" daybreak:o australia." >> i'm in new york. >> i'm in hong kong. we are counting down to the asian market open. >> here are the top stories in the next hour. iran admits shooting down the ukrainian airliner facing condemnation as global pressure mounts. the bushfires rage on in australia. the prime minister admits claim it changes playing a role.

the election in taiwan is set to lift markets. the victory moves the island further away from china's influence. saw stocks.s., we falling, treasury yields falling with the disappointing december jobs report. we had hiring data lower-than-expected. wage growth the weakest in more than a year. the s&p 500 fell for the first time in three days. we have industrials and financials leading the decline. oil posting its biggest weekly loss since july. we had geopolitical tensions in the middle east fading a little bit. we have the dow being pulled down by boeing down .5%. the new ceo officially taking charge on monday. let's see how things are shaping up for asia. off-line.s we look to a week that will bring us chinese gdp and a

decision from the bank of korea. we will check on korean trade and indian inflation. a mixed session mostly to the downside after a week reaching a high. it was a turbulent time for oil as well. we saw crude cap the worst weeks in july as the risk premium is fading and producers see more hedging activity. let's check in on cable. we saw early action in sydney trading. cable moving to the downside as another member indicated he would vote for a rate cut at the at of u.k. data do this week. >> let's get you the first word news now. >> we start in the philippines which is warning the volcano

south of manila may erupt at any time and is recommending a total evacuation. seismologists say violent explosion could happen with the hours or days raising the alert 4.el from 1 to all flights have been suspended at manila airport. it is a tourist attraction and one of the most active volcanoes in the philippines. the australian prime minister says his country must become more aware of the impact of climate change as bushfires continue to burn out of control in several states. is amitted global warming contribute in factor to the crisis but said australia cannot do much more to cut carbon emissions. at least 20 people are known to have died in the fires along with one billion animals. is pledging more credit

for small firms after cleaning up almost $300 billion worth in the last year. the value of the mainland shadow banking sector has fallen in the last three years. the regulator is bound to rein in businesses to prevent credit from flowing illegally into the property market. says he has watch been given no official reason for being denied access to hong kong on sunday. he plans to launch the annual report there this week but was stopped by airport immigration officials and turned back to new york. it follows chain is quite -- china's pledge to sanction those who have performed poorly. global news 24 hours a day. i am su keenan.

this is bloomberg. >> we have breaking news out of the philippines. the philippines stock exchange with theend trading volcanic eruption south of manila. we have heard from the government there is an imminent threat of eruption. officials have ordered nearby schools and government offices closed. now we are hearing the philippine stock exchange will suspend trade on the eruption. we will get you more as we get them. iran is bracing for more protests after admitting the army shot down the ukrainian airliner, a dramatic reversal that has triggered widespread condemnation. the military says human error was to blame and the culprit will be punished. mistake and a number of our compatriots were

martyred because of our mistake, but it was unintentional. we apologize. we are sorry. we will make up for it. we will not allow anyone of our people to get hurt. we are standing steadfast and firm. we get shot but we do not sit down or kneel. >> what iran has admitted to his race serious. the aircraft is horrific. iran must take full responsibility. >> the regime had been denying for days it had downed the ukrainian jetline. what is the latest on this? >> as you say, it was quite a dramatic reversal by iran in the face of overwhelming evidence they had no choice but to make this decision. it sparked serious protests across the country, some of which have turned filing. there has been a violent

pushback by authorities in the last few hours. people are very angry the islamic republic killed some of its own people. many of the 176 for the flight were iranian. there is a lot of anger about that. u.s., maybe some attempts to exploit that anger. we have seen president trump tweeting in farsi this week in three times. it seems this week in the president discovered auto translate and has been speaking directly to the iranian people, morning the islamic republic -- warning the islamic republic not to kill or harm protesters. it is a pretty dramatic turn of events. just a week ago, iranians were out in force against the u.s.

