♪ haidi: good morning and welcome to daybreak: australia" i am haidi stroud-watts in sydney. >> i am sophie kamaruddin. >> and i am kathleen hays in new york. our top stories this ever, u.s. stocks fall from record highs. investors waiting for the fed's

timetable. >> president biden rallies analyze for a united front against beijing. >> boris johnson says a new trade deal marks a new step in their relationship. we will talk to the australia trade minister about the agreement. the s&p 500 falling back from all-time highs, weaker than expected decline in retail sales, but stronger than expected jump -- left investors scratching their heads wondering what this means for the fed. the s&p 500 closed 0.2% down. the 10-year note actually higher in price, lower in yield after a very strong 20 year bond auction. crude oil continues to go through the roof. 2018 high today after 6 p.m. eastern time. this is the futures trade opening, still higher.

the 50% rally has traders bold. very different story in copper, down as much as 4.6%. again, about the fed meeting. haidi: yes, the fed meeting is really the theme, markets counting down to the big policy decision on wednesday. the central case remains that they will stay darvish. bloomberg policymakers maintaining their assessment of the recent inflation surge as, you guessed it, transitory. a weaker than expected jobs report could also quash some of that taper plot. we will be watching it. two more participants have tipped the status quo in that direction, kathleen.

kathleen: well, the stock market has flattened out over the last last couple of days ahead of the meeting. let's bring in julie biel, from kayne anderson rudnick. we are wondering, what do you see for the stock market? a lot of people are saying the fed will continue to tell us not to worry about inflation. no changes thinking about the policy yet, but it seems like the stock market is a little bit nervous? what do you see? julie: it is important to keep in mind that while the transitory inflation measures exist, we don't know -- we don't have great data on the labor market. for the last year, it has been hamstrung by the covid pandemic, we had low participation of women in the labor force. a few like we are back in the 80's -- i should be wearing shoulder pads at this point. [laughter]

it makes it hard to figure out what the underlying fundamentals of the labor market are. that will be their primary driver of what inflation expectations are and what the fed needs to do. it is in a very challenging position to be able to gauge that. kathleen: it seems that for the most part you do see the nerves in the market but the prevailing view seems to be hardly anything will be signaled from the fed, may be even that we are thinking about tapering bond purchases. is the risk to stock investors that jerome powell at this point it does have to say, we are at least looking at it, maybe it will happen sooner than we thought and, therefore, it showed that he is not quite as devilish as people think? julie: it is hard to say. the outlook looks pretty positive. but a lot of investors they think are asking for there to be better clarity on when we will have some start to the taper. there is a lot of nerves that we are going to wait too long, the

economy will overheat and then we will have to taper all that once. but it is pretty common for there to be discord already on the fed board. the best way for investors to protect themselves is think about companies that have strong pricing power because even if there is inflation, businesses should be able to outperform. great indications that businesses have high quality, competitive advantages. i would focus investors on keeping a longer-term viewpoint. we may have some bumping is in the transition. longer-term quality will always protect you from the downside. haidi: i want to throw at the chart looking at shorter term and longer term inflation expectations the new york fed survey. you can see the jump in the white of 4%. a bit lower shows the gap between one year and three year inflation expectations. what does this mean for the consumer side of the story?

in a lot of places, we have seen consumer recovery. how do you invest in that picking up? julie: break it apart between what we are seeing between durable goods and long-term purchases. obviously those prices have increased. we are already seeing a lot of inflation there. on the services side, it is a much different market. those opportunities in travel and leisure, they are there to be had. for long-term investors, the focus needs to be on businesses that can manage that inflation and still deliver some -- power. haidi: i read your notes about innovation and what you look at as being innovative development in tech being interesting in the u.s.. what are those investableopportunities there,

