i am a ramy inocencio, this is bloomberg. still ahead, india's prime minister starts a tour of europe. this is the start of the asia pivot. next, more on global central bank policy. we heard from jim bullard. moise between former u.s. board member that voted against negative rates. this is bloomberg. ♪ betty: this is "daybreak asia," i am betty lou in new york. yvonne: i am yvonne man in hong kong. let's bring up the latest japan data, the jobless rate and household spending. the boj counting on a tight labor market to boost inflation. at unemployment rate holding 2.8%, the lowest level since 1994. the jobs to applicant ratio 1.48% righther at now. if you take a look at this bloomberg, it shows exactly that. from aet the latest professor and former boj board member to talk about these numbers. great to have you. it is supposed to be a virtuous cycle, right? 3/4see a positive gap and of growth. holding below -- jobless rate holding below 30% should be rising wages. that not seeing it grow fast enough, why? moment, japan has a

ramy: i am ramy inocencio in new york. trump will be flying from the of people in washington for his first foreign trip. first up is saudi arabia, followed by israel and europe, the stop in the vatican. let's see what investors are looking very joining us from california is verizon investments chief global strategist, greg valliere. i want an overlooked. what should investors be looking ahead to, in terms of potential deals? the white house and president trump have to avoid mistakes. the have to lower temperature on the extraordinary developments of the past few weeks. bethey do that, it they will focusing on talks between trump and the israelis over mideast peace. there is a lot of anxiety in the make --camp that trump may make promises to the palestinians. arms you mentioned an deal. what could that potentially look like? greg: many millions of dollars between u.s. manufacturers and the saudi's. i think the deal is pretty much cut. but the announcement will generate some publicity. my sense is, the saudi meetings will pr

i'm rainy inocencio. -- i'm rainy inocencio -- i'm ramy inocencio. this is bloomberg.sed just below the 2400 mark. take a look at what is going on here. looks like the global equity valley has deflated this tuesday. we have japanese markets swinging between gains and losses in the tokyo trading session. we got some data showing that japanese average of wages fell for the first time in 10 months. take a look at what is going on. i want to draw your attention to what is happening with the yuan. we have it falling to near april lows. this as we saw chinese trade data come in weaker than expected on monday. we do have aussie shares also resuming declines for a fifth day. the aussie dollar just below the mark.t mark -- the $.74 base metals are under pressure. we have banks leading the drive with 2% today. take a look at what is dragging. nab -- we have commonwealth bank dropping after its third-quarter trading update. shares are sliding after australia's biggest lender, cba, posted a rise in profit on increased mortgage lending. we have harvey norman also falling about 3.4%

inocencio. this is bloomberg.news out of ,mphasis cap -- out of infosys the indian id company, and nothing they are hiring 10,000 u.s. workers over the next two years. this is part of this plan from the company to open four new tech and innovation hubs in the u.s.. we can you see more news of investment heading into the u.s. , but this one is coming from infosys hiring 10,000 u.s. workers in the next two years. betty. betty: certainly the company has been having a hard time dealing with some of the policy changes here in the u.s. particularly on the work visas. that has affected the company. also, rising wage costs locally have also get their margin. this looks to be sort of an olive branch here to the u.s. yvonne: no change is expected from the reserve bank of australia when it says the cash rate later this morning with all economists. we expect policymakers to sit tight on 1.5%. over to paul allen with more. betty: a couple encouraging developments since the last cash rate meeting, right? reporter: that's right.

i am ramy inocencio. this is bloomberg. julia: live from bloomberg's world" is in new york, i'm julia chatterley. scarlet: i am scarlet fu. joe: and i am joe weisenthal. we are 30 minutes away from the close of trading in the u.s.. julia: investors returned from a three-day weekend. the s&p 500 snapping a seven-day winning streak. joe: the question is, "what'd you miss?" scarlet: energy shares leading the selloff -- not really selloff --retreat. how about that? tech shares leading them the upside with amazon hitting $1000. cash president -- president trump ratcheting up a dispute with angela merkel that threatens to undermine relations. elections with a u.k., italy, and germany will. -- presidentazil michel temer says they will get to 2018 with a house in order. speaking at an event, he also said the government cannot and should not abandon its agenda and there is no plan b for fiscal reform. we will speak with alberto ramos of goldman sachs. now let's take a look at where the major averages and as we head toward the close.

