>> welcome to "bloomberg daybreak: australia." i'm haidi stroud-watts in sydney. >> i am shery ahn. > and i'm sophie kamaruddin. we are counting down to the major market opens. haidi: here are the top stories we are covering in the next hour. anger in hong kong as the latest protest rally turns violent. city lawmakers rejecting demands for university suffrage.

australia starts to clean up from the bushfires. this as insurance claims keep rising. the total is approaching $1 billion u.s. shery: let's get you started with a quick check of the markets. it was another day of session highs. we saw the dow on a record high for a fifth consecutive session, closing up 2/10 of 1%. of course, we had positive u.s. earnings, the season kicking off, not to mention the pause in the china u.s. trade war and the positive economic data with u.s. housing surging in the previous much -- month. we had telecom and utilities leading the gains. we had the energy sector, oil losing ground for the second consecutive week, but keep your eyes on the oil prices. we did have geopolitical tensions in libya and iraq that could be moving crude. the nasdaq gained three tons of 1%. let's see how things are shaping

up for the asian market. sophie: asian docs are headed for a mixed start after a seven-week advantage. that's the longest winning streak in two years. investors will be able to focus on fundamentals with 300 companies due to earnings over the next fortnight and on the central think, policy decisions on the boj, acb, and bank of canada. we will see if the pboc will hold its one year prime rate. jumping into the terminal, currency markets look calm. you can see one year volatility for the offshore you end, sink to the lowest since july on friday. over in australia, we are seeing a stock rally running pretty hot with the 14 day rsi topping 70 further first time since july. this after the benchmark popped 7000 for the first time ever, raising questions about whether or not those are being mispriced

related to the bushfires. haidi: this is getting to key earnings season. let's get you first word news with paul allen here in sydney. paul: australia is starting to clean up from the bushfires as insurance claims are approaching $1 billion u.s. that's a rise of more than 40% 10. january the years first tennis major starts later and it may be halted by air pollution from the worst fires in decades. australia has an air quality scale of one to five and says games will be halted if they reach level four. china says the new sars like virus that has killed at least two people and sickened dozens more is still preventable and controllable. cityrities in the central of wuhan confirmed 17 new cases of the virus sunday, bringing the total to 62. the source of the virus is unknown. authorities are seeking to reassure the public of hundreds of millions prepare to travel

ahead of the lunar new year holiday. the volcano in the philippines continues to vent smoke weeks after a simmering irruption. malevolent activity seems to be falling, but seismologists say the drying of the crater lake and continuing earthquakes indicate the magma is rising, and a devastating explosion could be days or hours away. in libya'sons simmering civil war have held an initial talks in berlin as production of the country's biggest oilfield was hit by damage to a major pipeline. the national oil corporations as output will be just over 70,000 barrels a day down from more than one million a day last saturday. bloomberg data shows libya's lowest oil production level since august 2011. the bodies of the ukrainian victims of the plane crash in home.ave been flown back they were among the 176 people

who died when the plane was brought down by a missile on january 8. to run now says it has no immediate plans to release the so-called black box to ukraine or any other country. that contradicts earlier statements about sending the recorders to key have. spacex is one step closer to her first crude flight to passing a major safety test. -- wass test will subscribed by elon musk as picture-perfect and opens the way for a manned launch sometime in the first half of this year. nasa noted the success of the flight but also noted on number of parachute tests are still required before a crew mission. 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'm paul allen. this is bloomberg. haidi: unrest has returned to hong kong after a sunday rally in the central business district turned violent. police officers were injured as protesters were ordered to

disperse amid what police are calling violent behavior. this came as the government again rejected key demands of universal suffrage. let's go to our chief north asia correspondent stephen engle, who is there for us. on from allrry the disturbances last year. we see kind of no potential compromise insight. what happened over the weekend? reporter: that was the core central issue in terms of universal suffrage, and it came andling up again yesterday, the intransigence or perceived intransigence from the government protesters who claim the government is not meeting demands, and the protesters as well not willing to back down. a lot of people over the last few weeks thinking the worst was over and it was dying down and perhaps hong kong can get back to what it does best. i kept saying no, the main issues have not been addressed, or even no table to be put forward and discussed.

