betty: i am betty liu in new york.ities slide after strength magnified losses in the selloff of european bonds. we have the head of americas fixed income strategy. say the bond markets are at a turning point. what do you mean by that? >> we are at a confluence of forces happening at the same time. on thed was mildly hawkish side. they're looking through the weakness on the data. we're looking at the charts and how yields are forming. i can look at the moving the resistance around the 230 level on the 10 year. those need to get resolved in the next week or two. betty: there is still debate about whether the bond bull market is over not. there is a big question whether the bond markets or said it really reflects what is going on in the economy. richter's,e had jim who said the u.s. will be in a recession. what does the public think about this? i put out a twitter poll and a 900 people voted. it is still going on, so if you have not voted, i encourage you to go on my twitter. and vote. we asked people, do you think a rece

i am betty liu. cold: i am haidi lun in a sydney morning.g futures ahead of the citi open, let's get a quick -- sydney open, let's get a quick open check. we are looking ahead in terms of today, chinese assets, industrial activity as well as investment coming .hrough today we will determine how the aussie trading session gets the week started. and let's start with this. our next guest is expecting slowing growth when it comes to home sales. joining us, the st. george bank senior economist. we had those construction start numbers coming through last week . we have been hearing from the treasurer saying demand is real, other side saying you will see more supply on the market. is that how it is playing out? >> we are seeing signs of quite strong demand. it is quite elevated, and the lending data is at higher, elevated labels -- levels. at the same time, we would anticipate some slowing. we have apra and the australian regulator who has put up submissions last year to restrict investor lending to 10% of the focus on banks, and they also recently

betty: i'm betty liu.ew hours and in this program are going to talk about one major project out of road,which is that putting a ton of money into this project. this chart was quite interesting. we talk so much about the capital controls and how it's affecting the renminbi and the bond markets in china. look at this, it's really affected dealmaking. we know that chinese companies have been so acquisitive, especially in 2016, it was a year when they went after many foreign target in the u.s. and europe. with these capital controls, it looks like it's working here. the money staying at home, not a lot of deals. the lowest levels you have seen in years to. since 2015 have you seen merger activity this quiet in china. it's going to go slower here, so expect the deal size and flow will tap the brakes here for the rest of the year. china markets facing another down day. were still looking for signs of a rebound of some sort but it doesn't seem the case after late day selling yesterday. tokyo and sydney still open

i'm betty liu. we will be looking in all the action on wall street playing into the asia-pacific trading day. two within the last minutes, we got that breaking news out of washington. president trump firing the fbi director james comey. our chief white house correspondent has the latest on this news. ?evin, what happened here he fired comey on the recommendation of attorney general jeff sessions, right? reporter: yes this is breaking is just coming out of 1600 pennsylvania avenue, where fbi director comey has been fired. president informing the fbi that he will no longer be leading the bureau. in the letter where he informed mr. comey of the firing, he says -- i want to read it to you. he says "while i greatly appreciate you informing me on three everett occasions -- separate occasions that i am not under investigation, i nevertheless concur with the department of justice that you are not able to effectively lead the bureau." clearly in the context of washington and the conversations that have been

betty: i am betty liu in new york.rned it will continue its nuclear weapons program after testfiring another idiom range missile on sunday. i will go to seoul now and are be -- our bureau chief. there is no room at all for a softer approach. testter: yes, it is a real to the south korean president who pledged a more conciliatory approach and talked about going to pyongyang and talking to kim jong-un. these two launched two missiles when he took office may 10, so a challenge to his policy near north korea. yvonne: we see those concerns once again with the eighth ballistic missile. president moving making key appointments. what do you make of those? reporter: significant appointments. he made them on sunday, showing emergency of them. the key one was finance minister. well-respected, basically a long time civil service worker who basically rose through the ranks, to the highest position you could attain, without being appointed. his background is interesting, came from a poor family, could not afford any of the major uni