i am ramy inocencio. this is bloomberg. julia? julia: thanks.e tells us what the biggest difference is now between managing permanent capital and managing hedge funds. stay tuned for some of that exclusive interview next. from new york, this is bloomberg. ♪ scarlet: this is bloomberg markets. i am scarlet fu. julia: and i am julia chatterley. time for a look at the bloomberg business flash -- a look at the business stories in the news right now. american -- is exploring a bid for spain's -- telecom. the move would expand the footprint as the spanish's companies main care of -- shareholder can -- consider selling. janicet investor partners is setting the stage for a possible proxy fight with whole foods next year. i have added a fourth nominee to a potential slate of directors. the firm announced it has taken a stake in hopefuls. the grocery chain has come under pressure from shareholders because of prolonged sale slumped. the price, $685 million in cash, in a deal that includes citi's fixed income platform. the side of the world's -- the worst n

ramy: i am remy inocencio in new york.sident trump is headed to italy to meet with the group of seven nations. what is on the g7 agenda? and what is on president trump's agenda of his own? kathleen hays is here with the preview, so let's start with the g7 agenda. kathleen: people will be shaking meetings attending g7 for the first times as leaders of their country. you have president trump, emmanuel macron, theresa may, her first global g7. have the host. and all the things that happened at the last meeting, u.k. leaving the european union, donald trump elected. italy has put security of the top of the agenda. pledged to get the strongest commitment on fighting terror that they can from this meeting. donald has been talking about fighting tear since he was president. on this week long trip he has been emphasizing that. g7 onout of step with the climate. he has put the u.s. on review about climate policies and greenhouse gases. he may opt out of the paris agreement. and then of course, trade. back. trump has pushed he is no

i'm ramy inocencio, this is bloomberg.into china's world leading high-speed train industry, key driver in the economic expansion. china's growth is projected .o fall below 6% next year this is bloomberg. ♪ betty: -- yvonne: this is daybreak asia, i'm yvonne man in hong kong. betty: i am betty lou in new york. correspondent tom mackenzie is in china for us, and tom, what kind of challenges may have come up this weekend? there are a lot of the discussions on this project for china's one belt, one road. tom: that is right. is on what china's messaging is around its growing political influence as a result of this hugely ambitious economic program, the one belt, one road initiative. there are huge and locations for the u.s., for example. we heard from the former director of china's national security council, and he said that the u.s. would see this very clearly as an attempt by china to expand its spirit influence. problemht say this is a in the making for the u.s. because they pulled out of tpp, but there is an opening for ,hi

i am ramy inocencio.berg. >> coming up, we check in on the big equity gainers and losers after australia's budgets. banks selling off this morning. plus, we are joined by the shadow finance manager -- minister. this is bloomberg ♪ >> this is "daybreak asia." i'm yvonne man in hong kong. betty: betty liu in new york. trading in new york has been underway from is 15 minutes. the s&p is just down about .3% in reaction to the budget unveiled yesterday. haidi lun has more on the major market movers at this early stage. haidi: that's right, major movers to the downside are the ones we saw yesterday, because this move -- news of the bank levy was leaked yesterday afternoon and we saw the selloff in the big banks. cbo was the worst of it. the selloff was down by the most in 15 months. taking a look at how they are faring, we see the route continuing when it comes to the big five banks. the banks go,when the rest of the markets in australia go, too, because there is such a huge waiting in the index. commonwealth b

ramy inocencio in new york for us. coming up, iphone customers holding out for an upgrade.llingat sales mean for suppliers in this part of the world. ♪ , buddhistictoria peak birthday, no trading in the territory. trading in shenzhen and shanghai. stocks doing well. we are counting you down to the start of the session. and we ared salamat broadcasting from bloomberg's asia headquarters. haidi: i am haidi lun in sydney. china markets trading per usual as it is much of southeast asia, but the two biggest movers in terms of price action, the yen going past 112, heading towards 115 according to some analysts, and the apple story, disappointing. apple falling in the after our session come up but not much of a reaction because apple suppliers listed in japan and korea, so it is the ones in taiwan seeing reaction to apple earnings. let's get a look at the shanghai and hong kong open. some retail investors are getting more fearful about how economic momentum is going. and drugs finding favor when it comes to defensive place in the chinese market. closed along with japan and south k

