you are watching daybreak asia.o has more on how the asian markets are shaping up so far. ofhie: the data that was out south korea this morning, we want to start off what is happening with the kospi. after opening little changed. we do have energy stocks, the biggest drag amid softening oil prices on doubts over the efficacy of the opec output cut yield. financials are tracking on the drop that we saw in u.s. ranks. morning,t data this 13.4% rise in exports, that was respectable in the sense that asia's growth is doing ok. checking in on the nikkei 225, snapping a four-day drop to leave asian benchmarks higher. isa indicated the economy coming along nicely. taking a look at the sector breakdown, we have telcos swinging into the green but we have softbank on the back foot effort. the kyoto paper reported the government is going to be investigating discounts for smartphone and home internet packages. that is the day worst performer losing over 2.5%. let's take a look at some early movers in tokyo. pulling up the board

you are watching "daybreak asia." yvonne: this is "daybreak asia."hest man, the head of the largest soft drink maker, says the rise of the internet is ruining the economy. he is now merely the eighth wealthiest man in china. ma ands alibaba's jack others are on the race to the bottom. we should encourage the development of the real economy, as it is creating real wealth. today the virtual economies over growing. -- the key tenet tenet of the virtual economy is money begetting money. now it is money out of the pocket of the real economy. it will not help accumulate help -- accumulate wealth, nor gain profits. is generated from the loss of others. i don't feel this type of economy is a good thing. reporter: service industries are growing well as opposed to larger manufacturers. china's economy is changing. you recognize that? >> the new economy you mentioned is the internet economy. it has created some jobs, but at the same time brought about unemployment. it has forced a lot of brick and mortar retailers to close down. i notice in the u.s., the retail

you are watching daybreak asia.first word news. >> as australian prime minister malcolm turnbull is meeting with president trump, it seems as if he has been echoing some of the president's rhetoric at home. he is attempting to appeal to voters with nationalist, nationbuilding policies. that move will likely see the deficit expanded and could cause the nation its aaa credit rating. the wto has upheld australia's right to impose plain packaging on tobacco products. a federal dispute panel agreed the laws introduced in 2011 are a legitimate public health measure and do not violate trade deals. this could usher in a new wave of restrictions around the world by governments who held off after four tobacco producing filed complaints. the mission to replace obamacare has staggered through the house as republicans mustered just enough support for their new bill. the 217-213 vote moves to the senate now, where it is seen as having little chance of passing in its current form. would cause millions of people to lose health insu

we will wrap up on "daybreak asia.">> we will start off with that chart you just had. $35 billion by the top 500 richest people. to $4.58 trillion. [laughter] that is a bit exaggerated. that is what we have the moment. we have this drama taking place at the white house and tensions going on. what are the market implications here? how much of this is already priced in? looking at that, looking of course at property prices as well. that coming up at the bottom of the hour, as well as employment data from australia. betty: it will be adjusting to see during your hour how this mueller appointment fx volatility in the market. -- affects volatility in the market. rishaad: we will have a chart looking at volatility. gdp data inave japan. it was a pretty handy beat. abe talking to alex sato about that. also talking to former boj advisor. and property prices analyzed by blackrock real estate. ♪ ♪ david: do you get tired of people asking you what it feels like to be a woman ceo? mary: it's a question asked more than it should. da

this is daybreak asia, coming to you from u.s. and asia headquarters. 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

you are watching daybreak asia. ♪ ♪ ramy: you are watching daybreak asia, i am ramy inocencio in newnne: i am yvonne man in new york -- hong kong. the financial times says it involves investment in its comacs aerospace arm, -- has completed the first test of its jet. toyota, bmw, and two other automakers have reached settlements worth $553 million to resolve claims from takata airbag recalls. they have a program to raise participation in the recalls. products have been linked to 17 deaths -- to many deaths worldwide. yvonne: aston martin considering an ipo as early as next year. sources tell us the company is awaiting 2017 results but declines to list in london. in 2015.ent public they traded 14 times earnings. att would value aston martin $3 million. we talked about cars, let's talk about risk aversion. i do not think we are quite over this political storm just yet. look at this chart. you can see where the traders are when it comes to bond markets. they are going long on treasury futures. the price is speculative and they are returning in a big way. we have not seen it go this fast

