alix: joining us now, lew alexander from nomura.us from carmignac investment committee member. so you heard the setup. what would be your first question to wilbur ross? lew: is this enough? this was, in some sense, signaling the meeting between xi and trump. it is good in the context of that, but the real question is does that really meet his objectives? these are all good things, but they are small. they will not dramatically change the u.s. relationship with china. jonathan: is a good news for investors the direction of travel from the administration? isn't this latest agreement validate that move? jean: a grade. the direction of travel as a matter of policy that will not disrupt the trade environment massively if we look at this disagreement. it does not really change things dramatically, but it means everything economically related will come to the floor and be much more important for investors that any kind of section that may come from political disruptions. g7 isan: speaking of, the in italy. they are not talking about trade,

we have to make sure president trump does nomura additional damage to united states security . it is time for the republican party to put country over party and to remember that their country is the united states of america and not russia. >> we have young men and women in uniform all across the world nation.presenting our even the most junior of though jean officers and enlisted men and women know that you do not leak classified data to the russians. friend.s not our the intelligence community has made it clear that russia intends to undermine our confidence as a country and instead of having a commander-in-chief who would uphold the goals and the protections of this country, we have instead a white house that is showing reckless instability. presidents decision to share highly classified information with a foreign adversary is deeply troubling. it is a serious threat to our national security. to the safety of our families. and to every one of our troops in harms way right now. also puts our nation's intelligence officials at a greater risk and undermines our allies. it is stu

this giant will be in talks with nomura in the brokerage real estate.t its profits there. we are looking at this media company. they had weakened their offer. they want all caps at $20,000 a them, which is bringing up on friday. forecasts signaling a mixed start with a series of weak u.s. economic data. we will keep an eye on the defense stocks in south korea. the kospi futures looking fairly resilient. we have seen the point that it has changed. that is a brief look. japan, ♪ south korea, omens. ♪ ♪ the foundationys for a new east-west trade route. xi jinping calls it the project of the century. finance ministers taking a pragmatic view of trade. steven mnuchin says the u.s. reserves the right to put itself first. shery: the weekend cyber attack may strike again on monday. betty: air asia doubling to almost one billion passengers by 2025. shery: this is the second hour of "daybreak asia" live from bloomberg's u.s. and asian headquarters. of course we are watching how some of the major markets like japan and korea are doing at the open. here in the u.s.

a bid for nomura a majority stake in nomura real estate.ts by strengthening its property business. real estate has a property value of $3.4 billion. haidi: bhp billiton going back l plain old bhp, about the aunch i campaign. the company says it needs to change the way the community thinks about it. it says the change has been in the works for 18 months and has nothing to do with elliott management's recent calls for reform. rishaad: changes to mitsubishi ufj financial, consolidating corporate counts at its trust banking division into commercial operations, seeing a drop represent is to bank of tokyo, hoping to boost negative interest rates to boost profitability. around $106wings of million. right, breaking news coming through, western digital, one of the companies looking to get a hold of toshiba's chip division. they were saying earlier they would try to block the toshiba deal and wanted more transparency into who toshiba would sell the chip business too. they were going to announce legal action and arbitration, but the sheep is saying we

louis fed president's views with nomura. this is bloomberg. ♪ yvonne: this is daybreak asia.m yvonne man in hong kong. betty: i am betty liu in new york. anchor: u.s. policy makers would like to start shrinking their bloated balance sheet by the end of the year. guestpen growth, our next says the fed's communication around balance sheet reduction has been excellent and shall limit the chance of another taper tantrum. you know, we just had jim bullard on from the st. louis said he said the taper tantrum a few years ago was a malcolm indication -- was from communication. do you think the fed is going to execute both on the execution, but also on the committee case and this time? do you have faith in that? executing veryen well. i think they learned a very important lesson from the taper tantrum, and particularly out here in asia and other emerging markets. what happened. it has huge effects globally. we saw that in the minute last week on just how much more detail and careful they are deliberating how they are going to go about it. my sense is that this, when they do actually s

membersrmer nomura bond accused of lying to clients have not said whether they will testify.ordings about one allegedly preparing to live. the case against them is nearing an end. testify not required to area they normally do not make a decision until it is complete. aey must pay a quarter of billion dollar to new york state for turning a blind eye to shipments of untaxed cigarettes from native american reservations that undermined anti-smoking efforts. the judges said ups failed to comply with a 2005 deal to fix the problem without going to court. rule on damages later. new york state wants more than 800 million in damages for lost revenue. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am checking the markets midsession and asia. at the end of another volatile week for investors. playinging oil price into these heavily resourced markets. australia's asx 200 leading declines, down 0.7%. players across the region, including in hong kong and malaysia. kospi resilience, up 0.4%. at another record h

cut bonds nomura recommendations amid dispute concerns over its memory chip business. at another stock, tencent has been on a tear, coming out with earnings tomorrow. if you take a look at this chart, we are seeing quite a few bearish positions coming through. from ubs saying it is typical short-term trading ahead of the release of earnings. we are expecting 10 sent to post a 44% increase in quarterly revenue. this is a stock that has hit record highs and lifted the overall hang seng index. manus: thank you very much. breaking news coming through from hsbc. they are going to issue some perpetual contingent convertible securities,, security is used by a lot of the banks. billion, assue $3 six pe 6% contingent convertible. so you've got this capital relief, the others are doing right, looks like hsbc has gone for $3 million. anna: the conversation around the earnings of story was about the pace at which they will invest in the business. this was a slightly different tack. let's return to the u.s. political story. in the u.s., president donald trump's top foreign-policy a

