it is on gtv and type gtv . awaition as investors decisions.berg policy editor kathleen hays is here with more. it wasn't the decision that matter, right? kathleen: coming back to the reserve bank to be the chief after being debated governor. 30 yes to deal with a different that of inflation issue. inflation has fallen and he says it is below target for some time. concerned or surprised that wages are not rising faster. unchanged --the qa he did leave the key rate unchanged. let's look at the first gtv chart because it shows patience is going to be required. at can see this is inflation 1.1% year-over-year. brand is well below that. the kiwi good weekend, and heidi mentioned that after the question out that inflation will get back to 2%. dollar ands. weakening in the kiwi is expected to boost exports and relief the downward inflation push. meanwhile, have to navigate a new landscape. mandate notdual just price stability but also maximizing employment. is something else to look at today after leaving rates unchanged. and exact they will not be i

that is on gtv and the bloomberg terminal.d on wall street will see a new round of earnings. zuckerberg will be grilled again, and the fed minutes should give us clues on the pace of rate hikes. we will have fed speakers. su keenan has the latest. su: can the earnings and ego data move the needle, because we are reigning in the geopolitical distractions to focus on that? friday, the bond and the rising dollar will continue to be an area of focus. the s&p 500 have a two-day losing streak on friday. can it snap that? the russell 200 as well. will that continue? let's take a look at some of the companies that are going to be reporting earnings. we have got tech and retail in the mix, target, tiffany, a ,uxury jeweler, hewlett-packard this is the way they closed. they will be front and center this week. let's going to bloomberg. gtv is where you can find a library of charts. this is new highs for small caps. the russell 2000 is in the white. this is an all-time record light -- late last week. the s&p is nowhere near a record it hi

look -- i want to start with this chart in the gtv library.e are trying to make sense of this outside move in global markets turning risk off on account of this uncertainty over italy. if you look at this chart, we are licked yet volatility group index from merrill lynch. the worry is at a level we haven't seen since a february selloff. does it indicate we are seeing fundamental concerns that are in place about how late in the cycle we are in for everything eroded over it until he? at the dollar index and emerging markets currencies -- credit spreads and interest rates that are on the rise, there is a lot of evidence beforehand. alluded to positions in the marketplace for example, and it euro-dollar futures reached record lows. have that moc minutes last week that started a little bit of the correction that was exacerbated. a lot of this was in place beforehand. haidi: given we did see the rebound overnight, a lot of people calling it -- do you think this is a temporary? what happens and how to investors position themselves? even if you take i

gtv chart.ysia e falling -- there is so much expectation things will be status quo. what now? what should investors be watching out for now under a new regime? >> the very first thing to be watching out for is how far and to what extent the new government will come into changing the policies of the previous government. haslindae policies mentioned was scrapping the gsc. that is something that will shape the credit markets where government funds are concerned. it is held by foreign investors. front will on that help to that extent. today and tomorrow has been declared as public holidays. yvonne: ubs has stayed underweight on malaysia. what concerns came to you even before this upset? kelvin: we have been underweight malaysia for the last three years. we thought a lot of the structure issues the economy has been facing has not been addressed. a lot of it has been priming. those measures or not going a long way toward addressing longer issues. for example, the fact that some of the industries malay

don't forget to check out the gtv library on the bloomberg terminal.i think that breaking news? united overseas bank with a net income for the first quarter above estimates, 3% above analyst estimates net income at hundred 78 singapore dollars above the estimates of $965 million. n,t interest income coming i will watch out for shares when supermarkets start trading. paul: plenty of earnings crossing today. that does it for "daybreak australia" this morning, but i than men betty liu are up next with "daybreak asia". as boring as the fed meeting was supposed to be, we have interesting lines from the fed statement with no changes in policy and talk about the inflation outlook and the fed suggesting it will let inflation over should a little bit. at what special is the key question, and a professor from the harvard institute joining us the next hour or so. paul: that is conducted on daybreak asia. stay tuned. ♪ betty: 7:00 a.m. in hong kong we bloomberg's asian headquarters. welcome to "bloomberg daybreak: asia." asian stocks headed for a mixed start as th

gtv on the bloomberg terminal.s government faces a test with the opposition leader expected to be released from jail this week. newly elected prime minister mahathir mohamad has promised to hand power to him, but is warning of possible delays. from sophiere kamaruddin who has been reporting all this and kuala lumpur. what is the latest? has been coyohamad around the timeline regarding the release. on monday, he said the process procedure has to be followed, but slight delays expected. we were anticipating a release by this tuesday, but on monday, one person said the board will only meet a 11:00 am wednesday according to the prime minister's department issued to pk are. it puts at risk the ability of the government to quickly execute campaign promises, cutting back on government spending, and this attentional ruling the coalition might to stabilize what we could see around optimism for the delivery of those campaign pledges. is thathave seen so far heads are rolling on monday. there were updates regarding individual

