in san francisco. taylor: alibaba found the perfect new investment in the form of a taiwanese start up. we have been told it is alibaba's tied up on the island although the financial terms of the deal have not been disclosed. it is an augmented reality venture that specializes in software that allows online shoppers to see what makeup would look like before buying it . software provider data dog leaps on its trading debut after betting it could do better as a public company than accepting a buyout from cisco. the shares surge valued the company at more than $10 billion, which is $3 billion higher than the market had set earlier for its ipo. and san francisco-based food tesivery company postma

private capital seven months after announcing plans to go public. -- the move shows tech companies are seeing more enthusiasm from private investors than the public market. those are the top stories i'm watching. paul: thanks, taylor. huawei technologies has launched its first high-end smartphone since the trump administration's blacklisting. capability,ost-5g but the blacklisting still left a mark. phones boast 5g capability. has the new phone been affected by the ongoing dispute between the u.s. and huawei? there is something missing, isn't there? >> thank you for having me. the most critical thing is missing, and that is the full android operating system. this phone will be super behind out of the gate. this is honestly sort of a disaster scenario for huawei,

,hipping a new high-end phone the company getting a lot of its on the phone. it's possible if the trump administration chooses to allow google to give android support to huawei that you will be able to get android in november, but we do not know what decisions the trumpet ministration will make, and as of now, i don't see why anyone outside of china would buy this thing. we talk about how it compares to the iphone, i think it is interesting that .uawei has 5g capabilities that is a plus for this phone. >> 5g is huge. i will give you two reasons why this is so huge. this is a phone that will be primarily sold in china because they do not get google services in china anyway. china has the largest proliferation of 5g so far, so it makes sense it would have 5g support in a 5g country.

the other thing and this is why it has been so critical, is that these phones cost north of $1000 at this point. 5g is going to be everywhere in the u.s. by the end of next year. if you are paying between $1000 pro,1450 for an iphone that phone is going to be outdated network-wise one year from now. combine that with the fact that people are holding onto their phones now between three and five years versus upgrading every year. not having 5g in this fall's model is not a good thing for apple. paul: huawei looking to sell a license to its 5g tech. could this be a silver bullet? >> huawei's name has been so crushed, so stepped on on the global stage at this point that i don't think anything they do will correct this issue any time soon. paul: thanks very much for

joining us. that is "bloomberg technology global link." don't miss "bloomberg technology" at 7:00 a.m. sydney, 5:00 a.m. hong kong, 5:00 p.m. in new york. plenty more to come on "daybreak australia." this is bloomberg. ♪

paul: 8:30 a.m. on a very pleasant spring friday morning here. we market open 90 minutes away, futures modestly higher by .1%. a mixed day on u.s. equities markets. i'm paul allen in sydney. shery: i'm shery ahn in new york where it is 6:30 p.m. you're watching "daybreak australia." let's get to first word news with jessica summers. jessica: the federal reserve is to add liquidity to a vital corner of markets for a fourth straight day on friday amid signs the stress seen earlier in the week is rebuilding. the new york fed said it will once again inject as much as $75 billion through an overnight

operation following liquidity doses of the same size on thursday and wednesday as well as $53 billion on tuesday. latest offer of free cash for eurozone banks has fallen flat and a sign of how much liquidity is sloshing around the financial system -- in a sign of how much liquidity is sloshing around the financial system. 28 banks signed on for a total of just 3.4 billion euros. that is far below predictions of up to 100 billion euros. another new report from the oecd sees global growth slipping to its weakest in a decade. escalating trade war pushes momentum toward lows last seen in the financial crisis. the organization is cutting almost all forecast it made performance ago, saying governments are not doing enough to prevent long-term damage to the world economy. the oecd says attention is and

is increasingly hurting confidence and investments. -- the oecd says nationalism is increasingly hurting confidence and investments. police said it would not comment on individual cases. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shery: china traders disappointed by a lack of policy rate cuts this week are shifting focus to a new gauge of borrowing costs, hoping to see a lower rate released by the central bank on friday. bloomberg's china correspondent

