i am haidi lun in sydney.st as we were talking about headlines, we may be getting past them a new set of headlines walloping the markets again. asian-pacific stocks may be facing a difficult day, president trump adding new tariffs threats. that is rippling through the markets. we are seeing stock futures tanking. yenaidi mentioned, the jumping on this idea of an additional $100 billion worth of duties against china. i want to bring in whittier trust vice president caleb. we thought this might not be over with, but we thought there would be a relief in the market, and now this. why do you think we are suddenly reacting so violently to these new headlines? we thought we were in a round of negotiations toward the end of the day. clearly, after market close, we are back into this retaliation period. from a long-term perspective, this is reminiscent of brexit in the sense that you had a big, swift selloff in the market and the concern was, how bad can things get. i think over time you will see a negotiations, funda

this is bloomberg. ♪ >> i'm haidi lun. betty: i'm betty liu.atching "bloomberg daybreak: australia." check of the latest headlines. monsanto shares surging after the wall street journal reported the the u.s. will approve takeover, that would remove the last major regulatory obstacle to the biggest deal in the crop chemicals industry. last month, the justice department officials were not satisfied with their plan, because of concerns of the transaction hurting competition. worldwide said it plans to buy back 10 million shares from hna as part of the selloff of its stake in the hotel company. h and a offering just over 6 million shares. and hilton will increase their purchase to 16 .5 million shares. goldman sachs and a jpmorgan are among the underwriters of the offering. betty: apple is green, it says its sights are completely powered by renewable energy, including retail stores, data centers and other facilities in 43 countries. corporations have emerged as big buyers of clean energy, driven by tech companies that say that they are conscious of

haidi: i'm haidi lun in sydney. betty: i'm betty liu in new york and you're watching daybreak us try a. the new york fed getting a new boss. it john williams replacing bill dudley, becoming one of the officials inwerful the federal reserve system. our global economics and policy editor kathleen hays here with more. was controversy about john williams and rumors about him becoming the president of the new york fed. >> he is. a big bill in reserve system and something that people are watching for any influence it may have on policy because the new york fed has selected san francisco fed president john ym's to replace bill dudley. bill is retiring this summer and rumored that john williams was in the running. we now know he certainly was. let me remind everyone why the fed's position is important. first among equals. among the presidents 12 rotate devote every year.

i am haidi lun in sydney.le shareholder they shouldays renegotiate its restructuring plan with creditors. it says it and other investors are prepared to offer additional working capital as the group struggles with $3 billion of debt. the wall street journal says wells fargo could agreed to a fine of $1 billion to settle claims related to its risk management. they includeys failure to prevent improper charges to customers. we are counting down to the open of markets in hong kong. rish is taking a look at the open. rishaad: shaping down at the moment. ,he auction coming to an end .2% down, futures lower. , awfulhinese chipmakers fallout from tsmc affecting global tech stocks. look at the performance in recent days with chinese chipmakers. the band has benefited these chipmakers. all of those outperforming the hang seng. they have done well on the basis that beijing will support these companies should there be a trade war. we are looking at that. sayingtandard chartered regulators have enough ammunition. we will

. ♪ haidi: i am haidi lun in sydney. betty: i am betty liu.you mentioned earlier, the trump administration making a new push to have an outline nafta deal agreed upon, allowing leaders to make an announcement at the summit of america's next week. joe joining us now from washington. one moment, president trump is threatening to just cancel nafta altogether, and the next minute, they are trying to scramble together for a deal. what is happening? joe: there does seem to be some disconnect between the president's twitter account and the rest of his administration. there also seems to be some eagerness to wrap some things up. they have done this with the south korean trade pact. there was a lot of angst and words from the president about the deal with south korea. suddenly, there was an agreement on principle. not a lot of major changes to the pact. words from the president about the deal with southit seee same direction with nafta. there have been some outstanding issues on autos. an agreement in principle does not necessarily mean something will

