ramy: i'm ramy inocencio in new york. to their highest in seven years off of the strong u.s. retail sales data. on top of that, risk aversion is spreading across asset classes as investors weigh the trade tensions, growth, as well is geopolitics. let's discuss that and more with michael temple, a pioneer in the and director of corporate credit research. thank you for coming on the show. crosswindslot of going back-and-forth. make heads or tails, especially since you are the bond that, with focus on what is happening with u.s. 10 year and other bonds and yields rising around the world. the 10 year is above 3%, for many investors it was the psychological line for the 10 year rising to greater heights. beginninghe markets to anticipate there will be an additional rate rise out of the fed. strong.ales were quite the thing that gives us comfort that this won't get out of control, some have argued we could see a 10 year at around 4%, having jamie dimon make that suggestion. we haven't seen dramatic increases of inflation. infla

inocencio and new york and you are watching "daybreak australia".ording to peter navarro, got steven mnuchin's comments earlier this month about putting quote, anon hold as unfortunate soundbite. a tradewe have is dispute with china, they engage in unfair trade practices and run up a $370 billion trade surplus with us, which cost us over a million factory jobs. we lost the trade war it long time ago. ramy: joining us now is bloomberg washington reporter, greg sullivan. how likely is a trade war at this point? : it seems we are looking at an certificate when it comes to china and the u.s.. we heard eater navarro's comments, and granted he is a hardliner, and taking with yesterday's surprise tariff announcement and today, secretary sarah sanders saying steven mnuchin's comments about trade war being on hold weren't meant to be indefinitely, saying president trump ultimately makes these traits decisions. of that together races the prospects the u.s. is taking a harder line all of a sudden with china. and we heard china reported, calling the u.s. had fl

ramy: i'm ramy inocencio in new york. it is just past 6:30 p.m.re watching daybreak australia. let's get the first word news with jessica summers. jessica: the dallas fed president robert kaplan has caution against beating up the pace of interest rate rises. he says the fed should not knowingly invert the yield curve. san francisco john williams says he is very positive about the economic outlook in the u.s. and abroad. he still sees three to four hikes this year as appropriate. >> the distribution has either three to four rate increases as appropriate for this year as a whole and a few more increases over the next few years. i personally view this to be the right direction. jessica: china's holdings of treasury's went to a five-month high, increasing to $11 billion to $1.2 trillion. despite trade tensions. china remains the largest foreign predator to the u.s. -- creditor to the u.s. it is followed by japan whose holdings dropped to $1.04 trillion, the lowest since october 2011. is set to be confirmed as cia director after the top democrat on the

ramy: i am ramy inocencio in new york. the u.s. korea move ever closer to that summit after high-level talks right here in new york.

thank you very much, ramy inocencio in hong kong.ia, our cross asset analysis is here. the trade war is apparently on hold for now. that is pretty welcome news for much of asia. welcomingit is very for risk assets in general. we have seen, i think you mentioned the meetings that are higher at the open. it is not just be all goes that thatriving those -- algos are driving those are we have reaction to the aussie dollar which also jumped up and stowed -- so did the kiwi dollar. that is important because it signals part of what will go on is the u.s. dollar is going to go down. we have had such a problem with emerging markets recently and a big part of that has been the trade as well as the u.s. yield, so if you have the u.s. dollar declining, that signals risk assets are free to go up. pressure will come off emerging-market currencies across asia, and such an export dependent place as asia, everybody will be happy to see this cloud at least fullback, which is what is going on. what are the longer-term implications for markets when they

ramy: i am ramy inocencio in new york. the u.s. and north korea move ever closer to that summit after high-level talks right here in new york. mike pompeo says they are making progress. ramy: all right, breaking eco-data crossing the terminal, south korean gdp as well as the cpi. gdp, quarter on quarter, kind of a miss. 1% is the actual against the consensus survey of 1.1%. in the year on year, it came 2.8%. i guess we would say this is just about meeting expectations for both of these, but we also have the cpi, which also dropped as well. yvonne: those numbers missing estimates, year on year rising 1.5% from a. analysts were expecting 1.7%. 1.3%, year on year. investment has slowed. you have trade tensions, that could limit investment decisions. also given inflation pressures, the bok is likely to stay on hold. speaking of imports, we will get those numbers, year on year in the next hour or so. with a gdp it seems that is fine, but the cpi, a miss. meantime, let's get a closer look at how the new trade tensions have roiled u.s. eq