we are back to square one. it wasn't nearly as violent as some of the clashes earlier, but still the angst came bubbling back as we saw yesterday. what started out, and this is the usual modus operandi here where the protesters are fairly peaceful. they were down here at the gardens. as the day wore on, the frustration started doubling up again. -- bubbling up again. the police ordered people to evacuate because they said some outliers started to get violent and some protesters went beyond the approved area. they allegedly attacked a few police officers. there wereed that arrests, there were barricades set on fire. . there were teargas used to disperse protesters. but again, rally, rinse, repeat. we are back to that cycle. shery: what's the hope on getting progress on universal

suffrage when we know where beijing stands on this issue. reporter: beijing's stance has been clear when they put forward that proposal where beijing picked panels to choose candidates, two or three, and permanent residents of hong kong would be able to vote on that. of course, the protest leaders have rejected that proposal all the way dating back since 2014. the former security chief who is now an executive council told me that offer is still on the table. the protesters do not want that. the founder of the democracy party in hong kong said, what's the difference between a rotten orange, rotten apple, and rotten banana? of course you reject it. that's why i say we are at a stalemate here. the government put out a statement late yesterday recapping why they cannot go forward with constitutional reforms to allow universal

suffrage for the chief executive and the bottom line comes down peacefulhas to be a atmosphere for dialogue and mutual trust. there is no mutual trust right now. haidi: complete breakdown of trust. at the end of the day, it is also the economy. given what we've seen the retailers close up shops, hotels and restaurants very quiet, we are going to see that coming up in the jobless numbers later today. reporter: you would think. i have looked at the history of the unemployment rate and in the aftermath of the outbreak of the outlook, it'sal about 5.5% on average. in june 2 thousand three, the unemployment rate was as high as 8.5%. i was here during sars. it was desolate in many shopping malls and people were

wearing masks everywhere. now the unemployment rate in november was 2.3%. the tip ofis just the iceberg. many economists we have spoken to including bloomberg intelligence expect a wave of joblessness to rise steadily in 2020. the retail sector, logistics, trade etc. starts to feel they have run out of now seven months of protests. shery: stephen engle, thank you. our chief north asia correspondent from hong kong. we will have more of what's ground.g on the we will speak to chief executive carrie lam and other leaders from the world economic forum in davos later this week. that.n't want to miss here in the u.s., the impeachment trial of president trump officially begins this week. he will make arguments both inside and outside the senate courtroom. what should we be watching out for this week?

reporter: probably the number one issue surrounding the impeachment trial that starts tuesdays how to handle witnesses and whether to have witnesses. democrats and republicans really couldn't be further apart on that. democrats want to call on keep former administration officials including john bolton. most republicans say it's not necessary. there are a few persuadable republicans who the democrats will be trying to get out to show new evidence saying we have to get this a fair trial. if there were witnesses, at least one republican today, senator ted cruz, suggesting this trial could take six to eight weeks, which i think is a lot longer than people would have thought. that is something that is key to look for. the two sides put out legal briefs on saturday. a short one from the trump administration with a longer one still to come. a substantial one from the democrats. couldn't be further apart.