after the killing of the senior general. but this weekend, it has albany gets their own government. -- it has all been against their own government. >> we have seen all kinds of justifications for the targeting and killing of qasem soleimani. have we heard more from the white house? >> it has been an interesting week where the rationale has shifted several times on the killing. that it was a reflection of imminent threats to he was a bad guy for a long time and that is why we did this. president trump opened a can of worms in an interview with fox news on friday night where he said that there were four u.s. embassies that were under imminent threat from iran and the u.s. government acted on that intelligence. but we have heard from adam

schiff. he said today on television there has been no discussion in the gang of eight briefing that embassies were being targeted. mark esper said in a couple of interviews he had no such specific intelligence. i think that is going to further enrage some democrats in congress who were already upset about the way soleimani was targeted without congressional approval. the rationale is shifting and continuing to shift. >> thank you for the latest on iran. taiwan's president has won a landslide victory over her opponent. it moves the island further from feeling agrasp and is stock market rally. >> i hope the beijing authorities understand

democratic taiwan and our democratically elected government will not concede to threats and intimidation. interactions with mutual respect of the best week to serve our people. the results of the election have made that crystal-clear. he has been covering this weekend's vote. a clear message from beijing. what comes next for relations? >> it was a pretty clear message. if you thought the november elections were a rebuke of sidedg because they with diplomatic counselors, this was more of a punch in the face to beijing. they want to employ the one-country two-systems. they want reunification with taiwan. however, the people

overwhelmingly voted against that. that was the primary platform of the old ruling party, the original chinese rulers for most of taiwan. of the seven presidential fourions, the dpp have won of the seven elections. the last two were not even close . getting more than 57% of the vote, a record. overwhelming rebuke, punch in the gut, of beijing by the who do notin taiwan want authoritarian rule. that is the bottom line. >> beijing does not seem happy from what we can date from their state run news commentary. they were out fairly quickly. the foreign ministry also out with statements.

whetheris not pleased, they are not pleased with the electorate or foreign influences as well as anti-china forces trying to limit the rise of mainland china, these are the same statements they have used in hong kong and elsewhere when they have faced resistance. i will read you a line quickly from the news agency. it does not pull any punches. they used dirty tricks such as cheating and intimidation to get votes, fully exposing their selfish, greedy, and evil nature. the foreign ministry spokesperson saying one-country two-systems is still the goal for taiwan and the international community should oppose taiwan independence. a lot of political leaders have come out in support congratulating her on the election victory. joe biden put out a comment, as did mike pompeo, the u.s.

secretary of state. americanwith the institute, she met with them after her election victory. >> thank you very much. reactionave plenty of to taiwan's election today. steve in taipei in the next hour. we will also be speaking to the fulbright fellow and executive chair. prime minister scott morrison says australia needs to improve its resilience in response to climate change. amanda mckenzie will tell us how. >> richard will look at the economic impact of the fires and what they might mean. this is bloomberg. ♪

>> u.s. job growth slowed in december but still grew fast enough to keep unemployment low and possibly reassure the federal reserve it can keep policy on hold. kathleen hays is here with the numbers. the jobless rate was low but wage growth was pretty weak. break it down for us. kathleen: let's start with the payroll share. the numbers show deceleration. they did not drop it they were not as strong as the previous month. in december, payroll growth accelerated to 145,000, less than forecast. november was up 256,000. let's keep that in mind. as you mentioned about unemployment, unemployment on the main number remains at 3.5%.

i have to show you. i show it going back 50 years. this is matching the lowest number we have seen. let's come back. think about it. you have a tight labor market. we must see wages rising even faster. but instead, wages went in the opposite direction. let's take a look. average hourly earnings, the proxy for wages, rose 2.9%. in february, it was up to 3.4% so it is definitely losing momentum. is the the main takeaway fed can be happy with enough job growth to keep unemployment low. but not only are wages not rising, they are falling. they want to boost inflation. there may be some discussion at the meeting or press conference afterward. not a good number for the fed from the standpoint not having to worry about cutting rates.