i am ramy inocencio. lookingow i am also forward to that. didn't know it was coming out.out 27 minutes, we get the market in tokyo, sydney, running. heavy as far as the releases are concerned. reporter: how did you not know dead pool 2 was not coming out? david: not -- royal wedding. reporter: looking out for this monday, we have china trade top of mind. we have japan figures due out shortly followed by trade and gdp from thailand. we have taiwan export orders, and we will get a read of south korean exports for the first 20 days of the month. as you pointed out, these export-import driven economies give us a sense of the macro picture. we are getting a mixed bag for the futures so far. u.s. futures are on the rise. the u.s. is putting the trade war on hold. also this week on thursday the bank of korea is expected to stand with odds increasing against further normalization, this after governor lee sounded caution. he said it is difficult to remain optimistic despite growth, given uncertainties over the u.s.-china trade dispute and the monetary normalization in countries. d

for more, ramy inocencio with the recap of the big movers.y: greet across the board, and taking a look where we ended, you can see where they issed up 1%, and the nasdaq up 1%, the highest in three weeks and for the nasdaq hi ghest in seven weeks. i want to show you the imac function and the health of the 11 sectors. you can see energy is up by 2% and the biggest jump for the energy sector in the past three months or so. financials not far behind, information-technology also up will put 4%. 1.4. the handle we're talking about is above the $71 and the and for brent crude, $77 and up more than 3% here, more than two dollars up in the past 24 hours. we are seeing this push in the energy sector, and hop into the bloomberg terminal, ice ball and energy goes so does the market. see the snp energy sector in the bars and is as close sector ise energy where it is at. with that we are seeing the highs we haven't seen in the past three weeks, especially with the nasdaq up in the past seven weeks. haidi: credit also has to go to .he financials help bring

ramy inocencio has the details.nto the dating game, the online dating game. we saw the plunge about 22% worldbecause match is the 's biggest online dating site. facebook's how business would actually play y, yout is opt in onl can't send photos, it is only text. in regards to who you can reach out to, if you are not a friend, you can talk to them. if you are a friend, you don't want to be paired up with one of your friends. on interesting thing is the privacy issue comes up, the security issue comes up in light of what has been happening. mark zuckerberg did have this to say at his conference. >> it will be in the facebook app, but it is optional. you can make a dating profile. i know a lot of you will have questions. we have designed this with privacy and safety in mind. your friends are not going to see your profile. you are only going to be suggesting people -- suggested people who are not your friends, who have opted into dating. ramy: did you notice he smiled a lot? that is a really good face to put in front of

betty: ramy inocencio on the oil market. u.s.ons with china dialback, our guest discusses. this is bloomberg. ♪ is bloomberg. ♪ betty: this is "daybreak asia." i am betty liu in new york. duties china has slashed on cars. tom mackenzie joining us from shanghai this morning. we talked about how import restrictions has been a big deal for washington in these trade talks. what is the significance behind this move? tom:. the chinese would say this is part of a longer-term term plan, but the timing would suggest it is something of a concession to the u.s. when it comes to trade negotiations. we are seeing a reduction in to 15% kicking% and on july 1. policy that has been in place for well over a decade. this cut follows the change in rules around ownership. they will have their own fully owned businesses here in china by 2022. year, end of this electric vehicle makers like tesla will have their own factory. it follows on from that. imports madenowing of all auto sales in china. about 29 million cars in the chinese market in 2017. it i

ramy inocencio joining us for more. you never know what to expect on these calls., and this is one of the wilder ones. it seemed as if elon musk got tired or annoyed by these analyst questions. here is what he had to say. >> we are going to go to youtube. sorry, these questions are so dry, they are killing me. you really shouldn't say that on an earnings call. the point of this is investors do not like this and it ended down 4.5%. your called boring. [laughter] the: we saw expiration at 6:00 p.m. eastern time when it started to crumble here. with that said, there is good stuff that came out of the earnings results. as you want to through those -- let's walk through those come adjusted eps was less than expected in terms of a lost, the 25 per share, and auto margins because 19% and had a goal of 25%. everything is hunky-dory moving into the second quarter. they said the cash flow will be positive in the third as well as fourth quarters. no on to the bloomberg and show you when of my terminal charts looking at the production of cars in the most recent quarter, almost

