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tv   Bloomberg Daybreak Asia  Bloomberg  June 5, 2017 7:00pm-9:01pm EDT

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anchor: asia-pacific markets itking for a mixed start, seems. caution in the air after a seven-week surge in global shares. anchor: the latest readings suggest study, if unspectacular, u.s. growth. anchor: president trump renewing his criticism of the london mayor. larry summers saying he should focus on more important things. anchor: apple finally stepped into the market for voice-activated speakers.
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the ceo speaks exclusively to bloomberg. anchor: plenty more on the enforcement here on daybreak asia. we will be in beijing throughout the day at the j.p. morgan global china summit. do not miss our exclusive interview with jane elliott. anchor: and don't miss our sitdown with tim cook after his developers conference in san jose. that is coming up later this hour. this is daybreak asia, coming to asiarom bloomberg u.s. and headquarters. i am betty liu in new york, where it is just after 7:00 p.m. yvonne: i am yvonne man. betty, a bit of a pullback ahead of big events this week. we had ecb, the comey testimony, the u.k. election -- betty: apple shares closed lower with the "buy the rumor, sell the news." it does not seem like they are pulling back charges at all.
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the stock continues to zoom ahead and analysts seem bullish about apple after hearing what tim cook had to say today, but as you mentioned, a lot of uncertainty right now. i mean, we have got so many things going on this week that it is hard for investors to put any big position on today. yvonne: here in asia as well. rba today, r.b.i. tomorrow. let us take a look at how asian markets are shaping up on this tuesday morning. new zealand coming back from the holiday here flat one hour into trade. the kiwi at 7130 five. the u.s. secretary of state, rex tillerson, arrives in wellington . that is want to watch. a big gain in the aussie on the weaker dollar story overnight. we are holding onto the gains at 7487 ahead of that be a decision. no change expected your stocks, expected.- no change stocks a little bit softer pure japan hovering around the six-week highs.
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four dollar yen strength. could be a mixed picture for stocks. we will take a look at futures, down 15 point right now on the nikkei 225. still well above that 20,000 line for the benchmark. i want to mention that korea is closed today for memorial day over there in the country, but yes, looking like a pretty mixed bag here in asia. you mentioned not a whole lot of catalysts on wall street as well when you have the fed as well as the ecb in the quiet periods. betty: that is right. that ultimately resulted in stocks flipping from their all-time highs. gains in banks. that will offset the weakness we saw in defense of shares. the dollar lower as well as oil prices. su keenan has more with how the markets traded today and what to watch out for this week. prevailed. we have a lot of events ahead of not only washington, but the ecb possibly making comments later in the week and the u.k. vote on thursday. all of this front and center. close. look at the
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not much of a change from the other day, so therefore, volatility continues to be low. we look at the big movers and what we see is stories that have a lot to do with stock specific or group specific -- restoration hardware up 50% year to date, a big gain as they switch to larger showrooms. that could double the run rate of their annual sales. bristol-myers caught in a down dropped for a lot of the health care companies p also the -- companies. the owner of snapchat, jpmorgan, rolling in with caution flags. about a 70% to 80% drop in price possibility. market.o into the #btv 581. this shows the s&p 500 value versus growth stocks, because
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value stocks are the cheapest relative to their growth since 2000. very interesting to note as a lot of other strategists also note that both bulls and bears are winning right now. the stocks continue to gain in momentum. those betting on bonds continue to see positive returns as well. that will change at some point, yvonne. yvonne: we saw a change in the reversal of the oil price in the last 24 hours as well, amid this diplomatic spat we see with qatar and its neighbors. su: it is a bit counterintuitive. normally, when we see a mideast seems to belash, it supportive of price. there might be disruption in service. take a look at the price here. dropped to the lowest level in more than three weeks, so you are continuing to see the bumpy ride for oil on the market, refocusing on blood concerns after the diplomatic concerns with saudi arabia and a
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lot of the other players. not really impacting were raising concerns about supply. as one trader says, the market has returned its focus to worries that excess supplies will continue to keep the got in place. place. the glut in let us look at the bloomberg. energy lags as the precious metal flip. again, another counterintuitive move here. white, the line below, is lower. purple is precious metals. metals rally, ags and industrials have been low for months. the bigger picture story has been positive for metals, negative for oil and energy. anchor: thank you so much, su keenan, on the markets to first word news now with nina melendez. nina. nina: thank you. president trump has renewed his criticism of the london mayor as
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the city recovers from saturday's terror attack. the president first slammed the mayor's initial statement that londoners had no reason to be alarmed at extra police patrols. he has said "it is a pathetic excuse." this comes ahead of thursday's general election. the former treasury secretary, larry summers, said the white house should change focus and concentrate on things that matter. among those things, he creatingd on jobs. summers says that should be his goal, not antagonizing allies. >> we are spending our time on budgets that do not add up, and the.andals and on america's problems are sold. they can be solved, but you have focusus on them, and not on issues of personality. qatar stocks down after