if they have to worry about inflation and falling wages, then they have a problem. >> thank you. fourth-quarter gdp data on friday will be the other big thing to watch this week in asia. before that, we have the signing of the phase one trade deal wednesday. we take a look ahead. let's talk about finally getting the deal signed this week. >> i think most of it is in the price already. in the lead up to the end of last year, there was already signaling about the trade agreement. if anything, frustration it has taken this long. i think most of that is in financial market prices. the issue now is how that affects the broader strategic relationship. trump has floated the idea of a phase two trade deal. if that develops, that would be

another positive influence. are you expecting a meaningful recovery in the china data now that the trade issue is on the sidelines a little? >> thing china has done everything it can to keep growth with a six in front of it to hit the targets of becoming a moderately prosperous society by 2020. bettert if we get a trade environment and better export numbers, we end up with less policy support domestically. >> especially given the data has been surprisingly positive. positivet showing the surprises on chinese data. what does this mean for the pboc? does that mean less targeted measures? >> i think targeted measures will continue. policy coordination will

continue. this has not been an easing whichfor more than a year is focused on the fiscal piece. it has been a range of measures. that reflects the limitations on policy. we know debt levels in china are high. they have a broad macro objective to keep money growth roughly in line with nominal gdp. fiscal deficite of gdp this year. if we get a bit of respite on the external side, it takes a bit of pressure off domestic policy. net-net, you will still see easing in china i would expect this year. >> they get relief on the trade side of things. we are now getting trade data for the first 10 days of the month. we are expecting some upside, especially given how positive the december numbers were. i mean still declining year on year but a much smaller decline than expected. of koreast numbers out

were quite good. i think the key thing for asian trade to remember is the tech cycle was the weakest piece through most of last year and finished last year quite well. i would think particularly north asia will show decent trade numbers over the next couple of months. that does not necessarily translate into the south of asia where there is a broader mix to the export basket. this year will be better for trade than last year, blaster was not terrible. i think -- but last year was not terrible. i think there will be modest improvement on trade. unexpected. the with the bushfire crisis, economists are still trying to work out the impact across so many sectors. corporate earnings are starting to see the impact as well. enormoussly, i'm

humanitarian -- an enormous humanitarian and societal issue on australia. by definition, it is burning the bush with there are typically not a lot of productive facilities. these are widespread. the issues are larger. there are smoke issues. pollution levels are extremely high. we think .1% or .2% of gdp for a quarter. that does not sound like a lot. when the economy was trending up .4% quarter, that is an identifiable hit on gdp. the impact will be on the rural areas where there is a large domestic tourism component. chartant to throw up this . there was commentary and discussion about when they would get to qe.

crisis make it more likely they would have to look at other measures? >> i don't think so. the fed effectively has returned to quantitative easing through repo operations. they had a problem that seemed to be a plumbing issue. they have tackled the issue directly. there are no plumbing issues in australia at the moment. the bushfires are negative, but you also had other data showing the economy was improving a little bit. we think they will probably ease in february. we don't think 2020 is the year of quantitative easing in australia. is seems like more traditional monetary evening -- monetary easing will be enough to stave that off. >> richard yetsenga in sydney. we have guests from the

conference in shanghai including allison.n and graham they will be joining us throughout the course of the day. this is bloomberg. ♪

>> let's get a quick check of the latest business flash headlines. the world's biggest ipo is even bigger than initially thought. the saudi arabia share totals just under $30 billion as goldman sachs exercise an option to avoid price swings. the ipo relies heavily on a few high net worth investors with saudi institutions investing more than $2 billion. it is said to be wanting staff to be expecting the first bonus cut in four years after a series of issues her earnings.

says it hasn" forced the bank to take a charge of almost $2.5 billion. that cut profits and is expected to drag on full-year results. a wastewaterloping plant in australia. future energy division is investing in similar projects throughout southeast asia. construction of the plant in australia has started. the project will generate 30 megawatts of power. inwe would like to announce western australia with our partners. the secondloping waste to energy plant in australia. municipal andf

industrial waste. waste is a major problem globally. >> coming up, a volcanic onption has put off lights hold and shut offices and schools. we will be in manila with the latest. this is bloomberg. ♪

haidi: we are counting down the market open in sydney. futures looking lackluster. the smoky haze, the outlook you are seeing at the sydney opera house. when the cash% trading begins after u.s. stocks fell. greater market volatility, continuing developments in the iranian situation. rolling for&p 500 the first time in three days. a mixed start to trading in asia, japanese markets are closed for the coming-of-age holiday. shery: you are watching daybreak