haidi: i'm haidi lun in sydney. you are watching daybreak australia.break australia, but yvonne and betty have daybreak asia. looking at the next two hours. yvonne: i will be assessing that market reaction to this military response to syria over the weekend. president trump has called this a mission accomplished, but investors are taking it at it doesn't seem like things are escalating any further from here. this could be a one and done deal. we will ask alan henderson from the eurasia group, the managing director of global markets, great guy to talk about how geopolitics can continue to be if not an overhang on markets, whether this is actually the right call. are we slowly going to be seen to political risk being priced out of the market? betty: a very pessimistic view of the market unfolding between the u.s. and syria. professorkissinger who says the u.s. will pay a bigger price on this u.s.-syrian conflict than serious themselves or the assad regime. we will bring him on to explain more when you think this will be much worse for the u.s. todi: and

i am haidi lun in sydney.hong kong, i am rishaad salamat. japanese retailers, fast retailing raising its outlook. let's get to our retailing analyst. >> it is driving growth for both companies. part of it is network expansion for stores. fast retailing, 10% plus growth for top and bottom line in the year ahead, but they are growing same-store sales in localizing products. in china, theye, are adding more skincare products that do better in china than japan. where the brand is not as well known, they are leveraging celebrity endorsers to dislodge entrenched competitors. rishaad: consumer spending remains weak. we still have wages going up slowly. , thedo these companies broader high street if you want to call it that, due to keep growth strong? >> they had done quite a bit better than their peers. prices done selective cuts to drive foot traffic. once they have the customer in the store, it is all about up -- up sailing, so they train their associates to pitch higher-margin products to improve sales growth and

i'm haidi lun.ump said china will be the first to cave in on trade your he made those comments as his counterpart prepares, as we discussed with stephen engle to talk to investors. let's discuss this with the peterson nonresident senior fellow mary lovely. do you agree with the president that the chinese might be the first to cave in? mary: no, the chinese will not. not only do they see this as fundamental to their role as a leader in the global economy, -- the people are behind them. as you heard, president xi does not have to run for reelection. he has quite a bit of room to let this run. betty: do you think there will be any response to trump? mary: i don't think they will respond to any kind of threat like this. i think they will respond to the actual implementation of tariffs. betty: it is going to take a while, certainly a few months for tariffs to be implemented. do they hit the right spots? the president has outlined -- are they going to be effective? mary: we have been analyzing that. they

i am haidi lun. we are two hours away from the open up markets.his is "bloomberg daybreak: australia." liu.am betty we will be talking about how the action in on wall street will be playing into the trading day. jawboningike that around the u.s.-china trade tensions might be just that. which is why you saw stocks rallying ahead of the jobs report we will get friday. here is where we ended up, the s&p higher by .7%, the dow adding 241 points. the nasdaq also rising. we saw yields finally picking up in the treasury market. haidi: that's right. what is curious is this back and forth, comments from larry kudlow saying the president is weary of this relationship with china, but things the trade deal will be done. you have planned meetings and the treasury secretary to talk about these tariffs. look at the set up in asia. it looks like an equally end to the trading week. the kiwi out. again for the dollar. -- the kiwi up. a gain for the dollar. saying thealysts selling of the aussie against the dollar is positioning for strong payroll and labor market n

i am haidi lun. is is "bloomberg markets: asia." ♪ haidi: korea leading the asia-pacific higher, earnings underscoring resilience. chinese stocks expecting to pboc cut the the reserve requirement ratio to improve funding at ranks. also, president trump says the u.s. is already speaking at a high level to north korea. a second day of robust gains when it comes to u.s. stocks, the s&p pushing through that 100-day moving average. can it be sustained? it seems the skyhigh expectations for what is anticipated to be a blowout earnings season is creating quite a bit of support when it comes to sentiment. 30 minutes away from the open. singapore, taiwan, and malaysia coming online. sophie. bounce across asian markets led higher by japan and south korea. 1.1%, the 225 adding kospi up 1.25%. japanese investors with the latest trade figures to digest. surplusnce swung to a and export and import growth less than forecast. this could be a negative for japanese stocks and shinzo abe has that dropped in import shows