that is it for us from daybreak asia. is coming up over the next few hours. we get the rba minutes. what are you watching? haidi: the rba is expected by everyone come leading rates. we're looking at language. passing that statement, taking a look at what the governor has to say about what has been his tech projects, stability and relationships in red hot markets. we will continue looking at this from the belgian road forum in beijing. essentially what it means for regional infrastructure investment, some of the opportunities. we spoke to the australian trade minister earlier this morning, he is saying of their many opportunities for china's partners. partnerspoke to a china in china. dealmaker,xperienced and we're getting his views on how this could hand out for the whatte sector as well as it means for the global infrastructure boom and the attention shifting to that. theill also be speaking to head of asian multi-asset management. he is saying, if you see any corrections in this 12 month long bull market we've seen, is

betty: this is daybreak asia. shery: representatives from elliott management may be -- may meet later today to discuss the plan to unlock shareholder value. paul allen is joining me now. they are not letting this go. bhp could be listening. we could see more u.s. sales. >> that is right. been quite strident accusing them of destroying value in this shale venture in criticizing bhp for the do-nothing approach to the suggestion about how to unlock shareholder value. we have reports that the two sides may indeed meet where there is a bank of america conference going on now. bhp addressed that conference late tuesday and admitted mistakes were made with the 20 billion assets purchased before the oil price slumped. let's have a listen. the exactowledge position that took us into this business, we pay too high a price. early on a rapid pace of development was too quick. we have learned that lesson. >> bhp says they are actively considering more u.s. shell the vestments. elliott may partially get what it wants. >> elliot

you're watching daybreak asia.have the first word news with courtney collins. >> chancellor angela merkel has attacked rising protectionism ahead of germany's posting of the g20 in july. she said there may be short-term benefits, but long-term harm. she did not mean any single person our country but pointed to the difficulty of making progress at the g20. the whitetrump won house campaigning on the slogan of america first. >> those were trying to withdraw from international competition can maybe hope for short-term advantages. but in the middle and long-term, their ability to innovate is weakened because new ideas and developments go best in an environment of freedom and openness. yvonne: u.s. commerce secretary wilbur ross told bloomberg some parts of the tpp could be used to revamp nafta. president trump pulled america out of them tpp just days after taking office, and is been critical of nafta, threatening to withdraw if the u.s. cannot have new terms. >> their parts of nafta that are ok, parts that do not work.

this is daybreak asia. i'm yvonne man in hong kong.k check of the business flash headlines, told ang has been investment group made up of goldman sachs and pagoda has agreed to buy australian health care company icon cancer care. they will pay more than $1 billion australia, evan hundred sd billion dollars u.s. to close the deal. the deal may be made sometime this week. yvonne: audi has reached an agreement with dealers in china, and they will dispute -- ending a dispute with volkswagen. they may china audis with the saw group. their profits could be under threat. the deal now reached means any seic produced cars will be distributed through the existing sales network. and the alien series newest on it has the top spot, toppling guardians of the galaxy. the 20th century fox movie made his debut with sales in $36 billion according to estimates from comscore. guardians of the galaxy can second. then everything everything and gary -- tyree of a win begin the long haul. looking at trade, canada is confident of a good outcome in negotiations

this is "daybreak asia," from bloomberg's u.s. and asia headquarters. am betty liu in hong kong, it is just after 7:00 p.m. yvonne: it is just after 7:00 a.m., i am yvonne man. we were expecting to edge lower than the 3.7% we saw in march. it kicked higher by three basis points. it has been the emotion and heart of what led to these protests. we have the breakdown when it comes to youth unemployment, which did reach a record in february, more than 12%. betty: that is such an important point. it seems that at least except for these numbers, south korea was enjoying good employment numbers. but youth unemployment is so important. part of the reason why, there is discontent among the populace. wage growth is not moving in south korea, that is a big task for the new president. yvonne: he did mention his first focus will be on jobs. he wants to create 800,000 in the public sector. then, we will see how korea trades in an hours time. let's see how the rest of asia is performing. we did get central-bank atormation, anz unchanged 1.75%. the kiwi tumbling the mo