three nomura bonds traders accused of lying to clients have not said whether they would testify.and others is reaching and and. --a an end. man again, beaten taking a lead in the ancient game of go. he has played professionally since the age of 10 and announced a computer could never beat him. hagover, he declared alsp a god after it defeated him. time to see how the asian markets are shaping up this morning. energy players not having a good day. shery: stabilization for the oil prices, not so much. those into says heavily dependent on energy stocks. it was not such a surprise we saw the reaction. a huge run-up ahead of the opec decision. we got nine months of extended cuts. the reaction was pretty broad, following from the hig five-week high. stabilizing a bit but not enough for the energy stocks. 200 falling after two days of gays. -- gains., we will see what happens to the rest of the markets as they open. aussie dollar stable but only after plunging overnight. we had commodity currencies getting hit hard. it comes to asia currency markets, we are seeing the offshore renminbi

nomura says it has further to go. this is despite when you are seeing geopolitically and in north korea. anna: thank you very much. juliette saly in hong kong. a suspected terrorist attack in manchester killed at least 19 people and wounded 50 others. it would be the worst such incident on british soil since the 2005 london bombings. the explosion struck the area on ariana grandea grand concert. let's bring in on the phone charles lichfield. charles, thank you for joining us this early hour. this as we have heard from the manchester police, it is being treated as a terror attack. give us the context. this would be the worst such attack since 2005. >> absolutely. the security threat throughout europe has been very high for years now. far, at least, has escaped the worst of it. only one deadly terrorist attack, which took place rather recently, in westminster, and that was a very small, isolated event. if this is confirmed to be a terrorist attack, which seems likely, this would be by far the worst. i heard the same inf

[inaudible] rising and nomura raised it to buy. utility company saying it will flex but consider share buybacks and that stock was raised to a buy at ubs. we had greek shares climbing. 40% above the 30 day average, 15% above the bloomberg one year price target. that is a look at some of the movers in tokyo. yvonne: let's get the first word news with paul allen. paul: the u.s. commerce secretary wilbur ross said president trump never intended to tear up nafta but it requires a thorough revamp. speaking in washington he said the guiding principle that will be "to do no harm." russ says he wants talks with congress by july has big changes will require approval on capitol hill. he also says the window to change nafta remains open through the -- to next generally. a malaysia airlines flight turned back to australia after a passenger tried to enter the cockpit. back in28 landed melbourne. the carrier has offered no further details. malaysia airlines is recovering from two fatal and unexplained disasters in 2017 where a flight banished en

court has been told nomura started recording telephone calls after a traitor was indicted for lying toe former bond traders are charts withnecticut training junior staff to do the same. a former manager said traders were exclusively warned -- explicitly warned not to like. over to boeing, the company has halted all flights of its new 730 max after engine flaw was discovered just days before deliveries were to begin. there was a quality concern over low-pressure turbine disks which is seen as easily fixable issue. they expect to deliver the first planes later this month. shares fell on the news but recovered somewhat by the close. volkswagen's most senior figures are said to be under investigation for alleged market manipulation. chairmand the ceo and and a former ceo face questions about whether they delayed therming shareholders about diesel emissions tests. it has cost the company almost $25 billion. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. you so much. softbank gaining at the tokyo open after they

betty: thank you so much, shery ahn with michael na of nomura.have the vp of at an institute for policy studies joining us in seoul at 10:10 hong kong time. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg simply -- subscribers go to dayb on your terminal. you can also customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪ ♪ yvonne: this is daybreak asia, i am yvonne man in hong kong. liu in newi am betty york. let's talk earnings in the u.s.. it is neat down more than 2.5% in after-hours trade. was, in china,ng ramy inocencio has the details. espn continues to get a drag. ramy: the biggest drag. once over lining have to do over china. more of that in just a little in terms of subscribers, you want a bigger foundation. but that is shrinking, while costs are getting bigger for them. nba games,broadcast it costs them $600 million more than in the past. also, a scheduling chip with college games makes them put out more mo

interesting, smartphone on the rearview nomura of your car. -- on the rearview mirror of your car. subscribers, you can watch the discussions that kuroda and bernanke are having a conference. you will also find the big diary entries coming up today and this week, as well as the events you may have missed earlier. this is bloomberg ♪ yvonne: this is "daybreak: asia ." betty: the offshore yuan weakening slightly after moody's cuts china's rating, the agency raising warning flags on a worsening outlook amid fears that growth may stall. here is our china economy editor malcolm scott with more context on this. talking to were kathleen hays earlier, who basically said, what took so long? movies is recognizing what investors has said, which is that china does have too much debt. his moody's catching up with the market, or what is happening here? malcolm: the move to a negative outlook in march of last year, and we have been waiting for a follow-up. we were not expecting it today. you can see by market reaction, the australian dollar giving lower. moody's has taken markets by a little bit

guy: andy chase is the head of european rate strategy at nomura.ey to markets, you are mispricing it. markets to carney, we ain't. andy: that line that was in there about having surprising -- was at odds with everything else in the report. i think the market look at the report and saw where the inflation forecast were lower than they were before. and just thought, there is no pressing need for us to get hikes. i wonder if they are trying to nudge the market around, rather than actually say that we are going to be hiking soon. tom: you talked about economic growth and convergence. are the central bank is converging? is there a convergence of theory by central banks? the extent the economies are synchronizing, it allows central banks to talk in similar ways. i think there are some big global themes. the end of the q.e. era. the ecb and the fed talking about balance sheet reduction. but the bank of england is maybe the odd one out here, because of this brexit thing. tom: is governor carney a forward guidance? andy: he has done a variety of forward gui