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countries cut off ties over doha's link to iran. they can no longer land in the kingdom and will no longer land in the saudi airspace. they are suspending flights to and from delhomme along with -- from doha. apple is entering the field of voice opposit-activated speaker. new revenuential stream for a company heavily reliant on the iphone. is booming. shipments surged more than 600% in the fourth quarter to more than 4 million units. us, it is not about being first. it is about being the best. and giving the user an experience that delights them --ry time, so we do not get
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we do not let that inpatients result in shipping something that is just not great. nina: global myth, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am nina melendez. this is bloomberg. anchor: thank you. let us continue that story with apple playing a bit of catch-up in many ways with its voice control speaker. the key factor in building an apple-based smart home. let us get the latest from alex webb, from the developers conference in san jose. good to see you. does it live up to its hype? is it a breakthrough product? alex: it has certainly got a lot better speaker capabilities than its competitors. it was interesting what they showed on the slides on stage. a high-end speaker and next to it, they showed the amazon alexa. they think it is the best of both worlds. great speaker ecology and a smart assist -- great speaker
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technology and a smart assistant. it is a speaker with an assistant. that indicates some of the weaknesses apple has in terms of how it actually is. on the flipside, that is the early generation of these pure there is a long way to go in the years and decades to come, but it helps get the foot in the door. betty: $349 per product. it really doubled the price of some of the products its rivals have already in the market. can they continue to demand this premium while they are trying to play catch-up and integrate these platforms together? alex: that will be interesting to see. yes, $349. that is almost twice what the amazon alexa speaker, amazon echo is it $179. and the one with the screen is $240 range. we have to see come christmas time sort of the first quarter
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of next year when we see the sales going. that will be the point where we see if the consumers are going for this sort of stuff. with smartphones, people are willing to pay a premium for some products. let us not forget, that as much as smart speaker's grew, that was 4 million dollars globally. in the same quarter, there were $400 million -- there were 400 million smartphones sold. people are willing to spend a lot on electronics. we are early in the process. anchor: yet another piece of device or equipment that people can get excited about. like the apple watch and other devices we have seen from apple, i mean, what is the projected, you know, market potential of something like the home pod? alex: so, we have not really seen forecasts for speakers themselves, smart speaker, but connected homes as a whole, i have seen forecasts. led lights, connected blinds in
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your home, smart locks come all this sort of devices. conversely, people have been coming up with punchy forecasts for smart homes for years and years and years, and it has never quite on stratospheric. you can make the argument that now that market is really going into the markets in a big way, it will give it the boost it needs. frankly, i can see amazon and google and those guys perhaps we'll see it in a positive light. apple is making the price point higher, it gives them the ability to charge more for their products as well. betty: charge more, but be possibly less than what apple is charging. alex, overall, how would you compare this developer conference to the one in the years passed? was this vastly different? was: the huge difference that they came with hardware. they had new macs, imax, ipads. that has not happened since
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2013. it sort of suggests that apple has a product headline at the moment and it speaks to a desire to show developers that we are your guys, the best hardware. you should make products for us. and it is the two sides of apple's business. bigger role,ng a but they remain a company which makes the majority of its earnings and profit from hardware. anchor: thank you so much, alex webb, on the developer conference in san jose. you can see our exclusive interview with apple's's ceo, tim cook, later this hour at 7:40 a.m. in hong kong, or if you are watching in new york, 7:40 p.m. so stay tuned for that. yvonne: plenty of that interview we have not aired. make sure to check that out. we will impact apple's latest announcement, coming up next. the company -- is it still too late in the game when it comes to its speaker? a guest joins us to discuss. betty: president trump's paris
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pullout has ignited the climate change debate. the former head joins us later. this is bloomberg. ♪
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anchor: we are counting you down to asia's first major market open this morning through japan futures looking in the red. we are down 10 points with dollar yen pretty much not doing much. this is they break asia. i am yvonne man in hong kong. betty: i am betty liu in new york. up a has joined google. microsoft, jump into the smart speaker market, trying to catch up with amazon. so, let us talk more about this. our next guest feels it could be possible to reduce amazon's already entrenched lead.