bloomberg users can look at our charts wtiith gtv go. catch up on key analysis. lots more to come. we will be talking about the bond market selloff, clearly placed for equity market sentiment. markets are getting more comfortable, about a 3% level for the u.s. 10-year. where do we go from 3%? four-point sent -- 4% is a possibility. what are the applications? ♪ mr. elliot, what's your wifi password? wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. hey! let's basement. [ grunting ] and thanks to these xfi pods, the signal reaches down here too. so sophie, i have an xfi password. and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. caroline: i am caroline hyde, and this is "bloomberg technology." we're showcasing innovation, diversity and power of the regional tech economy. we are coming to you from the annual chamber of commerce event. coming up in the next hour, how they can hold their own -- we will hear from the ceo

specifically, you can access your gtv gosing function.nside your terminal, for the first time since last november, the put options on the euro cost more than the calls. it has been seen as concern of turmoil in italy. interesting to see whether this turns around. country's turkey, the central bank is raising its top rate to 16.5%. that will slow down the selloff in the lira. last week, the president of turkey told guy johnson he will be more involved in monetary policy. >> you will play a role in monetary policy going forward? is that the big change? >> yes. this may make some uncomfortable, but we have to do it. rulede it is those that the state, who are accountable to the citizens. with insight on how turkey is affecting global markets, our reporter is here from london. it makes some uncomfortable might be an understatement given what we have seen in reaction to what is your take on what happens now is the bank released the statement today? >> obviously, toronto -- 300 basis points is a shock. by 75 basisrates points, the back end of la

dollar, you can see in this gtv chart here, just type in gtv , the dollar is climbing for almostonth, seems to be accelerating as the weeks go on. and treasury yields rise as well. is get more on the dollar and impact on markets. the chief economist for intellect partners and bloomberg view columnist, bank, for those in asia, there wondering how the dollar is going to impact emerging markets. do think it might be as bright as we saw in 2013 when we had the taper tantrum and rates rose? could we see that cap of impact or will it be more muted even this rise? wayheare somewhat underr of that scenar that 2013 scenarioio,. o. argentina, they were in favor last year and you see the chart on the bloomberg that the upper member of emerging markets and 12 markets is stronger and people look at the asset class like it is overvalued and the dollar strengthening. this is what is happening and it may continue. betty: you think it will result in a positive and tightening by the fed? ben: the dollar strengthened reflects a strong u.s. economy and to some extent it is true, but at the same time

this is in the gtv library. the probability of three more rate hikes drops away. looking atis only one more rate hike by the end of the year. repricing ofmatic eurodollar futures in terms of what the fed pendant. -- fed can do. we are attributing it in part to italy. correct?ct -- are we tim: american monetary policy is not set 40 tally in -- italian reasons. monetary process towards -- points toward 2020 as being the first moment for a recession. all of the underlying economic, railroad data points to ongoing growth in the united states. if you want to borrow money, you can. there is a willingness and availability. metrics thederlying fed is paying more attention to. the difference between american interest rates and europe is alsocularly large, and with the u.s. and japan, which has worried people about the puttinghedging when american bonds back into home currencies. sell equities, buy bonds, and it until the end 0-- of may for that to occur. will they hike more? yes, in the united states, because the economic fundamentals these are met -- deserve it. manus: we

you contract the charts we use music gtv and catch up on key analysis and save charts for future. this is bloomberg. ♪ seen as excessively targeting and criticizing and going after credits and keep in mind that previous opposition leader is still in jail and expected to be out next month. >> this is a knee-jerk reaction that is common among countries that recently have gone through serious political processes. it speaks toun, the resolution in terms of red tapes and getting rid of corruption. i think the confidence of investors will be restored. gsb dividends have been declining over the years because oil prices are not at $100 per barrel anymore. what is likely to happen is the new administration will have to find ways to make up the shortfall in revenue and that is at the expense of large-scale infrastructure projects that have been announced by the previous government. haidi: in a rate of views from our guest on the outcome of the malaysian elections. 92-year-old mahatir mohammed has led to a historic election victory and he is the oldest leader in the world. deposing the ruli

this is on gtv, and industry -- it illustrates that.volume we have seen because we have been looking for some kind of systemic breakthrough. is that the right way to put it? capitulation? did the volume back that up? brian: it was very interest driven. you had all these key levels. joe lexus talk about three followed by four decimal places, and that is what we saw. that was the high from 2014, the intraday high. i got taken out, and now you see it right higher. joe: it is not obvious that today's economic data was some sort of russell catalyst, but it still is kind of weird that the shortly we saw happen with everyone leaning in that direction, because imagine really violent days in the opposite direction of how everyone was betting. brian: also something that flew under the radar a little bit because as the data was coming out as a move was happening, there was a lot of fed speak today. you heard earlier there is more pricing in. there is greater chance of three additional rate hikes this year, a total of four and 2018 instead of three

bloomberg users can interact with the chart showing you the gtv .nalysis and save the charts for future reference. david: coming up in the next hour of "daybreak asia" we are talking about trade. we look ahead to the meeting next week. bullard joins us in 15 minutes from now. rbnz --this is bloomberg. ♪ ♪ david: it's 8 a.m. here and hung, eric -- in hong kong. we wrap up this trading week facing the largest gains but the fairly new session in new york. 10-year up above 3.1%. that takes us to the dollar on sweep up its longest weekly gains in almost three years. we're at five and counting. betty: i'm betty liu here in new york where does just after 8 p.m. on this thursday. china offering the u.s. eight $200 billion trade surplus. it would be hard to deliver or enforce. as we saw in japan, the key inflation gauge way out of reach. ♪ david: he talked about trade, a lot of people weren't hopeful going into these talks. we didn't get a lot of traction when they met in beijing. now we are getting headlines that may be china might be offering washington so