joins us. what are the expectations for today? >> this is the newly revamped loan prime rate which first came out in august. this is the second time we will get it. the excitations according to a bloomberg survey, are you will see a cut of about five basis to 4.2from 4.25% percent. remember that the loan prime rate is essentially based on the submissions of 18 different banks in terms of their best lending rates, and those lending rates are based essentially and primarily on the medium-term lending facility, which is a one-euro lending facility from the people's bank of china to many of the major banks here, and that, by the way, was kept at medium. many in the markets had been hoping for a cut to the medium-term lending facility. they did say 3.3%, and again, there is a view from some that the pboc is somewhat behind the curve in terms of market

expectations. it has eased slightly to split the margins and adjusted its policy, but it has been a kind of step-by-step approach rather than full throated and aggressive easing by the central bank. loan primeow is if rates will be reduced again. the survey suggests maybe five basis points. the pboc been reluctant to follow the eu more aggressively? >> the economic fundamentals continue to weaken, so there is that case to aggressively address that with more monetary policy of stimulus and easing, but on the flipside, there is a great concern amongst policymakers at the central bank and beyond that there is a risk of inflating a property bubble and also that they will undo the work they did primarily and 2018 to reduce leverage in the isancial sector, so that what seems to be holding them back from more aggressive stimulus. they did, of course, cut the rrr

rate, and that really kicks in this week, so there will be a focus on how much the cuts and reserve ratios to the bank will feed into a higher loan rate from some of these letters, if indeed that does happen. the other concern is they cut to aggressively and that will really pressure banks in terms of profitability. that is the other concern for the central bank. the bloomberg economic thinks you will get a cut for the medium-term lending facility at some point in the next two weeks, but as i say, the focus today is on the loan prime rate. as we have been discussing, the ofvey suggests maybe a count five basis points. we should get that at some point between 9:00 and 10:00 a.m. local time. paul: china correspondent tom mackenzie in beijing, thanks for joining us. let's get more on what we should be watching us trading gets under way in asia. global markets editor adam haigh is with us. is there going to be enough to satisfy those looking for more

stimulus from china? as we were hearing from tom, it's pretty clear the expectations are for a further reduction, but the concern of the market is more around how much of this easing is already baked into market prices. you could argue that a lot of recent recovery in chinese equity markets is only partly to do with ongoing expectations for further stimulus. we have had some weaker dater this -- weaker data this month showing the chinese economy continues to be pretty well constrained across the board. it is an ongoing project, and it takes a number of months for a lot of this to feedthrough. the rrr cut in earnest really only started this week, so you have to wait to give that time to come through, and indeed, if that rate is lowered today, again, it is another incremental move, but it takes a while to filter through. of course, there's plenty of people expecting we get into

next month, we may get some kind of aggressive stimulus measures announced off the back of that. that would certainly be a point where the authorities would maybe choose to announce those kind of measures. it will have to move quite significantly for you to see further bids for risk assets in chinese equity markets. already in japan, the governor sounding more dovish. could we see again that halloween treat when they meet? tom: what is interesting about the bank of japan yesterday is that the policy was very much unchanged, very much the status quo, but then he took the opportunity at the press conference to add some dovish flavor to the message that essentially he is starting to move closer, tiptoe if you will, closer, to some change to

policy, which may come as soon as next month. plenty of people in the market expect, even of course had this japanesein long-term bond yields of late. that has been part of a global move, but still very recently tested their way through that lower bound of the range they have in their yield curve control policy, so that still remains the key. you could still have a pretty read, but we will have a look and see how prices open today, early this morning, and indeed, basically, the focus inomes if the move happens october and if you start to see pricing in the market already in the weeks leading up to that. that is what we will be keeping an ion. shery: thank you so much. of course, you can find adam's charts on the g tv library on the bloomberg. coming up next, the white house is rolling out the red carpet

for australian prime minister's visit. how much will this help on agreement from topics from china to outer space? this is bloomberg.