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brian is the vice president of research. is this not a case, you know, of basically apple joining and lifting both here -- lifting all boats here? atit is a case when we look developers. amazon has had quite a bit of a lead in terms of developing these skills. it is not so much a worry for apple in this case, you know, in the sense that you have got this huge weight of apple developers that can jump on this platform right away. i am am not worried about the hardware. in terms of hardware, apple has never want to go first into a particular market. will something, where they let others come in first and they come in with a superior, arguably superior product and go right away with the hardware. what does get interesting to watch is where it does in terms of the broader artificial intelligence space and this is
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where this product in my opinion is ultimately trying to drive it. it is trying to drive possibilities for siri. anchor: it is a longer-term play. it is much broader than just a home pod, but are we getting too excited about, you know, something that may only be incremental to apple? bryan: yeah. i think in terms of the sheer hardware sales, the bulk of apple's revenue, i would not look at the product itself, the hardware itself as being the thing that necessarily changes things. what does get interesting, as i was alluding to, is it is driving the capabilities of theory. theory works -- of siri. macs,orks on the iphone, and the broader apple ecosystem. it is about keeping people in that ecosystem. if the speaker is the enabler to
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drive the capabilities of apple's artificial intelligence capabilities, then that in turn is what helps keep people into things like the iphone, which as we know, is really the thing that is driving apple's big is this, all of its big profits, and so forth. betty: and if you wanted to have a chart, that clearly drove at home. i want to pull this chart up for our viewers. i'm sure it is when you are very familiar with. it is a bar chart that breaks down the revenue through that white are is simply the iphone revenue for apple. revenue. that white bar is simply the iphone revenue for apple. revenue has fallen over the last year and seems to be stuck in this range, so you know, in this recap of the iphone, -- this re vamp of the iphone, what can help this?
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bryan: we do believe it is a temporary lull for the iphone. if you look at the current product, iphone 7, it does not look that different from the iphone 6. in a key market like china, a lot of consumers give it a pass. there are very high expectations for what is happening in the iphone eight or whatever they and the calling it later this year, and if those rumors are true, we do believe that there will be pent-up demand from people passing over the iphone 7 and going to the eight, and by the time it launches at the end of this year, pushing any calendar year next year, that is when you will start to see that chart basically start turning itself back around. yvonne: it is yvonne in hong kong. we heard a lot of big applause when they did announce this kit as well on top of the ios 11. it was interesting. they projected the 3-d week rendering of what you could do. how big of a breakthrough is that?
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how does that compare to the likes of facebook as well as alphabet, that have been developing in this form of technology? bryan: it is funny you mention that purity mention the likes of facebook and out of it. -- it is funny you mention that. you mention the likes of facebook and alphabet. tole will be a huge catalyst this entire space as a whole. you think about apple and mobile developers in general, and they tend to go for apple cap form first. apple platform first. you will see more man-to-man is augmented reality space. more ofts -- you'll see this augmented reality and people knew it had potential, but it never quite latched on. now with apple pushing behind it, you will see the entire industry get lifted up and that
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in general will help not just apple but the other vendors as well. anchor: yeah, they mentioned about the furniture side of things. it acquired a company that had worked with ikea before. what could developers really do with that technology? could you elaborate a little bit more? bryan: sure. a good range from a number of areas is obviously apple's idea behind the developer conference, to get the creativity flowing. we have already seen things like pokemon go, to use an overused example. something as simple as a game. it could be ikea, putting your furniture in a place. also think about the enterprise or business-use cases, logistics, where you are in a warehouse and you can identify that those boxes have that, this great have that, and in that section, it is those kind of things to do think about servicing industrial equipment, you think about even things like military and other sorts of applications. the playing field and the potential for augmented reality is opened wide.
