i'm ramy inocencio.nue our global tour of the week's top business stories with a look to europe, where some of the world's biggest banks reported global earnings. -- quarterly earnings. that started monday with ubs. >> a strong report from ubs investment bank, offset by weaker gains. walk me through what went wrong and what went right? >> it is a tale of two halves, that is for sure. the investment bank has done fantastically, equities trading is up, the m&a advisory business has had a fantastic quarter. the unit head vindicated in his strategy in keeping it light and not using too much of the balance sheet. investment banking is a smaller part of ubs wealth managementt these days is a bigger bit. wealth management people have been scratching their head today, and wondering what has gone wrong. the earnings were a little under estimates, that has produced a big negative market reaction. >> and credit suisse is reaping its rewards from the pivot to wealth management. the swiss bank attracting in the first

ramy: i am ramy inocencio.ling back from more markets, further drinking the banks global footprint. the ceo and the chairman are reviewing up to one quarter of the 67 countries hsbc has at present, and may quit bermuda, malta and oracle wide. -- uruguay. yvonne: the battle for australia's energy future continues, the prime minister theng agl to extend lifespan of a coal station by five years. they want to replace it with renewable gas. they say it is too risky for the national grid. rival companies have signaled interest in buying liddell. sands ceolas vegas can breathe easier. his salary has been more than doubled to $26 million. last yeara new deal that quintupled his salary to $5 million. perks.d some other world 20th richest person. yvonne: stocks recovered from trade war fears. the outlook for asia in about 10 minutes time. plus, we look at president xi's made in china 2025 at tech push. theresia gouw joining us in the next hour. this is bloomberg. ♪ ♪ >> 8:00 a.m. in hong kong. we are live in bloomberg's

i'm ramy inocencio and this is bloomberg.nne: president trump is tempering the enthusiasm on nuclear weapons -- on north korea. it asian north correspondent has the latest. a long way from conclusion the potential is a big progress. >> progress is always good but there is reason to have a little bit of a pause as well because north korea has made a lot of promises in the past. keep in mind this is more a statement from north korea establishing status quo. missilee not had any tests in the last five months. they are basically establishing they are steeping -- keeping the status quo. they are not promising denuclearization. basically just no escalation of the status quo. they have agreed to dismantle the testing site in the northeast, a secretive mountain site which is widely believed in the last h-bomb test in september to have imploded on itself, rendering it fairly useless. so that might have already been taken care of by itself. keep in mind that kim has made no pledge to give up the 60 estimated nuclear warheads they have,

this is bloomberg. ♪ ramy: i am ramy inocencio in new york.re watching "daybreak australia". let's get a check of business flash headlines. profits is operating forecasting profits through next march and will climb to billion dollars. the highest since 2010 when the wii was dominant player within the introduced a new president. ramy: and baidu grew strongly in new york and expectations, with revenues at 3.9 two $4.2 billion. pr at a dollart 60 and the improvement is due to surging at sales on its new talkingand subscribers to its netflix like operation. microsoft exceeded forecast lifted by a strong corporate demand for cloud computing services. rose $7.4 billion, or $.95 per share. sales rose 16% to $2.7 billion as marc a soft drop demand for its clout products. ramy: intel is offering better-than-expected second-quarter sales forecast and raising earnings outlook for is the wider computer industry continues to make money. od is in the current peri beating estimates raised on the strong start to this year, intel is also boosting its forecast

am ramy inocencio in new york. this is "bloomberg daybreak: australia." trump's tariffs could have consequences for japan. let's cross to tokyo and i reporter there. i understand portions oh update that he probably should be worried about this knock on effect. what is the situation here? yeah, there are a lot of reasons for japan to be worried. the first and most obvious risk is uncertainty and the prospect of escalation of this trait conflict between the u.s. and china, but u.s., japan, and companies around the world have source production to take advantage of lower production costs and goods produced there might be affected by these tariffs. finally just to add another layer of complication, even if japanese shipments pick up as chinese shipments in tech products, that will increase, especially with the trump administration, so a big mix of different concerns for them. what options remain for japan? yeah, the first and probably the most obvious option is direct persuasion, and prime withter oabe will meet president trump and tried to press the case and

inocencio.amy: thank you. the ecb policymakers are said to be waiting until the july meeting to announce how they will wind up the bank's stimulus program. the members of the governing council wants sufficient time to judge if the euro area economy is overcoming at first quarter slowdown. sources say no formal discussions have been held on a rate strategy. the euro briefly dropped to its lowest level in two weeks on that news. bloomberg has been told theresa may is fighting to avert a rebellion inside her own conservative party with eurosceptics concerned she may break a promise to take the u.k. out of the european union trading block. the prime and asked her's in a circle thinks -- inner circle's thinks she may stay in the union because of parliaments plan to reject. its says it will restart nuclear program if the u.s. breaks the deal struck with the six powers. president trump campaigned on opposition to this and has threatened to drop it unless what he called serious flaws are fixed. the iran