shery: i'm shery ahn in new york. paul: i'm paul allen and sydney. you are watching "daybreak australia." australia's prime minister has a second century of makeshift with his country's most important ally. joining us from washington for a little of what to expect in the days ahead is the university of sydney's charles edell, advisor to former secretary of state john kerry on politics and security in the asia-pacific region. thanks very much for joining us. scott morrison is getting a state dinner at the white house. he is only the sixth australian

prime minister in history to receive this. ae we to take at this is particularly significant visit? >> yes, and i think more important is that he is only the second head of state to have a state dinner during the trump administration. the first was french president emmanuel macron, so this is a big deal, especially for an administration that does not always play so well with allies. i think this is an important setting that they will roll out the red carpet to make sure this meeting goes off well. paul: i want to get a sense of what is potentially the most important thing on the agenda. one of the things we have seen happen this week is the solomon islands, small, south pacific nation, switching its taiwan ton from beijing. is this something of a concern, china's growing influence in the pacific? how high will that be on the agenda? >> that will be extraordinarily high.

what prime minister morrison said before he took off for washington was that the united states and australia are not only the closest of friends, but the closest of economic and security partners, so i think this will be framed around the security situation and the changing security environment in the region, but also about where the united states and australia can work together more closely on the economic front as well. biggestustralia's trading partner remains china. they have been pretty good at balancing that trading partnership with the security alliance with the u.s. how difficult is this getting now? >> it can be challenging because australia is the most trade reliant advanced economic advanced nations. 31% of outbound trade goes to china. however, while it is tricky, it

is also important to note that -- and this is, i thought, most telling on the prime minister's statement, that america is australia's number one economic partner. of course, when you measure the economy, it is more than simply just trade. we talked about exports, when we talk about foreign direct investment, when we talk about employment, the united states is the biggest partner australia has, and likewise, australia parks most of its money, most of its investment into the united states. is it tricky? yes, but are there lots of areas for the united states and australia to grow their relationship? that is i think what they will be discussing. seen increasing geopolitical tensions with iran. president trump now saying that a peaceful resolution with iran may not be possible. how likely is it they could get dragged into such a confrontation? >> i don't think there is going to be a conflict, but it depends

on what circumstances would likely spark a conflict, if the united states decided to engage in connecticut activities and if australia did. the theoretical question does not make quite as much sense as under what circumstances, who was provoking. paul: in terms of trade and the talks between the u.s. and china going on at the moment, you mentioned that australia has really got a stake in this with both the u.s. and china being such important partners. is there any role scott morrison can play trying to bring the two sides closer together? tend to, although i think that the tensions are so the unitedbetween states and beijing at this point, that that is unlikely to lessen, although the prime minister did say he will talk about the effects of the trade war when he is at the white house, but i think what is important to note is that before

prime minister last saw donald trump at the g7 in osaka in june, when he last went up there, he noted and made a public speech that most of the american complaints about the chinese political economy were not america's alone and that the way china has decided to make s were a note of concern not only for a straley about for the united states as well. paul: you mentioned this is only the second state dinner the trump administration has hosted, but it is worth noting the other one was with french president emmanuel macron and that relationship started out you to flee and has since turned somewhat sour. are there any potential landmines that australia's prime minister needs to watch out for? morrison's predecessor got into a bit of trouble with trumps the betweenr a refugee deal

the countries, didn't he? >> sure, but i think the trajectories of the french and in many ways australian relationship are going different directions because while trump might have started out in a rocky way with prime minister turnbull, the relationship has gone on the upward since then and frankly, because australia does not have a trade deficit with the united states, because australia has already committed to percent of its gdp toward defense spending, what the prime minister has said publicly, what he has reminded the president of allyat australia is an that actually carries its own weight. while this is an administration that had been accused of -- rightly, i would add -- not playing so well with allies much of the time, this is a good news alliance story, and i don't think there is the same potential for the same tripwires within this meeting, although with president trump, one can never tell what will come out of his mouth. they: at least for now, president is going all out for

prime minister morrison. thank you so much for that. of course, if you missed any part of that conversation, tv is your function. you can watch past interviews and also watch us live, dive into any of those securities or bloomberg functions we talk about and don't forget, you can become part of the conversation. send us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

paul: i'm paul allen in sydney. ahn in newshery york. india's central bank president is the latest to throw his weight behind lower rates saying there is room for more cuts after the fed delivers. speaking at the bloomberg india economic forum, he told us .xclusively