ramy inocencio has been following all of this. why speak out now?he backoming of what is happening in terms of their quarterly report. the report came out and missed analyst expectations by far. not just 10 percent or 20% but on the order of about 24%. i will get to that in a little bit. folks that do not really understand what it is, it is india's biggest software services company. its peers include infosys. it has a market cap of about $5.8 billion. central part of the entire story is what is happening in terms of donald trump's america first ideology. he wants to curb immigration from around the world. when we are talking about india to the united states, it has to be with the h-1b visa program. the white house, donald trump has said it neighbors foreign workers over american workers and he says that does need to stop. in april, the white house did start to roll out some policy changes that were more restrictive. customs and immigration said they wanted to fight fraud and abuse. we are seeing some kickback from overseas. chair came out with some

let's get the first word news with ramy inocencio.st we had to washington, where national security adviser h.r. mcmaster has denied media reports that president trump revealed highly classified information to the russian foreign minister at the white house last week. and"new york times" "washington post" says he jeopardized a critical source of intelligence on the islamic state. >> the story that came out tonight as reported is false. the president and the foreign minister reviewed a range of common threats to our two countries, including civil aviation. at no time were intelligence sources or methods discussed, and the president did not disclose any military operations that were not already publicly known. has been toldg that attorney general jeff sessions and his deputy have met eight potential candidates for fbi director. they include republican senator john cornyn, the acting director , other fbi agents, one lawyer, and one judge. the white house declined to say whether president trump would hold personal interviews before leaving

ramy inocencio has more on this. >> another chapter here.side clearly pushing into the economic side. china has most economic leverage with north korea, being the biggest trading partner. terry branstad is going to try to use a very long-term relationship that he has had with xi jinping. they have known each other since visited xi jinping branstad when he was a first-term governor of iowa. nominated mr. branstad to be the envoy, the ministry of foreign affairs to china said he is an old friend of the chinese people. this will be put to the test. there may well be room for economic sanctions in order to make north korea get a little closer to resolving the tensions that are happening. >> i think there are other things they can do, diplomatically and economically, to send a clear signal that they as well as the united states and other countries in the world do of tolerate this expansion nuclear technology and missiles by the north korean leadership. there is the nuclear issue but there is also trade issues that have to be dealt with in regards

yvonne: ramy inocencio, thank you. deal or no deal?ked doug fagin if he is worried moneygram will be blocked by u.s. regulators. this is bloomberg. ♪ yvonne: this is daybreak asia, i am yvonne man in hong kong. betty: i am betty liu in new york. moneygram earnings beat the highest estimates. they're still the center of a big war between euronet and alibaba's financial. euronet says it is still thinking u.s. regulators will block the chinese firm's bid. from ant financial, great to have you with us. it has been a busy time here. doug: thank you, glad to be here. betty: for now, your deal is outbidding what euronet has put forth. there are questions, will i get through regulators? how confident are you it will? doug: we are quite confident in will get through. it is strategically important transaction for us. we need to submit a voluntary review here in the u.s., that process started in january. it has been proceeding at pace. the state regulatory approvals are also underway. we are confident we will be able to get through these. get thr

ramy inocencio has the latest. what is the latest? lot in the last hour and a last few days. a few major storms following donald trump and his white house. on one hand, obstruction of justice allegations, which is an impeachable offense. the other is the over sharing of classified documents to russian officials from last week. first, to this memo regarding james comey. the memo, as we have been saying, has basically said that donald trump asked james comey to stop his investigation into mike flynn, saying, let this go. that is according to a person with a copy of the memo who described it to bloomberg. you are looking on your screen at a white house statement, the white house pushing back vehemently, saying that donald trump has never asked mr. comey or anyone else to end the investigation, also saying it is not truthful or accurate portrayal of the conversation between the president and mr. comey. are also seeing some reaction -- a lot of reaction -- bipartisan reaction coming from republicans as well as democrats. for example, senat