given that you say you are not seeing that level of innovation necessarily with u.s. tech names? julie: i think the biggest challenge we have is that without really strong antitrust, these tech companies have grown to be absolute behemoths. when is the last time there was a great social media company on the loose? it has not happened because there hasn't been funding. no surprise that algorithms in social media, the best algorithm came from company in china, tiktok. there isn't enough consumer-facing companies that we really like. we prefer more of the enterprise software names in tech because there isn't that much innovation happening from our companies. what has facebook given us? we get a frowny face on facebook and that is kind of it. i am hopeful that there is more information and that gives us more investable opportunities of the consumer side. kathleen: is this perhaps kind of a win-win situation for

stocks? as we get past the fed meeting, if they signaled they will move up a rate hike, isn't that good news for stocks, that we're looking at a strong economy and that maybe gets the rally going further? julie: generally for the last 10 years, the more the stock market -- there is this attachment to keeping rates really low. we are at historic lows. what i think will calm investors is some early language on tapering. that will soothe investors that are really concerned that we will overheat and need to overcorrect. you could see that in tech valuations, which are a little more sensitive to interest rates. for now i think it could be a positive. it would give people some comfort. haidi: always great to have you with us, julie biel portfolio manager and senior research analyst at kayne anderson

rudnick. you don't want to miss out on our coverage of the fed decision early thursday morning. if you are watching in asia, 1:30 p.m. on wednesday in new york. let's look at how the markets are setting up for the big meeting, sophie. sophie: waiting on the fed decision. futures are mostly pointed to the downside after asian stocks were led higher by attack on tuesday. japan ahead of me trade data, nikkei futures looking little changed. the nikkei media reporting that japan may discuss is incapacity restrictions. switching out the board, in australia, we could see the rally pause after the asx 200 rose to a record high, miners and banks helping to boost the gauge this year. the best performing in aipac, they anticipate will hit record

highs before the year is out. the csi 300 also down. we are expecting a slow pace of growth when it comes to that data. offshoring just holding above sure you offshore yuan just holding above 6.42. haidi: let's get to vonnie quinn for the first word headlines. vonnie: china says the united states is "very ill," after president biden rallied european allies to scold beijing over a range of issues. . they did not the statement criticizing chinese policies in hong kong and xinjiang. beijing also took aim at nato,

alleging that lance has inflicted turmoil around the road. china's air force has sent more than two dozen planes near taiwan, raising military pressure on taipei. the chinese foreign ministry says 28 aircraft entered the zone, is the largest exercise of its kind this year. chinese military aircraft have frequently entered that zone over the past year. athletes and officials will face a range of penalties at the olympics if they do not follow virus particles. the final version of the game's playbook says failure to comply with testing and social distancing rules could result in disciplinary action. penalties range from fines to being disqualified. the japanese public is still divided over holding the event. the u.k. and australia signed a trade deal as britain tries to expand its economic ties around the world.

the agreement would cut tariffs on products including scotch whiskey, clothing, and cars, and reduce levies on agricultural products, sparking anger from u.k. farmers. global news, 24 hours a day, on air and on bloomberg quicktake, powered by over 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. kathleen: thank you. we have a lot more on that agreement between the u.k. and australia when we are joined by the trade minister dan tehan. and biden solidifies an international coalition against china as he heads into talks with russia. the latest on his trip across europe just ahead. this is bloomberg. ♪

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my confidence level is very high as of today. >> we are not blooming specific countries or specific companies, but we want to achieve a level playing field and we to work together to potentially -- challenges posed by our market enemies. >> today the u.s. has taken another step. it includes a commitment for a joint collaboration to confront the threat from china's ambitions to build an aircraft sector on nonmarket practices. haidi: that was u.s. trade representative katherine tai, in the e.u. vice president, outlining their unified stance against china's air ambitions

after agreeing to a five-year truth in the boeing-airbus dispute. that truth sets the stage for a new era of transatlantic corporation against china. let's discuss with reporter emily wilkins, and our markets coag or tom mackenzie. emily, i will start with you, this has been such a long-running dispute. what does the resolution signify? emily: it has been a 17 year dispute over subsidies between airbus and boeing, the u.s. and brussels. this is 1.5 billion dollars of tariffs over the next five years, it halts that. another key part of the agreement is that brussels and washington will look into nonmarket practices of third parties. unspoken but implied in that is china. commercial aircraft corp in

