head of china's top investment term sat down with tom mackenzie. they talk about how uncertainty is affecting business. the current situation concerns us. on the one hand, there are solutions to trade issues.

china correspondent tom mackenzie in beijing, joining us in the studio. investor here we are, looking at 6.8% private consumption is robust. if you look at the chart, the question is this. there is a bullishness in terms of where the analysts think -- there is an optimism in what analysts actually think. how optimistic are you on china, given the data sweep you have seen? >> good morning. we have had a great set of numbers from china in terms of the growth, showing the economy is fairly resilient. if we look going forward, there has been some drop-off in the momentum of the leading indicators. i would expect growth in china moderates going forward. think -- is your view on china hedged to the ability to maintain the status quo? is that the most important thing in the minds of the chinese leadership and on which the markets will measure them? and i am talking particularly about trading relationship to the united states. monique: in terms of the trade picture, it is still in the trades that type of realm. we don't expect the next relation -- exclamation --

china correspondent tom mackenzie joining us from beijing. ing, amid the simmering worries so she mentioned -- sophie mentioned about the trade war. tom: it is a bright spot. these are the official manufacturing pmi data we are talking about. they did beat -- the strongest numbers since november. we had the holiday fx that are starting to fade your the lunar new year holiday that affected and distorted the january and february numbers, and of course you have seen this surge in overseas shipments. that has really driven a lot of the expansion in the manufacturing sector. it seems from this data point at least 51.5 is the number from march, well above estimates of 50.6 and february. in terms of nonmanufacturing pmi, services and construction, that was 54.6. well above about february. if you look at the likes of the chinese investment bank, they expect to see a pickup in manufacturing investment growth going forward here in china. then you have the likes of anz ank saying this points to expected robust number in the first quarter in terms of gdp

let's get the first word news with tom mackenzie. dent has been informed that he is not the target of any of robert mueller's russian investigation. ron rosenstein told the president he is also not involved in the inquiry into his longtime lawyer. the president says it is not time to remove either rosenstein or mueller. >> there has been no collusion, they won't find any collusion, it doesn't exist. as far as the two gentlemen, they have been saying i am going to get rid of them for the last s, theyonths, five month are still here. ampceo greg miller is stepping down. the fund manager apologizes unreservedly for what it calls misconduct and failure. they admit to misleading and lined to australia's security regulator, overcharging customers for services they didn't receive. analysts say the board will have to step down and amp may face class lawsuits from investors and advisors. bank of england governor mark carney says the u.k. should prepare for rate rises over the next few years. he has hinted that expected hike next month is not a

i'm tom mackenzie. this is bloomberg. >> thanks for that.to sweeten its offer to shareholders in a proposed restructuring deal. we are told if this restructuring is rejected the commodities trader plans to file for insolvency. joined now from singapore, shares are getting a boost. we aren't any closer to getting to the end of this saga. >> i don't -- i think we are definitely closer to the end of the saga. the shares had the gift day on friday, a record of more than 60%, and that was down to the fact that companies said more than 75 percent of senior creditors were going to accept their restructuring deal. now we are reporting today that the creditors have agreed to sweeten the deal, say they are increasing shareholders to as much as 15% from 10%. that is far from clear if it will be enough to satisfy shareholders so things are still very uncertain. >> i will take it from here. this, to quote churchill, seems to be the end of the beginning. the beginning of the end is where we are. what happens next? the next couple of months are going to be

betty: thank you so much, tom mackenzie. iews throughout the day from the beijing auto show. up next, hakkan samuelsson joining us live in the next hour of "daybreak asia." and later in bloomberg markets, we talked to the ceo of a chinese electric car startup, neo. stay tuned for all that. this is bloomberg. ♪ this is bloomberg. ♪ ♪ ."onne: this is "daybreak asia betty: much more ahead in the next hour. in just a moment we will be live from the beijing auto show to speak with hakkan samuelsson. yvonne: looking for to that, and thoughts on hour, the u.s. 10 year yields reaching 3%. can we hold to those levels or break above that? more from him in a moment. this is bloomberg. ♪ this is bloomberg. ♪ yvonne: it a.m. in hong kong, i'm yvonne man. welcome to daybreak asia. set to fall.stocks industrial zantac under pressure. the 10 year yield reached 3%. the biggest to climb into two weeks and bellwether caterpillar fell as it described the high watermark. globalbloomberg's headquarters, i'm betty liu after 8 p.m. on this tuesday.