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i am trying not to be too -- to use too much of a superlative or exaggerate too much. the reality is that there is a lot of potential for this, far beyond what we may think of as a simple pokemon go. that is what is interesting in terms of apple's announcements today. they are a dressing a field of developers that are looking for these opportunities to make money. there is a lot of creativity that will come from that you watch out for the upcoming years because i think we will see some interesting stuff. anchor: before we go, let us take a look at the stock price of apple because we did not see it move much here today. they do not really move much during these developer conference is, but we see this optimism building up for iphone sales, and they have increased analysts 12 month target price to 164 per share should we are ending the day at 154 per share. it is just the iphone eight with the hyper now? what is currently being priced in? bryan: i think a lot of it is about the iphone eight.
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a drive that will do business. that is obviously going to be one of those factors that move it forward. the announcements we heard today further help to supplement that, but a lot of the announcements today, in many ways, our longer-term plays, particularly from an augmented reality perspective. those may take three to five years before we start to see a bigger material impact, and as such, what we see right now is a lot of expectations for the iphone eight, as we roll into calendar 18. -- calendar 2018. anchor: we have another big interview coming up on bloomberg television in the next hour and the ceo joins us for an exclusive chat at 8:40 hong kong time. this is bloomberg. ♪
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anchor: a quick check on the business flash headlines. a merger between t-mobile and sprint indicate a deal may be preferred. avoiding the need for financing. sources say the parent, deutsche budgetd telecom -- deutsche telekom and softbank may not want -- lender aims to raise as much as $2.3 billion by selling shares to institutional investors. state inc. is preparing the country's biggest stock sale in more than two years to strengthen its balance sheet in the face of worsening bad loans. debt in in yeah as at its debt is at its- highest level. apple's tim cook says president trump made the wrong call on the climate deal. more from our exclusive
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interview, next. this is bloomberg.
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anchor: 7:30 a.m., tuesday, and hong kong. rain amidneed of some all this humidity we see in the city through 30 minutes away from asia's first major market open. betty: it is 7:30 p.m. monday evening in new york. foggyn see quite a foggy, supposed to be summer day. it does not feel like it these days. i am betty liu in new york. yvonne: it does not look like it here either. i am yvonne man. you are watching daybreak asia. the white house says president trump will not use executive privilege to prevent former fbi director james comey
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from testifying to congress this week. comey is likely to face questions about conversations they had on investigations into in the russian meddling election did many experts say it is not clear if the president have grounds to evoke executive privilege in this case. >> the president's power to evoke executive privilege is well-established, but in order to facilitate a swift and thorough examination of the facts sought by the senate intelligence committee, he will not exert executive privilege regarding the testimony. the top u.s. a gig -- nina: the top u.s. representative in china was the most -- we are told he quit this past weekend, telling colleagues he disagrees with the president's decision. the state department confirmed has gone, but we do not why.
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the bank of thailand says it is easing some foreign-exchange walls to reduce private sector compliance costs. the bank laid out a timeline for changes to improve clarity and eliminates redundancy, potentially saving more than $29 billion per year. policymakers say they are monitoring the strength of the bat and are ready to act if necessary. bloomberg has been pulled into wants apple to commit to invest in job creation before it would continue tax concessions. our sources say the government has asked apple for detailed plans after it started making the iphone model last month at a plant. the finance ministry turned down apple's request for lower import duties. day,l news, 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. anchor: nina, thank you. a look at what we should be watching as trading gets
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underway in asia. bloomberg markets reporter adam haigh from sydney this point. adam, good to see you. the aussie really climbing going into this rba decision. what is key today for traders? they are not expect much. adam: good morning, yvonne. we are not expecting much. we will see that cash rate being kept up at record low, but of course, there is interest around the company policy statements and how much leaves on the problems around wage growth and housing. the aussie has had a good run in the last couple of days. it will be interesting to see how traders, you know, passed through the statement, and what they can glean on the future policy. the interesting thing is that over the past six months, traders have kind of almost switched their bets. we have a bit more gloomy news about the australian economy over the last two or three months. that shifted the focus more towards chances of a cut over
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the next six to 12 months. we just had our guest at jpmorgan saying she is in the camp of expecting a cut sometime over the next six to 12 months. that is what the swaps market is telling us. at the start of the year, the next likely move was more shifted towards a hike. moves been an interesting we have been monitoring closely of late. of course, we'll be looking at how those spreads change as we get the statement out this afternoon and see whether people are moving one way or the other in terms of where the rba's next move will be. today, we are expecting to just listen to some key comments around the housing market and inflation. anchor: it is a little bit strange that we are seeing this year's huge gains in the stock market being accompanied by rallies in gold, the yen, and treasuries have been rallied. how can we have these two forces happening at the same time in momentum? adam: yeah, indeed, betty.