china is on track to become the biggest company. that threat has allowed the u.s. to come together and put their dispute aside and come to this agreement. you heard from both officials in washington and brussels that have said beijing has given companies state aid, allowing them to have an unfair advantage. one of several trade practices the u.s. and europe are working to keep up on and try to defeat or push back against at the moment. president biden has tried to keep china as the centerpiece and we are seeing a partner in the e.u. of this agreement. kathleen: china is not taking this lying down. what is the latest response, tom? tom: you got a sense of how this hit a raw nerve in beijing when you listened to the ministry of foreign affairs speaking yesterday. this is the kind of coordination

we simply did not see under the trump administration. we can debate how deep it goes and to what extent there are divisions between the e.u. and the u.s., but this coordination simply did not exist under the trump administration. china and beijing is working up to that. you heard the foreign ministry official describing the u.s. as a nation that was now "very ill." they criticized the g7 communicate, particularly around the mentioning of hong kong and xinjiang, underscoring what china says our its own domestic affairs. they also played down the sides of the u.s. coalition, saying this is the u.s. and a few others trying to create competition and division. it also hit out at nato saying that it was an organization that had inflicted more and turmoil around the world. haidi: where does this leave china's commercial jet ambitions when we had this deal to counter beijing? ? is this a recognition that the

companies becoming a real threat? tom: absolutely. the company is central to china's made in china 2025 plan which is focusing on companies and sectors of the economy that china sees will be crucial for its future development, and funneling subsidies and cheap land and cheap credit in support of those companies. the company is going to be making a plan, and indication that washington sees this threat in terms of competition is very real indeed. interestingly, there are a number of western suppliers, a french company, but also u.s. suppliers like honeywell, to c919 as well. two and a quarter supply chains, yes, it remains as -- to underscore the supply chains, it

reminds us that this is a trigger point potentially for structural changes that the e.u. and the u.s. are looking at when it comes to the question of subsidies. haidi: president biden meet vladimir putin later. kathleen: a lot of chatter about what a challenging meeting this is, what out of counterpart he will be. what are we expecting? emily: we are expecting this to be a long meeting. the white house has said they will expect four or five hours. the two will be sharing a meal. the white house does not expect any big policy announcements to come from this. president biden has two goals -- one, lay out the circumstances in which the u.s. in the future would retaliate against russia, let putin know what the lines are and what happens if he crosses them. the other goal is to find areas to cooperate on. so there are several topics on the table, one includes the renewal of the start nuclear arms parked set to expire in

2023. and also the political imprisonment of alexei navalny. biden goes into this meeting after meeting with a number of his european counterparts, coming to it from a position of strength. we heard earlier this week secretary of strength antony blinken say he doesn't expect there to be -- perhaps playing down the expectations from this. i think both countries agreed that tensions are other new low since the cold war, and it is to find a way to stabilize those relationships and keep them from going down further. haidi: bloombergtechtv congressional reporter emily wilkins and our bloomberg markets coanchor tom mackenzie, thank you. the u.k. industry have agreed to a new trade agreement, the uk's first such deal since leaving the u.k..