from the factory tom mackenzie joins us from beijing for more on this story. s growth trajectory? tom: the official target for this year is 6.5% growth. tonomists we have spoken expect the first quarter growth picture is still going to be pretty solid in line or above the 6.5% that is the annual target. further down the line, you should expect potentially a moderate slowdown in growth. that is according to bloomberg economics and our in-house economists here. --tainly, the private privatizing survey missed forecasts considerably, as you said. 51 was the number. we have seenrint since november of 2017. output was down. as were down. let's put it in perspective, it is a 10th straight month of expansion for the private server. small versus the official survey that looks at a much larger corporate and many state owned enterprises. that surprised to be upside in terms of the print we got for the official manufacturing pmi number for march which came at 51.5. that was above the forecast and what we saw in february. a lot of that was down to strong external demands. o

tom mackenzie, our china correspondent in beijing.o one will win if there is a trade were between china and the united states. we spoke with andrew for the form for asia. the ramifications of rising trade tensions and the xi jinping's response to president trump's terrorist threats. ff she has said -- tari threats. likee has said it would be cutting a piece of arm from your own body and expected to grow back. your credibility is everything. morning, youis cannot be harmonious with someone who does not do what they say they are going to do. with australia's run into nontariff trade barriers, such as we can't get it free. there are various hurdles in life which, according to china, should not be having. it is more than my new chef. that, tomore than respond after the economy like the united states, we are about to start a trade war. they are saying knock yourself up, we will open up our economy even more an hour trade bind even more. that is really a clever response, but a response a has been in the pipeline for many decades. as a seabo

i am tom mackenzie. this is bloomberg.see equities a decent rally at the get go but the true story will be on commodities and funds. the latest with sophie kamaruddin. positive start a but we are getting ominous settings in the bond space given the move we saw in treasury yields overnight. we have the 10 year rate holding at 2.87% as that trade fears cast a shadow over the other beige book we got on wednesday. taking a look elsewhere, here is what is happening in seoul, the at 1%. data from the bank of korea showing march pbi extended a small rebound from a years ago. checking in on what is going on with sydney shares with commodities very much in the limelight, checking in on materials and energy players, both segments gaining ground trading at three-year highs as we wait on a opec meeting and materials over 2% given the uptake across the metals complex. arecan see aluminum layers leading, that is down to aluminum jumping over my percent. tracking that rally in aluminum which is trading at august 2011 highs. looking at eh

tom mackenzie reports from beijing. eez in pain will be walking a tightrope when he addresses the annual boao forum. they will see if he takes a tough stance on trump's threats and showing that china remains open for business. beijing has said it would fight a trade war to the end at any cost. but he will want to avoid stoking tensions that could risk derailing the chinese economy. we have been told to expect significant announcements on moves to further open up china's market. whether it will be enough to assuage complaints from china's trading partners, including the u.s., that the reality often fail to match the rhetoric remains an open question. tom mackenzie, bloomberg beijing. mark: investors are awaiting that speech and waiting to hear if he dials down the rhetoric when it comes down to the traits that between the u.s. and china. stocks are mixed with the ftse up and a little changed for the dax and the cac 40 today. check out the currency board with a number of currencies rising against the u.s. currency. i will

tom mackenzie joins us from beijing. rather encouraging the trade war of these -- tom: this is the first increase in manufacturing pmi data. components,n by key the effects of the chinese new year holiday. opening ands sending exports overseas. big pickup in overseas shipments. impacting to the positive. china's manufacturing sector. the official pmi number came in 51.5, and that was solidly above what we saw in february and well above estimates as well . smashed estimates out of the park and nonmanufacturing pmi, services and construction, that was also up from the number of february. what we are likely to see a critic to the analysts is a stronger gdp number for the first quarter as a result of this strength in manufacturing pmi door open for policymakers to continue the de-risking campaign and their efforts to put a curve on the growth, the expansion of credit. good to the policymakers. betty: china's factories, are they weathering this trade brouhaha, this storm? beenas you have discussing, we are still waiting for t

also, tom mackenzie there in beijing.es coming march house prices for china falling year on year in 10 out of 70 cities, rising in 60 out of 70 cities. month, 10 out of 70 falling compared to 16 in february, 50 five out of 70 rising in prices month on month compared to 44 in february. we are seeing gains when it comes to the property markets, but probably not a great deal of policy implications for beijing. let's get to first word news now. >> thank you. china is adopting a carrot and stick approach to trade tensions with the u.s. it is promising to open up the world's biggest auto market. repeatedly made clear that it did not want a trade war, but has promised to buy president trump trade policy and defend it's an interest. china underlying its growing status in asia by overtaking america as the main export market for be a noun. the u.s. was a top buyer for 15 hanoias annoyed rid -- relied on washington. dropped 33% compared with a 20% rise to the u.s.. the imf continues to expect the global economy to expand for the nex