>> any cut in interest rates would mean better flows into emerging markets, and i think india is among one of the most attractive destinations for foreign portfolio investors and others, so i think this should lead to inflow of funds into fbi --fdi. of while we welcome this and mention was made about having a more liberalized regulatory insulate the flows in the fund, but i think as a regulator, we have to be also very careful in monitoring these inflows and focusing simultaneously on the possible effects at a later date, to avoid any situation where there is an asset buildup. one focus is to enable the

inflow of the funds and parallel he, also to keep watch over possible adverse effects during the reverse flow of all these funds. quincy talked about the reverse flows -- >> you talked about the , especially when it comes to global oil prices, you have seen recently the spike in oil prices. from where you stand right now, do you think the price of crude is more a concern for growth, or are you more worried about price stability because higher oil prices would eventually lead companies to raise domestic oil prices? movementk the current due to the saudi crisis, they do not seem to suffer the range

that has happened in the last three or four days. it will not have any significant impact on inflation. i am going based on what has happened over the last three or four days. how it will play out, again, time will tell. elsewhereentioned earlier, roughly 10% of these production facilities have been , 5% -- thish half is not 10% of the saudi facilities. thei oil represents 10% of world production, of which 5% -- of which half, 5% of the world outlook, has been affected. india is trying to develop alternate sources from u.s. and other sources. the government is trying to get that you wouldng

have also seen that the oil prices immediately shot up to $68, $69 per barrel, but they again came down to about $63. as long as it remains in this range, i do not think it is a very big issue so far as price stability is concerned, and so far as the challenge to growth, in oil the increase prices does pose a challenge to to thet of -- you know, physical, but on the fiscal side also, you know, you would agree that over the last few years, the prices are mostly linked to the market and the subsidy component today is by a large confined to lpg, which is now more targeted because of direct benefit transfers, and

therefore, overall, as things stand today, unless something dramatic happens in the coming weeks, as things stand today, it would appear to me that i think the situation can be managed. paul: that was the r.b.i. governor speaking exclusively at the bloomberg india economic forum in mumbai. let's get a quick check note of the latest business flash headlines. a hong kong subway operator says antigovernment protests have triggered a fall in passenger numbers and cost them millions of dollars. the system regularly carries more than 5 million people a day. attacks on stations have already caused damage estimated at about 5 million u.s. dollars. they have been accused of bias mediah china's statement and protesters. shares are down 18% in two months. quality's latest phone launch has superfast 5g and high-tech cameras but does not come with any license to google

apps. it is equipped with an open-source version of the android operating system that does not feature the mobile play store, which is the main way .sers in china access apps paul: lion air is investigating a data breach that led to personal information of passengers on its malaysian and thai affiliates being leaked online. said itysian unit started was hosted on amazon web cloud service and is working with tech partners to find the source of the problem. they say they do not store passenger payment details. turn to what to watch in the markets this morning. here is sophie. sophie: after a lackluster session on wall street, we are setting up for more of a muted start here in asia this friday after supertex were threatened against china by one u.s.

official. below ahead holding of high-level talks to be held next month. the 10-year yield hovering around 1%. checking in on the japanese, not with thet around 1.08 governor on thursday saying the central bank does have more firepower than the ecb. we are watching for japanese banks to continue to fall with yields extending their decline as we wait on japanese cpi data do today. we also have inflation out from hong kong this friday. plus, export orders from taiwan which come after the central bank raised its growth forecast while standing pat on a key rate or a 30th street corridor. and plentyk you, more in the next hour. we returned to the milken asia summit in singapore and speak to chief economist william lee.

paul: that is it from "daybreak australia." stay with us. all the action in a moment on daybreak asia. this is bloomberg. ♪

paul: good morning. i'm paul allen in sydney. under one hour away from the market open in australia, japan, and south korea. shery: good evening from bloomberg's in new york. i'm shery ahn. sophie: i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." paul: our top stories this friday, trade talks resume in washington, paving the way for high-level discussions in month. some reports say an interim deal will be struck. they have a new warning about global growth and says rising