daybreak. electionssouth korean , how it could affect a stock market that is one of asia's best performers this the most attractive in the region. this is bloomberg. ♪ betty: this is daybreak, i am betty lou in new york. yvonne: i am yvonne man in hong kong. the world's second-largest shipbuilder well trade as four separate entities after splitting off several businesses. andr move helped cut debt half and reduce equities to 95% from a 106%. the breakup will allow them to streamline operations and make it easier to grow a divisions unit and attract investors. betty: noble expects a first-quarter loss of $130 million because of coal. the singapore-listed group was once the largest trader in asia. they had falling sales. research,lled iceberg their members are anonymous. yvonne: apple's tenure rally set worth 800he iphone, billion dollars. shares continue to rise as a report slowing sales for the device to read it declined to 33% this year, adding $185 billion in market cap. a wall streeted implying a market value of more than $1 trillion. stocks in south korea having a remarkable run. stocks tra

you are watching daybreak asia. ♪ ♪ this is daybreak asia. i betty liu in new york.ne man in hong kong. banksc, the left of the report. let's get the numbers from paul allen joining us live from sydney. the numbers looking reasonably solid. yes, it is in line with expectations. up 3%.sold $0.2 billion, net income $3.91 billion. it is a 6% for the first half. 2.0 7%.interest margin, in that respect, facing the same issues we saw with a.m. said -- amz. --o getting squeezed, script credit growth is falling. creditct household growth to ease and house prices slow. in new zealand we have seen shares going -- showing reasonable gains. and the australian bank reacts. the market starts at the top of the hour. there is an insurance dividend of $.94. yvonne: thank you so much, paul allen in sydney. plenty more still to come with asia's first major market open moments away. we are watching quite a bit, korean come up and the elections. what we should be watching now. we do have japanese markets coming online for the first time since the last tuesday. there is a lot of catching

you are watching "daybreak: asia ." ♪ betty: this is "daybreak: asia." i am betty lou in new york.nne man in hong kong. the former fed fund manager was barred from the sec, but he has made quite a comeback. he is the single biggest foreign investor in vietnam, and he just wrapped up a roundtable with the prime minister of vietnam. you saw some headlines moments ago, going to announce $15 billion to $17 billion worth of deals with the u.s.. i spoke with falcone about what was discussed in the meeting with the vietnamese prime minister. >> we have been involved in vietnam for 10 years, building out this real estate project. this is completely separate from ihc to venture. at this is something from a legacy perspective -- betty: a harbinger? >> yes. they are interested in seeing more and opening up the markets a bit more. they wanted an introduction to some prominent investors that were here, including some different corporate corporations, so we hosted this event, this roundtable event this morning, with the prime minister. betty: because he is headed to washington to meet with the r

this is "daybreak asia," live from our new york and asia headquarters. am new york -- i am in new york, it is just after 7:00 p.m. yvonne: i am yvonne man. it threw us off guard. everyone raising rates. perhaps that means a june. by another word, prudent. caution from the fed about when we could come out of this. betty: you have to look at the data and not blame the fed for giving mixed signals. data itself is showing mixed signals in a consumer confidence, consumer spending, diverging. you have a job market so hot in the u.s., but then inflation is so not hot. what is going on? you cannot blame the fed for putting their feet in both areas right now. in any case, market investors really parse those minutes. the focus may soon turned toward opec with that meeting underway in the nfl. here in asia we are looking ahead to singapore gop numbers and the bank of korea's decides today. let's see how new zealand is trading. to four daysing on of gains. economists expecting a budget surplus. stocks flat the first couple minutes. australia, a strong crude rally le