how significant is this? >> it is a case of symbolism overscale. for australia, this deal will be worth about $1 billion a year. in the 1970's, britain was australia's largest trading partner but it slipped off gradually as between gender that e.u. now it is the sixth largest trading partner for australia with total trade worth a little over $15 billion. for the u.k., australia is its 20th largest trading partner, still rather small. this deal will boost the size of the u.k. economy by 0.02 %. so it is small but significant. let's hear what boris johnson had to say. >> this is the first freestanding free-trade deal by the u.k. done since brexit, and it is also therefore a prelude to further deals, and it is the

way in to the comprehensive and progressive trans-pacific partnership. paul: they might need a new acronym for that deal. [laughter] also the u.k. is working on a deal with the united states. also the u.k. is working on a deal with the united states. first step. the most controversial part of the trade deal has been the removal of agricultural tariffs from the u.k.. they will be gradually phased out over the coming 15 years. they will be gradually phased out over the coming 15 years. , concerned it will be flooded by cheap australian beef and lamb. meat tariffs were limited to where they were before brexit. the same story with cheese. dairy producers are limited to and import quarter of 44 grams per person per year, not much particularly when the average brion eats four times that

per week. there will be better access to services from australia, expanded recognition of professional qualifications from both countries. really a lot covered in this agreement. the next step is to get the legal text lined up and then it will be ratified and come into force. kathleen: paul allen joining us from sydney, thank you so much. a reminder, we will be speaking to the australian trade minister dan t hen about the trade deal -- dan tehan in a few minutes about the trade deal. this is bloomberg. ♪

kathleen: a quick check of the latest business flash headlines. the citigroup cfo mark mason has signaled that operations will fall by 30% from a year ago as wall street tries to run out

of steam -- as wall street prepares for the pandemic boom to run out of steam. >> investment banking revenues are likely to be down in the low-to-mid single-digit range. we do see strong m&a performance and we feel good about the pipeline and the dialogue we are having in investment banking. kathleen: apple is facing renewed scrutiny over its compliance with secret trump-era subpoenas for user data, especially of u.s. lawmakers. house intelligence committee chairman adam schiff says the administration will take a closer look at how big-tech companies respond to requests from government agencies. the move highlights the tough balancing act for tech between privacy and demand from law enforcement. haidi: let's look at the day ahead for australia and new zealand now. that new trade deal

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>> u.k. have struck -- and australia have struck a free-trade agreement. boris johnson calling the deal in don in relations and scott morrison thing its most ambitious agreement that australia has -- we are joined by the trade minister. great to have you with us. our reporter put it earlier that perhaps this is more symbolism than substance. this is the quickest agreement even in principle for a free-trade agreement in my

memory. would you agree that it is more symbolic? >> now, there is real substance to this agreement and in many ways, it writes a wrong that occurred 50 years ago when they u.k. turned away from australia to the european union so we are able to get those trade flows back up and running again, especially for our agricultural producers to get levels where they were 50 years ago and hope we will be able to grow those. the u.k. will potentially get access to the cpt pp -- cp tpp. it potentially opens up huge markets for them as well as the australian market though a deal of real substance. the outcome is on investment, services, movement of people, all huge outcomes in this agreement. haidi: i know it is important

for you to get this in the bag formally first, but where does that leave negotiations? at what point are we closer to a deal there? adam: -- >> we just concluded the 11th round of negotiations with the e.u. they were taking place concurrently while we were finalizing this agreement and in support with the u.k. that went incredibly well. the 12th round is scheduled for october and hopefully, we will be in a position to move to the endgame so my hope would be that we might be looking towards the end of this year for the endgame with the european union free-trade agreement. a lot of water to go under the bridge but we are making real and substantial progress with those negotiations as well. >> a lot of sticking points but when i want to address is the

discontent that has been expressed from europe when it comes to australia's climate commitments. his australia's position when it comes to climate, decarbonization, something that is increasingly becoming an issue in global trade negotiations? dan: not at all. we have seen, through the finalization of this agreement in principle with the u.k. that we are able to have an environmental chapter. we have committed to work very well with the united kingdom on international cooperation when it comes to dealing with emissions reduction as another part of the visit of our prime minister to the united kingdom. it was also to ink agreement on emissions reduction technology partnership which was a good outcome as well. so we will continue to work with countries right around the globe to make sure we are doing everything we can to reduce emissions but do so in a way