ramy inocencio gets us up to speed on this. several companies suffered in europe already.ome -- in asia as well. it focuses on the united kingdom here. the national health service, well known as the nhs, 48 have been attacked. they have mostly come back online, 90%, but they were turning people away for surgeries that were already scheduled. we can only use pen and paper. don't come in now until we come back from this. and a nissan powerplant was also affected. fedex, theed states, global logistics carrier, has been affected, but no details. they said in a statement they have been affected and apologize for what is happening. and russia has been affected. the interior ministry said 1000 computers have been affected. they do point out it was only about 1% of all computers, so they are trying to downplay. in europe, germany's autobahn has been affected and in spain as well. asia-pacific, according to sky and australia, one business has yet been unnamed, but one has been affected. they point out no governmental organization has been affected. china social media is pointing ou

raimi inocencio has been watching the developments.phone call, but president trump is talking down, saying it wasn't a big deal. ramy: that was a surprise in one way, but in the political spin zone, you expect heads of state to tamp things down and say it was not as bad as it was, the media's fault, fake news. you have to look at the smiles and handshakes through the lens of the economy. , ecnt to show this function tr . number one is china, but number three is the united states. that is so important. rock that want to relationship, that seven-decade relationship, between the two allies. during the dinner, which i understand is still going on, mr. trump talked about national security between the two countries and immigration. he also talked about trade and said he reaffirmed the "tremendous" friendship between the two countries. in terms of immigration, they made a surprise deal with regards to refugees. let's call up this map which places in the south pacific that hold about 1200 refugees, people trying to get to australia, but ha

betty: thank you, ramy inocencio.r from the uae minister as opec nations prepare to meet in vienna. this is bloomberg. ♪ yvonne: we are counting down to asia's first major markets opening this morning. japan futures heading lower tip -- lower today. the dollar-yen the seeing weakness after the fed minutes. i am yvonne man in hong kong. betty: i am betty liu in new york. barring last-minute surprises, the world's major oil-producing nations are expected to extend output curves in the anna faris a. how long are these extensions going to last? the uae energy minister told bloomberg it should be at least six months. analysis ofs on the each individual country and that option. but when you put all of this countries together and external forces in the market, six months, nine months, or more, will come with justification. i think we need at least six time for this to happen. we have significant inventories we need to create demand, or a differential between supply and demand. saidur saudi counterpart he would do whatever it

ramy inocencio has been walking us through all the events. is having some political success, if not a political's moving of the tensions that have surfaced between the past few months. we have been seeing images, and there you are right now, donald stepping ivanka trump off of air force one and meeting prime minister benjamin netanyahu. of of the goals, the thawing u.s.-israel relations, especially as it pertains to the end of barack obama's white house. israel was very upset about the nuclear deal with iran, but donald trump himself saying iran should be grateful to the u.s. because of the deal they negotiated with the previous administration, but there are a lot of tensions now. donald trump has also walked of thepotential move u.s. embassy to jerusalem. with that said, he says there is a bond that is not able to be broken. take a listen. reaffirm the unbreakable bond of friendship between israel and the united states. a friendship built on our shared love of freedom, our shared belief in human dignity, and our shared hope for in israel at

ramy inocencio is here to tell us some of the big ones. an inauguraln event. this was huge.ty: huge. ramy: you took the words out of my mouth. 50 u.s. ceo's or so, or the saudi businesses. it was amazing, hundreds of billions of dollars. this is always a goal for saudi arabia, to modernize its economy and diversify itself from oil. here, thisald trump is one step over the next 10 years in terms of hundreds of billions of dollars. let's look at donald trump saying this. donald trump: we signed historic agreements with the kingdom that will invest almost for hundred billion dollars in our two countries and create many hundreds of thousands of jobs in america and saudi arabia. ramy: $400 billion according to donald trump. these are some of the companies that are involved, ge, exxon mobil, lockheed martin. going across, materials, industrials, energy, a plethora of defense stocks. let me look through some of these most important ones. general electric, $15 billion deal, part of the kingdom's effort to diversify away from oil, improving the power grid is what they are trying to d