all.is likely i am betty liu in new york.: i am haidi lun in what you can see is a beautiful morning in sydney. be filledek bound to with news, but it will be a volume light session ahead. we have china, the u.k. and the u.s. close for holiday. a quick reminder of friday, up 0.7%. we had the selloff in oil. that really weighed on energy material resources on the asx. 0.1%. seeing futures up president trump is back in the white house after the first foreign trip that divided allies and opinions. germany says europe and the u.s. are drifting apart, china needs to step forward as a champion of global trade. we have the chief china economist joining us from hong kong. this does sit nicely with beijing's ambitions to build the vacuumfill the influence that the u.s. is leaving. reporter: trump has started to turn to domestic. right now, even at the g-7 meeting, there are short statements, and they will continue to commit to free trade. leaderseel that global this weekend, they also within the statement have a short sentence and cal

i am betty liu betty liu in new :00k, where it is after 7 p.m. yvonne: i am yvonne man in hong kong. why is he so worried about inflation? his counterparts have overlooked the last two months in recent weakness as a fake. he said missing the 2% inflation target does raise questions. what does that mean for this? it could impact the role of the balance sheet. that could be key. betty: we have a guest coming up that says the fed has been excellent in terms of broadcasting how they will reduce that balance sheet. yvonne, let us come quickly into my terminal and look at my favorite function when we talk about this. w.a.r. p -- wirp. chance that we will see a rate hike. how many is the question now. by the end of this year, we will have 49%. we will have one rate hike. have two. we will the big uncertainty is three. 9% as indicated by fed funds futures. three more, i should say. in total, it seems the fed consensus is we will have two more this year, but it does not seem to be a sure thing. is closee said the fed to where it needs to be on the policy

betty: i'm betty liu. -- i don't markets know.likely be -- it seems like we are at the return of the market. pretty much closed right at the height of the session, but not a lot of movement. i think investors are waiting for more catalysts in the form disney, forlike instance, or the retail sales numbers that are out on friday. certainly it seems at this point the fed is set on its rate hiking. yvonne: pretty slow going here in the asia-pacific to start things going. let's get to the market check with sophie kamaruddin. sophie: australia also to deliver its budget. plenty to consider. with the dollar back in fashion, that has pushed the dollar-yen back above 1.13, which is helping to make the nikkei 225 edge closer to that 20,000 level. we do see shares in sydney resuming the climb after monday's gain. take a look at the commodities space. we have that iron or rebound faltering. that has been a drag on other base metals such as copper and aluminum. copper wiping out 2017 games following that slump we saw in chinese imports of the

i am betty liu. betty liu in new york, where it is just after 7:00 p.m. yvonne: it happens to everyone. it is just after 7:00 a.m. in hong kong. i am shery ahn on tuesday. i have got to say, it is a live -- it is a live day. nothing, to be honest, as as whatg happened in the u.s.. the s&p 500 is close enough 2400. betty: maybe because there was also a lack of economic news or any really comments in the fed that investors went back to focusing on some old standbys, which, for instance, oil prices. oil prices routed. and energy shares zooming higher. we also saw it on the nasdaq as well as the dow, closing up. it sets us up very nicely for gains in asia. shery: let us see how they are early tuesday morning. new zealand, the only market .2%, after losses. the kiwi dollar gaining around 68.89. do keep an bang on the commodities and currencies such as the aussie dollar. oil of course surged. in the 200 barely moved last session, but when it comes to futures, they are pointing upwards .3%. the aussie dollar not doing much at the moment, but keep an eye iba.he t

betty liu in new york. a slump in u.s.sales continues, down for a fourth straight month after that record year in 2016, not only impacting carmakers, but triggered a selloff in parts suppliers as well. su keenan has been surveying the damage. su: it was a bearish report. the slide is continuing. belysts thought there would a bounce back from the harsh numbers we got in march, not so. in april, sales for six of the biggest carmakers dropped again with ford and honda posting 7% declines each. to make matters worse, each fallny had their figures short of what analysts estimated, and that sent the a fourth straight down month after record sales in 2016. let's look at ford, a fresh low for the year, down 4.5%. it has not been that low in a while. honda is flat for the year, was down 1% on the news, but again, one of the steeper declines. we generally look to companies like honda to doing a little better, and yet it was right in there with the steepest declines. >> it makes you wonder are they going to continue with these incent

