you are watching "daybreak australia." s government is expected to use tuesday's government to win back disaffected voters before trade tensions between the u.s. and china could undermine the economy. paul allen is in canberra and joins us from the lawn of the parliament house. what are the specifics we can expect in this budget? betty, the key thing we have been hearing about in the weeks leading up to this budget is a big boost in revenue for the government. commodity prices have been a lot higher than what forecast in the previous budget. there has been a boost in the tax revenues which have increased because of the losses they have been able to claim in the wake of the global financial crisis and personal tax revenues are up as well. the deficit forecast is likely to be a lot less than it was last year. surplus also forecast earlier than previously expected, coming by 2019, 2020. the books are expected to be back in the black with a narrow surplus. scott morrison has been speaking to reporters as he often does on budget

betty: you are watching daybreak australia.tocks rally back and still ended down for the second day ahead of the payroll report. economists think jobs were added with a downward in the unemployment rate to 4%. bryce joins us now. he is a senior vice president and portfolio manager. it seems like the market, investors are still digesting the fed report from yesterday. inflationou think, is the game changer in the market? >> i think it is. we have accepted the labor market is doing well. the game changer yesterday was the fed said we have inflation at 2%. you are right. it has taken the market time to digest. we have been spoiled. there toad the fed prop everything up and now it feels like you are leaving your parents' home for the first time. now the relationship is going to be different. that way,seems certainly the paradigm is shifting quickly. in terms of the job report tomorrow, i am assuming wages, there's going to be focused on wages. if we see another uptick in wages as we signed january, d think the -- do you think the m

haidi: i am haidi lun, you are watching daybreak australia.rom alaska has been in beijing checking on deals structuring president trump's visit last year. one of those is a lng project analysts inpec and the corporation. speaking to tom mackenzie about the progress made so far. >> i call this year a year of paperwork. we are doing the commercial agreements, looking at banking agreement, construction project, that type of thing. a lot of paperwork this year. it comes together at the front part of 2019. we are in the midst of the regulatory process as well. so we pull it all together for a final investment decision, either late in 2019 or probably for the construction and service in 2024. tom: are you in the process of signing other large agreements? >> asia is the growth engine for the lng industry, but we are working within the region for capacity.25% of so we are in active discussions. tom: where are you in terms of financing for the project? bank of china, are they on track to finance 75%? keith: financing, we have engaged bank of china to b

"daybreak: australia that is it fo -- that is it for "daybreak: australia." bloomberg. ♪ yvonne: it is 7:00 a.m. here in hong kong. i am yvonne man and welcome to "daybreak asia." asian-pacific markets set for declines amid rising trade tensions. the s&p fell for the fourth time in five days. tariffs are to blame. trump has metal penalties against america's closest allies. they say they will fight back. 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.

you're watching "bloomberg daybreak: australia."'s get to the first word news with courtney collins. the malaysian prime minister has been sworn in promising to lead a business friendly administration. the 92-year-old says his focus will be on growing the economy and reducing debt and there is no case for devaluing the ringgit. he also said much of the money missing from 1mdb can be recovered and those responsible must be punished. [indiscernible] [laughter] [cheering] [indiscernible] courtney: a dam bursting kenya and killed at least 44 people with dozens more missing. water is rushing from the dam and swept away hundreds of nearby homes. kenyan authorities say the flooding is just the start of the rainy season in march and andkilled 170 people displaced more than 220,000. almost three quarters of the 47 countries have been affected. a 100 for your old australian scientist died after traveling to switzerland for an assisted suicide. david did not have a terminal illness but said his quality of life had worsened over the past year.

ramy: you are watching "daybreak australia".pening in italy as well as a long -- around the world. a lot of people saying nothing is on the table, and senior fellow at the peter institute for national economics joined us from washington dc. let's look at what is happening in italy. what a difference a day makes because there is a lot of optimism on the markets. under if you shared that optimism or if you think this is akin to a dead cat bounce on the markets. >> i don't think much has changed since yesterday. the ascending, political force in italy remains the league, and its leader -- i am skeptical that they will ofept to enter into any kind government respective of who is the finance minister. clear interest in having an early election, which they expect to win. am quite skeptical that the situation today is better than yesterday. they have a second chance of trying to form a government that developed over the past day or so. you are basically saying that is not going to happen? if question then is, sovereignty issues or if i