you are watching daybreak asia. ♪ >> this is daybreak asia. i am betty liu in new york.g kong. airlines apologized for calling it hasn't are off a plane of -- saying it was a mistake of epic proportions. the transportation committee hearing comes after david dow was dragged off of a united flight. staff rejected a turnaround plan. alitalia says it has exhausted all options after workers voted against a $2 billion refinancing land. -- refinancing plan. >> as many as 20 boeing seven 87 dreamliner's will be purchased. the order is worth around $5.4 billion to clarify westjet's strategies in asia and the western hemisphere. let's have a quick look at what is coming up on bloomberg markets. i know you're taking a look at apple as well. >> they were a miss. also forecast as a bit of a mess as well. laying it all on the doorstep of the iphone eight due out in autumn. no one is buying smartphones because they wait. they have to kick this thing out of the park. it has to be something really special. also looking at what is going on in chinese markets as we see retail investors be

you are watching "daybreak asia." e asian markets are trading so far. , asie kamaruddin has more we are trading about half an hour into the tokyo open. asia-pacific markets right now are slightly higher, up about 2/10 of 1%. we are just getting headlines up from the boj in the last hour. no surprises there for the asian market. we have seen the yen declining, and that is helping set up some of the gains we are seeing here in asia. take a look at the leaders here on the nikkei. we have yamaha surging as much as 14% earlier this morning after setting its all year operating profit outlook above estimates. take a look at j. front retailing, leading gainers in the retail sector. with sales coming in higher. 1% higher for up the much of april. dbs is ahead of wealth management. that is going to impact the performance for 2017. the electronics and solar panel maker on the rise as it posted a slump in annual profits on weaker sales in solar equipment. they have climbed about 22% in the past year, but technicals are signaling t

daybreak asiae and daybreak australia podcast.♪ ramy: a quick check of the latest business flash headlines. taco bell is looking overseas with hundreds of new restaurants over the next five years. india, and canada are on the list. taco bell says it is focusing on the four countries as their big economies with large numbers of young people. home market is increasingly saturated with fast food. yvonne: i wonder if china likes union leaders say the country issued so-called voluntary resignation notices to workers who have been absent for more than five days. freeport says about 4000 workers opted out. philippine bank governor saying there is no race to raise rates. he says the bank is constantly reviewing the situation and actually does not they are behind the curve re. espenilla takes office in challenging circumstances. martial law is in mindanao. yvonne: a look at what is coming up in the next few hours. heidi, i know you are watching the g7 . haidi: is it going to be awkward in sicily? one would have to assume so. brexit and tra

we have the world covered here on "daybreak asia."e will be live in beijing for china's plans for a new silk road. in new york, all the details of the global hack attack. he careful as you turn your computers on. liveis "daybreak asia" from bloomberg's u.s. and asian headquarters. it sounds really ominous. it is just after 7:00 p.m. , those is a big story hospitals and government facilities being attacked, but all eyes will be on the bill and road forum, $78 billion in infrastructure spending pledged at the time we are a focus on data, retail sales data out of china. when it comes to the u.s., , theng seems to move much s&p 500 2400 for the past couple of weeks. china,a big project from how will the u.s. and the rest of the world react. earthquake-layy quality? we will examine that later in the program. we seem pretty stuck here. the retail sales numbers on friday did not eliminate anymore on where consumers in the market are going, so we will watch for economic numbers this week. shery: let's look at the markets at play. openealand t

this is "daybreak asia."or those invested in emerging markets, june 20 is going to be a date for your diary. says they willci say whether or not to include china a shares into the benchmark emerging markets index. i want to bring in hand henry fernandez. great to see you. know you have been traveling around the world. you must never get back home. let's talk about china. that is what is relevant to our viewers. i know you cannot say the obvious question, which is will they or won't they get into the index? maybe i start off here. why has it been so difficult? >> i think there has been a process -- this is the fourth attempt -- in which we are trying to marry the needs of international investors with the conditions on shore in the china asian markets, in terms of accessibility. market accessibility. it has been to do with market prospectus, good or bad. it is accessibility. we tried last year, and there were big topics. can you access the market through -- doors? the second was voluntary suspension of trading.