australia. let's did to first word news with su keenan. su: we will start with protests across iran after the government admitted the military mistakenly shot down a ukrainian airlines passenger jet. the army says the boeing 737 was after takeoff because of human error. all people on board were killed. this is a reversal of iran's comments that it claimed technical problems and then said an engine caught fire. >> we made a mistake. the number of our compatriots were martyred, but it was unintentional. we are sorry. we will make up for it. we will not allow any one of our people to get hurt. we are standing like a pillar. we get shots but don't sit down or neil. -- kneel. su: hezbollah said the strikes

on the u.s. bases are the start of the response to america's killing of general soleimani as well as a leader told supporters the attacks were merely the first step down a long path that will force the u.s. to leave the region. itsaid iran hasn't used sophisticated weaponry. emphatic victory in taiwan is expected to boost the markets. the election will extend the sentiment and give a short-term lift to stocks. beneficiaries include biotechnology and wind energy which gained on the expectation government support will continue. tourism stocks may slide on the idea they will cut ties with china. protests in thailand year after claimeder general

victory in a disputed election. thousands gathered in a park in bangkok to demand more political freedom. antigovernment critics question the vote held under the military fact restitution and announce -- denounced the traditional hold on power. the latest with boeing, the continued troubles hitting the wider u.s. economy. the treasury for terry said issues -- treasury secretary said it could trim half a point from gdp but expect growth of 2.5%. that is more upbeat than many observers who say the stimulus from the tax cut is starting to fade. economists said 1.8%. global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: australia opens at the

top of the hour. sophie: on the futures are hinting at -- aussie futures are hinting at losses after the best week for the benchmark which saw it close above 6900 points. despite the ongoing bushfires which westpac says lead to $5 billion australian in losses. gold miners over the course of the week given the retreat in gold, the rally faltering. evolution was among the most -- the worst laggards. keeping resolution after its output updates. the minor reported lower than forecast reduction for fiscal 2019. for 2020 the is looking at 500,000 ounces. acquiree has agreed to

a majority stake in data center operator air trunk which values the company at $2.1 billion. look at what else we should be watching. the markets treasury -- joins us live from singapore. from last week's market volatility, what is the takeaway from investors, the ones back from holiday? even the tokyo holiday which will keep things subdued, people should be encouraged by the fact even though it was a volatile week, there are a lot of scares, geopolitical in particular. investors will be looking at the general weakness of the u.s. dollar. the asian index, it had a very good week. good start to the year. that is good news for the sentiment across asian markets, when people see asian currencies on the front foot, it is a good indicator money is coming in.

asian investors, when they take a step back, they will say we had a bumpy start to the year, but overall things are positive. markets managed to have an up week even though we had the disruptions related to iran. we still made for the indices and asia is taking heart from that. they are looking at the overall performance and currencies and looking ahead to the data coming out later in the week. today might be a subdued day but there is a positive start. people will be expecting progress. a phasespecially with one trade deal being signed. will we see the focus going back to the trade negotiations and what happens next? will be encouraged because one of the things that a trump said he is keen to get going as soon as

possible. people will say, that means if he is willing to continue negotiations, there is less risk he will impose new tariffs on china in the short-term. that is a positive for investor sentiment as well. they will be looking ahead to see how we get these readings on china data. tariffs havef new been reduced and the fact pays one would include some rollback of the old terrorists, early signs were the china economy is starting to turn the corner. there were indicators last year the worst may be over. we should see that later this week. industriall -- production numbers coming through at the end of the week. people will be watching that closely to see if china is starting to turn around. this year will be a big improvement from the beginning of last year. shery: thank you so much.