let's get to the chinese capital and join tom mackenzie.ory roll call there, isn't it? it is indeed. neo is one of the most interesting startups focusing on electric vehicles. i'm joined by the u.s. ceo for neo. thank you for your time. let me talk about the changes around foreign ownership. what degree does that erode the competitive edge you may have had being a china-based company? the automotive industry and the dev market is competitive. china is the biggest market. we are not naÏve about that. confidence around the whole user experience. we are following all the policy changes. our first and foremost focus is to build and engineer a vehicle for china in china, and that is 100% of the focus for the company. make sure it's engineered and china, built in china, for the china market. getting have the esa into dealerships this year. are you on target? >> yes, we are. we have launched a vehicle in beijing. suvs we are the launching. we are announcing another version as well. we are taking orders. 10,000 vehicles in the founders addition are

tom mackenzie is in beijing.or peoplerning point, have been calling this a game of chicken, right, so what happens from here? certainly the rhetoric has been dialed back by the two leaders. that is a positive overall for trade tensions. the key issues remain unaddressed. president xi jinping outline proposals that do address some key concerns of trump and his team around the automobile sector, financial services, intellectual-property protections. president xi jinping said the chinese would be bulking up ip protection and make greater efforts to draw in imports, but none of the policies announced were new. what a lot of investors and china's trade partners will be looking for is how these policies will be implemented, the timescale, and what the implications are going to be of these proposals, so that is what they are looking for. remain to bes that addressed, the talks ongoing between washington and beijing broke down last week when the u.s. demanded that china stop supporting its made in china strategy, stop su

betty: tom mackenzie in beijing, our china correspondent.n bank plans to sell a stake. our exclusive interview with the cofounder and ceo. that is next. this is bloomberg. ♪ ♪ this is "daybreak asia," i'm betty liu in new york. yvonne: i'm your yvonne man in hong kong. a chinese automaker is looking to pick up a majority stake in brokerage of akzo bank. they are still waiting for a thumbs-up from beijing. joining us for an exclusive interview is the cofounder and ceo, kim. interesting, the development we have seen of geely. ,ell us why you chose geely beyond the connection with the purchase of volvo. it is an important thing. geely is a successful chinese company that has been able to successfully abstain outside of china. is under headlights quite a bit. is the marketsen are slowly opening up. we have global shares of platforms. . i him in singapore to launch our newest version. is quitee to trade interesting. as we see the markets open up, it can be very helpful there. it is a successful business, professional people, i am proud of it. yvo

tom mackenzie is on the ground in beijing for us. good to see you.hat do they think china's response is likely to be? i just laid out the physicality of it -- $3 billion they can manage, 100 billion begins to get difficult -- the reaction? >> certainly it is a challenge for president xi, and he will have to walk the tightrope in his speech. we are expecting him to push back. certainly you will be under pressure from his own team to push back against these tariffs. he is unlikely, though, to name check president trump, or even the u.s. he will want to reiterate that china has the right to protect its own industries and to retaliate. on the other side he also wants to welcome new investors and make it clear that china is a market that's open to foreign investment. he doesn't want to see these trade tensions exacerbate because he has a lot of domestic issues he wants to tackle. what we have been hearing is that there will be quite possibly some significant announcements around opening up some of the sectors so that is something we will be focusing on. t

tom mackenzie has the latest. come backhe chinese and say they would be retaliating in kind. ll these tariffs impact china first? tom: these tariffs are being on 1300 different products exported from china to the u.s. what is interesting, they are largely focused on high-tech goods. for example, medical equipment, industrial equipment. whichr example, shoes, has been a concern for retailers in the u.s. to be drawnttempted to protect u.s. consumers to some degree. they articulated that in their decision, or proposed decisions. the 11th of may before these are put into place. what china is going to be concerned about is the targeting of their made in china 2025 plan, a central policy for president xi and his team. the fact of the u.s. zeroed in on this, they will be concerns about threats from the u.s. to draw up higher barriers for chinese investments in tech and innovation in the u.s. that will be a deep concern. obviously, tariffs on metals will have limited impact on the chinese economy. these will have more of an impact, but unlikely to be disastrous. it is trade tensions a