let's get the first word news with ramy inocencio.eporter: the trump administration is stepping up its criticism of china's trade imbalance with the u.s. but has yet to brand it or any other nation a currency manipulator. the semiannual fx report adds india to a watchlist and indicates washington may expand the number of countries being monitored. they include the usa's 12 largest trading partners plus switzerland. japan and china say they will work together to encourage north korea to abandon its nuclear program and the latest sign of improving relations between asia's to largest economies. foreign minister in tokyo the first of its kind in eight years and came ahead of a korean summit and president trump's potential meeting with kim jong-un. the will be a visit to japan next month. tougher lending standards threaten to cool australia's once red-hot property market. an inquiry into the financial industry misconduct is likely to lead to greater regulation of the $1 trillion plus mortgage market. the banks have an unrealistically low l

i'm ramy inocencio, this is bloomberg. into the open of the markets in asia. let's take a look at how we are faring. we are getting a mixed start to the session. we take a look at what's happening in japanese markets. the nikkei is adding one third of a percent. technology and telco stocks. drag,g looks to be the which is losing about 6/10 of a percent. very much in the spotlight after its first-quarter numbers. we have a focus of what's going on, the safe haven plays. this might spook foreign funds. ofy turned to net buyers japanese equities for the first time in 12 weeks, toward the end of march. we are seeing the s&p 600 open flat, let's take a look at what's happening with samsung. chipse rallying memory helping them. an antidoteovided to the stock decline since hitting a record high in december. about $39 says a lot million hitting the peak in november. an outlet things to the tight supply-demand condition. i want to take a big picture view on samsung. the trade ministry announced its new trade policy to soft and the

i am ramy inocencio and this is bloomberg. what we should be watching as trading gets underway in asia. the asian metals and mining reporter david joining us now. focus on south korea and north korea, the kospi index after the talks between moon jae-in and kim jong-un. what stocks should we be watching? there is a focus on south korean equities, people looking to see who is poised to benefit from the impact of the talks and the news over the weekend from kim. the producerd -- for robots of landmine clearance and company, producing protective clothing, they both were up last week, both set to seek new this week. companies poised to benefit from an uptick in intercarrier trade, not a chemical here they are among those to benefit also sunday and their trade manufacturer and the cement makers as well. all of those companies could benefit. also if we see any dilution of economic restrictions from china on south korea, that is seen as a positive for south korea travel companies like the airlines, and in a broader sense, what we are

i am ramy inocencio. this is bloomberg. thank you so much. presidents and remaking -- taking to -- president trump taking to the twitter, saying he will pull out of nafta and stop drugs flowing into the u.s. he tweeted mexico is doing very little if not the thing at stopping people from flowing into mexico through the southern border and in the u.s. they have laughed our immigration law. they must stop the drug and people flow. i will stop their cash cow nafta. all of this now from washington. how serious is the president about pulling out of nafta? ros: it is always a little bit hard to know. it seems unlikely that president trump would pull out of nafta specifically, but he had a bias all along even before being elected are getting into the white house about winning trade deals with geopolitics. he talked about it with china. he talked about it with taiwan and saw the same with south korea where he has had, made a delay trade pact where he just struck until the north korea question is resolved. like as a seem to master de

i'm ramy inocencio. our global report with a look to europe where some of the biggest banks reported quarterly earnings, starting monday with ubs. >> a strong first-quarter performance from ubs's investment bank offset by weaker results from its global asset investment unit. will it right and what went wrong? >> the investment bank has done fantastically. equity trading is up. the unit head can feel vindicated in his strategy, that is the strategy of not using too much of the balance sheet and being capital light. banking is a smaller part of management is bigger. and wealth management, people are shaking their heads wondering what has gone wrong. suisse is reaping the rewards of its ticket to wealth management. the swiss bank attracting new management in the first quarter. why do credit suisse investors, why do they have a smile on their face today? >> is not just the investors. tidjane thiam has gotten two things right. could bring, he cost out of the business massively. and he has a saying to focus on

i am ramy inocencio and this is bloomberg.vonne: the trump in this vision is imposing new sanctions on russia related to syria's alleged use of chemical weapons. this is after friday's airstrikes carried out by the u.s., france and the u.k.. let's go to our bloomberg editor , she is following all from d.c. for us. so of course, the president's: this airstrike a success over the weekend. have we learned anything more on the next step? that is sanctions against russia. >> the only thing we know is what nikki haley told us today in one of her son that show interviews. she said that they would announce sanctions on monday, sanctions religious russian firms that have some involvement in the chemical weapons program there would be no more details forthcoming from the treasury and state department. can look for those in the morning but there seems to be some sense that it may not happen on monday. i think we will have to wait and see. as you know, president donald declared that the u.s. was done in syria, mission accomplished his sai