betty: betty liu in new york. saying he will continue to bet against chinese is "daybreak: asia compa pullback in credit will send shockwaves throughout the mainland economy. the muddy waters founder told bloomberg expects china's credit problems to reach a breaking point. carson: it is actually very difficult for me to be here in may 2017 and seeing that this -- be here in mid-2017 and see this has not collapsed yet. i have felt for many years it is an enormous asset and credit bubble. you get under the old orthodoxy, that could not be sustained that long, but if you look around the world, you see that the ecb, the fed are helping to sustain frothy asset evaluations. japan hasn't made sense in a few decades. so the china question is really how long they can keep it going. i don't have a view on this. i think ultimately, there will be a day of reckoning. i know that, i just can't tell you if it is two years or 20 years. >> you don't have a view of the timing, but you do feel certain of the outcome. carson: yeah, t

betty: and i'm betty liu.of the data coming out in the u.s., and it is giving you a softer read in asia. atnne: we are still looking some direction here at the start of the session. we mentioned retail sales and inflation out of the u.s. to be crucial in how they consumer is rebounding and reflation -- inflation will be rebounding as well. net marble shares are still trickling through here. let's look in with heidi first. haidi> ? >> it feels like this directionless trade has some volatility, and what we had overnight was actually the biggest movement on the s&p for about 15 sessions. that counts as volatility, but take a look at the open shares. we are expecting a low open when it comes to tokyo and sydney. different riders, but for the nikkei, take a look at that. it is definitely a yen story because we have the at one $1.13,13, the most -- the most we have in one night. preparing for a potential but of downside when it comes to the us really markets today as well. but let's take a look at commodities, becau

betty: and i am betty liu in new york. chief correspondent from south eight -- southeast asia is in beverly hills with more. attention turns to the recovery we have seen. we talked about the casino earnings last week to read the recovery in macau. is a sustainable after a two-year slump and eight months of recovery? let's get a perspective from the melco ceo and chairman. it has been a long, long time. >> thank you for having me. >> are you convinced of the recovery of melco? >> there has been eight months verypular growth after two tough years. we were very happy with the recovery. ultimately the crackdown was not focused on gaming. it was focused on anticorruption and anti-extravagance. like all luxury sectors, was really collateral damage. peak of that crackdown is passed. >> what is making the gamblers come back? >> the middle class and the wealthy individuals in china who did not do anything realize they are in the clear in the can go back to delivering their upscale -- and have fun again. that is why we see them comi

i am betty liu in new york. yvonne: yvonne man in hong kong.hour until the latest china pmi data crosses the terminal. who better to give us a steer on the way things are going then the top pmi forecaster. he is a senior emerging markets economist at commerzbank and joins us live from singapore. how great to have you. we continue to see the trend, pti prices cooling down, iron ore in a bear market. china's deleveraging seems to be taking a bite into the economy at the moment. is the china reflation story over? >> i think it looks like the alreadyas ticked in q1 in china's growth profile. if you look at the pmi, i think this morning we are going to see a moderation as well. i think we have to look at at least three factors at this moment. one is the indicators in april have already showed relatively , and as weentum mentioned, the commodity prices have jumped so much from fixed china'swhich means investment is likely to slow further in the next few quarters. some other indicators like exports from south korea and export orders from taiwan also s

i am betty liu new york. haidi: i'm haidi lun in sydney.arting off on a high note with australia. we have seen futures looking sort of good in the sydney open. onthe previous session friday we saw lower seven -- finish when it came to on the stocks. they were down, a large part of the commodity story and the turmoil in the u.s., the s&p closing a little lower of 0.2% my butt looks like a positive stock for the asian pacific. may make electric versions of existing models as it joins the drive to battery-powered cars. they plan record investment. there considering putting electric motors in car models rather than building from the ground up. the ceo says they could let subaru capitalize on safety and eliminate the need to find a partner. betty: sharp may see its first partner in four years, reporting earnings of as much as $360 million for the fiscal year. sales could top $19.8 billion, meaning it needs the 10% rise from a year ago. they are planning to relist on the tokyo stock exchange. haidi: reports from hong kong saying cathay pacific is

break: >> ain't betty liu.e will be watching what is ahead on wall street and how asia may affect the trade. markets were closed today to commemorate memorial day. no action at all here in the u.s.. we have lots of economic numbers including japan. jobs numbers as well as retail sales data. haidi: that is right. weekjobs at the end of the and the fed trying to get the last word before the june meeting. in asia, a very meandering start to the week for global stocks. we had european stocks hardly moving. china yesterday closed. up about 1% at the moment. the dollar has been trading sideways given the absence of the market catalyst with the holiday start to the week. australia futures showing a downside of about .1%. we do have iron ore trading below $60 a ton for the first time since october. a note today saying they expect headwinds when it comes with a downgrade of china. a reminder of how vulnerable the aussie dollar is. potential further down risk. at $50 a barrel. gaine seeing iron ore above 1% but trading w