tom mackenzie there in beijing.he cteead, china's blocked from importing tech to the u.s. -- exporting tech to the u.s. to shrugchina starts off their sluggish start to the week. this is bloomberg. ♪ rishaad: back to bloomberg markets. i am rishaad salamat in hong kong. haidi: i am haidi lun in sydney. zte has been barred from exporting sensitive technology from the u.s.. let's get more on this story from peter elstrom. the contextting in of the broader trade tensions. why is the u.s. taking this action? peter: cte got in trouble for allegedly fire leading export bans, sending sensitive equipment to a rent and north korea. thatagreed to a settlement put them on probation to make sure they did not have any further violations. the u.s. commerce department is finding out that instead of reprimanding the employees that were involved in violating sanctions a year ago, they found these employees were kept on, they were paid their full onus is, they were essentially rewarded for this paper. the commerce secretary ross came

guy: tom mackenzie, thank you. joining us out of beijing.minutes from the start of european trading. up next, we will look at what stocks we should be watching at the open, it including lvmh, which reported double-digit sales growth overnight. we will see how the stock opens. the market open is nine minutes away. this is bloomberg. ♪ ♪ guy:guy: welcome back, we are six minutes from the start of trading in europe. urine -- european equities are in aggregate bid this morning. which stocks will be moving? joining us, joe easton. lvmh consumers, backed by moving. >> lots of louis vuitton handbags being sold, organic sales were up 13% in the first quarter. a fantastic order for them. pradat shares rose -- shares rose in hong kong. it could be a big sector. matt: that is interesting, a story we will follow this morning. also in the banking sector, a little m&a action with bnp and ratifies and -- by the polish bank operations, so that is just under 800 million euros. a big deal. they will reduce rbis and profit by around 100 20 -- 120 million throu

citic as a chairman of capital speaking to tom mackenzie. file interview coming up from the beijing auto show and magenta catches talk with the volkswagen ceo later today on bloomberg markets europe at 40 p.m. hong kong.- 4:30 p.m. in hong is get a. check of business flash headlines. the corridor iron ore shipments fell blaming maintenance work and poor weather as production costs rose. deliveries dropped just under 39 million tons, in light of the median forecast in a bloomberg survey. pocket expenses are seen as high $11 incompared with february. yvonne: u.s. treasury's dropping sanctions and a path to lifting them. more than any90%, day since april 24 of leicester and officials they don't use measures. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store ne

head of china's top investment term sat down with tom mackenzie.ut how uncertainty is affecting business. the current situation concerns us. on the one hand, there are solutions to trade issues. i think will make things worse. >> do you expect to see a slowdown in chinese investment in the u.s.? >> this year, for sure. 2017 with already 30% lower than 2016. although, 2016 was a huge year. lowerect 2018 may be even and certainly we will be more proactive in looking for those deals in europe and we are doing a lot in japan in the last 10 or 12 years. at the end of the day, capital can go wherever it is welcome. >> are you investing in areas par ofe linked to or the made in china 2020 strategy? >> of course. there is the tailwind behind us and we need to look into it. for example, information technology, medical equipment -- of these, in our view, is clearly sectors that are seeing a lot of demand. a lot of the reasons to look into them for investment opportunities. incense of the changes around foreign ownership, financial , for many it sounds positi

let's go to china correspondent tom mackenzie in beijing with the details. tical implications of this move? tom: this is a move that has been broadly welcomed. what it means is institutional investors in china will be able to buy more securities abroad. the government sets a quota and it has relaxed that quota and increased the amount of to buyies it is allowed them about $89 billion u.s. to about $98 billion u.s. as of april 24. so it does give institutional investors more options and it seems to be another step towards this gradual move to open up the financial markets here in china and see the markets and investors be more integrated with the global system. it should be seen in that context. it is being welcomed by economists as a significant move. betty: why has beijing made this change now? tom: we got a chart that illustrates a key component. it is really the strength of the yuan. if you bring in the gtv terminal, this chart illustrates since the- yuan devaluation in august 2015. now the level is the highest since the devaluation, around 6.3 right now.