you can always get there at gtv. kicking things off is michael mckee.: this chart plots where the fed sees the funds rate versus where the market sees it. something has happened of this chart that has never happened. i picked a random date. this is two years ago in march of 2016. the white is where the fed projects interest rates are going to be. the red line is where the market projects interest rates will be. let me make a change on the date. you can see for the first time ever, the market thinks we are going to have more interest rate hikes than the fed. it is a little bit unfair because the fed does not change its forecast as often. they will not change again until june but we will see if they go to four. it is a different kind of dot plot than we have ever seen. vonnie: and the more loretta mester speaks, the more that will change. i think that was a very instructive chart. gtv chart.have a nejra: what mike was saying feeds into this because it is about yield differentials. thatart was showing european equities have not been this attractive to u.s.

axes these drugs on the bloomberg with gtv. a new person today. the fed looks forand others look at cpi inflation but i like to look at where people are putting their money. this is oil, the blue line and the black line is the five-year break even inflation rate, the market gauge. this is where traders are placing their bets. foration is tracking wti, the better part of the year. this tells me that regardless of the fact that the fed does not look at energy prices or food, the market does and perhaps today's fomc where markets are looking for a hawkish hold with a possibility of striking a fourth rate hike for the year may be a better odds than we may be pricing in. timely.very your column. ackap -- squc wrap. mark: i will give you three charts. one white line and black line chart, nice chart, by the way, i give you three charts. a government announcing 5.8 billion dollars of extra spending this year, topline lira down 1.6% to a record low. the second line is the yield on the local currency 10-year note, jumping as much as 36 basis points to a two

i have the gtv chart you can find in the bond market at gtv . we see spreads between italy and germany going out by more than 230 basis points. canada widened further. that is the question given the uncertainties surrounding italy. we are set up potentially for early elections that could happen as early as fall. you had spain to the mix as well as the prime minister, edging closer to the no-confidence vote on friday. politics back in the fray in a big way. haidi: feels like a familiar refrain when we are looking at the economies like italy and spain. got to remind ourselves that these european governments are used to this level of volatility. the question for asia is contagion. let's take a look at commodities because this will inform the rest of the trading day and currencies, the u.s. dollar inching higher overnight. a bit of a haven even as we see the retreat in yields. commodities getting hit as well with the fall in oil, gold trading down by .5%, crude continuing to decline for the fifth session. we are seeing the longest losing streak for

gtv is where you can find the charts in our library of charts. this is the 10 year treasury futures board at a low before the rally, which was setting off before the fed minutes. italian turmoil caused a rally in bonds and yields to fall. this was down on most 4% tuesday, bounced back by at least half in this latest session. let's go to another chart. investors rushing to trade the largest financials etf. look at the spike. -- that traded tuesday, the most since february, almost double the average. that has a lot to do with money flowing to the financials. it is basically reversing course. ramy: a lot of tension we are talking about. donald saying he will put do tariffs onnew canada, mexico and the e.u. talk about the weight in terms of the markets. su: there has been harsh criticism of the flip-flop of the trump administration. let's take a look at steel stocks. they rallied strongly, given the latest developments. concern is that this u.s.-china concern is going to affect the shangri-la talks coming up and bleed into other issues. right now, th

you can interact with the charts shown on the gtv.an browse recent charts featured on bloomberg tv, catch up on key analysis and save them for future reference. this is bloomberg. ♪ this is bloomberg. ♪ i am haidi lun in sydney. yvonne: i am yvonne man, you are watching daybreak australia. quick check of the business flash headlines, qualcomm reporting a meeting of regulators this week in a bid to win clearance for a $44 billion pursuit of an xp. they will talk to authorities in beijing before wilbur ross arrives for trade negotiations next week. qualcomm is cautiously optimistic the merger will gain approval. haidi: some of china's biggest tech names are buying into what promises to be the mainland's biggest ipo this year. tencent is investing in the foxconn industrial internet. they are spending the equivalent 1.8 million shares ahead of that upcoming listing. yvonne: xiaomi said to want a june 7 approval to list in hong kong. they could raise $1 billion u.s., and the smartphone maker hopes to help next month if the application is g

take a look at this gtv chart.ss claims instead of rising stayed very near the lowest since 1973. people have been on those job rolls longer.s does this mean unappointed rate falls and we get higher wages? -- let's takethe a look at this chart and see unemployment down 4.1, expected to go to 4.0. two-putt 7%, not so much acceleration. as this jobs report comes two days after the fed signaled a willingness to let inflation overshoot 2% by a little, another question here is could this shift market expectations? a weaker number on any of these may cool expectations. betty: it would be interesting to see what they are watching. not just the numbers that talks going on in china. kathleen: who could not be watching the talks in china? it is so critical to so many people. officials in the past have downplayed metal shares. they are concerned. so far, the talks are positive. how do you make china stick with an agreement? let's put up one more bloomberg chart. the trade deficit shrank a bit, and 11% drop. when you look in p