we've heard the same arguments many times before. democrats saying trump is a threat to the rule of law and must be removed and republicans say democrats are trying to overturn the 2016 election. that's what we have going into what could be quite a show trial with big egos on both sides of the aisle looking to make statements. haidi: what are we expecting when it comes to the court of public opinion? reporter: it seems to me that people have been pretty set in their opinions for some time. we know that president trump's approval rating has taken -- stayed consistently below 50% in most opinion polls. he certainly does very well among republicans with a very high approval rate, so as always, it's a question of, will ?here be any change in this the white house team will have this -- try to have this blow up

in the face of democrats. and in fact lindsey graham said he thinks trump believes this is all a net positive and it will be a way to show the democrats are sort of doing nothing and that it's really the trump administration and the white house pushing ahead on policy initiatives. shery: of course we know they are having restrictions during the impeachment trial, which could be really cumbersome for some of those senators who are actually running for their primaries for the democratic nomination. what is the latest on that front. reporter: senator chuck told they must stay in the chamber all day when the trial -- senators are told they must stay in the chamber all day when the trail is going on. for senators elizabeth warren and bernie sanders, it will be a real impediment for them to be on the campaign trail. i think they are looking for the arguments for the senate to end

for the week, they can be on the plane to iowa or wherever, and deal with it as best they can and also have key surrogates onto trail. people who are not members of the senate like pete buttigieg and joe biden. if it were to be six to eight weeks, that really takes them out of pocket for a long time. haidi: it really does at a crucial time in campaigning. thank you so much for that, our krazny.ton editor roz cresso fallout fromthe the australian bushfires continues to mount. this could threaten to halt play at the australian open. shery: a business -- busy week for central bank decisions to set the tone. we discuss that with ubs australia head of fixed income anne anderson. this is bloomberg. ♪

shery: i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. you are watching "bloomberg daybreak: australia." the ecb and the bank of japan are among g7 central banks making their first rate decisions of 2020. that could set the tone for the year ahead. let's discuss all of that with anne anderson, the head of ubs australia here in sydney. great to have you for the first time in 2020. have things markedly changed this year from last year? inchingnk we are towards a more stable period, with the economies stabilizing and turning up. the phase one trade deal. it's a bit more positive with regards to the economic fundamentals. haidi: so when you take a look at the bank of japan, we are not expecting any change. could we see a bit of upside when it comes to growth expectations given that we do

have the trade deals and the headwinds, we are starting to see a bottoming out when it comes to some of these economies? >> i'm not expecting a change in the forecast, but i think the tone will be slightly more positive with regards to particularly trade. shery: so what are we expecting out of the boj, especially when they are having such a difficult time hitting their 2% inflation target? what is left for them to do in 2020? think it is tracking a path regard toty with ongoing accommodation and selective fiscal stimulus will remain a policy option. it is somewhat difficult. ishink the yield curve always positive particularly for the banking sector, a maintenance of the steady as she goes with yield curve control.

shery: at the same time, we have the ecb starting to review their policy for the fourth time in a generation. is this something more central banks should be looking to do? i think that's fair. the policy options are somewhat restrained given that they have been leading the charge in terms policy, but itary think the ecb for lagarde, that is a good tool and technique to keep us watching whilst it gives her time to work her way into the role. haidi: and you have just returned from china where you said things feel a little more optimistic, obviously with the trade deal and the data starting to look a little firmer. this idea of china decoupling, we talked about in different contexts.

is that still a threat this year? >> i don't think it's a threat it does nothere is become adversarial. it would be surprising to see president trump upset the equilibrium we have found. there are very interesting long-term themes that are playing out and the ascendancy of china, the marking out of their own consumer led market, the technological expertise, the meg ne\ manufacturing pro to laying a foundation for the next decade. haidi: we are about to kick off earnings season and australia where we have seen equities grow gangbusters despite australia expected to be the worst performer when it comes to this

earnings season. what does the rba do, particularly in light of the great uncertainty that comes from knowing what kind of economic macro sentiment impact that the bushfires have had? >> i think they communicate a , guiding usability to see that rates will stay low, if not go lower over time. i'm not convinced they will go in february. you think the government step forward would obviously with targeted initiatives, but the downside risks obviously increased and the agenda around the strategic vision with regard decarbonization of the economy and where that takes us, i think that is critical for business and consumer sentiment taking us forward. shery: we have seen the resolutions of some major catalysts for a potentially higher treasury yields like the phase one trade deal, not to mention conservative victory in the u.k., and yet the 10 year

yield remained stuck at around 180. done? when are we -- where are we headed with 10 year yields? will unlikely we see those levels particularly in the your area, however i do not see a revert. ditto in the u.s. the reason why we are saying alongside the trade deal, more positive fundamentals in the u.s. is the similar financial conditions that i think it is very keen to maintain that support, lift inflation over time. that is true for all global central banks. and see further cuts. looks like the bank of england. australia straily we expect sometime this year. they are more likely to ease then look at any other policy option.