. >> we have the world covered here on "daybreak asia" as we look forward to the sig summit n asia.hat happenedcuss on president trump's first overseas trip. we will analyze that and figure out what that means going forward. >> it looks to be a quiet week as u.s. come u.k., and china markets closed. that ninth ofring the stigma still, but a lot happening on the data front. speakers. several fed atindeed, let's take a look market reaction. markets closed on friday and unchanged on friday, a lot of economic members straight ahead in the u.s., including housing, on friday. looking at the market so far, the only market open is new zealand, a touch lower here. to be starting things next given how thin trading is likely to be today, but heading lower when it comes to the nzx 50. let's head to australia real quick. we did see recovery after that group meeting. pretty soft open for the aussie dollar, but looking to the upside on the asx 200 today. japan, north korean concerns, , but someof risk off strength for the japanese yen, -- 11.22 ithave seen a pause when comes to this equities rally

this is "daybreak asia."arkable success story passing a milestone with rbc saying it could surpass the market cap of $1 trillion over the next 12-18 months. apple has the potential to generate eps of $12 , taking it past the magic $1 trillion. , forberg has 389 buys holds, and no sells. >> peach aviation the first carry to accept bitcoin for tickets. crypto currency will be in place by the end of the year. peach and to link with local governments and companies to spread the usage of that coin. the ceo says he wants to encourage more tourists to revitalize less well-known parts of japan. these are closer to expanding in visa closer to expanding in china. it expanded payment companies. is struggling in china, while union pay, alipay, and tencent financial expand abroad. its is thisenting outlook at its investor relations day, and you are , how he has been able to turn around sony's consumer electronics, and how dominant they have been in the five years since he has taken over. is this restructuring of sony comp

this is daybreak asia. in new after 6 p.m. york. 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

that is it for daybreak australia, but yvonne and betty are back for daybreak asia.elopments out of north korea. yvonne: the south korean president meeting with his national security team at this hour to discuss this after north korea fired its ninth missile this year alone. this has fallen into the japan economic waters according to japanese signals. we have seen the frequency ramp-up as kim jong-un tries to accelerate his program. the programs are quite limited, but how will they engage with kim's regime? he has pushed her status quo, but how will you balance that with donald trump? betty: and how the president is likely to react, even an analysis of his nine-day trip going, we will be speaking with the bloomberg institutional feller -- fellow. he will be weighing in not just on the president's reaction to the latest missile test but also how he did overseas. as you know, the fact that was not anything blowing up on show thather than the was heard around the world -- shove that was heard around the world, he himself did not go on twitter. advisors say that is what

this is ♪ betty: this is daybreak asia, i am betty liu in new york. hong kong. this reflects a market closed to to beingance -- close balance. they wanted to work directly with indonesia to solve a legal dispute over and oil spill in 2009. >> we would like to honor the policy, and the process that we know of looking for this for the government of indonesia. what is the way forward? from outside, we are open to , andnuing the partnership i guess we will see the impact. on the are your thoughts lower $50 that the springs? ,> we went through the process where the price was as high as $120 a few years ago, and then it came down. about $126. ime back to about $50, and feel pretty comfortable about that. -- andd always say that we realize that is not good for the consumer and their productivity if it is too low. survive. below whereut $50 it is now. it may come up a little bit to 55, go down to 48, 47. that is about right. so i am pretty comfortable, and given our operation the past two years, we have in through the leadership to survive at $50. so we are q

we have more on the election and what it means for reform in korea on daybreak asia. uld financial chairman. it is a: 50 in new york. stay tuned for that. haidi: that is it for daybreak australia. yvonne and betty will be next with daybreak asia. we will see what this means for extraordinary development in the ♪ macron sews a new chapter begins now. >> marine le pen accepts defeat. we will be live in paris. >> the euro picks of strength, a boost for the european union, a blow for populism. >> asia-pacific market set to rise on the election to japan gets back to business after a three-day break.