it is one to watch on your gtv. yvonne: we talked to our guest ecb maytant, said the have run out of ammunition on how much they can come to the rescue of italy. italy'seady own 1/4 of debt. he says mario draghi losing a bit of steam on that front. could be an interesting meeting once we do hear from mario draghi. political uncertainty in italy sending shockwaves through markets across the globe. let's look at the rising eurozone volatility. thank you so much for joining us. we have been talking about how italy, no stranger to political crises, but how do you assess how bad the situation is? another day and italy, or are we on the brink of a crisis that brings it back to 2012? >> despite its reputation for somewhat tumultuous politics, italy has had a relatively stable government over the last several years. that tradition has broken abruptly over the last couple weeks. you have seen is, on the one hand, the populists of the igae-star movement and la l raising the stakes of an antihero finance minister. the presiden

it is on gtv on the bloomberg terminal. forfirst half earnings australian banks. in good shape. but get more now. the asia correspondent, let's say look at the numbers. reporter: they are pretty good. we have had a mixed season of reporting this time. we have had a few misses, big announcement like the national australia decided to get out. no fx is good. no one off, no big surprises him a just above analyst expectations, 6% up. pretty good really. haidi: i suppose the more overwhelming headline is the stuff out of the royal commission. emily: that might get in the way from that. it is a big drop -- a backdrop that the banks have to report again. brian hartline are said this was a critical time for the industry , and did it knowledge there are headwinds for it now. he did not give much more detail than what we have already heard of the royal commission, other than saying putting things wrong, and noticing they have been reviewing their products, making changes really don't feel they now meet. this time he said he has talked previously about customer expectations.

rishaad: we have a look at the winning chart first from the gtv live.my is perhaps more attuned to what is happening. happening. don't forget, a huge amount of trade take place as exemplified by angela merkel's visit to beijing this week. chinese and german ppi is shown here, showing how they match each other so closely. this goes back to september 2014. germany had this negative ppi picture, but a negative one for china. has the recovery stepped in, they have been in lockstep economically speaking and i was looking at this and this one grabbed my attention because i thought, this is a bit left field. there you go. >> a lovely correlation. you are chomping at the bit, go for it. >> ibm. when i saw that, i had used that earlier this week. -- anyways, my winning chart here is all about oil. factor isisk fire -- going to be determined more by the mercy of global politics and less so from global economy. looking at the blueline line, this is the production out of iran post-sanctions in 2015. the curbsite because had been in effect. in venezuela, that is yel

you can find it using gtv. better than a coin flip. dollar surging as the odds of hikes are above the 50% level, helped by this retail sales data. the dollar moving higher. the focus was on the bond yields, as ramy mentioned, 3.09%. that is the number that strikes fear in the hearts of some market watchers because it can sap demand for stocks. interestingly in these uncertain times, we do not really see gold, the yen, the swiss franc which are usually safe haven assets catch a bid. let's go into some of the big movers because tech and health care were under pressure. nvidia down in a big way. almost 10%. company, redrvices violet, with its first earnings report, heavily shorted and boosted in a very big way by the decent report. that is the latest. a four-day rise. haidi: let's get back to the strong retail sales. the second straight month of gains. after-tax paychecks to be helping loosen the purse strings, right? su: it looks like the after-tax break hx has been fueling the economy. gtv is where you can find this. you are seeing a re

this is in the gtv library. will it last? what are the lessons learned from industry? bullish anp say this is not short-term story. it is expected to continue because china's economy is growing, wage is growing, spending power is increasing, so that will benefit hong kong. those sounding caution are saying that hong kong, boring costs are set for u.s. monetary policy, so it will be the local property market and impact -- local spending might go down. with the yuan starting to weakening, the currency support is also fading. the end of the day, mainland tourists have more options to travel elsewhere. these are the cautions being sounded by analysts. haidi: and the other way to look at it as with everything in hong kong is impact of the property markets. kana: right. and lastty market year's stock market boom was one of the drivers that helped the first quarter gdp, but the cost -- that will have an impact on those two factors. some of the local spending is going to predict to fall as well and impact to the retail. rishaad: we are talking about people having these rising

gtv is where you can find bloomberg's library of charts. this hit a high in february. it has come back to where it was two days ago. we had a rebound yesterday in the last session. in the thursday session we are down again. friday it will be interesting to see how we end the week. yvonne: it was not a rush to safety so to speak, it is not like they were rushing to sell indiscriminately. sanctions have been the roughest u.s. action yet. america's closest allies claim tit-for-tat tariffs on goods. on threats tod impose steel and aluminum duties. is his biggest action yet. , greg sullivan. thank you for joining us. we heard the responses from mexico and canada. how severe is the backlash? we have seen all the recipients of the tariffs plan to impose retaliation tariffs which raises the specter of a trade war. there has also been pushed back in the united states among business groups and manufacturing associations. commerce,hamber of which has long argued against imposing these tariffs, says u.s. consumers will bear the brunt of rising costs from the retaliatory measures.