i am tom mackenzie. this is bloomberg. haidi: as we had been talking are onthe markets commodities today. gains in oil and metals. turmoil from u.s. sanctions on russia. ec this collective surge upwards. this collective surge of words. sanctions. the biggest producer outside china. traders in consumers and factories piling in on news of these sanctions. nickel jumping the most since 2009. aluminum, that run material striking a fresh record high. let's look at sustainability of this rally. i want to bring in mark. he joins us from singapore. why are we seeing this? not just through aluminum and oil, two very separate stories with fundamental reasons for these price gains. but really across the board. complex ismetal relatively easily explainable with the imposition of sanctions we saw on april 6. the response to aluminum has been logical and is the markets slowly start to understand the extent to which russo penetrates the aluminum industry, we see perhaps these gains are justified. people are calling for higher prices in a

emily: horizon robotics founder simply withking tom mackenzie. verge of taking the leading stake in india's ecommerce. they would purchase of two 80% of flipkart. earlier, they had considered a deal with amazon. that does it for this edition of bloomberg technology. we are live streaming on twitter. 2:00p.m. in new york and p.m. in san francisco. that is it for now. this is bloomberg. ♪ >> the u.s. 10 year yield is still hovering below the key figure. how much does the psychological level matter to markets? guy: can he convince president trump to keep america in the iranian nuclear deal? manus: oil is at the highest level since 2013. guy: and sales growth is a soaring. what could the latest figures

our correspondent tom mackenzie joins us from beijing. t she, -- president xi is playing to a domestic audience. what balancing act is as likely to be? tom: you are right to point that out. he is quite possibly the most powerful later on the planet right now. but he does have a constituency here in china that he has to appeal to. it is a challenge, a tight rope challenge for president xi. he has to show he is prepared to retaliate. that he is prepared to stand up against the tariffs from president trump. equally, he doesn't want to see this trade relationship deteriorate to the point where china's economy is thrown off the track. what we may here at the speech tomorrow is not -- is an articulation of the premises that cheney policymakers have already made to further open up their markets. this year is the 40th anniversary of the reform and opening. bank. -- opening period. we make it more details around that. certainly the chinese have said recently that they are prepared on this to the end trade issue. domestically, president xi is going

tom mackenzie is there to talk more about what yi gang said. his boss said it yesterday, i am guessing he was just echoing what xi jinping said in boao. tom: reflecting what xi jinping said, but moving it just a notch around what these policies promised will be implemented. it was interesting to hear him say the london to shanghai stock connector will be implemented this year, because it was something that seemed to be placed on the back burner. the shanghai and shenzhen connectors would be quadrupled. the caps on foreign ownership of chinese banks would be removed. oferlying the strengthening what he said would be a wide opening of the financial sector. chinese policymakers on the reform side have long argued they are getting more foreign players involved, will help in transparency and in terms of generally the competition in the sectors. it is the second time he has speak and in public -- spoken in public. surplus, about the which is something of a bugbear for president trump. the u.s. have asked china to reduce their trade. take a look at wha

a moderate -- modest industrial slowdown, consumer 10%.ing was up more than to china now where tom mackenziein beijing. talk us through what we are seeing in the chinese economy. presumably some good news for the leadership. stable numbers, and the shift from old to new seems to be happening. tom: absolutely. it is all about the retail sector in terms of that growth. pickup for march. online, we are seeing retail growth of more than 35% year to date. another important thing that came out of the data this morning was when you look at private investment when it comes to fixed asset investment. that picked up above state backed investment for the first time in three years. it ties into the rebalancing now make uprvices 60% of the gdp versus 48% in 2014. ofs is an environment tighter credit. we see things like industrial beingtion, these numbers softened. seen factory prices weakening as well. there have been headwinds for retail and the consumer bolstering the economy here. matt: seen factory prices weakening as well. there have been headwinds for retail and how do the trade tens with the u.s.

with more is tom mackenzie. what are we expecting?e with the last three quarters of growth in china. 2017 the full-year growth at 6.9%. the target set by the government this year is 6.5%. 8%, theyet six point will be on their way to hitting that target, no surprise for china watchers. we are seeing strong domestic and global demand, as well as continued and for structure spending insulating the economy from the fiscal and monetary tightening and china, as well as trade tensions. what we heard from the pboc governor last week was interesting, sing the economic indicators leading to this number were looking positive. he was pretty bullish on the outlook for global growth, or chinese growth, i should say for 2018. as you said, we will get these numbers around 10:00 a.m. local time, as well as retail sales, industrial production, and fixed assets investments. -- acid investments. haidi: what are the headwinds we should be looking out for? >> trade is front and center in people's minds. we are seeing steps implemented, china putting in pla

