kathleen: i am kathleen hays in new york.'re watching "daybreak australia. -- you are watching "daybreak australia" tesla is predicting fast growth in china. it says it will soon be able to triple production at a shanghai plant at 3000 cars away. that ross -- that brought their stock to an all-time high on friday. it is more than double that of ford motors. lunch --msung will launch new events at an event. there is speculation of a new galaxy s series in the clamshell foldable smartphone. insung launched its galaxy 4 february, but it only went on sale in september due to design defects. coming up, more massive actuations across the country and australia with one of its worst week's. more on that coming up. this is bloomberg. ♪ haidi: the market open is 30 minutes away. we are looking at a dismal start to the trading week. future showing a bit of downside . the s&p falling the most in about a month but also middle eastern markets trading on sunday, plunging yesterday over concerns tensions escalating in the middle east continu

kathleen: i am kathleen hays.in hong kong. ♪ our top stories this thursday, president trump said there will be no military response to iran's attack on u.s. bases in iraq. however, there will be tough, new sanctions. asian risk assets hoping for a relief rally. the brinksamsung on of a record as markets open in oeul. -- sp straight to the market action with sophie. rally: we are seeing the tickled in japan, the nikkei 225 and the topix -- we are seeing the rally taking off in japan. holding steady after sliding to a one-week low, and we are seeing some futures picking up with the start of cash trade in asia. this is looking a bit more positive after u.s. stocks climbed to a fresh high overnight. let's check in on korea, because i wasost be -- the kosp gaining ground. samsung could be set for a fresh, all-time high. chipmaker' is shares have been the beneficiary -- chipmaker's shares have been a beneficiary. the korean markets have been cut to underweight. now, a 5-5-year high when it comes to overweight, leaving -

kathleen: i'm kathleen hays in new york. sophie: welcome to "bloomberg daybreak: asia." ♪ our top story this wednesday, washington remains on alert in response to the seller suleimaniling -- killing. japan hits back with an arrest warrant. kathleen: and the latest results from samsung. shares remain close to an all-time high. australian markets have open. sophie, what is the latest? seeing oil names with the declines along at the start of trade. checking in on what's happening with the aussie dollar, looking flat after its biggest drop since august. , this morningline still below the level as we anticipate more policy support from beijing. gold looking likely to continue. first words get the news from new york. >> the effect of the bush arsenal shag are being felt halfway around the world. about 12,000 kilometers from sydney. five have killed at least one for people and up to a billion animals. they are generating their own west or system -- whether systems that can in turn ignite new blazes. the internal investigation that l

i am kathleen hays in new york. am haidid i stroud-watts in sydney.g to francine lacqua about the strategy in the region -- >> the media is suggesting because they dislike trump and everything he does, that means when he talks about 52 sides and sitesabout to strike -- and he is about to strike iran, we can talk about how american alliances have gotten a lot weaker, given america first, right? he does all sorts of things that they cannot stand. we can also talk about how the power symmetries have been moving more towards the united states. the u.s. does not need the middle east as it did historically, the largest energy producer in the world. these technology companies are world champions. the allies are nowhere on this. the americans spend more on defense. the allies are not, so even a president that maximally antagonizes the allies, it reflects the degree of the change in power. oni heard it from others friday morning. where is the strategy? you go right into this, and if there needs to be a recapitulation, reinvigoration of american strategy in the

kathleen: and i am kathleen hays in new york. sophie: i am sophie kamaruddin in hong kong.loomberg daybreak: asia." haidi: our top stories, president trump says there will be no response to the iran -- th e iran attacks. oil continues to slide.

i am kathleen hays. haidi: i am haidi stroud-watts.na is planning to send a delegation for the signing of the phase one trade deal to washington. happy news for investors to start of the year. this is the south china morning post reporting that the trade delegation is going to to sign offext week on this deal. they were taken by surprise not for the first time by a tweet by president trump on new year's the signing stated ceremony will take place at the white house january 15. they had something of a huddle to decide they would then -- if they would postpone the planned trip, expected to be flying earlier. they did agree to do that and they are trying -- flying out. the signing ceremony is expected to take place on the 15th. on chinese delegation return the 16th. they are led by the vice premier who has been at the head of these negotiations throughout this process. we are waiting for details what exactly this deal will contain in terms of precise details. the agreement hasn't been publicized or published. we know the broad strokes in

haidi: our policy editor kathleen hays with the r.b.i. conundrum.review of what we are watching later this morning. sophie: we are awaiting chinese trade figures. the hang seng has declared pre-protest level closing at eight month highs. the biggest duck by market value. tencent -- shareholders sold a 2% stake about two years ago. we are keeping an eye on chinese auto stocks. mainland car sales falling 8% on an annual basis. we are also looking at saic motor. forecast at 29% drop. coming up in the next hour, we have an exclusive interview with the bnp paribas ceo. the bank is one of only two with a coveted type a bond license in the mainland. we will head back to the ubs greater china conference in shanghai as well. we will hear from the ubs head of china equities, thomas fang. the china open is next. this is bloomberg. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond te