i am betty liu in new york.yvonne man in hong kong. you are watching daybreak asia. now to first word news with alisa parenti. president trump has fired fbi director james comey on the recommendation of attorney general jeff sessions and his deputy. comey becomes only the second fbi chief in the history of the bureau to be dismissed. he is been leading the investigation into alleged russian meddling in the presidential election and moscow's links to trump aids and associates. has claimed victory in south korea. rule had ended with the impeachment. votes counted, moon has 41% of support. moon campaigned against a tough line on korea's sprawling conglomerates, and a softer approach to north korea. walmart is said to be ready to million dollars to resolve a long-running investigation into alleged bribery. the deal is still being finalized and may change, but would mark a significant concession by the government. has thought twice that amount since last year over an inquiry into claims that linked to walmart's busin

i am betty liu in new york. >> i am yvonne man in hong kong.old shareholders it is it by waiting several options for its shale unit. they will carry out a white a review of the energy operations. bhp has been claimed to have destroyed $30 billion of value. andrew mackenzie told investors that it will consider selling part of its energy portfolio. tosoftbank has declined comment on the fact it may raise its stake in nvidia. in's fourth largest shareholder with a holding valued at $4 billion. the ceo masayoshi son says he believes it is a leading tech investor in the world. and oh sockocasino from tokyo when japan legalizes gambling. to sayernment has yet where casinos will be allowed to operate or who can run them. it estimates the japanese market could be the most lucrative in the world. prefer of it would osaka. fun, and we are a company that focuses on fun, entertainment, and attraction. we pride ourselves on having the hotel, restaurant, and topic top amenities. we have the most michelin star restaurants comes of these are the important elem

i am betty liu.ecap some headlines out of greater manchester, an explosion at an aria ground a concert -- our rio grande concert. it looks like the fatalities are in the double digits. u.k. terrorism officers are meeting in london. please consider this incident possibly be terrorism. we have noted the reaction and several markets, bidding losing the japanese currency. it looks like we are hitting fresh highs for the japanese yen given these new headlines raking out of the u.k.. the yen continues to strengthen, 110 point 93, political risks as well, the st talking about the latest in this russian collusion case. president trump had asked intelligence to deny russian collusion, so dollar-yen sliding as we look ahead to the market open in tokyo, seoul, korea, and sydney. we were expecting a mixed open, the yen down five point 2%. as you mentioned, getting strong on the back of this news out of the u.k.. rising against all the majors, against the dollar, one 10.97, so a pullback from some markets, south

betty: i am betty liu in new york.'s stay on the story out of washington. president trump in the midst of his biggest crisis since he entered the white house. markets unsettled by the drama. the doj has appointed a special prosecutor to oversee a legend links to russia. that, as a president deals with the fallout from the alleged memo, that claims he gave classified information to moscow. bloomberg congress editor is tracking all of this. we just had some more comments from the justice department saying the white house was told of robert mueller's appointment after the special order was given. how significant is that development? >> this appointment may go a fairly long way to calm congress -- calm calls in congress for a special independent counsel or commission to investigate the whole russia-trump controversy. the initial reaction from both parties has been almost entirely positive. -- jason chaffme etz called it a great selection. and dianne feinstein said it was excellent, as good as it gets. ago,u heard a few min

i am betty liu in new york. yvonne: i am yvonne man in hong kong.st word news with rosalind chin. rosalind: san francisco's fed president stands by outlook's for three or four rate hikes this year. to have seen signs of expanding beyond rates, operating above potential. the latest data showed 211 thousand new jobs in april and the jobless rate falling to 2.4%. >> economic data we have been seeing has been consistent with a steadily improving economy, an economy in full shade. maybe the employment is a look -- beyond a sustainable level of employment, and in placement indicators, it is moving in the right direction. rishaad: western -- yvonne: western australia to benefit from a road and rail incentive. they will be announced in the budget where half of the money goes to the real project and the rest for roads and bridges. western australia was hard hit by the downturn in mining. they say it will be good for jobs. iran's oil minister says they will go along with whatever opec decides. they have all indications there would be an extension of that star