tom mackenzie reports from beijing.hina looks to -- china's vision to lower barriers does not come as a surprise. by the end of 2018, they say caps on foreign ownership of new electric vehicle check -- electric vehicle ventures in china will be removed and other passenger vehicles will be removed by 2020. will be foreign automakers want to ditch their chinese partners to help with logistics and marketing and sales? never question is whether or not china's domestic automakers are prepared to be able to properly compete with their foreign counterparts. that is a key point to watch for. the trump administration will claim this is a result of pressure from washington and a win for their agenda. beijing is likely to point out this is part of a long-term strategy in china and out 8 -- and not a knee-jerk reaction to pressure from trump and his team. time for the bloomberg business flash. the biggest health insurer in the u.s. posted its first-quarter earnings that beat estimates. united health also raised its full-year foreca

kai speaking exclusively to tom mackenzie in beijing.ith a second annual deyverson report. was there enough of a progress report? we talk about it next. in case you missed hbo's silicon valley, bloomberg technology made a little cameo. here's a clip from episode five. >> welcome. today's a big day for you. one day before elite announces their box three, you are coming out with a competing product. tell me what your new internet is and why they should be afraid of it? >> maneuver? >> spoken like a true coo. don't miss the rest of silicon valley on hbo this season. this is bloomberg. ♪ ♪ didi chang has replaced the ceo with one of its own executives according to a report in recode. tony g will take it on the startup. he was the general manager and ran the luxury business. didi also bought the taxes in january getting a foothold in latin america and broadened its global war with uber. uber has increased the number of women working in tech roles i 2.5 percentage points in the last year. but they still lack in silicon valley. the reported div

kathleen: that was neo capital partner speaking with tom mackenzie.or earnings in the u.s. we will look at the biggest names such a report. keep it right here. this is bloomberg. ♪ this is bloomberg. ♪ ♪ kathleen: i am kathleen hays in tokyo. paul: and i am paul allen in sydney. you are watching daybreak australia. let's get a quick update on the markets. new zealand has been trading for under an hour, a bit higher, a fifth of 1% higher. we have the kiwi dollar also showing strength against the greenback. aussie futures, looking weaker at the moment, off .25 percent right now. on what we should be watching us trading gets underway in asia. robert scoble market editor is here -- bloomberg's global market editor is here. we looked at how much global equity has fallen from the spikes in early february. adam: it has been a dramatic shift. if you look back only 10 weeks or so to that early february turmoil with the markets, and there was a lot of calls from the investors, and others saying we are coming up years and years of low volatility, this at an era

our china correspondent, tom mackenzie, is standing by in beijing, in front of the zte headquarters. here? tom: this isn't about one single corporate, this is about a broader, concerted effort by the seems, intion it the u.s. to further restrict chinese access to that crucial u.s. technology and innovation. this really goes to the heart of the concerns amongst chinese policymakers who are far less concerned about any tariffs on steel or aluminum and far more concerned about moves like this, restricting their companies from getting access to crucial technology. >> china removing a two decade foreign ownership restriction and will now let companies like volkswagen, ford, and tesla own more than 50% of local ventures. on the other hand, they slapped a 179% tax on u.s. imports. , thehis into perspective news we learned overnight about these issues. >> it is kind of a carrot and stick approach. china is dangling this large market, saying we can let foreign companies roam more freely. on the other hand, they say if you come after us, we have to retaliate. that is what we saw, perhaps retal

the head of china's top investment firm sat down with tom mackenzie. exclusive conversation,they talked about how uncertainty is affecting business. >> the current situation concerns us. i think on the one hand, there are solutions to trade issues. a long-term trade war is not the solution. if anything, i think it will make things worse. >> do you expect to see a slowdown in chinese investment in the u.s.? >> this year, for sure. it will be slower. 2017 was already 30% lower than 2016. although, 2016 was a huge year. i suspect 2018 may be even lower and certainly we will be more proactively looking for those deals in europe and we are doing a lot in japan in the last 10 or 12 years. at the end of the day, capital can go wherever it is welcome. >> are you investing in areas that are linked to or part of the made in china 2025 strategy? whether that is ai or robotics or electric vehicles? >> of course. if government supports industries, there is a tailwind behind it and we need to look into it. for example, information technology, medical equipment -- th

