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

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

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

let's get first word news now with ramy inocencio. ramy: good morning.he trump administration says they will extend relief on steel and aluminum tariffs to some of the allies but not all. temporary exemptions expire this tuesday and congress secretary wilbur ross said the announcement will be made before the deadline. declined to say who would be spared. nations have been asked to accept import quotas for terrorists -- tariff access. designed in the claims she misled parliament over targets for removing illegal immigrants. critics have been asking for her to step down and prime minister theresa may has accepted her resignation. she was pro-european in the government and was a counterpoint to the former secretary boris johnson. twitter sold information to the same academic who obtained facebook users' data and passed it on to cameras analytica. -- cambridge analytica. hogan was given one day access to random public tweets, covering a five-month timeframe from december 2014 to april 2015. twitter has removed cambridge analytica and affiliated entities as a

here is ramy inocencio. ramy: thank you.he 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 iranian born minister

let's get you the first word news with ramy inocencio. ramy: good morning.irst to china and factory output rebounded in march,'s showing its first gain since november. that as manufacturing shrugged off fears of a trade war. pmi at 51.5, compared to median 50.6 in february. non-manufacturing pmi also improved. the results bode well for gdp in the first quarter which is expected to be higher than the official target of 6.5%. macau casino revenue beat estimates in march, underlining the city's recovery from the crackdown on luxury. this game at $3.2 billion last month, rising 22% and topping forecasts of 17% increase. to the middle east, israel is threatening to use greater force to suppress protests in gaza, rejecting accusations of firefighter -- firepower that left people dead. the protests were meant to traumatize their plight as refugees, but israel said they were covered to set bombs. a muslim leader described the killings as a massacre. china's first space lab will crash back to earth later monday but scientists say it is unlikely to break up completely

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,

let's get to the first word news with ramy inocencio. eported better profits as robust demand for the memory chips outweighed concerned about this play -- displaced devices. apple coming in more than one billion over forecast. it includes sale on the galaxy s nine smartphone and eases worry about samsung's business. president trump is pulling back from his call at a nafta deal, saying something may happen "fairly soon." he previously wanted and outlined in agreement so he and the leaders of canada and mexico could make the announcement at the summit of america's and peru next week. he has told staff to "take it easy." president trump renewed his attack on amazon, saying he is taking a serious look at what he calls an uneven playing field. he expects their tax situation to be investigated,. and there could be a decision from. the supreme court. the u.s. -- the president claims the u.s. postal service loses out, but it is said that is not the case, and it makes money. apple boss tim cook will be questioned by qualcomm's lawyers inmate june.

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 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

i am ramy inocencio.ng the many major financial institutions in europe that reported results this week in a quarter that saw volatility come back to global markets, the perspective from these top executives was particularly interesting. >> the threat with geopolitical tensions rising, the concerns over trade globally, how much of a threat is that? >> the world is really mixed. if you look at the economic dynamics, they are very constructive across the board. there is still sign of synchronized growth and momentum. but on the other end, when you look at the geopolitical picture, the picture gets a little bit more foggy. clients are feeling that. you look at the behaviors in the first quarter of client exuberantwe have an beyond the normal, seasonal january, factors. followed by much more muted client activity levels in february and march which was similar to what we saw in 2017 during the year. so, it is very difficult to say anything other than we are prepared from a business standpoint. we've a good mome

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 w

. >> 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 l

ramy inocencio has more on this right now. investors not being very kind today. t at all, really. talking about the 5% down close, shares fell as much as 8%. they did pare some of those losses. the headline that everyone is talking about is that no one expects tesla to hit those weekly targets reportedly targets. bring in my first mind chart. bloomberg model three tracker that we just weked off early this year, are expecting 1190 cars per standard week. we know the target is 2500. than, he has pushed more 2000. a peak rates. we are waiting for numbers to drop. it is as early as tomorrow. today,gs go as planned we will comfortably exceed that number over a seven-day period, but looking at the quarterly number as well, first quarter production, we are expecting that to come in at 9285. the actual target is 10,000. you can see where the 10,000 member lies. those yellow bars for the fourth quarter, miniscule compared to the 10,000 lower. we are going to get there. betty: it certainly seems that way. what about the issue of the cash flow which we heard several of the g

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

ramy inocencio is on the wall with the charts we need to know. commodities index. over the past 1.5 years, it has been trending upward. now with the last week or so, we see a jump by about 13%. take a look at this little red dot. it is the golden cross. the blue line, the 50 day moving average, has risen above 200 dma. this implies bullishness, and global sinking has been pushing this. i'm not sure if it takes into account the tensions. this generally is also helping push commodities index higher. one of the biggest members of it is oil, wti and brent. looking at the volatility of both commodities, for wti in white, this spike up in volatility. both seeing highs not seen in the past few years. for brent it is hitting a high not last seen since february. for the wti, that is highest since 2014. we will be watching that, especially when we expect news regarding syria. another commodity we are looking ands the aluminum price premium. my third chart looking at the premium for the metal going into the united states. this has risen by about three dollar

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

ramy inocencio is there for us and standing by with the ceo of a new york-based company that says it to diversify and democratize access. ramy: thank you very much. hello from san francisco. it is a summit here. we are talking about getting access for nonaccredited lenders. anyone on a bank out there to crowdfunding. walk us through the concept of this. is ventureon here capital has done wonders for the world. the ecosystem has been pretty fragmented. only a few lucky entrepreneurs have had access to venture capitalists to get funding. it is a vast wealth generation event of the century. you have been locked out of it. people can invest a small amount. but a meaningful amount ps.redible tech startu ramy: it may be $10 or as much as $100,000 depending on what they said. what is the rate of return for our investors across asia pacific as they watch this? they are basically wanting to know what's in it for me? whenlike buying a product, someone makes an investment, they care about what we call return on investment. return on investment for crowdfunding is similar to that in tech, meaning

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