>> good morning. i am paul allen in sydney, where markets are just opened. >> good evening from bloomberg's global headquarters in new york. i am shery on. >> and i am sophie kamaruddin in hong kong. will come today rick eri -- daybreak: asia. ♪ paula: in our top stories this new year's eve, it is a done deal. white house street advisor peter navarro says phase one of the u.s.-china trade agreement will be signed in january. china's official pmi numbers out later, as president xi prepares his new year's address.

and reports say former nissan boss carlos ghosn is in the can on. this he jumped bail in japan or did he reach a deal? ordid he jump bail in japan did he reach a deal? december are getting cpi numbers come growing more than expected. after aacceleration deceleration and contraction in the previous month. year on year, there is also growth of 0.7%, which is also a faster growth for cpi numbers than expected and also an acceleration from the previous month. core cpi year-on-year growing 0.7%. boostingeen oil prices inflation. the average price of brent crude oil still higher than those numbers for december 2018. something of a drag has been the

high base for food prices last year but still, the headline number, cpi year-on-year growing 0.7%. muted inflation has been an issue in south korea. but still, slight acceleration for the month of december. south korean markets on holiday today along with several others. just kicked off trading. sophie, what are you seeing? sophie: all the shares are lower by .2%, the hb is the biggest track on the index, which is supposed to close 2019 below 6800 point. the aussie sharemarket has been led higher by health care sectors this year. kiwi shares, looking a little 30% withbut it rallied

about 45 minutes in the last final trading day of 2019. markets in australia, hong kong and singapore closed early due to new year's eve. closed. markets are nikkei futures in singapore hinting at a risk-off tone. the bloomberg dollar index is at a june low. you can see that alongside japan, markets are closed in indonesia, philippines, thailand and south korea. we are waiting on chinese pmi, due out later this morning. the expectation is for the reading to be above 50. sophie.ings, u.s. trade advisor peter navarro told foxnews a preliminary trade deal with beijing is "a done deal." aat premier is set to lead delegation to washington this monday. let's get to selina wang in beijing. what is the status of the negotiations, and what sort of word have we had from china?

>> given that navarro is such a hawk, what it signifies at the very least is that trump is receiving pressure internally to negotiate for better terms for the united states. however, never did not confirm that a china delegation will be traveling to washington to sign accord. is a reminder, what was announced on december 13 was that the u.s. was granted not put the december tariffs, was going to roll back some of the existing levees, and china will be purchasing more agriculture products. however, there has been skepticism on whether china can reach those ambitious target, as well as if china can agree on currency commitments as well as intellectual property commitments. we did hear robert lighthizer say he would be expecting the agreement we signed in early january. china has not confirmed any of these dates that have been thrown around. over the weekend, we did hear the chinese ambassador say that, it is no problem to china to

live up to the phase one agreement, by the u.s. also has to live up to its bounds when it comes to issues like taiwan, a reminder that even though we are seeing an easy and attention, the bilateral tensions still remain around issues like hong kong, she jen xinjiang and- she' taiwan. when it comes to the pmi numbers, we are expecting that to be reflected, though it is a retreat from the big jump we saw in november. it is expected to reflect the anticipation and improving sentiment around the imminent signing of the trade deal. something to watch out for as well is private investment. private investment has remained very sluggish due to weak sentiment. that is expected to be pretty challenging to turn around. to a president xi jinping's annual new year's eve speech tonight.

last year, he really stressed self-reliance and he said, the and for seen changes in 100 years,. a few months ago, he also emphasized that china will remain strong, and that no force rise.op china's tonight it will be interesting to see what he signifies in terms of china's plans for the new year, what policy plans he chooses to highlight from the year past, as well as any hints relationships in ongoing trade negotiations with the united states. we are expecting this similar themes to be highlighted. shery: selina wang, our china correspondent, thank you. joining us from thi singapore is vishnu varathan from mizuho bank. selena was telling us about the pmi numbers. this gtv chart showing that we have been seeing surprisingly better economic data out of china than in the previous months.