ramy inocencio has all the details. get us up-to-date on this development.y: where the restart start. we were looking at what was happening yesterday with the national security advisor mcmaster. let's look at james comey. this is that this memorandum has come out that former fbi director james comey wrote back in february after he met with president donald trump. when donald trump basically said to let it go, let the pro, let the investigation go in which he was investigating national security adviser michael flynn into possibilities that he was colluding or that there was collusion that was happening with the russians here. that happened one day after trump fired mr. flynn. comey did send copies to the fbi leadership. the white house says that is not accurate. in a statement that was emailed, the white house says donald trump has never asked mr. comey or anyone else to end any investigation. it is not a truthful or accurate portrayal. that memo was a conversation between the president and mr. comey. the politicians have been coming out in full force. on bot

remy inocencio has this.r: we are talking about thereporter: 21st century at the top of act mind with donald trump when he spoke to bloomberg news reporters. he said he was open to it and actively considering it. let's look at his own words. president trump: we are looking at that. some people want to go back to the old system, so we are going to look at that. we are looking at it right now.and dodd-frank is going to be very very seriously changed so banks can go back to loaning money. reporter: i want us to bring up the kbw bank index. 's 24is the u.s. biggest banks. you can see when the president spoke those words. that is the plunge in the middle of the chart. 24 minutes later, the index had recouped and then gained some, as high as 1.2%. the kbw index closed about 1% higher. what does this mean? it means investors in the banks are now calling president that he's actually good to do anything with a 21st century glass-steagall act. dean, theth nathan bloomberg government policy analyst from washington dc. h

ramy: thank you so much, inocencio by the bloomberg.ext, let's talk about disney failing to eliminate investor concerns about the struggling cable division, espn. we will your directly from ceo bob iger. this is bloomberg. ♪ haidi: i'm haidi lun in sydney. betty: i'm betty liu in new york. you are watching "bloomberg daybreak: asia." stocks in the u.s. ended lower today. joining us is su keenan with mark. it is hard to get traction in the market. reporter: the overwhelming story seems to be.com. it's a big question in the market. a little bit of red, but it's really another day of hunch. into the big stoplight stocks, there was major moves. tesla drives higher. the guidelines that airlines had jumps, led by americans. hedge funds say the skepticism negative.is too american boosted its outlook on higher fares. ng strong earnings. let's go to the bloomberg. doubting, a big story. let's look at why. there is a disconnect in the gauge of u.s. stock volatility, which is the white, and the blue line which is the u.s. economic policy uncertain

ramy inocencio has been taking a look at the details for us.clearly just got this in the last few minutes and i guess the question is, are any of these, or most of these, likely to get through? ramy: the short answer to that is that it is likely not going for many, haidi, reasons. mitch mcconnell, senate leader mitch mcconnell, has said this dead onely be doa -- arrival. he also reiterated that last week, when he was here on bloomberg television talking about the fact that it is not only republicans that are against it, but it is also conservative republicans versus the more moderate republicans on that side, and of course, if they were to come together at some point, you still have the blowback from the democrats saying that this cannot happen. it's basically is trying to tear down the great society plan from lyndon b. johnson in the 1960's, from the great society. i guess we could say, the great america. that us make america great again, from donald trump here. that is good through some of the lines that are the big number items here. support

ramy inocencio walks as to the companies and cash involved.ney is in terms of the possible trade between the u.s. and saudi arabia. function,e ectr the trade that happens between saudi arabia and its top partners. , $45 billion,ne but number two is the united billions.37 p we are talking about hundreds of billions of dollars when it comes to potential money flows between the u.s. and saudi arabia. let's take a listen to president himself about the actual number. >> yesterday, we signed historic agreements with the kingdom that will invest almost $400 billion in our two countries and create many hundreds of thousands of jobs in america and saudi arabia. you were talking about the bullishness we are seeing on the markets. we are also seeing bullishness when it comes to saudi shares. index hastadawul jumped largely because of what has happened here. you can take a look at my terminal, that pop on the last trading day, 2% or so. saudis the inaugural huge affair to modernize the economy of saudi arabia to diversify away from oil. let's look at