you are watching "daybreak australia" and the quick update of how the market is trading and about to zealand. marginally after loss we saw in the u.s. trading also unchanged and futures in australia is looking to continue to focus on the troubled financial sector. looking better come up with a aussie dollar continuing to decline in the face of strengthening greenback. paul: it is all but in quiet here despite the week lead from wall street. that's like at what we should be watching is trading gets underway. bloomberg editor adam haigh is here, and with the earning season is doing in different parts of the world, it seems u.s. stocks are getting less expensive. >> and broadly speaking it is a decent u.s. earnings season and we haven't seen it in the way to equities architect is responding. but it has been decent and what has been is change the federation cup position between the u.s. and europe. have a look at this chart in your gtv library that shows you the elevation premium narrowing between the u.s. and europe. we are getting to levels we haven't seen for a few years now. u.s. sto

this is "bloomberg daybreak: australia." we are two hours away from the open of major markets. >> it's just after 6:00 p.m. in new york. i am betty liu. we will be looking at all the action on wall street and how it will play into the asia-pacific trading day. inh rising yields not just the u.s., but over in europe and elsewhere that caught investors, equity investors, that weighed on stocks has we see here in the equity markets how we closed. still higher, but off of the session highs, the dow up 68, s&p barely closing up, and the nasdaq also a little higher had went 1%. on's get more details breaking news that happen in our ago. msci reporting in the past hour, 234 chinese companies a-shares included in the benchmark from june. su keenan has the latest on the news. >> big news. it takes the china stock market global. ashave known this was coming msci releases a bi-annual report that came out in the last hour and name the names of more than 200 companies that are being added. again, msci emerging market index. let's take a

that is it for "daybreak australia." ♪ >> it is 7:00 a.m.ive from bloomberg's asian headquarters. i am david and glass. -- ingles. a muted session in new york. treasury yields climbing above 3.1%. the longest week of weekly gains and almost three years. round five and counting. betty: from bloomberg's global headquarters i am betty liu in new york. thea said to be offering u.s. a trade surplus sweetener worth

you are watching daybreak australia.all street stocks close lower after climbing back from early losses. president trump canceled the north korean summit. that is the story today. jason, you know, every day, we seem to be moving back and forth on these headlines. first off, what do you make of that and the health of the markets? what is your biggest concern right now? jason: the first part, i think you saw movement today as emblematic of how investors are thinking about this. there is initial reaction, and then it crawls back. it's a shrug of the shoulders. it's day today. if you look at the vix, it's around 12.5-13. over 30.ry, it was even in march when we had trade tensions it was higher. this is relatively low compared to where we have been in the last couple of months. this ranks inere our priorities, i think it's relatively low. it's really hard to calibrate politics because it does change day today. then you go back to well, from an economic perspective, a markets perspective, the fundamentals, does this change the

that is about it for "daybreak australia." yvonne fortdave and "daybreak asia.", not a great deal of direction given that we had the u.s. markets closed on memorial day. right across asia, we have the public holiday. liquidity is going to be thin on the ground, but of course, watching oil is a major story. this is bloomberg. ♪ yvonne: it is 7:00 a.m. in hong kong. we are live from bloomberg's asian headquarters. i am yvonne man. dave: i'm david man. form, making an attempt to a government. mr. scissors is put forward, but populist parties say they will bring him down. yvonne: trump is to meet shinzo abe ahead of talks with north korea. reignseopolitics supreme. yvonne: the world of social value investing. we discussed the role of business in society with warren buffett's grandson. ♪

that is it for daybreak australia. ♪ ♪ it is 7:00 a.m. live from bloomberg's asian headquarters, welcome to "daybreak: asia." korea,eers in north trump officials say the u.s. is ready to invest but only when the nukes have gone. president trump does an about turn on china. he is going to help the t stay afloat. betty: i'm in new york, it is after 7:00 p.m. on sunday. malaysia sales in uncharted waters. economy corruption, missing money top on the list.

haidi: you are watching "daybreak australia". billion in its ipo and business is made up of rest separations of europe's second-largest insurer, and the deal is to become the biggest u.s. share sale this year. stakesspecially selling in its business, our sources say india's top wireless operator plans to raise as much as billion dollars by early 2019. that is it for "daybreak australia" but yvonne and baby are up next with daybreak asia. we continue coverage on that malaysian upset in the election in the last supper of hours. becoming prime minister at the age of 92, we speak with the professor of political science who says that this election was not his to lose coming was losing the narrative of momentum during his campaign, but what comes under this new regime? we have a former prime minister wrote for more than 20 years coming back into power. betty: they questions there, and we also talk with the center you and alsotrategist, weighed in on the impact of this stunning victory by the opposition party. on what is his take next f