i'm ramy inocencio in new york.e spotlight today as investors are weighing the implications of the summit. the asia-pacific is sectors -- set to rise. expected tojapan is keep policy unchanged as the stimulus program becomes increasingly politicized. ♪ yvonne: a stork moment, day for us here in asia. the countdown to the two korean summit, breaking news here as well for the markets. we have been seeing a lot of turbulence. leading up tos the meetings. also, the strongest yet -- asian currencies up 3%. from our exclusive interview of the malaysian prime minister, he mentioned about the currency strength. he says malaysia will not force the strength and the market is to decide. antainly, we will not see intervention from the central bank when it comes to that. royal hear seen emfx from the dollar strength of the pickup in yield. ramy: there we are. here.rs are now arriving i believe what we are looking at here is moon jae-in's motorcade arriving in anticipation of the historic meeting with kim jong-un slated to happen

let's get to ramy inocencio to see what elon musk is doing about these production numbers.'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 quarter legal of 10,000 units, bloomberg's model three tracker estimates and thousand 285 will be delivered in the first quarter. these expected mrs. of course -- misses raise a bigger question about cash flow for tesla. dive into the bloomberg terminal. the first quarter could be tesla's third biggest cash burn at $1.17 billion. slower production means a slower rate of investment, which means a need for cash. jeffries as well as moody's has said that tesla could raise two billion dollars more. we

. >> for more, ramy inocencio walks us through the successes of the u.s.'s second-largest bank. basically, bank of america is looking at three pillars that are supporting it. one is a jump in equity trading. another one is cost cuts that brian moynihan has been on this >> over. thee are the tax cuts in united states that have been helping bank of america as well as a bunch of other companies here. let's go to the tax cuts. investors really are happy about this. the magic number is 60%. let's flip the screen. i will show you exactly what i want you to see. the blue bar chart you're looking at is the 60% line. the last time it was there was more than five years ago. mr. moynihan clearly getting his cost under control under that $62 billion mark, succeeding that joy glenn short over at ever core isi saying that this is the gift that will to this bankg posture price. bank of america up i-30 1% year on year. hop into the bloomberg. i want to show you my first terminal chart. you can see the yellow line in terms of the shares rising over the past year. the positive that investors are

the final minutes of the previous show, ramy inocencio talked about the outlook for texas instrumentsving higher after hours. the rosy sales forecast provided them to move up, the largest provider of chips. the forecast beat all the estimates. that is diffusing concern about orders trimming off. the wednesday session as a positive in terms of text strength. betty: in the terminal and the metals market, that continues. aluminum, the biggest in decades after that run-up. su: it says a lot about the speculative trading taking place in aluminum, which had run up to multiyear highs. biggest drop as you mentioned in three decades, biggest two-day drop has a lot to do with the easing of tensions on the sanctions that would be placed on russo. let's look at how the adequacy -- equity stocks are moving. nationaling a hit, aluminum taking a very big hit. aluminum came off the three-year highs. oil on wall street believe could go to 80, but there is a view here there will be a of bearishterms forecast for the supply data that comes out on wednesday. that is one of the reasons we see oil moving s

betty: ramy inocencio with the latest on tesla. not my thing.t guest says tesla could go bankrupt perhaps in the next three months to six months. joining us from chicago is john thompson, who was quoted in a bloomberg story talking about this. months to six month after seeing some of the more data coming through, are you in the three-month or six month cap now? -- camp now? >> probably six months. a highly cyclical business. finance almost entirely with debt, which is coming due. i think their suppliers are going to start to worry that tesla will not be able to pay them, and if you look at the suppliers like goodyear tire, they had a 2% profit margin. good yourself tesla $100 million of tires. the upside is to make $2 million of profit and the downside is they may lose $100 million as tesla goes broke. what you see happening in these types of scenarios is the suppliers like to say what are we doing here? what only get cash up front? that cash demand could not be met by tesla today. if the suppliers acted that way, and i think they will eventuall