shery: when it comes to treasury issuance, what do you make of the twenty-year bonds that the treasury has announced? making -- treasury taking advantage of the relatively low yields, it is good that they build that with a yield curve. the yield curve is also positive for market sentiment, but also for the banking sector. haidi: as -- does that mean the dollar continues to reign supreme this year? >> that is then interesting one to note. i think it is probably at the margin that i expect to be slightly weaker. the gap between u.s. growth and global growth has now narrowed, so that to me alongside the risk sentiment i think has dissipated . quite stable renminbi and a euro that is slightly stronger.

haidi: always a pleasure thank you for joining us. ubs a straily ahead of fixed income. world economiche forum in davos including the imf manager. this is bloomberg. ♪

haidi: i'm haidi stroud-watts in sydney. shery: i'm sick -- shery ahn in new york. you're watching "bloomberg daybreak: australia." let's get a check of the business flash headlines. softbank says it still sees wework as a good business despite months of poor earnings. to have a new management teampia the fund also says it doesn't explict --

expect all of their funds to be successful but that wework should be a long-term earner. haidi: a tumultuous year that saw the lender embark on a major restructuring. the ceo says the corporate between the pledge to cut costs below 24 billion dollars while needing to retain top talent and appease regulators. he may need to cut fourth quarter caught -- costs by 8%. shery: a top performing fund has morgan stanley betting on cass rich -- cash rich performance stocks in asia. the asia opportunities fund returned 44% in the past year, beating 99% of its peers. it targets undervalued companies with low debt or net cash on the balance sheet, many of which are in the consumer sector. we will get more insight on the with the morgan

stanley ceo james gorman and also other banking executives from the world economic forum in davos. plenty more ahead. this is bloomberg. ♪ here, it all starts with a simple...

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♪ haidi: it is 9:30 a.m. here in sydney. the market open is almost upon us. reasonably clear day after several weeks of smoky, foggy and then reigning into the weekend -- raining into the weekend. half a percent higher when it comes to futures, and eighth consecutive session of record highs in u.s. stocks. pretty boy's start to the asian session today. toing bushfires are expected have an effect on the economy. is here with us.

we are getting a better picture as the weeks go on. we have seen insurance plans coming in, image to sentiment. -- damage to sentiment. >> we have got insurance claims also to 17000 and the insurance pointl told us it is one $4 billion of damage. if we think about what that might mean, it is about $5 billion of direct damage. that fits in with the rule of thumb where analysts such as myself and others thought about 0.2% or 0.3%. that is coming down the line. there is other information we are starting to get more clear picture which might be the things that make this disaster different to the usual. tell us about the other non-fire indirect impacts, like tourism. >> we have centers in on three

of the impacts. tourism, confidence and the pollution impacts across particularly sydney and over, the two major capitals. when it comes to tourism, very important for australia's economy. that is around about 3% gdp. depending on which month, and we should find out next quarter, it could be concerned. tourism is the second largest export behind iron ore. if we got a disruption to tourism, let's say less visitors coming. that is important because february is the second most important month. an impact there could have as big an impact on gdp as the $5 billion of direct damage. this could be one of the key areas where the bushfire crisis comes back to hit the economy.