betty: you are watching daybreak asia, let's get the first world news with ramy inocencio.c adviser plans to visit washington for follow-up for talks that the truck decision officials return empty-handed from beijing. willpremier deal you travel to the rest next week and each side has issued a long list of demands and the other is refusing to meet. thatberg has been told jack must financial is among companies that could soon face tougher regulation. sources say the rules would force companies and to financial industries to obtain pboc licenses and meet minimum capital requirements for the first time. in has 500 million customers lending and the government is worried it is now too big to fail. italy appears headed for new elections with rival populous parties unable to agree on forming a government. the five-star movement says it is now in campaign mode while the anti-immigrant leak call for a new vote on july 8 if there is no last ditch agreement. the president is considering a final attempt to break the two-month deadlock with a technocratic government. accusingrs for jc a

yvonne: thank you, ramy inocencio on the markets. it is a beat for softbank as sprint posts the first annual profit in more than a decade. we will have the numbers later this hour. coming up, more on the fallout from the malaysian election results. this is bloomberg. ♪ ♪ yvonne: this is "daybreak asia." i am yvonne man in hong kong. betty: i am betty liu in new york. mahathir mohamad's surprise of victory, ending the 60 year role of najib razak's coalition. haslinda amin has a guest with her. what is the mood in the streets right now? >> it is hard to say what the mood is, but prior to this we saw lots of people still in the streets. mind you, it was 5:00 in the morning. some anticipation what the change could mean. our guest joins us this morning. good to have you with us. obviously, malaysia voted for change in this is just the beginning. guest: overwhelming, a swing in vote in the constituency, at least 20%. even though voter turnout was down, many traditional did not come out to vote. they could not stomach voting for najib as th

ramy inocencio in hong kong. known as they be land of camel milk and honey. we will find up next. bloomberg. ♪ ♪ betty: good morning. i am betty liu in new york. haidi: i am haidi lun in sydney. you are watching "bloomberg daybreak: australia." got milk? that is.k, look no further than australia. farms are tapping into a burgeoning global market. our agricultural editor has the milk of a market in camel in australia. growing, but africa is still far and away the biggest market for camel milk. somalia just dominates. it is growing in popularity because of health claims about it, and it is higher in vitamin c and iron. haidi: the hipsters would be all over it. where is the demand coming from? >> africa, singapore, but the reason why there is such an opportunity and australia is australia has the biggest wild camel herd. camels are pretty wild anyway there aree time, but israel e-make camel milking machines, believe it or not. it is almost wild camels that make it. our street potentially the saudi arabia of camel milk. it seem like you had a bloomberg reporter try camel milk. what do

ramy inocencio has more on deutsche bank. in total, that number is 7000, but according to people familiar, it can be as much as 10,000, representing about 10% of all the jobs currently existing at deutsche bank. there is a lot of investor wrath at the annual general meeting in germany as well as the share prices, down 4.8%, the lowest since september 2016. based on all of this, it could be too little, too late because there is a lot of frustration and anger, not just over this most recent aggressive attempt at cost cuts, but over the past four or so ceo's. but the new one, who just started in april, tried to dissuade those fears. take a listen. >> let me state quite clearly. we are committed to our corporate and investment bank and we are staying international. we are active in more than 60 countries. that's the way it's going to stay. cuts now, 25% of those job are actually coming from the equities trading visit and that got my first bloomberg terminal behind me. you can see the performance of the business. ever since 2013,

ramy inocencio explaining that.they are seeing theramy: first net loss ever since 2009, almost a decade . the number is $1.14 billion. i want to show you this on our bloomberg tv chart. you can see here what you are looking at, on the right-hand side of the screen, i am wakeling it around -- wiggling it around, the last time was 2009. you wondered what happened here, this big thing. that was thanks to the overhaul, that was a distortion. now we see this distortion as warren buffett put it, severely distorting net income figures, leading commentators as investors said back in february. we are talking about how he is he is likeof omaha, the wizard of oz. the wizard of omaha because he is basically saying pay no attention to the accounting changes behind the curtain. he is saying go ahead and look at the up rating profit. i will show you this year. go look at the bloomberg terminal. what we saw, we see this huge gain in terms of the first quarter 2018. this is 49% from the quarter billion.ear to $5.3 mr. buffett is say