gtv is where you can find these stocks.over here, february, march, april, it has layered onto a volatile year so far. as you know, the many allies urged trump to stay in. he decided to get out. it has yet to be seen the impact that will have. yvonne: let's talk more about jamie dimon and his warning on 4% yields. what does that mean for the direction of oil moving on from here? comings like we were close to reaching 3% on the 10 year yield. we took a dip at the end of the session. chart,'s go to the treasury volatility tumbles as yields climb. the 10-year is the white line. almost at three. we have volatility moving lower. what dimon is saying, it could cause more volatility, in a way we do not fully understand. talking about what it will mean when the fed raises rates. he says, buckle your seat belts, we could be at 4%. that had a ripple effect through the market. let's go to the oil story. the countdown to this iran decision has pushed oil from the highest we have seen in november 2014. we are heading for $71. intraday --

the gtv library of charts. this one in particular.eriod up that shadow banking assets as a proportion of gdp doubled. they have had this campaign to put a squeeze on the riskier areas of shadow banking. and that ratio last year, you see towards the end there, th rough 2017, slipped back to 79% of gdp, according to moody's. there are two prongs to this crackdown. it is a clampdown on a high-yield asset management products. after explosive growth from 2010-2016, as we is seen, wealth management products sales by banks barely increased in 2017 paid the other part of that, of course, is efforts to shrink the hidden interdependencies between financial institutions. that is where i want to bring up the second chart. we can see, the drop -- the drop we've seen in 2018. dave: rolling over. >> in the banks borrowing from other financial firms is another sign of success. it is a little bit of a drop. dave: if you squint. >> off peak, as we are seeing there. haslinda: steve, you talked about some of the successes. some risks still remain, correc

a gtv chart you can find on your bloomberg.k at the cpi overall rate, up to 2.5% in the latest month. do not put too much focus on that. look at the cpi core, 2.1%. that is taking out food and energy. the main cpi deflator just at 2%. that is when there was a big war over the prices of mobile phone contracts. janet yellen talked about it for at least a year. she said it was temporary, when it rises again. it has risen again. you see cpi flattening out. will the cpe flatten out as well? does this reinforce those who say, my baseline is three rate hikes total this year, not four? bonds, bond investors not waiting. if you look at the yield curve today, they have decided rising inflation will not be a problem in this economy, at least not for a while. five to 30, continues to flatten down to 27 basis points. it has not been that flat since 2007, just before the great financial crisis started. investors saying, i am not concerned about inflation. yes,r the bank of england, they have been signaling rate hikes as soon as august, but a

gtv is the function. there is one that i brought up.through that, you get a sense of what we are talking about today. it is in the charts for your future use. gtv on your terminal. yvonne: plenty more to come on the trade front. we will be speaking to bill walker. he has wrapped up a trade mission to china, promoting a range of businesses from food to energy. he talked to tom mackenzie how deals can help ease trade tensions. >> it has been about the relationships i have established over the last four times i have been here. now we have businesses over here. we have a microbrewery bringing their beer over. we had that last night. we had someone makes baby food very healthy, seafood. that is part of it. we had a lot of tourism, fisheries. we have people to fly over the life king crab from alaska to china. they are on the strip. timber mining, educators, sports folks looking at the opportunity to have chinese athletes train for the winter olympics in alaska for the 2022, so we have a real mix of players as well as lng, which is sort o

look at this chart, which you can find on the gtv go library.sci currency index fell below the 200 moving day average for the first time in over a year, and that is signaling losses more compared to last week, the worst of 2016, but not a single em currency rising which has been declining with the dollar. putting more pressure on the , and that isrand hurting other asset classes. e.m. currency bonds caught their worst week since 2016. venezuelan bond likely to see a selloff. in asia, indonesia, they have been especially hard-hit, forcing banks indonesia to dip ,nto reserves to stem the rout but not everyone is throwing in the towel. isestments say this is this correction, although there is a trimmed outlook. su: betty: sophie kamaruddin betty: on the market very let's stay on the u.s. market with the week ahead in wall street. that will see a new round of earnings. mark zuckerberg getting grilled again, and the fed minutes which could give us a clue on the pace of rate hikes and what happens to treasury yields. su keenan has the latest. su: zuck

bloomberg users can interact with charts shown on gtv .alysis and save charts for future reference. this is bloomberg. ♪ . this is bloomberg. ♪ ♪ a quick check of the latest business flash headlines. holdings trading near the highest level in a month in tokyo. it purchased the glass door in cash. the transaction is on track to be finished in november. set to bewas interviewing banks for an ipo in early 2018. pressurespliance across australia's biggest lender. after a multitude of scandals. had and i'm agency under -- anti-money-laundering laws. disney boss bob iger says his confidence of reaching a $52 billion deal for century fox qualcomm -- iger says it is way too early to speculate. i was at disneyland on saturday. markets, the big story. jakarta composite opens in a few moments. look at the prospects. this is how em looks over the last 24 hours. the bond yields bleeds on the way up. we went to 6.7% on the two-year. argentina is in the mix. latin america, to a lesser extent. it is not helping you have crude prices over 2%. that brings u