our mliv strategist. we have big guests coming up from the asia financial form including the thailand finance --ister, and the treasury and the secretary for commerce and economic development. australia's prime minister is facing pressure in the polls over his handling of the bushfires. this is bloomberg. ♪

shery: i am shery ahn. haidi: i am haidi stroud-watts. you are watching daybreak australia. scott morrison's personal ratings have tumbled over his handling of the bushfire crisis. a new survey said he suffered an eight point drop in approval since last month. the spring our managing editor into the show. -- let's bring our managing

editor on. >> we have been waiting for this poll since the crisis, to see whether the outpouring of anger we have seen in the crucible of social media is transferred into the real world and it has. eight point drop in his personal approval ratings, 11 point increase in the people who are dissatisfied with his performance as prime minister. has had a lead and now it is trailing by two points. he is seen as -- the title for the preferred prime minister has gone to anthony albany. was suggesting he would not do more to cut carbon emissions in australia. is he sticking to that message or will he change his policies and his views on climate change as well? sticking to that

message. he did an interview sunday and was categorical that australia its not be moving beyond paris agreement commitment to cut emissions by 26% by 2030. he is confident we will meet that target. he is saying there might be room to progress a little bit. he was categorical in saying it will not be at the expense of jobs and not at the expense of industry. you can take that as code for the massive coal export industry. the prime minister is sticking to his guns on the emissions front. are starting to get a better picture of how this is affecting corporate australia, retail sales and tourism, consumer sentiment and the broader economy. >> we are seeing if it through into the numbers. it is going to take a while before the full economic impact

will work its way through. for the tourism industry it will be interesting to see the first sets of numbers, to see how it will affect the south coast of new south wales. in terms of the corporate impact, we are having companies impact best report the impact on their books again. it will take time for the full picture. haidi: our managing editor for australia and new zealand. scott morrison has acknowledged the changing climate elements are a contributing factor to the crisis, but he said the country won't be doing more to cut emissions, relying on improving resilience measures. let's discuss that with amanda mckenzie. very busy start to the year for you. he is admitting there is a climate change element, which is progress when it comes to what the government has been saying so far. is he right cutting emissions

will make a difference? to every country to play a role in tackling the climate crisis. some contribute more. australia is a large reader. when you count our export industry we are number five. we are quite a big player in the global emissions conversation even though ovulation wise we are small. -- population wise we are small. haidi: people say if we were to diminish the coal industry, there would be less money to fight fires. what do you say and what can be done to transition to a lower emissions green economy? >> it is shortsighted. burning of coal contributes to climate change. that will only continue into the future. these warnings have been around 30 years. it would have been good to start then. it would been -- would have been

a less bumpy ride. but we can still start today. it is not about turning off all the generators. it is about a careful transition. we know renewable energy is a cheap form of power. and the cold needs to be shut down -- coal are inefficient and need to be shut down. we don't have a policy to do it effectively. we need a federal policy around our domestic missions and export industry. shery: prime minister morrison said rousseff -- improving resilience when it comes to the crisis. you have agreements like with canada and the u.s., but it seems everybody has fires that are burning for longer now. what needs to be done? >> this is something we have warned about. we have published reports for 50 years. we are seeing fire seasons

overlap between states. previously you would see queensland has got fire, and you would not see a catastrophe in multiple states at the same time. that is what we are seeing today. we need to make sure the sharing arrangements are effective but also between countries. the fire seasons in australia the one of the countries we overlap with is the united states in california is going for most of the year like in new south wales. the collaboration becomes more difficult as the choir season extends. it is not just a question of collaborative work but bumping up the resources within states to tackle these calamities as they occur. shery: how do you view australia's international reputation being affected by these months long fires? >> globally people are concerned

about what is happening. there is a love of the australian landscape, wildlife, and people are sad, kangaroo island we have lost 30,000 from -- 30,000co-wallah koalas. there has been a lot of reporting on the australian ability to tackle climate change. i think what is not known is how much is happening at the local and state government level. the federal government has failed as we have seen in madrid . they were criticize globally for pulling negotiations backwards rather than forward. haidi: what are you seeing in terms of cooperative engagement? we heard from the ceo this morning, despite enormous social media pressure for them to extract from the project, saying it was interesting, while he has enormous empathy for

environmental concerns, they will progress with their involvement. you expect to see a change? the emissions footprint for australia is the exports component. >> there has been a change in corporate australia already. the leading players, people who are investing in the links between australia and indonesia and southeast asia in terms of supply and renewable energy, there is a lot of innovation to get renewable energy -- then there is the goal between the companies that are forward thinking, business leaders, and the run-of-the-mill companies stuck in the past. there is a big change underfoot, but it is -- doesn't surprise me siemens has made that decision. particularly because the economics doesn't stack up. it is not surprising.