can we say that perhaps we are seeing a turnaround in the chinese economy going into 2020? behnu: i think we will seeing the initial signs of a turnaround. we must remember that we are coming from fairly low inventory , order books, so on and so forth. but bear in mind, there will be some distortion around the ,ating for the phase one deal until detours are completed. also the fact that the tariff will back, just 10% of the tariffs slept on. it is unrealistic. istead, what you would get probably a gradual recovery. sometimes that could appear a bit more forceful in the pmi numbers because many sectors are catching up. but the underlying trend is a more graduate recovery than -- more gradual recovery. tory: it is still expected

be a rate cut to help the economy in the recovery, right? vishnu: i think there are two aspects to it. if you are anticipating loan renegotiations and repricing in the end of the first quarter, that would help marginally. it is a bit more because it helps loans that are already on the balance sheet. at the marginal level, the new loans created will be slightly more at a better rate, and i think that will also alleviate pressure. what is really important is the ability for the large corporations. two things, one is for the large corporations to be able to rollover debt. i think year liquidity might be as much of an issue as the pricing. the other factor is for smes to be a were to accept these loans. rates are one thing, accesses another. to be fair, the cbo's he working

on this. we think the pressures -- the cboc has been working on this. pressure could start to alleviate but not in the immediate interim. paul: as things begin to improve on the trade front, do you expect the rising tide floats all boats? i will give you this chart on the bloomberg terminal that shows the impact of the trade war spreading far beyond china. a lot of these lines are heading down. the expect that to turn around in 2020? vishnu: yes. at the short answer is yes, but the caveat around it is the same. one is that the turnaround would be somewhat more measured than it could otherwise be in a rebound. second thing is that as we saw the chart, there were many lines, all directionally in about the same, but the effect

on different economies will be different. we think that as long as a semiconductor cycle recovery goes through, korea could benefit more whereas some of the economies could lag a little bit goes we think structurally, the slowdown in china will continue, and you will get subsequent growth. the trade deal does not do anything to reverse the slowdown in china, albeit it gets a lot more cushioned. paul: your point about semiconductors is interesting, because there are conflicting takes on that particular we around trade. phase one, all the low hanging fruit has been picked now. do you see real bumps in the road when it comes to phase two and tech in particular? vishnu: one of the troubles with phase two, we don't even see it coming through in a big way, because it was difficult enough to get to phase one, which, as

you mentioned, was low hanging fruit. phase two will be a lot more challenging. the other aspect about this is that even as we speak of the trade deal, as tensions carry-on. so far that the 5g and other tech competition between the u.s. and china goes on, that could be a dampener on the otherwise recovery, through in semiconductors. you are absolutely right. the picture is far from fair. previously, we thought it was depending on the outcomes of the u.s.-china trade, now those tensions are alleviated, but not obliterated. huawei wil just how is approached and the 5g issues will have a big bearing on how recovery comes through. shery: how much will the semiconductor sector boost the career economy?

we saw cpi numbers pick up and beat expectations, but there is still a lot of slack in that economy. vishnu: you are right. there is a lot of slack. it goes well beyond any particular selector. of thek about one third drug or more was due to semiconductors. so so far as that strength rapidly positive, exports recovery could be haste and. but it would add a lot more to manufacturing as well. but i don't think is an open and shut case of declaring the recovery is well underway, because underlying confidence remains the key issue here without the clarity around global trade. shery: we saw a lot of pressure for the korean won throughout sharpar, which is a very contrast on another export-a defendant economy -- exp-dependent company like thailand surging.

what does this say? vishnu: to the extent that the trade deal between the u.s. and china is inked, and you don't see for the escalation in the even somein fact, talk about phase two getting underway, that would serve as a high beta recovery for the korean won. those are the circumstances under which the korean won could outperform. i bat, we for the tha ib have already seen a strong recovery coming through. it has gone even more from being seen almost a as a hedge against u.s.-china risk. i think the thai bat outperformance could be reined in, but these are big .ssumptions that is something that we are cautious about, which is why we much on theg too

korean won outperformance. as we saw from the very smart recovery after the phase one deal was inked, from being down more than 6%, most more than half of those losses have been clawed back. varathan, thank you. head of economics and strategy at mizuho bank with his outlook on the asian economies. breaking news out of japan. we are hearing that carlos ghosn, former chief executive of nissan and renault has left japan according to people familiar with the matter. he was awaiting a trial and is now set to be in lebanon. p, of course, was expected to go to trial. he has been under house arrest since april. trial inosn was facing japan for alleged financial misconduct at nissan. the u.s. securities and exchange commission says carlos ghosn violated some disclosure rules.