ramy inocencio year has the details.e number for e-commerce as you wanted out, , and that is up from the 23-24% of that was in the fourth quarter last year. but it is not as good as what the company was hoping for for the full fiscal year. let us happen to the bloomberg terminal so we can show you this.we stand on 32% is where we are, but actually, we can really see it on here, it is a bit small -- 40%, is what the fiscal year is supposed to be for the guidance. so we are clearly still seven percentage points off that. with that said, looking back at the fest barts over the best year or so, we are coming off that did. because when -- coming off that dip. when the new ceo of jet.com came in, he pulled in e-commerce and it has been booming. also, the brand that they bought come up on bus was scooped up by the company. you can see the numbers that dropped, the earnings per share inusted by a couple of cents there, the estimate was 1.12. billion,as a most $123 and same-store sales were amiss, two .1%, versus an estimate of 2

ramy inocencio is with me for more. >> clearly we see investors are not happy when looking at the sharele, too late? we will see. it fell 2.8%. with regard to the job cuts come the number is 7000. there could be even higher job reportedly deutsche bank is trying to get themselves a little wiggle room here. with regards to keeping damage control, the new ceo who started on april 8 -- rishaad: he has hit the ground running, hasn't he? >> he has. he's trying to keep everyone happy. >> let me stay quite clearly, ladies and gentlemen, we are committed to our corporate and investment and we are staying international. we are active in more than 60 countries. that is the way it is going to stay. sayingt of analysts are this is not enough. who advises institutional banks says they need to know more strategy, need more clarity on this before moving forward. job losses,these adjusted costs a deutsche bank sill fall to 22 billion euro next year. creating longer-term value and growth is a bigger challenge, right? long running challenge, at least from 2006. hop into the bloomberg terminal. revenue, o

global bloomberg's headquarters, i am ramy inocencio in new york. wilbur ross attacks what he calls slow and rigid institutions. he says the wto causes the u.s. great concern. beijing trade flows with washington, saying their flip-flops are hurting credibility. some breaking eco-data crossing the bloomberg. we are looking at south korea and its industrial production numbers. the actual number that came out, better than expected, 3.4%. the survey we told -- took for bloomberg was 0.9%. this was against the prior month, -2.5%. the fifth out of six down months on a year on year basis. in theseeing a good clip positive relative to the past half year. industrial production year on year came in better than expected, 0.9%. -0.4%.vey was better numbers after the seasonal distortions, the lunar new year. export growth was strong in south korea. could be good news for the be ok. -- bok. talking about diplomatic ties. to be a positive signal for the korean markets today. a quick reminder, this is the big interview of the day. you did not want to miss this one,

remy inocencio has the details on walmart. >> when we look at the now as well as the future, everyoneng at e-commerce. the number was 33%. it sounds good, but putting it the fiscal year is 40% for guidance. i want to hop into the bloomberg and show you what this looks like an bar chart form. side, that isand 33%. you can see it is at one of its lowest in the past year, year-and-a-half. we have seen that kleiman the year prior because of what was happening with the scoop up of jet.com. thwell as other brand names, e bonobos brand, a favorite of millennials. there was a concern that was petering out. have as investors might reason to hang on a little longer as that e-commerce growth continues to rise, as investors are looking at this. let me walk you through the top and bottom numbers. when the numbers first came out, the stock rose because investors were saying, this looks pretty good. you can see revenue and earnings per share beat by a few pennies. other information started to drop. same-store sales missed 1.2%. the estimate was for 1.3%. nature took its toll, because it was colder.

to ramyhank you so much inocencio. to date on the bloomberg terminal and get commentary and long-term forecasts. go.ck that out at bnef -- companies like tent and music and entertainment -- the value has jumped in the secondary market more than $20 billion according to data compiled by equity. they carry music and streaming apps and investors want to know when it's going to go public. robert, good to have you with us. i have seen some reports. if we count the number of ipos that are expected to come out in the next 6-12 months, it is $60 billion coming into the market? a huge amount is going to hit the market. we have seen an enormous amount thenvestor appetite in space. we focus on companies before ipo, think spotify and dropbox. we traded these before they went ipo. for marketk to us color and to trade those names. betty: to see where they are pricing. but what is going on here? is it fomo? fear of missing out? you are going public so i need to go public too? a year ago, many of them were not going public and were ab