haidi: we are hearing stories of chinese travel agents hearing about cancellations and changing their plans. i am wondering where this leads the rba. i want to bring back the introduction page on the bloomberg, looking at the february meeting. the verdict is still out. ubs was saying they are not sure they will move. they will take a wait and see approach. we heard from someone who used to be on the board saying it is diminishing effects at this point. >> i think there is a couple of things at play. last week we saw the consensus out, foronomists come a rate cut when they meet, but the rba will be looking at the whole picture as well as this disaster impact on the economy. they did say they would make a full assessment before delivering any further assistance. that would be that they would be

looking to see the forecast were not playing out, the economy not evolving the way they want. we have had other things going on. the rba has mentioned the trade deal that has been settled. we have seen the market confidence in fact from that internationally but also domestically. that is a big boost to household wealthis compounding the from the housing market, the continued surge in rebound. there are things that survey supportive. that should be supportive. there is things the rba will be looking at. we have got key pieces of jobs data and the cpi as well as business confidence data which might give us a sense of how the economy is getting knocked about. it is too early to call. my money is on the rba is on hold for february but i think you have got more work to do through the year. shery: thank you for that.

let's get to first word news. paul: the hong kong government has again rejected protest demands for universal suffrage after a rally in the central business district sunday turned violent. the demonstrations started peacefully but police ordered it to end early, saying testers attacked police officers who had spread beyond -- police were attacked by protesters who had spread beyond the allotted area. crash ins of the plane iran have been flown back home. they were among 176 people who died when the plane was brought down by a missile. iran has no idea of -- they say they will not give the black boxes over. hong kong asking for universal

suffrage. i believe we covered this story already. we will move on to china where a hasstars -- sars virus emerged. health concert -- people are concerned 15 new cases of the coronavirus, bringing the total to 62. the source is unknown. authorities are seeking to reassure the public since people plan to travel ahead of the new year holiday. war, the people holding talks in berlin. national oil corporations say outlook will be over 70,000 barrels a day. that is down from one million last saturday. bloomberg data shows that is libya's oil -- lois oil production since august 2010. -- lowest oil production since august 2010. 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. australia opening at the top of the hour. let's turn to sophie for what to watch. keeping an eye on super retail shares after the group posted a year on year pick up, even with the impact of bushfires and droughts on trading sales. rebel brands performed well, enough to stop the drop. online sales improved -- improved 22% in that time. looking at currency, the aussie dollar, slightly lower, adding to a three-week decline at the start of the week that brings us jobs data from down under. aussie managers at short positions. the aussie 10-year yield adding one basis point this morning, stopping a three-day decline. and the british pound under with optionlow 130 strikes at every day this week. the offshore yuan holding steady after an eight week gain. that is the longest since

february 2018 and china's improving data we got friday adding to the outlook for the yuan strength. , reporter at bloomberg intelligence, he expects the yuan to challenge the 685 range by the end of march. haidi: thank you. let's get more on what we are watching with trading underway. adam haigh is here in sydney. i feel like a broken record every time we start talking about valuations in u.s. stocks but i am wondering how investors are justifying or valuing the prices we are seeing. that continues to be the sick debate. if you have not got enough money in the equity market, you wonder if you should add more or be reducing the positions. it comes down to a very low rate environment that continues to have an outlook for the rest of the world, staying in a low rate

environment but also very benign inflation picture. that is what investors are struggling with, do you get any break out in inflation that changes the bond rate and the discount rate you would value equities against. but remind ourselves here, this is key valuations on the s&p 500 over the course of the bull market. we are the highest we have been throughout any time. valuation, lots of people will tell you, it is a terrible market timing signal. you can't use a loan for the conclusion to bring money out of the market. if the inflation market stays as benign as it is, there is nothing to suggest on the valuation front things cannot continue and you can't get further multiple expansions. the prophet environment as we have seen so far from u.s. companies is not particularly worrying. we are not seeing a huge collapse. there were plenty of people