we are hearing from sources that carlos ghosn has left japan and is now in lebanon. osn spent, mr. gh a lot of time in his youth in lebanon, his family is there, he citizenship.banese we will get you more updates on the story as we get them. now, the first word news viviana hurtado. viviana: we begin with kim jong-un. the leader is urging what he calls positive measures to bolster the country churches security, this ahead of his new nation.ay speech to the if the u.s. doesn't offer further concessions by year's end, came ha he has vowed to tae in your path. it the fourth time in four months, u.s. pending home sales are climbing, up with an 1% from november of last year. contract signings also jumping more than 5%.

this suggests the housing market remains supported by low borrowing costs, improving income growth and steady job creation. the u.k. is likely to. to a brexitosition transition. past 2020 according to the trade commissioner. he told the irish times not prime minister boris johnson is unlikely to honor his claim he "would rather die in a ditch then extend the brexit timeline. " global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am viviana hurtado. this is bloomberg. paul: thanks. still to come, u.s. secretary of state mike pompeo arrived in the ukraine this week, as a cloud of impeachment hangs over president trump. the latest from washington, next. this is bloomberg.

shery: this is daybreak asia. i am shery on in new york. paul: and i am paul allen in sydney. u.s. secretary of state mike pompeo arrived in ukraine this week to voice support for the embattled nation. but it is a message that might .he muddled by rudy giuliani's latest visit he was there in search of dirt on joe biden and by the pending senate impeachment trial in the senate as well. we have bloomberg news editor us. subject joining what is mike pompeo internet to achieving ukraine, and how hard is it just going to be? >> his stated goal is to affirm to the ukrainians that they are a strategic partner and priority for the u.s. as they face off that theussia, to show u.s. supports the ukrainian government. but this is going to be rather difficult given the fact that there continues to be this

sidelined with julianna's trip and impeachment hearings all revolving around the president anding with ukraine attempts on the julian's park to dig up dirt on one of the president's chief political rivals. pompeo will be the highest-ranking u.s. official to go to the ukraine since the july 25 phone call, which kicked off the entire impeachment inquiry in the democratic-controlled house. unclear a little bit what the ukrainians are to make out of all of this. pompeo point out the fact that the aide held up was eventually delivered -- the aid was eventually delivered and he is tried to fly the flag and show that there is a real interest here beyond simply some sort of

political machinations within the white house. but the ukrainians avoided meeting ukrainian -- ukrainian officials avoided meeting giuliani when he was there earlier this month, and pompeo himself has tried to stay out of the fray and the controversy surrounding ukraine within the impeachment. shery: what does secretary pompeo need to avoid in order not to create more fodder for president trump's critics, at a time when he has already been criticized across the aisle given his retreat of the name of the whistleblower? joe: he is actually trying to thread a needle here that he wants to avoid causing any trouble for the president politically in the u.s., with the impeachment trial about to get underway in the senate later this month. he is also going to have to at least present an official face of u.s. policy and make

that this really is u.s. --icy and not some sort of not the part of any other side shows that have been going on with giuliani and some other trump administration officials. so he has got to avoid angering 'sth the president chec critics and also avoid angering the president at the same time, which he has been trying to avoid very much. staying out of any discussions --olving ukraine a and theid and the aid hold-up, keeping distance from that. you, oure, thank bloomberg news editor joining us from washington, d.c. we have an alert on the bloomberg, we are hearing from the "financial times" on the latest performance numbers of norway. they apparently shipped 200