emily: horizon robotics founder and ceo yu kai speaking exclusively to tom mackenzie in beijing.s out with its second annual diversity report. but was there enough progress made to keep up with some of the other silicon valley giants? we will talk about it next. and in case you missed hbo's silicon valley last bloomberg sunday, technology made a little cameo with two of the stars of the show. here's a clip from episode five. >> welcome. today's a big day for you. one day before hula announces their box three, you are coming out with a competing product. tell me what your new internet is and why they should be afraid of it? >> manure? emily: spoken like a true coo. don't miss the rest of silicon valley on hbo this season. this is bloomberg. ♪ ♪ emily: didi chuxing has replaced the ceo of the brazilian ride-hailing app with one of its executives. this according to a report in recode. tony qiu will take it on the startup. he was previously a general manager at didi and also ran the luxury business. didi also bought 99 taxis in january, gaining a foothold in latin america and broaden

nejra: joining us now from beijing is lubricant tom mackenzie.he first time we have heard about a new phase of opening up from she was there anything surprising in his speech today? >> essentially, no. we did not see was president she punching back against trump. we did not see any major concessions from the chinese president particularly when it comes to the trade tensions. the toughest line he took on top with whenever he warmed against the return of a cold war mentality. these were already on the table. for example, he said the north would see a significant reduction in paris. he said for foreign imported cars, paris is that 25%. he also said we would increase foreign ownership of auto jv. sector financial .ector he also said there would be an annual event to increase import into china. something of a not to president trump's concerns. nothing major, nothing new, it was really about the tone for presidency. of course now, we will looking -- be looking forward to plugging in on this. president trump i just to that and give a note to the as well

trade tensions with the united states, the chairman of he spoketal, exclusively with our very own tom mackenziessessment of the trade status. >> the current situation concerns us. i think on one hand, i believe there are solutions for the trade issues. think it could be resolved. tom: do you expect to see a slowdown in chinese investment within the u.s.? >> this year it will be slower. it is a huge year. that or even more. we are doing a lot in japan. so, at the end of the day, broadly.an grow it is welcome. are they linked to the china 2025 strategy, whether that is robotics or etc? zhang: of course. government, medical. clearly our view, it is a sector that has a lot of demand. demand., a lot of tom: what is the strategy capital's buyout fund? aroundfirst is corporate buyouts. we actually last year had mcdonalds lifestyle, which is the second-largest maker in the world. an american company called wall street english. and then we just completed a deal, a marketing intelligence and economics -- a database company. tom: can you give us an update on how the mcdonald's strategy is playing out? zha

tom. general mackenzie, can you speak about, in these facilities, whether actually, orare these facilities convinced, there were chemical agents inside at the time of the strike? how did you mitigate not having to disperse chemical agents? and yesterday the president talked about the possibility of a sustained response. and the secretary last night spoke about this being a single strike at this time. can you help people understand, is a difference? what are they both talking about?” understand, is a difference? what are they both talking about? i will start. as we look at these targets, we start. as we look at these targets, we have a variety of sophisticated models, analysis, to calculate the possible effects of nerve agent in there and we assessed there were probably some chemical and nerve agents but we believe that by the way we attacked it, the attack profile and the way the weapon experts looked at that, we could minimise that. i believe it at that and you can judge minimise that. i believe it at that and you canjudge over the next few hours the results of that but we believe we succ

let's get to beijing, tom mackenzie going through this chart of numbers. tom?yuan terms to read we will get dollar later in the day. first quarter exports out of china up 7.4%, year on year. imports looking strong, 11.7%. that is the import number. again, year on year and in yuan terms. we are looking at a number of a 326 billion yuan. withrms of the total trade the u.s. over the first quarter, that was up 6.3%, year on year. focus given the trade tensions, we may have to factor in a stronger renminbi. the yuan is up over the dollar the past 12 months or so. number, of the dollar we were expecting a softening of the exports number we saw in february. --ruary saw almost 11.8%recast was for growth in march. imports, we were expecting to double. again, dollar terms from the 6.3% to 12%. we got early indicators they were mixed. imports.rs, around the unofficial private survey showing weakness. we saw south korea's exports ticking up around 6% for the month of march, versus 3% or 4% for february. something of a bellwether for south korea, potentially suggesting thes