if you want to see it again, gtv is your function.r later on in the show. what does the return to power mean for malaysia and its neighbors? we speak with an expert on regional politics, who is also a formal diplomat -- a former diplomat. abouto speak with -- global market risks, and talk about his role in this msc i inclusion in benefit -- benefits the broader market. this is bloomberg. ♪ ♪ >> welcome back, you are watching "bloomberg markets: asia." let's get an update on the situation. i will update you on the situation in the ground in surabaya, a rise now. back, news broke that a bomb exploded, and we understand several officials and police personnel have been killed over in indonesia. that is what we know so far. not a lot of details from the incident just this morning, but the weekend also had several, a church bombing killing several people. we will update you on the situation in the state of the markets as we get more information. let's put it within a broader market context. whoing us is one analyst unlike the rest of the in

see that chart as well on gtv. mark: a brilliant chart. i have been dwelling on that today. pin drop. won, wee reason dani have never voted two subjects two days running. we did the two-year yields yesterday but she talked about the lack of liquidity. she gets the victory. two fantastic charts. this is bloomberg. ♪ live from new york, i am vonnie quinn. mark: i am mark barton in london and this is the european close on bloomberg markets on bloomberg television. let's have a look at something else. we will get to wpp in a second. vonnie: talking to julie hyman with the stock of the hour. goods is moving good. julie: they came out with earnings and a big positive reaction to that. -- numbers onany the face do not look great, comparable sales down 0.9%. i have a chart on the bloomberg looking at the recent comparable sales performance, not very strong and the third straight decline. better than the drop of 1.4% estimated. a couple things going on. something specific to the company, back in february, they banned the sale of assault style rifle's at his stores which got media att

you can check out those charts by going to gtv . will see charts featured on bloomberg television, key analysis, and save those charts for future reference. this is bloomberg. ♪ this is bloomberg. ♪ ramy: this is "daybreak asia." i am ramy inocencio in new york. yvonne: and i am yvonne man in hong kong. company earnings falling below analyst forecasts. it leaves revenue for the lowert financial year -- than the estimates of $650 million. apple is seeking $1 in theirrom samsung long-running patent drama. tolds in california were samsung infringed on patents. they are figuring out if damage is should be paid on the whole device or just parts that were infringed on. the price dropped to $28 million. falling amongs japan lenders because of low interest rates and spending on technology. they expect net income to drop in march 2019. cut rangesanning to as the boj system looks at margins. they say more customers are banking through mobile devices. facebook crackdown on fake profiles and insecure apps. this is bloomberg. ♪ 7:30 a.m. wednesd

one more chart, gtv. take a look at how the arts are stacking up for three hikes versus four hikes.wrong chart. that is what happens when you are away for a while. there we go. probability of for more rate hikes in 2018 was on the rise, but you can see that turquoise line turned down, so the white still a40% plus is bigger bet in the markets. there has been caution that has slowed them down. right, local economics policy editor kathleen hays. meeting.ffett held the they delivered everything from guns to elon musk to the future of media as well. but go to our finance reporter catherine. she joins us over the phone. thank you for joining us on the program. it seems like buffett and his partners had some divisive and political issues. they were able to dodge these questions. not escape the kind of political rhetoric and questions that came up based on a lot of the ceo's recently. they were asked about their views on guns, trump trade policies, generic quality, but they navigated it carefully. buffett really spoke with his view on guns that he said he doesn't think he should tell berksh

i want to put up this gtv chart on apple which is interesting. becoming a $1 trillion company. they can thank warren buffett for some of that added value today. interestingly, chinese companies have already exceeded that petrochina has hit over a trillion dollars in its stock debut. yvonne: and what a turnaround we have seen with concerns about the iphone x and the earnings came out and surprised everybody to the upside. seenfrom what we have could lead to the $1 trillion landmark. people say given to the momentum we could sit by the end of the week. betty: possibly. just weeks agoe, we were talking about this tech route and whether or not for the fang's it will be over with, but apple is coming right back. yvonne: and to give you context, what trillion dollar market cap is greater than the gdp of netherlands or malaysia. it is going to be a big piece of the pie in the future. that is all we can talk about in terms of tech, but here is what is coming up the next few hours. jamie dimon is coming up. now, and you from guys have had several guests a

go -- at gtv -- emfxe msx not having not having the best of times, saving up to be the worst month since2016. it is down by 1.75%. 1.2%, theit fell by worst performance since 2016. every single currency fell against the dollar, which is on a rise. what is fascinating, we love our technicals, the emerging markets index on friday closed below that 200, moving below the average. that is bearish. but this chart. see that little redline just below the white line right there? that is the 50 week moving average. if we go below that redline, that would be the first time that happens since december 2016. is it falls below that for an extended period, analysts say the rout could continue. the last time it did that, september 2014, the index fell by eight or send in just three months. in 16 look at the period months, it fell by 14%. there is jeter's in the air. ers in to this -- jitt the air. listen to this quote. there is nothing -- "there's nothing more important than the strength of the dollar. the rest is just noise. noise."est is just vonnie: we can bring that chart back later in the week for