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slightly odd to say the least. if you just have a look at this chart, which shows you just how much of a rally we had been on in the stock market, globally up 10% this year. also, we have seen strength in the yen. we have seen strength in gold. and of course, in the global bond market. whenhis is all at a time equity investors were prepared to give the benefit of the doubt to a slightly rosier picture of the global economy. they expect that earnings growth will continue to kick on through and they are willing to play slightly higher valuations, but camp,rly, in the bear people are prepared to be adding to their fixed income positions. there is worries around u.s. inflation that is a key concern. geopolitical risks stem from u.s. politics in washington to problems on the korean peninsula, in this part of the world. there is still plenty of worries
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to fuel more safe haven assets indeed, youyen, and know, people taking bigger bond market and continuing to see bonds performing very strongly over the last five to six months. interesting that with stocks having added such a huge amount -- more than $10 trillion now added to the value of global stocks in the last 12 months. hat, youontext of t are still seeing some of the bears winning as well. we spoke to the guys at bank of america merrill lynch and they say something has to give. they are more inclined to say something has to give in the rates market rather than equities. they cannot see any reason for a stocks,nside move in but certainly, we are not expecting this to continue. betty. betty: adam, thank you so much. adam haigh in the sydney bureau on the market for donald trump is raising tensions of the u.k.
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doubling down on his mockery of london's mayor and putting the prime minister in the awkward position just before the all-important snap general elections. ramy inocencio getting us up to speed on all of this. read this is our most article on the bloomberg today. remy: it is important in terms of the special relationship a lot of people have described of this alliance. we are seeing some kind of scarring, i suppose, especially since donald trump to take office. ramy: it all started with a tweet over the weekend, after the terror attacks in london. and that is on your screen right now. donald trump set at least seven dead and 48 wounded in terror attack. the mayor of london says there was "no reason to be alarmed." that was the tweet heard around the world. the issue is that trump spun the quote to imply that there was no
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alarm over the terror attacks. the mayor actually said that you are going to see an increased police presence on the streets. he was telling people to stay calm and go about your day. mr. trump saying, you know, this is actually something you should not be not alarmed about. you should definitely be alarmed by this. you saw just now on your screen -- why don't we take that bet on -- the british media said he was asked her a response in saying "i have not got time to respond to tweets." and he has got more and better important things to focus on. you can see mr. khan really giving short shrift to donald trump in terms of the response to we thought that was the end of it, but turned out it was not. research on double down. earlier today around 9:45, he said that it is a pathetic excuse, what the london mayor did, and that he did not think fast enough about his "no reason to be alarmed" statement.
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the mainstream media, he says, is working hard to sell it. that is a little bit of a fracturing between the u.s. and u.k. relationship. yvonne, looking elsewhere around there isn, it seems some bipartisan support, specifically in congress. mitch mcconnell, for example, he says that we will continue to stand by the british people, especially in this time of great tt. charles schumer, chuck schumer, senate minority leader, saying the u.s. ought to stand shoulder to shoulder. bill de blasio said president trump'stack on mr. -- attack on mr. khan is an except the. there was a letter released by the conference of mayors that represents 1400 cities across the country, populations of 30,000 or more, and the signed a letter saying they also do support mr. khan during this time. with all of this talk about mr. trump tweeting, i want to point out also that we have a special german affection. let us go into that. .s trump tweet
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if you are a bloomberg terminal subscriber, this is a function. for fun reading. you can see the full tweet here also, and you can see exactly what is happening in terms of pictures that might be related. if you want to keep on following every single tweet, as we do every single day. tough call.s a do you engage in a twitter war with the president of the united states or take the high road as well? thank you with the war of words on twitter. apple's ceo says he disagrees with mr. trump's decision to pull the u.s. out of the paris climate accord. emily chang says focusing on the issue requires global action. >> i think he did listen to me.