betty: ramy inocencio there.t with those charts you just saw using g tv . charts featured on bloomberg television and catch up on key analysis. save charts for your future reference, you can also use them. yvonne: our next guest says political risk is becoming too much. he may consider selling all of his u.s. assets. p capitals is the a& investors head of dynamic markets. they are worth more than $445 billion. you are so frustrated by the u.s. china tit for tat, you may dump all of your u.s. holdings. from what you heard today, you may need to step that back? >> first and foremost, our responsibility as fund managers is to protect client money. you look at the cycle, that u.s. assets, valuations are not cheap. u.s. markets are relatively expensive. fundamentals have been good. if the normal cycles play out, usually what happens is inflation, it pressures the fed to hike too much and causes the next recession. typically that is two years away. ande day today tweets volatility can short-circuit the cycle and le

ramy inocencio in san francisco. we are getting some headlines from japan's finance ministry.peakingtaro in tokyo, saying it was a mistake to ask a school official to lie. that is at the center of this increasingly complex and widening lansdale scandal. aso saying it was a mistake and also is going to work to restore trust in the finance ministry after the ministry admitted to document tampering in relation to this land sale. we will keep watching for the headlines and how they might the markets for japan and the yen. this is bloomberg. ♪ yvonne: monsanto shares surging after the wall street journal reported the u.s. will approve b ayer's takeover. that will remove the last major regulatory obstacle for the biggest deal on the season industry. last month, officials were not satisfied with bayer's plan because of concerns that it could hurt competition. plans to buy back 10 million of its shares from hna as part of the selloff in the hotel company. hna is offering just over 63 million shares. goldman sachs and jpmorgan are among the book runners and underwriters for the offerin

remy inocencio will walk us through the successes.more positive negative, especially when you look at j.p. morgan and citibank on friday. we are looking at better equity trading, better cost cuts, and we are looking at those tax cuts and the knock on effect they are. let's look at the first chart i have here. the cost cuts are what investors are happy about. look at that number on the right-hand side of your screen, 60%. the last time the expense to revenue ratio was 60% or lower was more than five years ago, so clearly brian moynihan getting his costs under control, under that $53 billion mark. saying this is that -- ever core isi sing this is the gift that will keep giving. 2%, butd as much as bank of america is up 31% the past year or so. hop into the bloomberg. i want to show you more in terms of share price movement. the past year, 31% jump. hereof this we are seeing is in terms of equity trading and fixed income trading. i will talk about fixed income trading first, actually and negative. that is in white, falling 13% year on ye

i am ramy inocencio, and this is bloomberg. yvonne: thank you.unting down to the open in seoul and sydney. seeing a pretty heavy week with what data. we have china pmi prices. a big focus will be seoul, the big mess on industrial production. how will this go along with the industrial euphoria? sophie: colleagues are pointing out this interest -- the central bank may be on hold given the outcome not running at levels last seen in 2013, and the kospi was 20% lower than now. that could take a little out of this anticipated rally in creating equities after this summit unless we get more encouraging data when we get trade and inflation numbers later this week for april. we do have the kospi capping a week of gains, and looking at this chart now over the past week. this happened before that korea summit, ending the seven decade war. that does something for korean stocks, political risk taken out of the equation. we are watching for the usual suspects to rally, but there is one company we will not be portrayed on, which is samsung, monday through thursd

ramy inocencio has the results. match in terms of what we were expecting, for both revenue and profit. samsung electronics first-quarter operating profit, 15.64 trillion won. 14.5 trillion,s before the preliminary number came up for april 6 out of seoul . walking through the sales , -- numbers, barely a beat. an estimate of 61.3 trillion won. on par with what we were expecting. we are still waiting for the breakout in terms of divisions. i was talking to you earlier about what we were expecting for displays. a lot of those coming from apple. strangely, in terms of those displays. waiting for those numbers to drop from the semiconductor, the chipmaker aspect of things, especially because samsung did release its marquee galaxy s9 in february. we will see if there is an imbalance or overweight. we are waiting for the lines to drop. electronicssamsung for the one year, up nearly 18%. your today, it is down 1%. look at the ups and downs. it was up as much as 35%. and it fell to 12%. of the the volatility smartphone marke

inocencio. this is bloomberg. ♪ yvonne: thank you. down to the open in tokyo and seoul. the latest with sophie kamaruddin. seems like it will be a quarter that is quiet. sophie: i am here to alleviate your losses. global markets still off for asian holidays -- major holidays like australia and hong kong. korea, at japan and muted start to the week. this after asian stocks finished the first quarter on a positive note. it was still a rough ride. when you look at the map for the regional benchmark, they dropped their first quarterly loss since 2016, moving .6% for the first quarter. investors might be looking for a breather after the march madness and the start of april. 23 of the last three years, april has turned out an average monthly gain of 2.4%. now process of better earnings, thanks to recent it could data and chinese results, that could trigger the next leg up. trade tensions remain top of mind. china say it will build tariffs on imports starting monday. south korean investors will have the latest comments on the bilateral trade