this is bloomberg. ♪ ♪ haidi: i am haidi lun in sydney. betty liu, you are watching daybreak australia. business flash headlines, deutsche bank's advisory board has named a new ceo, replacing john cryan amid a wide overhaul. the co-deputy ceo was an early favorite. he is a deutsche bank veteran and heads the private and commercial arms. their biggest revenue source is trading stocks and bonds, and income has fallen 32% since the end of 2013. haidi: struggling commodity trader noble group is moving its headquarters from london to hong kong as it sees a controversial restructuring of more than $3 billion of debt. the group said the move took effect over the weekend and is registered in bermuda, so their research began to question business, and accounting. betty: australia is forecasting record annual energy exports this year, worth $176 billion u.s. that is a 7% increase. the changes based on rising lng and iron ore volumes. the industry reports commodity trend crisis trending down next year before stabilizing and supply and demand mismatche

i am haidi lun in sydney. ramy: i am ramy inocencio in new york. watching "bloomberg daybreak: australia." first up, the trump administration has indicated it is willing to negotiate with china as trade tensions escalate. beijing has announced reciprocal tariffs on u.s. products roughly in line with the duties ordered by president trump. china is targeting soybeans, automobiles, and aviation, and says the measures will take affect when the institute -- when it institutes its own tariffs. >> china will not back off from its 2025 program. they will work very hard. they developure their economy and future technologies. we will not be able to slow down that much. some of their practices in pursuing that 2025 are not fair. a lot of them are fair. -- has to start developing our technologies at a much better pace. >> fed officials morning the potential trade for ads uncertainty to a bright economic outlook. early to says too what it might mean for jobs, inflation, and policy, james bullard says there is downside risk. lyle brainard also things trade tensi

this is bloomberg. ♪ ♪ haidi: i am haidi lun in sydney. liu, you are watching daybreak australia. the battle for streaming supremacy is on. spotify plans to go public, but it will be in a different way. alex barinka explains it. ♪ alex: spotify is becoming a public company, but don't call it an ipo. the music streaming service is outstripping -- is sidestepping in favor of direct listing. that means the company itself will not be selling shares, and it will skip the share price discovery process essential to an ipo. public,ompany goes management and its advisors decide on it evaluation and embark on a marketing roadshow. they make their pitch to wall street and judge interest from shareholders. but not before the stock starts trading, they use that input to set a final price and number of shares to be sold. then shares opened based off that dollar amount the next day. spotify is skipping that and going straight to the trading part. on listing day, existing rival shareholders will be able to sell stock to public market investors. large esta

haidi: i am haidi lun. coming up, a debut for spotify. we look at an unusual trading day. g markets: asia. ♪ haidi: you can call it a fairly measured reaction on asian markets, as we get confirmation and details of some of these products subjected to the 25% tariff. u.s.-china relations looking to deteriorate, with beijing responding, saying they will reciprocate in-kind, same scale reciprocation when it comes to trade actions, saying these measures go against global trading rules. taking a look at markets, other things to focus on, too. composite pmi missing the mark. australia retail sales of little better. the r.b.i. coming up, and nonfarm payrolls. still in the background of the trade war, the macro picture continues. the old chinese saying, as they say, it's only polite to reciprocate. mixed.session is indeed mainland market looking fairly sanguine on the back of developments with tariffs, rising 0.6%. in hong kong we have aia and the hong kong exchange shares offsetting the drop we see in china mobile and tencent. encent in the spotlight given the stake in spotify, wh