we will have more on this story later on " daybreak: asia."like it is considering bidding for the chips in it with western digital -- chips unit with western digital. a quick check of other business flash headlines we are watching. it has reported a 38% fall in fourth-quarter profit on rising wage costs. net income declined to $420 million. that is the fourth quarter in a row of falling profit. costs rose 18% while growing competition from energy sources such as solar and wind prevented the company from raising prices. competition and $7 billion in debt are catching up with reliance communications. the stock fell to a record low amid failing to meet obligations. the wireless operator is in at a mergerles would allow it to pare debt by $4 billion. surging to a record in hong kong. shares closing 23% higher and have more than tripled this year. j.p. morgan says evergr ande's business is not sustainable. the index at the highest level since july 2015. a huge run-up. i know we have been looking deeper into that story. haidi: it does not really mak

jim bullard was speaking exclusively on bloomberg daybreak: asia. speaking of inflation, data in this morning. core inflation at 1.5% year over year. that was down from a revised rate of 1.9% in last month's report. let's check in on first word news. curious emma chandra. emma: president trump is criticizing germany. on twitter, he says the u.s. has a massive trade deficit with germany and they play part -- and they pay far less than they should the nato. he says it is very bad. the u.s. but it will change. there has been speculation the president is going to shake up his white house staff and his communications director has quit. he served in the post for less than three months and has been working with press secretary sean spicer. the dictator of panama, who was ousted in a u.s. invasion, has died. manuel noriega ran the country from 1983 to 1989. the u.s. accused him of rigging elections, having ties to drug traffickers, and ordering opponents killed. he was arrested in 1989 and spent 22 years and u.s. and french prisons. he was 83. golfer tiger

. ♪ up, we will be speaking to barclays chief executive on bloomberg daybreak asia.y hold their annual shareholder meeting today. we will bring you much more of the highlights throughout shows tomorrow. ahead, moments away from the release of crude inventory data. a check of oil as we had to break. ♪ mark: live from bloomberg world headquarters in new york and london, i'm mark barton. vonnie: i'm vonnie quinn. this is "bloomberg markets." there moments away from release of weekly inventory data for crude oil in the united states along with natural gas and other metrics. users looking for a drop of 2.2 million barrels. let's go straight to julie hyman to see how the numbers are coming in. julie: we are seeing a much larger drop than estimated in inventories, 5.20 5 million barrels. declineillion barrels in inventories, larger than estimated by bloomberg viewers, also larger than what was reported by an industry group last night. oil taking a leg higher on these headlines coming out. also we saw a reduction in distillate inventories and gasoline inventories. gasoline,

from new york city, good morning and welcome to doom -- bloomberg daybreak: asia.an ferro. here is the tone of the market for you this tuesday morning. futures up about 1/10 of 1% on the s&p 500. some brought dollar strength out there captured against the euro. down about 130 kent state dollar. david: time now for your morning brief. fed president speaks at the minnesota conference. later, we will hear from the u.s. fed president and the dallas fed president. at 10:00, they report make it was a sense of what might be behind those job numbers in march. we will get a report on wholesale inventories. at 1:00 this afternoon, the u.s. treasury is scheduled to have $1.3 billion in notes. jonathan: an uncomfortable come -- calm. now is michael, chief global strategist and be a mow capital markets fixed income strategist, michael. that begin with the idea this is some kind of fear gauge. can you read that a part for me, looking at volatility and what that actually means? michael: the vix is a judgment from the market about what expected volatility will be going forward. th

carl weinberg on daybreak asia said labor markets get better all the time, wages are rising, and themove. listen. acknowledgede fed that this happens and it is driven by data. if prices locum maybe they won't go in june, but right now everybody is ready for it and they don't have to say anything different in order to keep that expectation around 70%. >> the fed may be data dependent, but the idea is they want to normalize, so people expect them to be flexible with that data dependency. haidi: it is interesting, the policy statement from the fed is only a few paragraphs long. doesn't have enough room for it to mention a balance sheet issue? when it comes to the economy, let's start there. you can change a couple of words on the strength of the economy and what inflation is doing and send a signal to the markets. the balance sheets, they may repeat what they said in march, which is they will keep reinvesting the proceeds of the point 5sheet, four trillion dollar balance sheet, until they start normalization and normalization is well underway. something the key rate has to be 1.5%. #555