betty: i am betty liu in new york.y has dealt a blow to wells fargo, banning the bank from any new official business in municipal bond sales. the banking group has to prove -- improve its track record. -- they sold -- yvonne: mitsubishi may have to abandon one of its best-known models as it recovers from a fuel economy scandal. they plan to increase spending on research and development. thecompany has blamed scandal in part on overstretched engineers. the ceo says if it does not make a choice -- it will make a choice and keep up with environmental rules. >> whether we continue with a model depends on whether there was a market for such a vehicle. we need to decide if it is worth investing a huge amount of money and human resources to prioritize its development. betty: resource companies are taking a hit as iron ore prices sink to a seven-month low. it is the metal's longest run of low prices. the worst performer on the london metal exchange so far this year. yvonne: the trump administration rules onng to relax drilling

i am betty liu in new york. yvonne: i'm yvonne man in hong kong.ank of japan governor has been speaking on monetary policy in tokyo. alongside him, former fed chairman ben bernanke. we are told he is just beginning to speak at the boj conference. let's discuss that and what we have heard so far with the senior fellow and chief economist at sony financial holdings, also former senior advisor to the boj. also want to welcome kathleen hays back and our conversation. i want to start with you, because the last time these two heavyweights met, there was talk about helicopter money. japan a year later, much firmer footing on where the economy is going, but inflation still a wildcard. what do you think ben bernanke can bring to the table this time around? >> i think bernanke's idea of helicopter money controlled by the central bank is quite interesting, but at the moment, we expect the boj to continue the current policy framework of control and change, so the money is not so important, the boj focuses on the shape of the yield curve, so they shift their ta

betty: i am betty liu in new york. internet lenders smart ,inance have consulted banks this could happen as early as this year. on company judges borrowers factors, including how often they charge their phones. ceo's says they expect to reach $1 billion evaluation by the end of 2017. saying, it is a profitable company and not a bubble. they expect to approve 4 billion loans a month. tumbling again in singapore, falling to its lowest since september as they consolidate the stock next week. shares have more than halved since february, over concerns management team will not be able to mitigate losses. the founder is preparing to step down. betty: analysts expect a 13% increase in first quarter sales when it gives an update on thursday. revenues it should get a boost for strong momentum from athletic shoes. modeling a white developed after a tennis star. analysts think they can do it. yvonne: love those. the pentagon is heading to china to boost drones. they want 19 models made. -- itrpose of the order is specific to make

betty: i am betty liu in new york.latest business flash headlines, warren buffett said his ill-fated bet on ibm should not discourage future tech investment. ibm shares dropped as he said, he cut about a third of his stake. speaking at the annual meeting over the weekend, he said he blew it by not investing early on in google. berkshire holds more than $19 million of apple shares, but they say they are more of a products company than tech. has fxppg capital meetings. their top three newspapers. shareholders will get $.95 per share in the company including the new zealand is this regional newspaper, and a stake in radio and streaming ventures. it is reviewing the proposal which may not boost shareholder value. wants qatar airways to sponsor the next several world cups. it will be the official partner inthe tournament in russia 2022. the ceo said fee for embodies the power of football hilarity and is a natural partner for the airline. get one more what we should be watching with trading underway in asia. adam is with us

betty liu has an exclusive interview with him, next.his is bloomberg. ♪ ♪ david: this is "bloomberg markets, the trump economy." time for a rare and exclusive interview. here's bloomberg editor at large, betty liu. betty? betty: thank you, david. i'm here with phil falcone. good to see you today. the reason you are sitting here roster me is that you just wrapped up a roundtable with the vietnamese prime minister. you are looking at vietnam as an opportunity. the single biggest, i believe, foreign investor in this resort. is that right? phil: that's correct. betty: what was the roundtable like today? phil: as part of our investment, we have enuilding up th real estate project for 10ly sem legacyenture, but from a perspective -- betty: harbinger? phil: correct. they are interested in seeing more of opening up the markets a bit more and they wanted an introduction to some prominent investors over here, including some different corporations. so, we hosted this roundtable event this morning with the prime minister. betty: right, because he's