which keeps our economy strong. we have very much got and roach which is that's use technology to reduce emissions, not taxes, because we think that is the best way to go and we have also forward very comprehensive arguments as to why we should we reducing all tariffs on environmental good and freeing up movement when it comes to environmental service is because that way, all countries can get access to the emissions reduction technology and the know-how so that they know how to use that technology. >> let me add my congratulations. i want to ask you, is it especially important to have deals like this made and others at a time when australia has so many tensions and issues right now with china? dan: look, it is always important to diversify your trade and that is what we have done since we came into government. we have 20 percent ameritrade

covered by free-trade agreements when we came into office. we have got over 75% when we finalize this deal with u.k. and that could grow even further with the e.u. free-trade agreement. so really, really important to be able to diversify our x base. in particular for our farmers, the u.k. was a market where we had very restricted at best and we will now be able to get good quality produce into the u.k., so this is a win for our exporters and our export diversification approach that we have been taking since we came into government. kathleen: i can certainly understand why the u.k. and many countries would like more australian beef. an investment and services in areas where youth can grow your exports. the u.k. is strong when it comes to investment and services. where do you think you can make inroads? dan: we freed up the ability for

both countries to be able to invest in each other's nations. the u.k. is the second largest investor in australia and we welcome our foreign investment in australia. it creates jobs, boosts innovation, and we are looking forward to that. australia will be more freely able to invest in the united kingdom and that will create jobs in the united kingdom and boost innovation there. investment is a win-win for both nations and another substantial outcome for this agreement. haidi: we heard from the prime minister last week and we have been hearing similar developments over the past few weeks overtaking the trade disputes in china to the wto. can you update us on where you are at? what is the hold up and going through that process? -- in going through that process? dan: under active consideration at the moment.

you have to make sure you have the best legal arguments and the very best legal case to do that so we want to make sure we have done everything we can to show the strength of our case, working with our wine industry. i had consultations again with the wine industry last week. it is under active consideration at the moment. and we will be making a decision very shortly as to the next steps we take in trying to deal with this dispute that we currently have with china. haidi: there is media reports of a new scheme that would allow agricultural workers to work in australia. how crucial is this potentially at a time when borders remain closed and we know there are pressure points in the demand for labor market? -- domestic labor market? dan: this is another great outcome from this free-trade agreement. we have long thought for a standalone agriculture agribusiness visa here in

australia and we have achieved that and we will look to expand that to other countries in our region so this is another really important outcome for this free-trade agreement and i think it is one that will be welcome, especially around regional and rural australia because getting access to the workforce that we need to make sure our rural economies remain strong is so him. -- important. kathleen: sometimes the history of trade deals have not gone so well. looking back to the so-called free trade agreement that did not go so well. why are you so sure that this new one is going to be as positive for australia, for its industries, for its workers and businesses, as you say? dan: i would not agree with the premise about the australia/u.s. retrade agreement. i think it has worked incredibly

well and it has helped grow the economic relationship between australia and the united states and i think this agreement will as well. after years ago, we had a very strong economic relationship with the united kingdom, especially when it came to the agricultural sector. we will be able to resume that strong economic relationship and i think also grow those investment flows, service flows, government procurement is another area where this will be a world leading agreement so in many ways, i am incredibly confident that this will be a gold standard free-trade agreement because it is a free-trade agreement of real substance. it will be the best free-trade agreement that we have done outside of the closer economic relations that we have with new zealand. kathleen: with -- haidi: with this deal potentially under the belt, does that mean australia is giving unequivocal support to

the tpp and how quickly can we get that process wrapped up given i know i have been covering these talks, you know, back in singapore, for so long now? dan: this does mean that the united kingdom will get the approval of australia for cp tpp and that's why we wanted to make sure it was a gold standard. the process will now be how the united kingdom can negotiate with all the other countries -- cp tpp countries. the speed in which we have done the free-trade agreement with the united kingdom has been unparalleled when it comes to free-trade agreement negotiations. to get the agreement in principle in 12 months is unheard of and we will now move to finalize the complete legal tax by the end of october and the beginning of november but