million smartphones in 2019, ago.s 206 million a year 2019 revenue increased 18% year on year to $122 billion. remember, this is coming at a time when the u.s. is pressuring huawei. have already blacklisted huawei. not to mention that in the united states, there have been several moves to curtail huawei 's sales in the u.s.. for example, government funds have been banned from being used to purchase equipment from huawei. the u.s. government has also tried to convince its allies to stop buying huawei equipment. still, the "financial times" reporting that while he has shipped 200 million smartphones this year and revenue has grown 18% year on year to $122 billion. let's take a deeper look at the u.s. markets. stocks fell in light trading on

this penultimate day of a blockbuster year for markets. joining us now is bloomberg markets live reporter critic group -- kriti gupta. >> keep in mind, we have been higher in the s&p for a good chunk of the holiday favored, a big chunk of that was the santa claus rally, the trade optimism. we have a little bit of market paranoia and i think that is what we got today in the markets, investors taking it step back and repositioning ahead of the new year. if you that is what you are seeing today. paul: we had stocks and the dollar closing. brent turning positive today. what is behind the divergence when risk-off seems to be the message of the day? ti: absolutely, brent has its

own story, at risk-off seems to be the name of the game, rallying on the weaker dollar and also off the geopolitical headlines over the weekend. from last week's inventory drawdown of numbers. this is the most bullish they since march, so you saw the risk rally in the movement in equities, but you also saw a $62 mark on wti, which is significant, because it is the largest amount that has been since the saudi attacks in september. so pretty crucial to watch crude today, a city of credit story on that asset class. paul: think you so much for joining us. plenty more to come on daybreak.

♪ paula: let's get a quick check on new zealand, getting set to close within the hour, 17 minutes away. currently flat.

present has been a strong performer in 2019. the index up 31%. stay with us. plenty more to come on daybreak asia. this is bloomberg. ♪

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viviana: this is daybreak asia. i am viviana hurtado with the first what headlines. white house trade advisor peter phase oneys the of the trade deal will be signed in january. he says the agreement is "in the bag." the south china morning post saying this weekend, the chinese vice premier will travel to washington to sign the accord. india's central bank bought 100 billion rupees of benchmark debt while selling off 2020 bonds. it is the banks "operation twist auction" aimed to flatten the yield curve to ensure better monetary

transition. lowest in a century, that is the status of u.s. population growth. from turning 18 to 2019, the population grew by less than .5%. the census bureau said the slowdown of international migration and slowing birthrates are a major factor. the rich got even richer this year. according to the bloomberg billionaires index, the world's richest people boasted to the collective net worth or 25%, almost $6 trillion. amazon founder jeff bezos still topping the list, he is worth $116 billion, just ahead of bill gates. kylie jenner became the youngest self-made billionaire this year after selling a 50% stake of for cosmetics company for $600 million. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than

2700 journalists and analysts in over 120 countries. i am viviana hurtado, this is bloomberg. shery: thank you. australian markets have been trading about a half hour. let's talk to sophie about what to watch. sophie: shares in degrees are heading lower, not like the 2019 rally we saw in sydney. the asx 200 set for the best year since 2009. kyrie stocks capping off a decade as the second-best performer in asia, within your 260% gain in that time. the aussie kyrie dollars trading at you hard best qb -- the aussie kiwi dollars trading at new highs. let's check in on the offshore yuan, trimming its year-to-date loss on monday. it suffered the fifth annual drop in six months. the u.s. dollar is at a low. the korean won has staged a turnaround this month on signs the economy may be bottoming

out. stagnant inflation will be a headache for the be ok. 2019 consumer prices are the weakest on record. 1.09,n holding just below the g10 laggard i guess the greenback this month best against the greenback this month. paul: there is a sense of anxiety over the possibility of another crash gripping currency traders. let's bring in bloomberg's mliv strategist, mark cranfield. what is making traders more anxious about a flash crash this time? mark: it is a similar set up to what we saw the beginning of 319, when tokyo markets were closed for several days in that they read between the end of new york trading and what would normally be the opening of tokyo dollar-yen plunged belowlose to 1.09 to just