if we happen to the bloomberg just to have a sense of what is going on here, viewers can see gtv fuartion. price that adam jonas's target action follows that. we also see tesla is trading below that average price target. analysts doubting the tesla story right now. himd: when we talked to last friday, he said it was ,ecause of that analyst call elon musk will not have an easy time getting money. abigail: that is the point of the call. david: thank you so much. 500y: coming up, s&p bouncing back from session lows as the 10-year yield hits the highest level since 2011. this is bloomberg. ♪ is bloomberg. ♪ mark: the u.s. ambassador to the united nations is accusing around a backing hamas on israeli force attacks at the border of gaza. concerte today at the -- security council and defended the inauguration of the u.s. embassy in jerusalem. qwest -- >> those who suggest that the bombing of the -- the violence for is from the u.s. embassy, it comes from a violence. motivation, the destruction of united nations member state is so illegitimate as to not be worth our time in the security counci

you can find this chart at gtb go on your bloomberg -- at gtv go on your bloomberg terminal. with a very professional presentation. we will go to mike regan. mike: the big story today will be president trump's speech on drug prices. the performance on drug stocks has been interesting heading into this. they have been underperforming the market. the big pharmaceutical company in the s&p 500 is trading for less than 14 times forward earnings, which is a five-year low. this is the entire health care sector as a ratio of the s&p 500 . as it goes down, health care is underperforming. you can see to the far right of the chart how it is accelerated lately. this ratio has dropped a lot in may. as of wednesday it was the lowest since 2013. what is interesting to me is that if you look at the very end of the chart, you can see how it picked up yesterday. health care started outperforming the market yesterday ahead of president trump strug announcement and ahead of the outline of the -- president trump's drug announcement and the outline of the plan today. maybe the worst has been price

at this fromlook our gtv live. the reserve bank below are it in july. jeff black has the story.is quite obligated. it is horribly complicated what i can tell you is this is the sensecy easing in that the pboc is saying the economy is going down the drain or slowing, therefore we will ease policy. it is important not to misunderstand what is going on here. it is a very mechanical -- rishaad: there are many levers they have. it makes it difficult to analyze what is going on. jeff: right. bank funding is facing a wall. because of some of the policy instruments that the pboc has done in the previous 18 months to two years. that money has to be paid back. they need to find a way to do it. this is a convenient way to do it because what they can do is use china's very high reserve requirements, which are very high because of all of the trade inflows that we have seen built up over many years, to be able to release -- relief -- release that money so the banks can not cause a liquidity crunch. that is it in a nutshell. heidi: does that suggest that this will be temporary and they can cut

vonnie: you have to go to gtv.el: it is a tough not to crack. -- nut to crack. >> i will take your chart and match it. the trade deficit between u.s. and china, we know it is way less than zero. the purple line marks the $200 billion. how difficult it would be from the u.s. side to achieve this. from the chinese side, difficult too? michael: but it -- it would be difficult but they would not expand the amount they spend. they have a fixed amount of demand. they would take it from other countries. the world would not be better off, the u.s. may be better off but it will not help world trade and not make a difference to the chinese. it may be more of an offer without a lot of substance. in the past, the chinese have made promises to improve trade deals and have not followed through. that is part of the question. nejra: someone said this morning that it donald trump can cut a deal with china, he'd have won the trade deal. nafta, so many people say this is the easy part and if we hit stumbling block here, what does it

gtv go is the function.is bloomberg. ♪ >> this is bloomberg etf iq or we focus on the assets, risks, and rewards. life, liberty, and emerging markets. provider explains how -- the world's biggest portfolio manager that no one has ever heard of, gerry o'reilly of vanguard. he oversees more than $1 trillion. his only mission is to match the s&p 500. mia -- millennials

we've get a chart for you in the gtv library that shows just how dire that could end up being.you look at what happened back in 2008, both currencies and equities in emerging markets totally fell off the cliff. if you think there's been a meltdown the past couple of weeks, you ain't seen nothing yet. her point is that after the crisis, a lot of emerging they s really, you -- derisk themselves. they got rid of some of the debt. in the year of easy money from central banks, again, central banks, we got those emerging markets are able to load up again on debt and get themselves into the vulnerable situations that has places like argentina, indonesia, turkey in lots of trouble right now. have a short memory when it comes to that? >> it's human nature. you know, you feel the pain at first. and then you start to forget about it. and somebody, you know, puts some nice things in front of you. and you know, you can't help but -- yeah, and partake more than is healthy. haidi: it's a lesson learned. hank you so much for that. gothard reynolds. thank you for joining us. take a look at some

if you have missed out on any of our charts, <gtv go> is the function.♪ is bloomberg. ♪ julie: let's get "first word news." in belgium, two female police officer stabbed and stole their service weapons and shop them and a bystander dead. it is an attack that prosecutors fear could be terror related. the attacker was released on a killed leave was with -- by police. using multiple repeat offender who has been incarcerated since 2003. the u.s. and north korea talk about the historic summit. kim jong-un has sent a copy for presummit talks. president trump praised the move, calling the trip a solid response to my letter. the white house now says the president will be with japan's prime minister in washington on june 7. in maryland, residents and toiness owners making plans rebuild after devastating flash floods. one person remains missing after sunday's torrential rain. it is the second time in less than two years all caps city has been hit by a major flooding. flooding killed two people there in july