scarlet: that was betty liu speaking with phil fed cup -- philip falcone, ceo of hc2 holdings.ech gainers in the s&p 500 today, which, on the whole, is declining for the first time in eight days, coming off a record high. and, of course, we have bonds catching a bid here, which means lower yields. brainard of the fed says that could cause reflation, and look no further than crude oil. nymex crude continuing to struggle there the $50 level, currently at $49.61. from new york, this is bloomberg. ♪ julia: this is bloomberg markets. i am julia chatterley. scarlet: and i'm scarlet fu. julia: now it is time for the options insight with julie hyman. julie: joining us, kevin kelly, the chief investment officer at recon capital. where is everyone? we saw friday it will left for the holiday, but volume low today, volatility obviously low today. why having people come back into the markets? kevin kelly: there is no news on verizon. what was pretty telling last vix wentthe short-term to an all-time low. it has only been around since 2011. it went to 7.6. it is down 30% for the week. when y

less toss it over to betty liu who is standing by with the ceo. betty: scholar, thank you so much.o david abney. great to see you. david abney: great to be here. betty: pending announcement -- why is this partnership so important for you? sponsor of this great event -- they are convinced they will make this the greatest expo ever, and our expertise, our worldwide presence, and the fact that we have handled big events like palin in beijing and london. betty: where would you put this, by the way, on that scale? david: i would put it right there with these two. it is a big, six-month event that will showcase dubai and the middle east. it will give us branding exposure in that part of the world, and more important, if we can handle business for that event, we can handle it for customers throughout the region. betty: a showcase for operations and global reach. tell me, is this important not just from a branding perspective, but from a business perspective as you expand globally. talk about where internationally is most important for ups. david: internationally is our growth engine. emer

i am betty liu in new york. shery: happy mother's day, betty. betty: thank you, thank you.i'm shery ahn in hong kong. you are watching daybreak asia very let's get the first word news. china has laid the foundations for a new east-west trade route, calling it the project of the century. xi jinping hopes his misleaders for the bell -- it is inspired by the silk route that lincoln china to europe. they call it a source for peace in a world of challenges. china's oil and gas producer said -- the chairman of the operations that they have more than 50 joint projects underway in 19 belt and road countries. cnpc isso told us setting its sights on u.s. energy to fill the glowing -- growing reliance on oil. policyakers will include with stability in financial markets. state media say the minister said that beijing will prioritize financial risk while continuing with the management floating exchange rate. lee said china will look at leveraging and economic growth. the chinese aviation officials said china is negotiating with the u.s. and france for better air rights to meet growing d

betty: and i am betty liu in new york.ad a disappointing read on the key indicator of the health of japan's manufacturing sector. machine orders came out for the month of march, some big misses and a decline even. what does this mean for japan, for policy, for the bank of japan? kathleen hays here with a look at this. what happened here? kathleen: they just came up short, at least against the forecast. the bloomberg consensus survey number was for a gain of 2.1% in march, a month on month gain, and it came in at 1.1% -- 1.4%. let's see how it looks. the white lined is the core machine orders, from shipping companies and utilities. it did rise, but it should have risen more to help offset the drop of more than 3% in january. the blue line is pretty flat with a bit of a downward tilt year-over-year. core machine orders are getting weaker. i had a conversation with the currency strategist at bb h investor services. here is how he described the report. he said, orders not good but not so bad. the pluses here -- global growth,

he sits down with bloomberg's and loop -- betty liu discusses how private equity stacks up against thege fund world. phil: when looking at some of the different investments i've had over the years, the most success i've had is buying things that have taken a long ore and you can incubate help nurture and grow and fix and twist and turn. that is tough to do in the hedge fund model. you can do it in a private equity model, but it's still a little bit different. i think this structure gives us the flexibility that we need and really gives us the opportunity to hopefully never have to sell any of these companies that we control. emily: to the firing of anthony levin dow ski -- anthony levondowski from uber. how will this case impact the future of alphabet and uber's self driving car efforts? will it spark a talent war for other star engineers? we are joined by brad stone, an author of a book about the founding of uber and airbnb. is this a turning point? brad: the lawsuit shows they are willing to leverage or exploit their intellectual property. google was first in the driverless car arena