1.05. ironically, the dollar-yen is almost exactly at the same level right now as to where it was in january of this year. of course, it rebounded. so people are nervous because japanese markets are effectively closed until next monday, so there are a few days where people might take advantage of the thinner liquidity than usual and try to push dollar-yen around. circumstances are little different from how they were of the beginning of this year. of course, we are coming off period., a big risk-off the dollar yen had been falling from 113, came close to 109, and this time, creeping slightly higher. 109.ng between 108 and not quite the same, but the fact that tokyo isn't around takes away a lot of the liquidity from the market. somebody who is inclined to give it a big push may well do so, we

leave it on the first day back, january 2. asia will be back at work, and it might be an opportunity for someone to push the market around. that is what people are wary about and they are looking for that to happen. shery: last time it was the aussie yen and the turkish lira that took a big hit. are those the currencies that will be most affected if this happens again? mark: this time around, the turkish lira has been weakening anyway. it was relatively strong against the yen -- sorry, maybe the lira is less risk. but some of the currency be on theradar, the kiwi and sterling has improved recently against the yen recently. those could be in the firing line. if dollar-yen takes a move, it will drag other yen-crosses with it. was a bitter crisis people would look at first. emerging-market currencies are definitely at risk as well because the liquidity will be relatively poor in those

currencies, so we might see volatility in the turkish lira, we might see the mexican peso well.nto play, others as certainly, it is big crosses like quasi-yen and kiwi-yen -- ussie-yen and kiwi-yen that might come under pressure. the reality, every day between the end of new york and the beginning of tokyo, what the traders like to call the twilight hours, it could happen anytime. between now and the beginning of early january there is certainly more risk than usual. but every day is a risk of a flash crash. shery: you are right, we are now expecting it even this year, so perhaps less of a chance. mark cranfield, thank you for that. mliv strategist. you can follow more on this potential yen flash crash and all the base trading on our markets live blog at mliv . you can get a market run down in

one click and commentary and analysis from bloomberg's expert editors you can find at what is affecting your investments right now. another story, former nissan boss carlos ghosn has appointed traveled to lebanon after leaving house arrest in japan. but the exact circumstances of his departure are not clear. credit, heelys our coverage of the auto sector in new york. did he leave, did he see, what know? >> it is unclear. we have two sources confirming that he left a fernandinho beirut -- left japan and is in beirut. what we don't know is whether he officially fled. certainly looks that way, and that is what one of our sources is telling us. there is a lot to still assess out of what is happening here. when i go back to my desk, i will be brushing up on lebanese extradition laws, because there

is a lot to be said about why and how he was able to pull this off. he was obviously a hugely prominent figure in japan, so his ability to escape the country and do so in a way, when he was under a lot of surveillance and was being followed very closely, is kind of a shock. almost as surprising as how this whole event came to be about 13 months ago. paul: craig, is there an expectation that we might be hearing from carlos ghosn in the near future? craig: we are expecting a statement from the carlos ghosn camp. we have been told that he was not expecting to get a fair trial in japan, and obviously, that is consistent with what we have been hearing from his camp for months. he had an army of people around the world, in japan and france where vringo is based and where he spent a large part of his professional life.

obviously, lebanon, he is of lebanese descent. even folks in washington betting back these charges that have been brought in japan, and by which has come at claimed that he and nissan violated disclosure rules related to his compensation. he has denied those charges. the conviction rate in japan is incredibly high, so that sort of goes without saying what he would have wanted to get out of japan. and if he is going to face these charges, he would want to face them elsewhere. shery: more than 99% of those indicted in japan get convicted, right? nissan has seen pretty turbulent times since ghosn was forced to leave. what do we know about where they stand at the moment? ghosn hast of what said in his defense is that there is a conspiracy against him on the part of folks in japan, who have said that basically he was trying to combine he's two companies --

combined the two companies. there was a lot of national pride within the japanese government against the idea. so there is still a huge debate and tension within the alliance of renault and nissan over the future of the two companies whether they combined, whether they join forces is definitely a case where the idea of them separating is an unthinkable move at this point. but there is a lot of tension between the two companies, and they are no longer able to dispute that. this was long a story of tensions that was bubbling beneath the surface that ghosn sort of downplayed and managed around for years, and it is now very much above the surface that these two companies are not getting along. paul: bloomberg's cracked or dell in tokyo, thanks for watching that -- bloomberg's