welcome to "daybreak australia." the top stories this tuesday, nuclear options. president trump to announce the decision on tuesday as allies make their final pitches to fix that. stocks also paring gains as investors try to read the president's mind. betty: i am betty liu in new york, where it is just after 7:00 p.m. on this monday. china's top economic advisor to visit washington next week for another round of terror talks. we are going to be in canberra. there is certainly lots of risks in the market these days's. in particular, they are awaiting the announcement from president trump. there is a lot of risk in the bond markets in this g tv chart which shows you what is kicking up on tuesday over several yield . you can see the demand here continues to be pretty much flat on this point as auctions continue to rise for the 10 year treasury note. that is giving some investors some concern that perhaps the rate routes we have seen in the bond market is not over quite yet. yvonne: breaking news. a scoop from bloomberg. qualcomm, the biggest maker of mobilephone chi

this is bloomberg. ♪ haidi: that is just about it for daybreak australia this morning. y up next on daybreak asia. what are you watching? yvonne: we are watching the gdp numbers from japan in the first quarter in the next hour. we are expecting a soft patch, contraction in the economy for the first time in two years, but a lot of economists saying this is down because of weak household spending and some unusual weather we have seen. we are also going to get a little bit of market reaction from wells fargo asset management global cio kirk hartman. this is bloomberg. ♪ 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. yvonne: 7:00 a.m. here in hong kong. we are live from bloomberg's asian headquarters. i am yvonne man. wall street's

that is all for "daybreak australia." this is bloomberg. ♪ >> 7:00 a.m. in hong kong. man. "daybreak: asia." we are looking mixed ahead of the open. yen and gold are tumbling. the dollar is on the retreat. west texas crude climb into its highest since 2014. betty: i'm betty liu in new york, just after 7 p.m. the white house sees momentum building in talks with china this week. any plotting a new strategy, three-year move away from hardware and into more lucrative areas. ♪

you are watching daybreak australia. let's get the first word news with alisa parenti. alisa: president trump has poured cold water on rising trade optimism, saying he's not really pleased with the way talks are going with china. the administration held off on billions of dollars worth of tariffs with reports of white house discord over the tragedy -- over the strategy. rossrce secretary wilbur plans to visit china early next month to continue trade talks. the president's also cast doubt on his plan summit with kim jong-un. speaking after talks with the south korean leader, he said there was very substantial chance it will work out. the president added that does not mean a meeting won't happen at some point. the white house has acknowledged uncertainty around talks, but still preparing for singapore on june 12. congress has approved a sweeping overhaul of u.s. bank

haidi: hello from sydney where is just past 8:00 a.m., it is "daybreak australia". is just after 6:00 p.m. in new york and over the next hour will look at how the action on wall street is going to play in the asia-pacific trading day. is quite a long time since we talked about oil prices, and that is affecting the markets. mentioned at the top that president trump is going to make his decision and announcement at 2:00 tomorrow that sent crude oil prices back below the $70 a barrel level. you can see we are hovering brent crude and trading at $76 commitment is interesting to see the takedown of u.s. stocks as well.

you are watching daybreak australia. this morning, but we have daybreak asia next, taking a look at what is coming up over the next hours in week. david: we are going beyond a week, exactly about a month from now, a little over a month from now. june 22, that is when opec meets. the story last week, when you consider that the price inflation expectations, there was a case to be made for opec ,ot to extend production cuts and we are joined from singapore to talk about that. opec might need to rethink the target market. if it is the five-year average on inventory, and we are there already, he thinks we might see opec adjust their target to seven years, and we will see how that plays out. there is the iranian factor to consider. lots of assets to the oil conversation into the new trade week. betty: there isbetty:. a lot of factors undermining oil prices. let's focus more on the equity chiefs, ubs wealth market investment officer come a quite a long title. he is joining us and he will talk about how investors are focused on r

you are watching daybreak australia.jobless rate we saw plunging to the lowest level in 18 years, but it has yet to speed up the race of wage increase. our policy editor kathleen hays here with the numbers and some fed reaction to this. there has not been that many times we have seen the unemployment rate go down below 4%. kathleen: that is true, and some officials have predicted we could get but low 3.5 for it -- below 3.5%. why it has made some us news is we are not worried about the economy creating jobs. it is a question of wages. we have nothing this level since 2000. the problem is wages are stuck in a low gear. average hourly earnings were up to 2.6%, third month in a row year-over-year basis. want to look at this chart. you can follow along, even when your favorite charts in a library. the yellow line is falling. that is unemployment. you have average hourly earnings like 2.6%, that is the turquoise line. the white line is employment cost index. a broader measure that includes benefits and wages, they are both ki