raimi inocencio has the latest. if you have a macintosh come you should be ok. basically this brand somware is-- ran targeting windows users because there are holes that people can get into. let me go through what this is. cry will make you want to cry if he gets into your own personal computer. it holds your computer hostage. can't get back into your own computer and data unless you pay up. they are demanding at least $300 and asking for that in bitcoin. don'tises higher if you pay the first time. there is a countdown clock. if you don't do it within a certain time, you would lose your data. developed atpon to nsa and was leaked the masses. looking at where it has hit, everywhere from europe to asia, the united kingdom, the nhs had 40 organizations hit. that x hit in the united states. russia's interior ministry has been hit. we're also seeing one unnamed business in the asia-pacific. chinese gas station payment systems, atm's hit. lew of placesis a s across the world. you mentioned that microsoft users should be careful. how can they protect themselves? in mar

remy inocencio, thank you. nations issue a watered-down statement of protectionism.rapup. betty: a view on emerging markets and that growing crisis in brazil. how that might affect emerging markets in asia. this is bloomberg. ♪ betty: this is "daybreak asia." i am betty liu in new york. and hong am yvonne man kong. emerging markets, materially undervalued, and earnings expectations under and by stronger-than-expected growth. joining us from singapore is the head of emerging markets and as you said fick equities at of the vote. atand asia-pacific equities aviva. does notical turmoil seem like it is ending anytime soon. i want to set up a chart on zero in have gone from brazil. the contagion seems to be limited in this part of the region, but we hear calls from lawyers and voting in favor of a impeachment of michel temer. you think impeachment could be repairable? >> they are in a tough position. temer comes from the old .stablishment in brazil whether there is a smoking gun are not is a question. you have to look at the history of how he got to where he is right now a

ramy inocencio has details. he will not give up. ramy: no, he is not giving up.want to also give their own sprint corporation a good run for his own money, to try to at&t, which are the u.s. wireless leaders here. take a listen. i am open to everything at t-mobile, concerning we can expect to see the benefits of synergy faster than our counterparts might. t-mobile is, in the orthodox manner, the first priority. i am sincere about starting negotiations. ramy: he said the first option here is a merger with t-mobile. but he also adds, if there are other opportunities for industry cooperation, anytime he can give sprint a better leg up. let's take a look for how sprint and t-mobile performed. partpop during the earlier of today when news first hit. you can see the pop just at the start of today in the middle of your screen. but it dropped and is down by 1/4 of 1%. buy would involve capital expenditure. they do own 80% of sprint. but sprint has been known to be mired in debt. i also want to look at the net income for sprint, at least over the past few years. this is t

ramy inocencio has been following the headlines. ramy: this is really interesting.w this, i was not sure where was going, but looking at the stream from china to europe here, it all centers on the fact that people are just buying more stuff online. i buy my groceries online, i buy dog food online. we buy clothes online. that is set to grow into the future. we were also talking earlier about amazon share prices going past the $1000 mark. to house all of that stuff going around the world, you need a place to put it. logicor comes in, based in london. they already rent the space to companies, including amazon, dhl worldwide express. in terms of the growth for revenue, what you are seeing on the screen is a comparison between annual growth for forecast for warehouse is over the next five years, 7.6%. look how that compares with the middle bar, malls, 6.4% growth per year over the next five years, and offices, still growth, 5.2%, but you are going to want to put your money where it grows the most, the warehouses. this is by deutsche bank in a report from this past march.

ramy inocencio has the latest.e popular names of this ransonware program in fracking hundreds of thousands of computers. if you get infected, well, it could make you wanna cry because it holds her computer hostage, froming -- locking you out your files. the only way to regain access is to pay the cyber attackers. $300, andis upward of if you don't pay, you lose all of your data. uk's national health service was spain'ssan, fedex, telefonica, along with russia's interior ministry, and china's sinopec and bank of china. that also shows which companies are using older versions of microsoft windows that also have not downloaded a critical patch the company made available in march. if you have not downloaded that patch, do it now. is "taking theit high the unusual step of providing a security update for old windows platforms." the finger-pointing has started, and while russia has in blame for cyber attacks linked to the u.s. election, moscow may not be the perpetrator here. kasperky labs say russia was hit the hardest.