craig trudell in tokyo. next, drugmaker astrazeneca told us about their future plans in china. this is bloomberg. ♪ na. this is bloomberg. ♪

shery: this is daybreak asia. m shery ahn in new york. paul: and i am paul allen in sydney. let's get a quick check of the latest business flash headlines. a chinese restaurant chain has attracted 4 cornerstone investors including blackrock for its ipo in hong kong. the company of its more than 300 restaurants in 39 cities across china according to a prospectus filed with the stock exchange. shery: mitsubishi ufj says it will -- unemployment charge of $4 billion in the current quarter for its controlling stake in an indonesian bank. it has been looming over the

company ever since the completion of its takeover in april. that triggered a sharp retreat in h-shares after they were removed from msci indices. paul: commerzbank is in advance to buy an activist fund stake in its online bank. it could announce an agreement to purchase petrus advisor's 7.5% stake in coming weeks. the earlier offer was rejected for being too low. shery: u.s. shares charged after electric vehicle makers fourth-quarter sales forecasts beat sales estimates. at one point during the trading day's shares had doubled in value. analysts say the numbers show room for tourism but warned there is still plenty of reason for caution due to the company's tight cash position. new zealand markets closing early as we near the end of 2019. sophie, what are we seeing? sophie: the final trading day of

2019. the stock has been heading lower in the close, retreating from the fresh highs on christmas eve with the index closing at the intraday low. atdo have it off about .3% the end of the 2019 session. i want to show you what has been nzxng on with the an 50. malaysia is said to be the region's laggard. gains for wellington south could be hard to match going into 2020 with stagnating profits. ubs is largely nonexistent year.gs growth next let's get a quick check on the kiwi dollar. after a three-month rally, it is now the most overbought level 2004, which may hint

g10 therethis order, about 67 . shery: astrazeneca says it is working to support beijing drug policy. the ceo talk to us in september about bringing more medicines to the chinese market. pascal: i will not disclose what our long-term target is for china, but they are ambitious targets. china is already bigger than the -- today. it is our second-largest geography, not market or country, but geography. so it is bigger than europe. now that i would chinese team has become a number one in china, guess what, they want to be number one in the world. they still have some work to do before they catch up or get ahead of the u.s. market, but our long-term goals forecast is pretty ambitious.

>> sounds like you could see the 20% rising? >> yes. >> you have also announced partnerships with local biotech startups in china. what are those companies doing, and how do you hope this will contribute to astrazeneca? pascal: we have identified a number of our products in our pipeline that we thought could be better developed with a local partner, biotech companies. so we having gauged in this. as i said, we are also investing in this innovation fund that we invest in startups and biotech companies coming up with new medicines. we are doing all sorts of things, really focused on improving the number of products we bring to patients. importingso looked at products from other countries, other companies. we have such a large base in china, we need to bring in new products to continue. selina: what exactly are those biotechs working on?

pascal: the biotech company would have introduced, we have licensed next that are working on essentially cancer drugs. the products we have licensed to them are essentially new products looking at trading a variety of different cancers. selina: we have seen some biotech startups quickly catch up with larger rivals, sometimes producing drugs at a fraction of the cost. are these partnerships a hedge against that risk? pascal: the partnerships are really aiming at bringing more medicines to patients in china and around the world. we cannot -- we have such a rich pipeline, we cannot develop everything else. each time we cannot develop a product ourselves, because you have other priorities, or because we are not the best company to develop it, then we look for a partner. and that is what we have done here in china with those companies. selina: how do you view the threat from wired tech companies? pascal: ice dust from biotech companies? pascal: i think there is a lot of innovation coming up from

china, but of course, the challenge for us western companies is that this is a lot of competition coming up, but it is a lot of competition in china. those companies will introduce lower competition. for-- has already said that counsel drugs, they will take chinese data over our data. they will consider that data to give approval to those dots in the u.s.. so you can see that all these companies are going to create competition around the world. but i think that is good, the more competition, the more products for patients, and the more it keeps us on our toes in renting new products. selina: astrazeneca is also creating an import platform to bring astrazeneca and other companies into the china market. what are those partner companies, and what kind of drugs would you like to bring into china? pascal: we are really trying to support the policy of the chinese government, really trying to be a company that is