i am haidi lun in sydney. rishaad: i am rishaad salamat. na governor indicating more relaxation for china's economy, yi gang says he will further open the financial sector. this is bloomberg markets. ♪ haidi: a lot to contend with, asian markets struggling to get some directional equilibrium, not picking up on the optimism we saw in the gains overnight in wall street. remarks from the pboc chief, yi gang speaking at the forum in , talking about greatly opening the financial sector. also the financial and banking sectors in china, making remarks about how the trade imbalance of the united dates is a structural issue that has to do with the development of each other's economies. absolutely. chinave to talk about how is the lead in digital currency research, bitcoin not a factor. speaking of the economy, supposed to be inflation numbers. the producer price number had a slight miss, we will see if there is any reaction. let's kick it out with sophie kamaruddin. chineseit comes to the asset classes, we are seeing the offshore renminbi off by a to

haidi: i am haidi lun. is bloomberg markets. ♪ rishaad: seconds away from the latest health check on china. gdp growth remains robust. haidi: asia stocks giving up early gains. we are expecting the numbers to come in the forecast. rishaad: president trump stoking the fires. he overrules his experts and says beijing and moscow are fixing foreign exchange. to theshinzo abe heading west. trade and north korea undocked -- on the agenda. crossinggdp number bang in line, 6.8% growth in the first quarter, that is what economists have predicted. we got the number the same as the previous quarter. looking at the retail sales to be that 10 1%. we were looking for 9.7%. let's get to the real details. industrial production was shy as fixed asset investment. let's put some flesh on the bones. here's tom mackenzie in beijing. thank you. the gdp number coming in line forecasts and surveys have suggested it would be 6.8% which is in line with the previous three quarters of gdp growth. in terms of retail sales, we're -- it h

haidi: i am haidi lun.lost another 5% in the new york session, closing at their lowest in more than one year. investors and analysts expecting a miss in first-quarter deliveries. across spaces like china and japan. according to bloomberg data, panasonic relies on tesla for 4% of its overall revenue. we have seen the likes of panasonic up by 2%. the rubber company listed in japan. suppliers are doing a little bit better. let's get to ramy inocencio to see what elon musk is doing about these production numbers. ramy: tesla's asia suppliers getting slammed by expectations the carmaker will miss estimates for the first quarter. we could get those as soon as tuesday in the united states, but bloomberg has its own model three tracker. forecast, a standard weekly production of -- you can see that that is only about half as much. ifh that said, he did say things go as planned, we will comfortably exceed that number over a seven-day period. a tesla spokesperson had no comments off of those remarks. looking at teslas

this is bloomberg. ♪ haidi: i am haidi lun in sydney. and you are watching "daybreak australia". a quick check of business flash headlines. one person died when an engine exploded on a southwest plane headed from dallas to new york. in the fight made an emergency landing in philadelphia after the engine shuddered a window, killing a passenger. the last some of them that happened in buffalo in late 2009. tesla fell on news it temporarily suspended production of its model three for at least a second time this year. the company says it will last up to five days and the planned output strategy. the suspension indicates tesla has no quick fix for the model through production, and analysts say it will inevitably increase the company's cash turns. ramy: starbucks is temporarily closing more than half of its domestic outlets so staff can undergo rishel biased training -- racial biased training. starbucks will shut at least 8000 stores on may 29 after a public outcry at the treatment of two black men. and manager called police after they waited a

i am haidi lun. this is "bloomberg daybreak: australia."f hours from the open asia's first major markets. betty: i am betty liu. action look at how the on wall street will play into the trading day. different session today than what we have seen with the stomach churning volatility over the last several weeks. disputescs and trade on the back corner as you mentioned. earnings in focus. better than expected retail sales numbers. let's see where we closed and trade today. it was a green day. , the dow adding 200 points, the nasdaq also rising by .7%. long is thisis how going to last? haidi: volatility is here to stay. a bright spot before we get some more shakiness to calm, but the s&p the highest in a month. farave erased the losses so , and that is setting up in asia hopefully for more positivity. the day to drop, china gdp front and center, the major calendar event you'd we will be waiting into these currencies like the kiwi and all see. some downside in the start of trading in new zealand, the kiwi dollar at .7364, the u.s. dollar holding