respecting earnings, a real hit to corporate profits but we are not seeing that yet. we are doing inflation in check with the economic indicators for last week out of the u.s. and china. the activity data for china particularly looked robust. it is not pointing to a picture where you should be running for the hills. all signs are that we get this week started in a decent position for equities. shery: when it comes to volatility it is a truly incredible environment. record low volatility in the fx market. anything on the horizon that could trigger bouts of price swings in this area? that is it. when you think volatility will pick up again, you have small moves higher and retracing back to all-time lows again. this chart shows it pretty clearly. we are at the all-time low levels and nothing really over the course of the next couple of

weeks that would shake the apple card too much except at the margin some central-bank decisions, not expecting any movement from the bank of japan tomorrow but a communication or a continuation towards further easing. the u.k. next week with the bank of england looks more interesting. you have nothing the pound come off significantly but a rereading in rates markets for a cut for the bank of england pricing around 70%. you could see an uptick in volatility and sterling. on a global basis, it speaks to that global growth outlook, looking reasonable and inflation looking benign. that is continuing to push down on rates and fx volatility. shery: thank you so much for that. global markets editor, and you can find his charts on the gtv

library on the bloomberg. let's go to huawei. the cfo will appear in a in a vancouver court. she was arrested in canada 13 months ago at the request of the u.s. where she is accused of wire fraud and conspiracy. selina wang joins us. what are the chances she will be able to avoid extradition to the u.s.? slim,: the chances are but it is focusing on the question of double criminality. the canadian judges trying to determine if the huawei ceo's alleged crime was also a crime in canada. if the answer is no, she could be freed according to canada's extradition rules. the allegations were that she misled agents to see the relationship between huawei and sky,, which is operated in iran in violation of u.s. sanctions.

most lawyers say she can't be sent to the u.s. for trial the alleged breach was not a crime in canada. canada's prosecutors say the underlying sense is bank fraud because she lied to hsbc. the u.s. accuses her of trying to trick them to conduct the transactions which would have been in violation of u.s. sanctions. another sticking point is the focus of this alleged misconduct hinges on the 2013 meeting that didn't take place in the u.s. or canada but in hong kong at a tea house where she had a meeting with an hsbc banker. for fouroing to last days but the ruling could last several months or even longer. if the canadian judge deems it passes the double criminality test, it will move on to the next phase, one of many future raises. are there broader implications?

past 50 monthse it has heightened u.s.-china tensions amid the ongoing trade dispute. it has heightened canada and relations. at the time, china threatened consequences and the days later you saw china arrest a former diplomat and a businessman on charges of espionage. the actions were seen as china's retaliation against canada. the government has called this politically motivated, accused canada of arbitrary detention and asked kennedy released the woman. the crackdown on huawei is happening from the u.s., which is trying to convince its allies to ban huawei from domestic 5g networks. you have senators trying to push a bill to create a western alternative. you have the u.s. trying to expand the blacklist which would ban more types of products being

sold to huawei. so it is more about the broader political dispute. haidi: don't miss our interviews at the world economic forum in demos. we have -- in davos. we have various business leaders. china has committed billions of dollars to the phase one deal. we will discuss what it means for the sector next. this is bloomberg. ♪

stroud-wattsaidi in sydney. shery: i am shery ahn in new york. the phase one trade deal is in the books and includes plenty of for dissing commitments from china. of the biggest to come in the

energy sector from crude oil and refined rocks tonight -- liquefied natural gas and coal. it will be $2 billion of energy over the next two years. we can discuss all of this with katie baines. it comes to the commodities market, some asset are tied to long-term contracts instead of purchases. when you take everything into consideration, which market could be the biggest gainer? >> great question. the market, we work with institutional investors and companies and many are focused on the crude oil market as the most obvious beneficiary. we think the lng market, the couldng exporter group, be the big winner because they are dependent on china in the future long-term contracts. the u.s. is a cost competitive supplier of lng, with the exception the -- of the tariff