in china for china, and in china for the world. what that means is we bring innovation to the patient's. we export, we actually exports to 100 countries today. it also means we are supporting the policy of importing. china is opening up. the market is open to other countries. so we are looking at companies around the world, in india and maybe others later, but have products that complement our portfolio, and we can help bring those products to the chinese market and help patients but also support the policy of increasing importations. selina: will you commercialize products from some of your western competitors potentially? pascal: potentially. we are in a unique position as a company. we have a full coverage of china almost now. we have expanded our presence across the whole of china, and we will continue expanding beyond the so-called tier 1 cities. so we now have an infrastructure

that can support more products. clearly, the chinese market, as you know, is very competitive, so any company that has good products but does not have the infrastructure to market them in china, we can also use or if a structure to market those products. paul: that was astrazeneca ceo pascal soriot speaking with our china correspondent selina wang in shanghai. and again, if you are away from the screen, you can always find in-depth analysis and the days newsmakers on bloomberg radio, not broadcasting live from our secure in hong kong. you can listen via the app, bloomberg plus, or bloomberg.com. this is bloomberg. ♪

paul: this is "daybreak asia." i am paul allen in sydney. shery: and i am shery on in new york. north korean leader kim jong-un

is urging positive and offensive measures to bolster his country's security ahead of his speech.ew year's day bloomberg's breaking news reporter has been tracking this from seoul. what are we expecting when he speaks. >> tomorrow, when kim jong-un watchers all over the world will be seeing whether or not he will be using the platform for a make or break announcement in terms of denuclearization talks with all trump. currently in north korea and the u.s., they are at a deadlock in terms of working level talks, so what we he will say, without not he will decide to walk away from the talks or keep doors open and what kind of conditions he will doors for talks opened is what people will be closely watching. paul: in terms of the future of these denuclearization talks what cards does

kim have to play? jihye: the options kim jong-un has are including breaking a moratorium with donald trump that he personally promised against launching into residential -- launching intercontinental ballistic missiles, missiles capable of reaching the u.s. mainland. they are the strongest and have received the strongest condemnation from international community. couldr thing kim jong-un break on the moratorium is the halt on new tests. these are the things kim jong-un has not been doing so far, which is why kim jong-un and will's personal diplomacy has somewhat still been upheld, even though talks are not working. another thing north korea could demand in order for kim jong-un to uphold his economic development plan, is to ask the

international community to lift certain sanctions that are hurting north korea's economy and preventing him and interfering with his economic plan for the country. shery: are we hearing any of that from their party committee meetings that we are seeing this week? , as theytings, the plenary call it, it has been going on about three days now. north korean state media says it will continue. the latest report have seen is reports of kim jong-un talking to his officials for over seven hours. up meeting scaled shows kim jong-un will be making quite a big announcement, and there will be significant changes in terms of north korea's path for what it has, its vision for the new year, and it is north korea's way of emphasizing for the world to pay attention to north korea on this beach.r's day

shery: in the meantime, north korea continues to develop their weapons program, right? what is the latest we have heard, and the potential of habs a fourth meeting with donald trump and kim jong-un? jihye: the latest missile launch was actually in late november, but throughout december, there that northsts korea's national defense agency announced as saying that they were crucial tests. they were taken at a satellite testing site. however, neither south korean nor japanese authorities have announced any developments to this finding of whatever tests north korea has taken. there have been no missile tests within in december, that means kim jong-un has not taken provocative actions in what it calls a christmas gift, in hopes for a fourth summit between kim and trump. people are saying this would be

the most ideal form of a breakthrough for north korea. jihye lee,ight, bloomberg's reporter in seoul korea. stay with us. this is bloomberg. ♪

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>> good morning. i am paul allen in sydney. shery: good evening. i am shery ahn. sophie: and i am sophie kamaruddin in hong kong. welcome to "daybreak asia." paul: our top stories this new year's eve, it is a done deal. white house trade advisor peter navarro says phase one of the u.s. china trade agreement will be signed early january. china's official pmi numbers are due out later and may show continued expansion as president she prepares