haidi: and i am haidi lun in sydney and you're watching "daybreak australia". finance in austin for the imf spring meetings, u.s. and china are still facing off over trade investment. we are joined by the director of asian studies the council in foreign relations. part of the think we grapple with on a day-to-day basis is the lack of information. at talkstrump tweeting are underway and will get a great deal from the chinese. he even gave a shout out in the joint press conference shinzo abe of how beijing has been oversized with north korea. but then beijing comes back and says want come to the negotiation table in light of the threats. how difficult is it for investors to make a decision of where we are at when there's so much misinformation? andt is very difficult, doubtlessly a big part of the problem is president trump who seems to change his mind and his negotiation strategy on a daily basis. we heard at the beginning of the week before that perhaps had the president would consider joining the transpacific partnership, and the less next thing we know is tha

haidi: i'm highlighting noon -- i'm haidi lun. is is bloomberg markets: asia. ♪ rishaad: sprint and t-mobile agreed to merge, sending years of will they won't they talks. haidi: the new owner says he wants to shake it up and new innovation. rishaad: catherine brennan steps down after craig mello walked away. haidi: z de says earnings surged. -- and comeping jumping 39% in the first quarter. newsad: getting breaking from the moment. for april. higher than what we had in the survey. what does it compare with last time? just a little takedown, nothing to read into this. we should be looking at the nonmanufacturing side of things because we got that at 54.8, ahead of estimates. the economy is driven toward domestic consumption. haidi: lots of concerns, deleveraging with domestic demand. some of these trade tensions might be weighing on these numbers. particularly crucial given we are getting into talks with steve mnuchin heading to beijing. rishaad: let's get to our guest. haidi: china economist with us. what do you make of it? guest:

sydney, i am am haidi lun. elon musk plugging into the april fools' day mood, saying tesla is bankrupt. this is "bloomberg markets: asia ." rishaad: monday -- tariffs perhaps from donald trump as well. on top of that, it is a situation that is a bit of a mixed bag. evens up for abenomics though perhaps the people are not giving him the thumbs up, haidi. over thoseerns approval ratings. in china, positivity as we get into that pmi. will that paint robust growth we saw over the weekend with the official gauge? 30 minutes away from the open in china. iraq it'd start to the quarter. singapore, taiwan, malaysia, just coming online. sophie, it was a challenging quarter for markets in the first quarter of the year. we see a better start to the second quarter? sophie: looks like investors are breathing a little bit of relief here given the gains we are seeing across the region. with gains this monday, joining the major market, korea and japan. although we have seen some of the gains in tokyo ease somewhat. regional see

i am haidi lun in sydney. rishaad: and in hong kong i'm rishaad salamat.erning its 60 chilean dollar asset management products industry. our correspondent is taking a closer look. what is behind the delay? rrre had on tuesday this cut to add liquidity to the system. generally speaking what people are saying about these new rules were approved on march 28 by the communist party in first proposed back in november. they have said to have delayed the publication of these new rules. it is interesting because that rrr cut adding liquidity, most people are saying these new cribs will for a while liquidity in the system. they are for maintaining stability and also adding sustainable system liquidity. that has become more of the urge of clarity as perhaps to rolling out these reforms. do we know about the supposed new reforms? stephen: mostly they are going to be aimed at zeroing in on the higher risky shadow banking products. we know they are possibly capping leverage, also mismatch. perhaps more importantly there has been this implicit government guarantee on the

only in haidi lun in sydney. rishaad: i am rishaad salamat in hong kong.ush to open not the financial services issuance made it firms against chinese firms that have a lot to like about it. what is your take? , from the looks of things, this is great news for wall street. by whichfinally a date they can control their joint ventures by the end of june. there are two reasons basically why they are on the back foot. chinese brokers are strong now. it will be hard for them to catch up. in the last few weeks, we have seen chinese brokers get more rights within china, so great wall securities is doing an ipo. rishaad: they could not do that before? >> it has been slower for brokerages to raise money. it is doing that ipo and raising funds. there may be more brokerages raising funds in the coming weeks, months. secondly, there is this cd-r r thing allowing tech issuances -- listings in china. rishaad: as opposed to the american depositor receipts? >> yes, the whole idea is you can come back home. alibaba can come back and list in china. tencent can list in hong k