haidi: in terms of the rebuilding, people working on the bushfires, there was little question whether rebuilding should happen in some of these vulnerable areas. living in a valley surrounded by eucalyptus plantations, it is not a great place given our climate. are there questions that should be asked with the french communities, -- fringe communities, holding codes? -- building codes? >> we have to ask the hard questions. some of those will be very difficult to grapple with. we have to accept the climate has changed and it has changed the natural environment and where it is prudent to live. look atink slim we these fires, we will find more could have been done to prepare us. there are a lot of warnings put out in advance.

they were saying in april it will be a bad season. we could have had more aircraft. i hope if there is a royal commission, that is looking at, how do we make sure we are better prepared and make sure we have the firefighting equipment that we need? shery: what is the first thing that needs to be done in order climate change issues, especially as you say in your notes, when they have not had a credible climate policy in the last six years? >> it has been positive to see them acknowledging the impact on the fires areas course and did that more clearly in contrast to some of his colleagues earlier in the season that said this was not related. he was very clear yesterday the warming client -- climate but also the dry conditions have

been exacerbating the fires. , we aret thing to do is still fighting these fires now. for victoria and south australia, there could be fires to come. the hot part of the summer is not really here yet. that will be in february. the second thing is in the rebuild we have to have a di,mate lens as saying to hai that we are being prudent to the climate change that will continue to occur. and the third thing is for appearance's change policy. they don't want to deal with fossil fuels. nothing has been about reducing fossil fuels. emissions under the government have risen for five years in a row. this will be the crucial test whether they are serious. haidi: we appreciate your time especially at this time. amanda mckenzie here in sydney.

the volcanoll from in the philippines has closed down airport activity and even the stock exchange. this is bloomberg. ♪

shery: the ongoing volcanic irruption from manila -- near manila caused the government to shut offices and schools. officials are warning of hazardous ash and smoke. let's bring in our reporter. how bad is the situation? we are still on alert level which means a hazardous explosive corruption is imminent and could happen in a matter of hours or days. the volcano is one of the most active in the philippines, and it started spewing on sunday

afternoon, creating a column as high as 15 kilometers into the air, visible in parts of the capital which is 90 kilometers away. evacuation operations have started. the philippines volcanology agency has monitored 50 earthquakes which says it could be indicative of magma activity underneath. the volcano is one of the most popular tourist destinations. it is volcano in the middle of a lake in fact a lot of tourist -- and attracts a lot of tourists. people had to be cleared out. casualties -- multis have been reported. some: what are precautionary measures they have been taking? /call has affected cities as far away as 100 kilometers up in

the north of manila. in the capital you can feel the ash and dust falling. it has been coding the roads and hose. people have been advised to stay indoors and to wear masks. the government suspended all network and work in the capital. the philippines stock exchange stopped trading as well. the airport is closed until further notice because of the runways. 200 flights have been canceled. thank you for joining us. the latest on the volcano. let's get you a look at the business flash headlines. china take him to the record of james bond's favorite carmaker. the are in talks with company, saving to a million dollars of investment.

contemporary is also thinking of a stake. aston martin is under pressure. kong'sthe first of hong new digital banks is waiting customers with a 6 -- they are one of eight preparing to start a digital only operation in the city and offering some people over three percentage points more than traditional lenders. analysts doubt such rates are sustainable but say this is a sign of increasing competition in banking. contract forng a an australian coal mine. the protest -- carmichaelrking with mining in queensland. the ceo said while he has empathy for environmental matters, he has to balance what he calls the different interests

of different stakeholders. shery: plenty more to come. assessing the market risks from iran to australia. daybreak asia is next. this is bloomberg. ♪ ♪

haidi: good morning. i am haidi stroud-watts in sydney where the markets have just come online. shery: i am shery ahn in new york. haslinda: i am sophie -- sophie: i am sophie kamaruddin. welcome to daybreak asia. haidi: our top stories, the , the emphaticiwan victory moves the island further from china's influence. iran admits to shooting down the ukrainian airliner, sparking protests at home and