he was a chart you can find in jake peavy -- here is a chart you can find in gtv. ahead of those shipments are being pulled the way down. that is betting and -- that is bad news for american produces and good news for canadian. shery: mixed bag for the jobs report. unemployment rate dipping below 4% for the first time since 2000, but decelerating wages overshadow the jobless rate. michael mckee is standing by with more on what today's report could mean for the fed's path. michael: thank you very much. we are here with charles plosser , former president of the philadelphia federal reserve bank joining us from the hoover conference on monetary policy, which raises the question, whither monetary policy in a world where you can get 3.9% unemployment and no wage gains? andell, the unemployment wage gains and have a lot to do with productivity. we have had miserable productivity growth over the last decade or so. it is not entirely surprising that growth in wages is not any more robust than it is. michael: we sort of strained to get the pce index to 2%, just barely at 2%

shery: if you missed out on the charts we showed you, gtv go is your function. this is bloomberg. ♪ bloomberg. ♪ ♪ mark: i'm mark crumpton with first word news. gina haspel says she wants to send more officers into the field, improve foreign language proficiency among the ranks, and strengthen the agencies working relationships with intelligence agencies and partner nations. in remarks following her swearing today, she also said she takes tremendous pride in being the first woman to lead the agency. >> i would not be standing before you today if not for the remarkable courage and dedication displayed by generations of osf and agency women. enrolled boat -- and roles both large and small who challenged stereotypes, broke down barriers, and opened doors for the rest of us. i am deeply indebted to them and i am extremely proud to follow in their footsteps and to carry on their extraordinary legacy. senate confirmation was contentious because of her past role in the cia's detention and interrogation of terror suspects up in the 9/11 attacks. president trump meets wi

whereead over to gtv you will find a lot of charts including plenty on commodities.e is one in inflation and commodities, something that we look at a lot. the bloombergis commodities index trending higher but not as much as that 10-year breakeven rate at 2.18%. chartsse, you have other that ran crude exports to china, india and italy. this will come under discussion. julia: from new york, this is bloomberg. ♪ julia: that is some of the tocrting from tic streaming live from bloomberg headquarters. this is bloomberg markets. scarlet: let's get the first word news with mark crumpton. mark: the european union is calling on president trump to stop threatening the e.u. with tariffs on steel and aluminum. the european council president leaders aresaid prepared to discuss trade but not at gunpoint. >> we have you -- achieve the united approach. -- only unlimited exemption. they called on more than $3 billion to impose on u.s. billion products. that has a population of more than one moving people. it marks the first time they have encountered the lethal virus. regional spread

if we pop into the bloomberg and look at the chart using the gtv function can we can see how bad thistells you that the buyers absolutely blindsided by this. the technicals are so week in may suggest they have to step up and do something to make sure that the users do not defect over to competitor instagram. once you lose momentum on a chart that way, it can be difficult to shift. time will tell. the 90 minutes -- in the last 90 minutes alone. abigail, thank you for some caroline. caroline: time for a bloomberg exclusive now. we've been speaking to one of the people who helped design the trade against subprime mortgages. it is known as "the big short." greg lippman told us about the next correction. not clear is when the next recession is coming and whether we have a liquidity-driven correction first like we saw in february. erik what does it feel like to you? everyday we are closer by definition. greg: a lot depends on what happens with interest rates, what happens with wages and cost pressures, what happens with trade. you are seeing incidents already that some of the states with mo

watch us live and see our past interviews on our interactive gtv function in you can dive into and inloomberg -- dive into any of the bloomberg areas. this is for bloomberg subscribers only. this is bloomberg. ♪ betty: i'm betty liu in new york. lun in sydney,i you are watching "bloomberg daybreak: australia." acquaint -- a quick check on the bloomberg sources say a committee representing holders including goldman sachs and others will accept an immediate cash payout to $.20 of the dollar -- $.20 to the dollar. it could bring an end to the leader -- the battle in the finance industry. a former trader is the latest to be accused and a global crackdown in currency manipulation. he was charged in new york with the rigging of an african, european, and middle eastern currency. from october 20 --h haidi: that is just about it for "bloomberg daybreak: australia" this morning. ivanka of betty takeover "bloomberg daybreak: asia." yvonne, happy friday. >> happy friday. we will be talking about the u.s. inflation numbers coming out last night and showed inflation is still pretty benign in the u.

don't forget to check out the gtv library for the church you saw there and earlier.e bloomberg terminal. china's stock market going global like never before. we will look at how asian shares on the msci will further open the doors to foreign investors. this is bloomberg. ♪ good morning. i am betty lou in new york. haidi: i am haidi lun in sydney. oneese markets are moving step closer to the global financial community as msci in the00 mainland stocks indices. it is a major step for beijing and gives it international investors and more access to equities that have until now been out of reach. >> from the world's most valuable to stiller to banking to mining -- distiller banking and mining, they will have greater exposure to china's yuan denominated shares. they will be added to msci's emerging-market and all country indexes in june. it is a standard for financial -- don'tty and a major expect the economic equivalent of a victory parade. shares will only account for 7% in the emerging markets index. still even a small slice of the pie is excited to bring billions of dol