. ♪ ♪ i am haidi lun in sydney. betty: and i am betty lou in new york.heck of the business flash. uncertaintyrce of from a controversial deal, more than 75% of senior lenders have signed on to a doubt that would see the mighty traders debt take control, and they opposed the deal. 2016: the ftc says uber's data breach exposed the names and phone numbers and the mother dresses of more than 20 million users. the ride hailing company and uber disclosed to disclose the information and have a similar bridge in 2014. that the css after misleading consumers, uber compounded its misconduct. had its biggest intraday surge, climbing as much as 17% piercing the 7000 and $8,000 level. possible reasons include the end of tax season selling and short investors being squeezed out. with soros said that coming in, we will see the start of the real bubble. up next, the tpp turnaround, the president a take the rest back into the free trade deal that he wants exited as a key campaign promise. this is bloomberg. ♪ haidi: is 8:30 a.m. in sydney. we are looking more positive th

i am haidi lun. markets: asia." ♪ haidi: korea leading the asia-pacific higher, earnings underscoring resilience. chinese stocks expecting to pboc cut the the reserve requirement ratio to improve funding at ranks.

haidi: i'm highlighting noon -- i'm haidi lun. sprint and t-mobile agreed to merge, sending years of will they won't they talks. haidi: the new owner says he wants to shake it up and new innovation. rishaad: catherine brennan steps

haidi: i am haidi lun. kuroda expects to make some kind of decision over the next five years. is bloomberg markets: asia." rishaad: donald trump pesek lawyer has sent the equities into a tailspin. awry in the last few minutes of trading. what does the asia-pacific hold in store. >> this is any can of recovery we have had over the last few months. is excitedi jinping to come out in the next 15 minutes. he is looking for any hint of retaliation on trade. we are seeing this kind of reluctance to hold onto gains in asia. >> the overall lay of the land. the futures are easing up somewhat. asian equities are under pressure. korean stocks down 0.9%. bycks in malaysia are off 0.2% ahead of the election commission announcing the polling data. over in taiwan, stocks are off by 0.1%. we did get some data. taiwan will also be wasting inflation data later this afternoon. march sales of this tuesday. in singapore, the sti is lower by one third of a percent. by retailbe preceded data and first quarter gdp numbers. goldman says that the strong underperformance in philippine stocks over the pa

i am haidi lun in sydney. rishaad: i am rishaad salamat in hong kong.he agenda as washington and beijing dialback the rhetoric. investors like that idea.

haidi: i am haidi lun. kuroda expects to make some kind of decision

sydney, i am am haidi lun.mood, saying tesla is bankrupt. this

. >> i am haidi lun.our, russia sanctions, new list to chemical weapons in syria and an announcement is expected from the treasury later. this is bloomberg markets: asia. ♪ >> markets have been reacting to that missile response in syria. it is not going to lead to a great expansion of military action but elsewhere we are watching china this week at with gdp for the first quarter as well as domestic activity indicators and also looking at potential trade talks. with trump andg mar-a-lago again. we're looking at those financials, wells fargo is one. then the outlook wasn't as strong as people had been expecting. the train dayse, in indonesia getting under a. yvonne is a look -- your with a look at the market. >> we started feeling there is no flight to safety. we wants to go back to focusing on fundamentals. but as heidi just mentioned, we are losing some gains and momentum's on these equity gains this morning. look at this risk radar. we are basically pretty much flat right now. i'm 107.sically now also, v