you are watching daybreak australia.le shares gaining in extended trade after quarter revenue jumped 60% to $61 billion. it sold more than 52 million iphones, although the average price dropped and predicted third-quarter revenue of two $53.5 billion. in san francisco is mark gurman. did this put to rest these fears of slowing iphone demand? mark: well, the revenue is up 14%, but in terms of the sales growth year-over-year, it is only up 3% which is quite a bit under what they have seen in previous iphone super cycles. the concern is absolutely there. the $1000 phone, the price is too high. still, the revenue results overall are looking pretty good. slightly ahead of the guidance. betty: at least enough to propel the stock today and maybe keep the stock going, mark. talk to me about this $100 billion buyback. is that also an area of concern where apple has this huge warchest but nowhere to put it? mark: you know, in terms of concern, before they started doing buybacks and opening the capital return program, people critic

you are watching "bloomberg daybreak: australia." ident trump now mulling , sayingon imported cars the recently agreed deal with china may be too hard to get done. australia's relationship with china has soured since malcolm turnbull raise concerns about beijing meddling with media, university, and lawmakers. let's get more on this. great to have you with us. ,'m looking at this editorial which is an extreme mouthpiece for beijing. one of the things that says is to punish australia, to teach us a lesson, they should cut imports from australia and import more from the u.s. to replace and improve that relationship instead. is there a concern these punitive moves could translate into policy given the relationship? >> look, none of us get particularly worked up by media, whether in australia or china. elements that hyperventilate about the relationship and put for their two cents worth. what matters are the high level discussions that take place, obviously in china last week, positive and constructive discussions with the mayor of shangha

that is it for daybreak australia this morning.tting up for a little bit of a next open as we had all that volatility in the u.s. session. the market continuing to digest u.s. withdraw from the iran nuclear deal. ♪ eal. ♪ ♪ yvonne: 7:00 a.m. here in hong kong. i am yvonne man. welcome to "daybreak asia." top stories, asian stocks headed for a big open. oil rebounding after president trump pulls the u.s. out of the iran deal. allies regret the decision to reimpose sanctions. betty: from bloomberg's global headquarters i am betty liu in new york. the u.s. and china in a heated wto clash on trade. saying beijing is acting like alice in wan

that's about it for "daybreak: australia." the action next on daybreak say sha is next.is bloomberg. mom, dad, can we talk? sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. here int is 7:00 a.m. hong kong, we are live from bloomberg's asian headquarters. i am david ingles. welcome to "daybreak asia." stocks in asian-pacific set to rise. treasuries pushing higher, yet again. the s&p 500 popping its average price for the last 100 days. the russell 1000 at an all-time high. in newi am betty liu york. asia's top economic advisor holding talks. urging to stop beijing's unfair trading practices. polirs

this is daybreak australia. we are two hours away from the open of asian major markets.ety: over the next hour, will look at how all the action on wall street is going to play into the asia-pacific trading day. it was this on again, off again interpretation of the upcoming north korean summit that kind of spooked the market. let's show you how we close the trade today. pretty much ran across the board. a very different book then yesterday. the dow down almost 200 points. the s&p and nasdaq also losing ground. again, if it is not u.s.-china trade we are talking about, it is the u.s.-north korean summit that is fixating the market. haidi: just a reminder, there is uncertainty. president trump is not really seemed convinced. seoul seems more optimistic it is going to happen. consider the volatility when it comes to north korea's behavior. take a look at how trading is looking in asia and new zealand where we are seeing action trending a little bit to the downside. heading over to futures are shaping up in the open in sydney, we did have a u.s. dollar index falling a little

this is daybreak australia. we are two hours away from the open of asia's first major markets.aidi: it is just past 8 a.m. in sydney. i'm haidi lun. with the existential crisis, it seems like things worsened significany overnight the the italian asset selloff, the two-year falling the most. you are starting to see this contagion spread globally. yvonne: right. seeing the likes of what we are seeing in the bond market when it comes to italy, spain, portugal. we are seeing the rush to havens such as treasuries as well. classic risk off. take a look how we fared in the u.s. after that memorial day holiday. we did see that risk off session. risk sentiment improved a little bit towards the end of the close. the dow closing more than 1.5%. down. the 10 year yields is what we are watching as well. take a look at what we are seeing from the bond market. there is that rush to the u.s. dollar as well as treasury yields. u.s. 10 year. we have not seen a move like that since the likes of the brexit vote. the euro dollar also at 1.15 now. the italian two-year yield, the from anything we hav