china has on the u.s. might be ableters to break down the barrier with chinese buyers and enter into the long-term contracts that would help them move forward after years of stagnation. shery: how feasible are these numbers were we consider the fact that chinese economy is slowing down? theverybody is wondering same thing, how feasible is over $52 billion of incremental exports of crude and gas and propane products or refined products? it is an enormous number, a quadrupling of some of the largest importing years for those products for china. that is a high target to have to hit. we look at the energy commitments within the context

of all of the commitments made in the trade agreement on the purchases side, it is some of the most interesting because they sort of match up what the u.s. has, which is a lot of lng and also crude and propane and other kinds of hydrocarbon products with something china does need, the largest importer of crude and of natural gas. there is a bit more synergy even though the targets are being -- very high. i think the time more so than the quantity is the challenge for china and the u.s. is the other one, even though it falls under other agricultural items. >> it is politically very important to the president and to many of his voters. the u.s. ethanol industry was built up around the idea over the last few years that china

would be a big buyer. china entered into a 10% blending mandate for ethanol in 2017. the u.s. would have been an intuitive ways to get a fair amount of the ethanol. because china first implemented tariffs and now the u.s. with the trade dispute, that never materialized. a lot of ethanol producers are struggling, which gets right back to the president. of course it comes from the midwest. a lot of those voters make up his base. it was important for the white house to be able to deliver on some kind of a win for u.s. agricultural, particularly corn producers. haidi: we know that the chinese economy domestically, for its own domestic structural reasons is still slowing. we have the tariffs in place

until at least november. is there a big question over whether the execution or the thought of these processes is possible, even if the good faith intent is there? >> sure. slowing growth is different from declining demand. a lot of these products, lng, these are products that you buy more of when your energy economy shifts away from the higher emitting products. these are higher, cleaner products designed to improve air quality. we would not be surprised with a general macro decline or softening growth. we would not surprised to see demand for ethanol and lng continue to rant. 20%.se lng demand group by -- grew by 20%.

i see a lot of significant growth out of china for some of these products. pie thesort of a big u.s. is tapping into. the point is well made, there is not unlimited food demand in thingsnd there are other like renewable that cut into demand for hydro carbon. shery: we have political headlines out of libya and iraq more of theirsh production. what is your outlook? >> i think the global oil market is complex. to see these geopolitical clashes and skirmishes arising not so long ago between u.s. and and saudi arabia and out in libya we have uncertainty in the global crude

market. to focus too much on the politics between the u.s. and china seems to miss one of the core realities which is that there is geopolitical instability. the first place we will see production and supply shore up his within opec. very hopeful that there can be a deal or cessation of hostilities that allows reduction to come back online quickly. it is huge news and the market will be processing that tomorrow and through the next week. thank you for joining us. on the energyre sector in today's edition of daybreak. bloomberg is drivers go to dayb on your terminals. it is on the bloomberg anywhere app. don't miss our exclusive interview with one of the world's biggest agricultural commodity traders. the ceo joins us later on daybreak asia. this is bloomberg. ♪

♪ haidi: a quick check of business flash headlines. a pushmpany preparing into a major gaming market, dominated by tencent for at least a decade. the most valuable startup created a gaming division and has brought up gaming studios and title does division rights. it has launched a hiring campaign, building a team that is more than 1000 strong. jpmorgan is buying offices of bnp in paris. fourthlding is in the sector. jp morgan has space in the area and it is not clear if the deal means it will be moving employees from london. jamie dimon said a hard split from the e.u. would be a

disaster. next hour. in the we will be joined by a senior economist for emerging asia. daybreak asia is next. this is bloomberg. ♪

haidi: good morning. i am haidi stroud-watts in sydney. shery: japan and south korea open in an hour. i am shery and. -- ahn. sophie: i am sophie kamaruddin. welcome to daybreak asia. haidi: our top stories, president trump going to davos as his impeachment trial looms. he accuses the democrats of trying to reverse the 2016 electi