yvonne and betty are up next with daybreak asia for the trading week.pan's trade , and expecting an easing. yvonne: we are looking to see if we reached the tripping -- tipping point. each economists think japan will april,to ¥521 billion in ¥121 billion shy of march. we have seen signs of fading ,emand out of china, the u.s. as you look at the pmi index is. that is showing signs of weakness, the yen strength also a culprit. we see the political risk out of the u.s., could see a big headwind for the exporters in japan. betty: it could be, but no doubt the gdp numbers positive for japan, five straight quarters of growth. we will talk about president trump's trip to the middle east and particularly saudi arabia, robert jordan joining us, the former ambassador. he said president trump is finally getting more on script as we heard over the weekend, a lot of deals between u.s. companies in saudi arabia and saudi arabia companies. jamie dimon giving a vote of confidence to the administration. haidi: but as she said, never far from the headlines. wherel take a

our colleagues on "daybreak: asia" asked bullard for his thoughts on the matter.ullard: unwinding the balance sheet will create policy space for the committee in the future, if we needed, and on the rate itself, i think we are not very far from an appropriate rate for the u.s. economy that will keep inflation not too far from target, and the labor market performing well. so, what i disagree with is the idea that we have to go to hundred basis points higher to get to some sort of neutral right. i don't think that is the environment we are in. i think we can stay about where we are, possibly a little bit higher than where we are today. >> i have to follow up on the question of the markets taking balance-sheet reduction in stride. there are no details on where the cap's will be set on how much can be rolled off every month. jpmorgan says it will be 12 billion to start. jpmorgan -- pick of america is saying $5 billion. the bottom line is the banks don't have a blueprint for this. neither do you. there will be a big source of demand removed from the situation because t

asia. we will have other headlines at the top of the hour on daybreak europe coming up next.berg. ♪ selling if you are iphones as consumers await the next device. apple shares fall down. manus: waiting for yellen. no hike is expected, traders look forward signals of what is to come from the fence. anna: france's biggest bank beats estimates. we year from its ceo. >> bottom line is 4.4%. ♪

daybreak: americas," 8 a.m. eastern. ♪ emily: vietnam's prime minister is coming stateside, becoming the first southeast asia leader torump. the main point of the discussion is trade. exclusivelyn spoke to the prime minister and got his thoughts on a trail deal -- trade deal with the u.s., after president trump abandoned the tpp. >> we respect president trump's decision with regards to trade. we want to make sure we can convince him that this is a mutually beneficial relationship , and american consumers benefit and prefer the products the and him exports to the u.s. market. emily: the creator of android unveiled his latest product. andy rubin, who developed the software that powers hundreds of millions of devices around the world, now has two gadgets of his own. a smart phone and a home device. is called essential, and it is betting it can take on the likes of apple and samsung. joining me is our gadget reporter. what did andy come out here? i have heard it called the anti-iphone. reporter: there are two products as part of a larger ecosystem. first is the smartphone. the essential phone. why is it anti-iphone? you c

daybreak australia. we are moments away from the opening of the first major markets. .etty: i am betty liu we are looking at how all the action on wall street will play into the asiaacific trading day, kind of a whimper in how we ended trade on friday. retail sales numbers we are looking at friday morning coming in and missing estimates for the most part, so we will get more data this week that will include numbers on the housing market that will lead to more clues whether or not the big consumer demand we have seen in the u.s. driving the u.s. markets, whether that is peering out or not. on friday we close down, the dow was down 20 points, the s&p lower. the nasdaq composite pretty much unchanged on friday. sort of a mixed, mixed session. u.s. is in, and the this relentless phase of being range bound. againatility, falling heard the 90, 93 lows. is ifa, the big agenda china dials out retail sales, income investment and assessing the production. they are all set to move the markets today. in new zealand, looking pretty 68.60.ew zealand dollar the u.s. dollar did fall, but the first gains in a month. futures in australia pointing modestly high. we did go down 0.7%