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he did not decide what i wanted him to decide, and i think he decided wrong. i think it is not in the best interests of the united states, what he decided. terms, you know, the way i look at this thing, and do you interact with politicians or do you not? my view is that, first and foremost, things are about, can you help your country? and if you can help your country, and you do that by interacting, then you do it, that country politics. emily: you have other people leaving the table. it is the president jeopardizing his relationship with one of his key constituencies, the business community? >> i would differentiate -- and
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i am not speaking for those guys come obviously -- but i would differentiate leaving the council and advising in a way that you think can help our country. one is ank the first judgment call that people make. i did not join a council, so it is not a decision i had to make, but i had to understand both sides of that. but advising on something that you believe will help america, i as a it is a requirement ceo. you definitely do that. you know, if i get the chance to go pitch the paris agreement again, i am going to do it again, because i think it is very important that we engage to fight time a change on a global -- fight climate change on a global basis. this is not something where you
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can solve its country by country. it requires a global action, you know, because the missions created in one country -- emissions created in one country affect everyone. i wanted to do every single to tellat we could do how important it was to stay in the agreement. and unfortunately, he decided something different. emily: why didn't you join the council? tim: why didn't i? two reasons. one, my primary job is being the ceo of the company. i spend the bulk of my waking hours doing that, and i do so willingly, because i love the company and the people in it. and so, traveling back east is not something that i look forward to doing, except when i need to do it. secondly, i do not find these councils and committees to be
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terribly productive. about not wanting to advise on something where i thought that, you know, we could help, or we had a point of view that should be heard, and so, i am doing the latter. i cannot imagine a situation where i would not do the latter, because i think it is in the best interests of america to do it. i am first and foremost an american. anchor: that was emily chang's exclusive interview with tim cook. a great interview. we will have more on president trump's climate decision in a moment. we will be joined by the u.n. former climate chief, climatenity -- chief, who says it has caused a wave of support. this is bloomberg. ♪
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anchor: this is daybreak.
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i am yvonne man in hong kong. betty: i am betty liu in new york. australia's two major political parties may reach a deal on reducing carbon emissions, bringing an end to a long-standing policy war. let us get to paul allen in sydney. how much should the government and opposition be able to move forward on this topic? paul: they have been a long way apart for a long time. the labor party and opposition have been pushing for an emissions trading scheme. that is something michael turnbull supported vigorously in 2009 to the point at which it cost him his job. he ended up losing the role at the conservative in his party, because they did not want a trading omissions scheme. emissionsading scheme. will hand down a report on energy reform in australia
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that will contain a range of options, and that will be called a low energy target. a percentage of the energy would have to come from low emissions sources. indications so far that this is something both major political parties could get behind, and it is politically safe for both of them to do so, so we could finally see some movement on the way australia handles the carbon emissions, betty. betty: hoping for some breaks for joining us live from sydney. paris climatethe accord say the decision to pull out has delivered a surge in interest in a deeper commitment us nower be are joining is christiana figueres, vice chair of global covenant of mayors for climate and energy. michael bloomberg, founder and majority shareholder of bloomberg lp, cochairs that group. kusnice to have you here. the reaction soon followed and it was almost immediate.
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ingld the president reneg from the paris. actually be a blessing in disguise? -- the paris deal actually be a blessing in disguise? christiana: i think so. it has been met with an opposite but greater political and economic force as we heard from tim cook. companiesfrom private also from subnational governments, city governments, state governments, and international governments. we heard from 125 governments that they remain committed and in fact, not just committed to their targets in paris, but even more. i think in the end, we will be writing a thank you letter to mr. trump. >> your initial reaction to him withdrawing from the steel, what was it? christiana: sadness. sadness for the u.s. it is really sad when it is something like what we saw in
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the rose garden. credibilitylitical for the head of state of the united states. that was very sad. i think political credibility has been eroded not just on this topic, but could have knock on effects to other topics, where it will be difficult for other heads of state to take this mr. trump seriously. are herehristiana, you in china. jerry brown heading to china to speak about this as a global commitment. i will throw up a chart for our viewers to see, where we stand globally on this cumulative production on solar energy in particular to china does rank the top of the list, making up 27%. the u.s. is 12.5% right now. what is the message the governor can bring to china? does it take out the steam from this withdrawal from the u.s. on the paris deal? christiana: yes and no. it does take out the sting in
