att will we be looking from scott morrison speech this afternoon?devonte investors, the key thing is how much of the spending plans for infrastructure stacks up against worries about losing that key aaa rating. australia is only one of 10 to have the aaa rating, so it has been a key driver. you have been hearing about the yield differential between u.s. rates and australian rates. and hold to buy australian assets. the aussie has been weakening quite a bit lately, so it will be interesting to see how people the economyd how will be shifting over the next few years. i think elsewhere today, the key thing coming is the vote as south koreans had to the polls. because the index is trading at a record high -- the kospi index has been trading at a record high. overnight, we have seen bonds continue to fall. we did not see much movement in the u.s. stock market, but australian 10 year have continued to decline this morning, following the declined to resign treasuries, so bond yields tick up equities just trade at record highs. there is a little bit of a se

australia's treasurer scott morrison hopes to raise the equivalent of $4.6 billion from a levy on theountry's five largest banks. it's estimated it will add an extra 10% to their tax liabilities. the australian bankers' assocation has slammed the move saying it's not just a tax on the country's banks but a direct attack on jobs and growth. profits at walt disneyjumped 11% in the first three months of 2017, bolstered by attendance at its theme parks and resorts. profits in the first three months of the year were $2.1; billion. but the media giant's revenue gains were more muted. the firm remains on track for modest growth, in spite of subscriber losses at its sports television network espn. not enough to impress shareholders with disney shares down 3% after the closing bell on wall street. it is a small world after all. if you wish upona small world after all. if you wish upon a star, you could have bought the appleshare in 1980 and be a multi— millionaire but i did not so i hear at five o'clock in the morning. ——i hear. that's all for me for now will be reviewing the news in a moment.

i asked scott morrison if you got the levy would be passed on to consumers. he's said the a triple c will the consumer watchdog. one thing he did mention was the royal commission. this is what the opposition labor party has been pushing for. passing that levy on to consumers may give the government the excuse it needs to let labor have his way. perhaps not entirely , a politicalproach tax grab to cover a budget black hole. paul allen in canberra with the reaction to the australian budget. we will be discussing the budget indents later on -- indents later on. we will be joined by william foster in about half an hour. we have been concerned australia might lose the aaa rating. later we hear from australia's -- betty: let's get to the first wort nude -- news. with alisa parenti. alisa: thank you. left-leaning moon has placed victory in north korea -- in south korea. with all the votes counted, he has more than 41% of support, well ahead of his rivals. a toughigned on taking line against korea's sprawling conglomerate and a softer approach to north korea. softban

treasurer scott morrison hopes to raise $4.6 billion from the levy from the balance sheets of the country's it will add 10% to their liabilities. the australian bankers association slammed the move move, saying it is a direct attack on jobs and growth. in business news making headlines, shares in rupert murdoch's news corp rising 2% after its earnings beat forecast, much of the growth coming from the expansion of its real estate website which had a big increase in traffic. as well as profits and revenue. shares in wa lt as profits and revenue. shares in walt disney falling nearly 2% after its revenues missed market expectations, coming in slightly under forecast at $13.3 billion. disney's boss says there has been significant growth in subscribers to digital services, but not enough to make upfor digital services, but not enough to make up for losses. bitcoin surged above $1700 for the first time ever. in the last 24 hours alone its market cap has risen by more than $1 billion, according to an industry website. but in india, where there have been complaints that virtual currencies are being

scott morrison says it is money the banks can't afford to pay. >> it is more accountable at the executiveel. we ensure the banks are paying their fair share. >> rumors have sent bank shares tumbling. and the head of the association blasted it as a political tax grabbed a cover up the budget back home. >> it is a policy that every australian will end up paying for. >> the tax only applies to banks borrowing and won't affect customers. >> it is not on the depositors accounts. if banks tell you they are changing their pricing, because of this, they are not telling you the truth. >> after a decade of budget deficits, they are under pressure to get its house in order. >> that is the latest from the business desk. >> fee for is under fire after announcing it will replace two key members of the ethics team. the governing body will not extend the mandate. they say that their removal means the end of the reform process at fee for. >> they were behind the removal of dozens of corrupt officials. the two men responsible for calling the corruption culprits find themselves out of a job. the rehabilitat

we already heard from scott morrison. further afield at what is going on when it comes to inflation in china. we have got stephen from deloitte joining us to have a look at cpi, ppi. betty: plenty happening in china. we just talked about cpi and ppi numbers, plus this summit on infrastructure. you have quite a few guests on this. rishaad: absolutely. joining me on that is commodities, and greg smith will be joining us in about 12-15 minutes for a look at what is going on there. ♪ >> i am sophie kamaruddin. rishaad: i am rishaad salamat coming to you from bloomberg's headquarters in asia and hong kong. this is "bloomberg markets: asia." ♪ sophie: the yen climbs from a two-month low as investors seek safety on reports that north korea will proceed with the nuclear test. rishaad: the own yang high on the agenda as the new president takes power in seoul, korea. -- pyongyang on high