yvonne: that was the neo-chairman speaking exclusively to tom mackenzie in beijing.sh headlines, reports in australia say alinta has made a bid for the the del potro station in new south wales. they are offering $1.2 billion australian or that megawatt plant. they offer services across australia and new zealand and have been included in $900 million for upgrading the plant. fund: abu dhabi investment reaping the rewards with a merger with international petroleum. the revenue rose 14% last year. the company used its combined portfolio to boost investment in existing companies, sell mature asset and enter you sectors at home and overseas. they will eventually manage to hundred $50 billion of assets when it links up with the other day be that's abu dhabi investment counsel. more coming up in the daybreak asia. this is bloomberg. ♪ ♪ >> 8:00 here in hong kong. welcome to "bloomberg daybreak: asia." dialing up a deal, sprint and t-mobile agree to merge, ending years of will they, what they. they want to shake up american wireless to innovation and playing good deals. in n

tom mackenzie, our china correspondent in beijing. take a look at earnings.of america has had a new milestone in its years on effort to get cost under control. first quarter profit was a record 6.9 billion dollars. that's a 30% increase year on year. brian moynihan had this to say on a conference call with analysts. , we madeike last year money every day in the first quarter in the global markets business despite the pickup in volatility. >> for more, ramy inocencio walks us through the successes of the u.s.'s second-largest bank. ramy: 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 tim

he is with our china correspondent, tom mackenzie there in beijing. ning here in china around electric vehicles. i am joined by the ceo of cobalt 27, anthony. you are here in china and our regular visitor. you are a major supplier of cobalt for electric vehicles. what are you seeing, what are your forecast in terms of demand globally push towards electric vehicles? give us a forecast for the next 2-5 years. anthony: we at 1.8% penetration elite -- penetration globally. most people talk about six pretend -- 6%, i think we will see 35%. from what we are seeing, the adoption of the vehicle is happening at a much more rapid pace than the market understands or anticipates. china has made an economic and political decision to support the electric vehicle, and they will be world leaders. they have an environmental policy that supports cleaning up the air and urban environments. theyologically speaking are putting the money into the process is to build the batteries and the automobiles. for our business you have to be in china and it is an exciting time to be

correspondent tom mackenzie joining us from beijing.e tensions between the investors turned their attention to another story. inflation. bring in kathleen hays. we talking china as well as the u.s. china ppi and cpi? it nice to talk about something the u.s. and china have in common. not wanting it to cool off too much. let's talk about china because we are going to see some sign that it accelerated in february. it it jumped 3.6% year over year. but we are expecting to see is that the china cpi. in march. you've got to watch the china ppi very closely because there's this whole question of industrial production and all of the raw materials. it is a very important part of the story. and with ppi, we seek it is expected to ease a bit in february because of raw materials. we have seen a percent march year-over-year versus three point 7%. we have seen the metals prices have dropped. i loved this that you can find on bloomberg. it shows that the white line is china cpi. it has kind of been flat and picked up a bit. that line is expected the c

that was the horizon robotics founder and ceo, speaking exclusively to bloomberg's tom mackenzie in beijingnings in the united states. we will look at some of the biggest names set to report. keep it right here. this is bloomberg. ♪ is "daybreak: asia." i'm kathleen hays in tokyo. yvonne: and i'm yvonne man in hong kong. another round of earnings, including major tech companies. investors will focus on manufacturing giant such as boeing and lockheed martin. ubs and credit suisse, and big oil companies. let's go to su keenan with a preview. you a peek ofting earnings. the first two weeks, we had a rocky market. we did see stocks higher. there's an expectation we will have the same upward boost from these companies as well. first,ook at caterpillar gtd is where you can find these charts. this is caterpillar sales by region. the white line is the caterpillar retail machine. the north american is the yellow. the are quite is latin america. the expectation is that first-quarter results should be consensus, about $2.08 a share. 2018 guidance will likely be raised. also, you've got many years of c

lease pickingam exclusively to tom mackenzie in beijing.s don't have fear, he says. good to hear that bravado. coming up, we will be talking lunt securities france's joins us. adrian's or is it looking at the volatility in the bond market, of course yields crossing the rubicon. it will come down quite onstantially from the 2.59% the 10 year u.s. treasury's as we speak. rates and interest some fears also creeping in now of late about growth. this is bloomberg. ♪ haidi: it is almost 10:00 a.m. in hong kong. "bloombergis is markets." ♪ haidi: maintaining momentum. china's economy remains robust. the best since january. rishaad: southeast asian markets rising to a record. returned to profit topping expectations. the chairman stepped down just 10 days after the ceo craig miller walked away. rishaad: expecting to raise 10 billion u.s. dollars, but there is a catch. haidi: as we get the introduction of the dual class shift structural reform for all -- hong kong markets, looking at the implications it comes to liquidity. it pretty lackluster start.