kathleen hays is here with what is expected and why. e we talking about this indefinite hold then? kathleen: that is certainly what they signaled might happen. they, being, of course members of the federal reserve at the december meeting. let's jump right into the bloomberg. you can see what they signaled having looked at the economy, having cut rates and decided to pause. you've got 13 of 17 members of the federal open market committee saying we will end 2020 with the key rate exactly where it is at the end of 2019. only 4 saying maybe we will hike the key rate once, so that gives you a pretty strong sense. jay powell, the fed chair, was asked a lot of questions, so we need a material change in outlook. when i spoke to the president of the dallas fed, he agreed, same kind of statement, and one of the reasons i want to bring him into the picture is because the fed is making its annual rotation of federal reserve bank members who can vote, and rob kaplan, who is considered in the middle of where the fed is, as a, he becomes a voter along

kathleen: i'm kathleen hays in new york. to "bloomberg daybreak: asia." ♪ our top story this wednesday, washington remains on alert in response to the seller suleimaniling -- killing.

kathleen hays is here with the numbers. the jobless rate was low but wage growth was pretty weak. eak it down for us. kathleen: let's start with the payroll share. the numbers show deceleration. they did not drop it they were not as strong as the previous month. in december, payroll growth accelerated to 145,000, less than forecast. november was up 256,000. let's keep that in mind. as you mentioned about unemployment, unemployment on the main number remains at 3.5%. i have to show you. i show it going back 50 years. this is matching the lowest number we have seen. let's come back. think about it. you have a tight labor market. we must see wages rising even faster. but instead, wages went in the opposite direction. let's take a look. average hourly earnings, the proxy for wages, rose 2.9%. in february, it was up to 3.4% so it is definitely losing momentum. is the the main takeaway fed can be happy with enough job growth to keep unemployment low. but not only are wages not rising, they are falling. they want to boost inflation. there may be some discussion at the meeting or press con

kathleen: i'm kathleen hays. here are the top stories.red a global emergency has cases and deaths continue to rise. the united states says americans should not travel to china. ♪ juliette: the viruses another blow to the chinese economy. how things are holding up. ♪ kathleen: the indian government puts the finishing touches to its budget as growth slows. this is "bloomberg markets asia." ♪ kathleen: most -- juliette: most asian equities rising for the first time in seven sessions, a release -- a relief rally coming through for some endings, the hang seng .5%. up by 1%. gains, up 7/10 of the nikkei holding onto isa of the session, up 1.5%. a reprieve in the kospi be which was it yesterday. we are looking at the philippines because we have seen quite a bit of a fall in that index. we have been tracking the peak above 7500 and it has fallen below 7300, dropping 1.5%. i want to show you the impact of these coronavirus fears in terms of the weekly look at the asian equity markets. they are down three point 2%, on track for the longest losing s

let's discuss this latest development with our global economics and policy editor, kathleen hays, who quite a surprise given where the south korean economy is right now. kathleen: let's start with how the bank of korea got here because yes, holding the key rates steady at 1.25 percent, as everyone in the world expected, what we are going to wait for his the press conference from the governor to give us some sense of what are you seeing now, sir? let's jump into the bloomberg terminal now that shows you where we are and how the bank of korea got here. you can see two rate cuts last year down to 1.25%. this is where they are holding steady. this is the interesting part. how you saw inflation fall to -0.4%. .n september, it got back it is up to 0.7 percent. it is still a long way from this green to percent target. now, if we look at some of the things share he just mentioned, why governor lee and his colleagues have probably decided to stay here, you have trade tensions easing, property prices rising. they don't like the household price spiraling out of control. chip cycle looks like it

now more on that with our global economics and policy editor, kathleen hays, who has a special guest.a very special guest indeed. he is a professor of economics at the university of chicago school of business, the former head of the council of economic advisers under barack obama. so, welcome. great to have a. -- to have you. >> good to see you again. >> i want to talk about the press conference, how big is the to the globalsk economy and in the u.s. economy? jay powell acknowledged it was a risk, too early to make a judgment. austan: he was being very diplomatic. i do not think he is wrong on the facts. it could be a significant risk. it could definitely freak people out. we know that there is a well-worn channel from consumer, investor and business freak out to recession. but it could end up being something very small in economic impact. it all depends critically on two factors, one, how easily and rapidly does this spread. and two, how damaging healthwise is that -- is the virus. is this like getting a cold, is it as dangerous as the flu, we do not know the numbers. in the meantime

our bloomberg global economic policy operator kathleen hays is here for us. thleen: go back to september 11 when the fed announced a new plan for 2020 and they have no plans to do anything. 2020, 13 of seven , not a hike, not a cut. only a few of them may be want to do one. jerome powell has said that we are not going to move anything on rates unless there is a material change in the economy. we have low unemployment, investment is weak and spending is a linchpin here, but that is where they are standing right now. powellstion is, is jay going to give indication the fed is watching the coronavirus? the economic risk globally to potentially change their stance may be too early. risk already a near-term in asia, particularly in china. said if the fed signals that change, you could see the dollar get stronger a lot quicker. our globaleen hays, economics and policy editor, thank you for joining us. this get back to our guest half hour. k-umarthe president of sri global strategies. the expectation was in 2020. we will have a quiet year, but if we look at the chart