this has been done at speed but it has been done at speeds to make sure we have got a substantial outcome and i have to thank my negotiating team from the department of foreign affairs and trade, to the outstanding job they have done in working towards this outcome, which has been a great outcome for australia and the united kingdom. haidi: if only all trade deals where this efficiently negotiated, all of our lives would be easier area the australian minister for trade, dan tehan, joining us from canberra. tencent act -- said its ipo marketing price range between 458,000 to hundred 57,000. it did get approval from the ipo in south korea a few days ago according to the exchange. they have been aiming to raise at least $5 billion in the i go by ellen 20% of their shares at

around that level and they have been valuing the company at $25 billion. the biggest ipo in years. we are looking at that discourse back in 2017 and best wildly successful globally. let's get you the first word news with vonnie quinn. su: -- >> the european union and the united states agreed on a suspension on trade curves. both sides will remove taxes on $11.5 billion worth of goods for the next five years. the tariffs were imposed by both sides as punishment after they accuse each other of unfairly popping up their flagship playmakers. china's stockpile of u.s. treasuries dropped for the second straight month in april, falling by more than $4.3 billion.

despite that, the latest figures from the treasury department show foreign holdings rose with japan increasing its holdings by more than $36 billion. it is the biggest holder of u.s. treasuries at $1.27 trillion worth with china coming in second. u.k. lawmakers are set to decide later. vote is widely seen as a formality after the labour party said it was -- calls for a delay. bloomberg learned that johnson is facing a blackout within his own party with many mp's being this is the last extension they will support area the reopening plan may be pushed back. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi. haidi: australia's market could pose its best year in over a decade. analyst investors expect the index to continue its and that

-- it's advanced. jackie edwards joins us now. jackie, it's about time. this has been a sleepy and sideways trading market. what has changed and what does the outlook hold now? jackie: we are seeing a lot of optimism right now and there is a number of reasons why. the market should stay supported by easy monetary policy and fiscal stimulus that has been deployed during the coronavirus pandemic. australia's swift economic recovery has really helped banks, which are the largest sector on australia's top wrench marked. lastly, heightened global demand for commodities like iron or has really boosted miners. that is expected to stay elevated for some time. kathleen: what are some of the key risks that could stall this rally? jackie: there are plenty of risks. i mentioned earlier that

accommodative monetary policy has been a benefit to stocks. if interest rates and uprising earlier than expected, that will have an impact on shares. possible tax increases could weigh on stocks, especially those in australia that are offshore earners. in addition, trade conflicts and tensions with china could also hurt them. >> thank you so very much. jackie edwards, our equity markets asia report. breaking news from israel. a hamas radio station said an israeli aircraft attacked a palestinian training camp in the gaza strip. following a launch of incendiary illusions from gaza, causing 20 fires. the fire brigade said hamas threatened to take action in response to -- on tuesday so clearly, the unrest continues. plenty more ahead. this is bloomberg. ♪

vonnie: you are watching "daybreak asia." time for morning calls, taking stock of year-to-date. europe is in the lead, hitting a fresh record high on tuesday after the longest winning streak since 1999.

at j.p. morgan, five reasons why including the reflation value comeback which makes europe their highest conviction trade in the medium-term. the bank pointing to increasing investor interest which was reflected with allocations to euro area stocks. and pulling up the board now, turning to china, we have citigroup focusing on nine sectors that could benefit from china's innovation drive with the bank breaking down investment opportunities into two categories and focusing on innovation driven updates and products and services. tencent, alibaba, and the internet sector. and china mobile and telecom. haidi. >> we will beginning china's may activity data. analysts are watching for any signs of a more meaningful pickup in domestic spending amid