had the treasurer, scott morrison, signaling the howrnment will redefine talks about that and next week'st will discriminate between good debt for infrastructure spending and bad debt for welfare. i have a feeling this will loosen them up to spend on infrastructure and hopefully continue to protect the cherished aaa credit rating. rishaad: i just want to get your views on where they are with this. the end of the day, let's bring up these charts. here the rba is that a bit of a quandary -- they have driven interest rates to record lows. as a result, we have seen how financials in debt to income has gone up, and rates of pay have actually kind of fallen back a bit. this is 8164, showing how both mortgage debt, household finance debt to income, continuing to rise. have ledt uptick would many of the households into serious problems because they are leveraged. that is the danger of the house price double bursting, having a ripple effect. the people lending this money are the big banks. what are the numbers looking like? they must be getting worried about this as well. did stick upbers reasonab

scott morrison is expected to o deliver. financials flagging the market lower, aussie dollar-dollar down, the lowest level since january. and of course iron ore, never far from mind, under pressure. south korea, let's see how the political results come in. will the korean won look at the issues of trade rather than politics? anna: it seems pollution is a big issue. we will be on the ground there shortly. let's get breaking news from akzonobel. they announced they rejected pbg's approach for the -- ppg's approach for the third time. this is one of the shareholding groups that have been active in trying to get akzonobel to take a more proactive approach, elliott advisers condemning the rejection of the offer. rejectionhat this constitutes a breach of corporate law. the reason for the decline are unconvincing, according to elliott. manus: let's see if there's another swipe across the board of akzonobel. meanwhile, let's get to juliette saly with the first word. good morning. juliette: manus, thank you. lodging is -- voting is u

unthinkable was the word that scott morrison used. php.hold a 4.1% stake in -- bhp.l listing both australia and london. saying, why don't we close the australian listing? morrison says that will be contrary to the conditions of their merger agreement. he says that may lead to a criminal offense and the government would move to block that. there are not too many fans of this idea. moody's saying that it could be credit negative, highlighting their business as a significant asset. has majorroposal flaws. not very many fans. [speaking simultaneously] .> thank you very much let's take a look at how the broader markets are doing in the region. one market to watch is the cosby after coming back from the buddha birthday holiday. we are seeing a reaching a new kospi.for the mostly just doing a catch up rally. other larger markets like australia and new zealand are falling with the asx 200 down about 22 points, after no change , perhapsfed for march signaling that we could be seeing a fed hike in june despite that soft patch in the first quarter. more to come here on bloomber

last week we had the treasurer scott morrison suggest the government may be about to redefine the wayin the budget so it can borrow these low rates, get a good deal locked. in, and start investing in infrastructure if you keep it up -- locked in, and start investing in infrastructure. economists are unanimous that the bank will stay on hold at 1.5% this afternoon. so it is all about the nuance around household debt and weak wages growth. betty: it certainly is, given the fact we see the case against rate cuts seems to be getting stronger. yvonne: elsewhere in australia, you have been watching the first australia banks report this week. how do the numbers stack up? reporter: reasonably well. i will give you some of the numbers in australian dollars. net profit up 6% to $2.9 billion. billion,it was $3.41 up 23%, but still considered a slight miss. these numbers are really built on the success of anz's domestic units. paintf the other numbers more of a mixed picture, particularly interest margins, 2%.ing from 2.07% to -- that is global the lowest levels of the global financial crisis. th

treasurer scott morrison said dropping the listing could possibly be illegal.keep that. betty: that story is so much shipinteresting that the under -- more interesting than the shareholder value unlock plan. up next, more than 60 countries involved in the promise to expand come -- expand trade and investments. this is bloomberg. ♪ ♪ >> this is daybreak asia. i'm in hong kong. betty: i'm in new york. panasonic is reportedly planning to reorganize european and north american sales operation. nikkei news is citing the head of the appliances division as saying computer electronics company his department control. the changes would match the structure of sales operations in india and china. they plan toounced make air-conditioners in vietnam. cybersecurity stocks jumped as the cyber attack entered its third day, suggesting that higher corporate and government spending on technology will follow. oppenheimer says the most profile reaches happened in europe, and that is where the most potential is. walt disney says hackers claimed to have stolen and unreleased movie and

aussie banking stocks after scott morrison introduced a bank levy bill to parliament did not much reaction lenders. anz consistently on the back foot here. 2% today.p financials one of the sectors keeping their head above water in the session. fresh off president trump's protectionist tone in europe, it is now down to india and china to discuss potential new world order with leaders. for more on these visits by prime minister modi and premier masayoshi son, what is at stake in the eu-india relationship? stake isis at specially after donald trump left europe with head scratching on the continent about where the global trade perspective is headed. is it a new world order? variousre heading to countries to discuss that because we had the indian prime minister in germany, a six-day to other countries including spain, the first time in indian prime minister has been to spain in 30 years, also russia meeting with vladimir putin, then click on the heels, li keqiang heading to germany to meet with angela merkel. basically, berlin sees new delhi as an ally and defending global free trade and they c