"daybreak: australia -- this is bloomberg. ♪ g #btv since 2006 -- emily: since 2006, venture capitalestments have increased. scarlet fu spoke with error -- aboutippeau and talked competition heating up between new york and silicon valley. >> it is a collaborative community. we all work with each other where there is no term sheet wars, no evaluation things going on. up.le tend to want to team it is not a big community, certainly compared to the west coast, so everybody seems to have found their space and what they really like to do and what they are good at. the second thing, the companies we invest in in new york tend to be more on the service applications building whatever you can build on top of platforms -- existing platforms so we are not thinking cornell will change that, but we are not reinventing the infrastructure of these events. we are not doing the next generation of storage devices. investsult, we tend to in pretty much anything they are good at, including different domains. sector ofstry, every the economy, you can think of is represented here in new york. we are more d

daybreak." coming up in the next hour, former prime minister of australia. going to go back to st. petersburg for the international economic forum. spokeent macron of france about the importance of russia's countries and world war ii. macrono now to president and listen in. uss. macron: -- have given the premises for building this trust. let me get back to the notion of trust. process which is together.e by stage we were building the infrastructure of europe. we came together despite the difficult context, despite some sanctions. we persevered in developing our energy sectors, french enterprises remained in the russian market during the most difficult times of history. they did not quite russia. in other words, russia is one of the first foreign employers for we also employ 170,000 russian citizens. the eu is the first trade partner and represents 47% far ahead ofts china. there are many other promising projects our companies have signed. agreementsigned 50 just from the visit today. some partnership agreements were signed during a difficult times of our his

daybreak: asia." david: i have been checking it .ut let's get you up to speed on the latest headlines. australiaergy rejected this for its power station. it has plans to shut the plant down by 2022 to replace it with a mix of renewables. betty: looking for acquisitions to gain a bigger foothold in the u.s. tourism market. they told bloomberg they are interested in anything related to the sector from travel agencies and resort brands to recreational content providers. the owner has launched a new line of chinese resorts. after 11 years, blackstone is finally checking out. with this exit, blackstone will realize some $14 billion in profits. coming up in the program, we had to malaysia where politicians talk to us. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, th

australia in sydney. cold to cleaner energy or sources of energy mean to investors. ramy: good stuff. j that is it from "daybreakk and heidi next. stand by for bloomberg markets. opene how asian markets do and continue after the handoff. this is bloomberg. ♪ rishaad: asia-pacific markets , investorsy losses weighing geopolitics and rising u.s. bond yields. snapping a two-year growth streak, the economy growing more, business declined come trump-kimand the jong-un some it may be in doubt. i am rishaad salamat. listing in 2004, but slumping this year, results may yet disappoint. this is "bloomberg markets: asia."

australia bank ceo. paul allen giving us that interview and 11:30 a.m. hong kong come, 1:30 p.m. joining us from sydney. betty: don't miss this, "bloomberg daybreakerica's" to american petroleum on the $23 billion endeavor to become the largest oil refiner in the u.s. and a discussion on his company's to american big earni. this is bloomberg. ♪ yvonne: this is "bloomberg daybreak: asia." betty: good doctor is set to debut this friday on the hong kong stock exchange. reports say it may be over 600 times oversubscribed. the ceo of being on investment subsidiaries tells us the chinese investor has an opportunity to be bigger than its tech industry. >> when you are deploying money, you have to be concerned. we are at a time when liquidity is abundant. there is a lot of capital chasing good ideas. medium,to focus on stage to later entrepreneurial countries. i won't call them startups. companies that are four to seven years into their lives. if they have revenues, customers, a business model, a platform, and a good introductory, chances are they will be well valued in the marketplace. our challenge is to find good evaluations and the ability to build p

daybreak asia, i'm betty liu in new york. yvonne: i'm yvonne man in hong kong. when it comes to equities, raleigh hitting lower today. from theea coming back holiday within about a 10th of 1%. australiaar strength seems to be trickling, but we are on the back foot. hong kong also coming in, not a good open, according to futures this morning. ocbc bank wealth manager and senior investment strategist joins us. it seems like geopolitical risk is back into the markets. president trump saying it may shouldpen, how worried we be about these types of headlines, or is it all noise? >> i think it is a lot of noise. if you look at history, geopolitics repels markets in the short-term. they may not have a big impact in the medium to long-term, as long as it doesn't have an economic and earnings feedback. in the case of north korea, we have had so much rhetoric and few yearsthe last from the north koreans, the markets have gotten used to it. the situation is much better than it was one year ago, when president trump and kim were exchanging bouts. we have a better situation now. there is a good likelihood that the summit could still go on. it is not as bad. the markets are feeling nervous because