a broader moderation in china's economic recovery. let's bring in john. we have been reporting about and reading about a missing puzzle piece when it comes to this recovery. is that the concern here? >> that has been the concern. exports have been very strong with lots of demand for computers, with people working from home and ppe. will consumers get over this concern about the pandemic and go out and spend? we are looking for an answer to that question. kathleen: it looks like the industrial production numbers will give us some information about steel out. people are wondering if it will remain so if the government is not quite as generation -- generous as it has been in the past. john: commodities have been a big issue. the government has been doing a lot to push down the prices. there's been concerned about steel because china has the 2060 carbon neutrality goal and part

of that is going to entail adducing steel capacity so that is why that is in the case at the moment. kathleen: we are going to get a lot out of that data daily news. thank you for setting that up. the u.s. says it is working with beijing, trying to lift the ban on aircraft in china. it has already returned to service in many other countries following investigations into two deadly crashes. gina says it is just one issue the u.s. and china are working on. >> i think with respect to china, we will continue to do business with them and that is in our interests. we have a tremendous amount of exports to china and that is important for american businesses and jobs so we need to agree where we can find agreement antibusiness in all possible ways with china. however, we also have to protect

americans and american workers and american national security and the best thing that we can do in that regard is invest in america. the best thing that we can do is for congress to pass president biden's american jobs package so that we can invest in american job-training, semiconductors, and also to work in concert with our allies so democratic countries are writing the rules of the road around emerging technologies. it is complex area the relationship with china is complex and the most important thing to do is to run faster in america with our allied countries. >> mr. calhoun wants to run faster, specifically making plans for china. is that an area where you might get the most bang for the buck when it comes to jobs, if you could open that up in china? >> we are working on it, absolutely. i have spoken to dave calhoun and hopefully today, it's a good day for him with the new

announcement, but as i said, it's not just airplanes area china is a big market and we have to make sure american companies can do business and export there. >> finally, talk to us about tiktok and wechat. there is a review going on. can you give us a sense of a timeline on that review, when you have a decision and when might reimpose or extend the ban that came from the trump administration? gina: the administration is doing a top to bottom review of so i don't have a timeline per se. it is all part of the strategy of protecting america's national security interests and economic interests as we need to, but really, emphasis on investing in america, growing our own economy, maintaining our can additive technological edge, and as we started talking about

making critical supplies in america. >> geomet speaking exclusively with david westin. we have lots more to, on daybreak. this is bloomberg. -- to come on daybreak. this is bloomberg. ♪

>> a quick check of the latest business flash headlines.

shares fell after an earnings report that was not good enough to exceed robust investor expectations. the software maker has been up 26% this year for the cloud computing business. it still lives behind amazon and alphabet sales. earnings will be between 94 to $.98 a share. average expectations were for one dollar and three cents. alibaba has reportedly fallen victim to software which secretly collected more than one billion pieces of user information. it was from a popular shopping website at the end of 2019. it says alibaba reported the leaks as soon as they were discovered but the company would not reveal the number of people affected. china asset management could be removed from the stock indexes with a suspension of shares in hong kong entering its 50th day. companies reaching that threshold are to be dropped from the indexes within three trading days.

the stock was halted in april effort or it failed to release 2020 results. singapore's financial regulator -- breaching relations to risk management and pay. the monetary authority of singapore says it found numerous instances that advisors were played in contravention of requirements related to the sale of investment products and premium life policies. kathleen: coming up, we are going to be speaking with chairman and cio david co. talk -- david. what does the fed decision mean for the bond market and the stock market? he is an avid fed and central-bank watcher. from j.p. morgan, their global fx strategists, j.p. morgan saying markets are underpricing the risk of a hawkish message from the fed. keep it right here. we are going to watch the markets, the markets opening,

but for now, that is it for "daybreak australia. "daybreak asia" is next. this is bloomberg. ♪ (announcer) do you want to reduce stress?

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haidi: welcome to "daybreak asia ." i am haidi stroud-watts. sophie: i'm sophie kamaruddin in hong kong. kathleen: good evening. i'm kathleen hays. our top stories this hour. asia stocks look set to follow wall street lower on economic data ahead of the fed's policy