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the sense that there is such an opposite and stronger reaction that most of us do not have any concerns about the paris agreement marching forward and actually meeting the targets that are put into the paris accord, but i do not think that anyone actually will just oversee the pronouncements from the head of state of the united states. this is going to be very difficult to deal with that diplomatically and internationally. betty: christiana, i want to ask you about some news that broke earlier today about the top ,iplomat in china, david rank quitting his post. it is not clear he is doing so because of trump's decision to leave the paris agreement, but that is a wide speculation. i am curious if you think others they maylow suit or if
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essentially launch a silent protest like that? christiana: as you say, it is not a tackle clear, the motivation, but if i put myself in the shoes of the diplomatic corps of the united states, of department, state it is a rather difficult position to defend, vis-a-vis the government where you are posted, so i would not put it completely passed him -- past him that those are the reasons. he might be for others in the diplomatic arena, as has elon musk, actually, spoken for those in the corporate field. him resigning to the advisory council. christiana,e we go, do you believe at all that president trump is going to renegotiate the participation of the u.s. in the paris agreement or is that all but dead? christiana: no, i'm sorry, that is one more of the factually incorrect statements that we
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heard from the rose garden last week. there is no such thing as a renegotiation. this is a multilateral treaty. it cannot be renegotiated by a single country. there is absolutely no legal basis for that. and as we have heard from many states, there is no political begin toss to even consider that, so that is dead on arrival. figueres,ristiana thank you for joining us, former u.n. climate -- yo change council. that and many more in today's edition of daybreak. bloomberg subscribers are two dayb on your terminal and mobile in the bloomberg anywhere app. you can customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪
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anchor: this is daybreak asia. i am betty liu in new york. yvonne: i am yvonne man in hong kong. plenty more still to come with asia's first major market open just minutes away. betty: sophie kamaruddin watching the opens in sydney and tokyo. south korea is closed today. what is on your radar today? kicking off with what is happening in tokyo, i am keeping an eye on nissan motors today. we saw the carmaker have a 6% bump in their maingear local -- main vehicle sales. australia saying they will not take off without subsidies. over in sydney, keep an eye on anz and other lenders. we will have an exclusive interview in one hour's time. he has warned of slowing revenue growth. banking stocks have fallen 3.5% year-to-date trade iron ore miners also on the radar as they
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since octoberwest 7. take a look at the futures board, signaling a drop in tokyo and in sydney. it set us up for a mixed start in asia. take a look at hong kong and china futures, pointing to a slight rise. this after a subdued session on wall street that's all the s&p 500 pullback from a record high. amid the cautious sentiment, dollar treasuries looking softer. the rba rate decision at 2:30 p.m. local time and oil in focus as well. gainse seen them in race that sparked the dispute between qatar and the saudi-led group. korea are japan, and off-line today for the holiday. just moments from now, watching what is going on with tokyo and top of the hour. plenty, much more, coming up ahead on bloomberg, at the top
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of the hour. ♪
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>> asia-pacific markets looked set for a mixed start. traders uncertain that the fed will raise the rate next week. they expect steady u.s. yvonne: there is speculation a rate cut may not be far away. has increasingly been put up against peers.
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this is the second hour of "daybreak asia." u.s.e live from bloomberg and asian headquarters. it is just after 8:00 a.m. in hong kong. betty: just after 8:00 p.m. here in new york. we were talking about the reactions to apple and what we saw the developers conference. korean markets closed today, but a lot of focus on different a decision.uding nobody expects any change there. yvonne: just about four hours time for that. we were just talking about this. a little bit of the best of both worlds, a decision. nobody expects any change there. yvonne: the bulls and that there's here. you will see solid returns, but how long it will last, something will have to give eventually. but check in with sophie kamaruddin.
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sophie: something has to give here. it has been stalling for seven weeks for global stocks. they are taking a slightly cautious turn here on the week with plenty on the agenda. markets are closed for a holiday today. stocks taking on a third of a percent. we are seeing oil erasing gains. traders are now downplaying the impact of energy. we haven't below $50 a barrel. watchare something to before european counterparts dropped. seeing are saying -- gold cover at 12.80 announce. take a look on your terminal. at xe on your next
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panel. there is what is going on with currencies. there is what we are seeing at at 110.37.e yen the kiwi dollars down. take a look at the majors on your terminal. looking at the at xe function. taking a look at what is going on at cable. what traders are focusing on in the upcoming election in the u.k.. we do have the euro around 112 ahead of the ecb policy decision. watchro yen is paired to this week. 110 on the latest u.s. data. that is pushing the dollar on the lowest since october. we have the aussie dollar around the 74.86 after adding 1.5% over the past due sessions. we are waiting on the rba policy 12:35 hong kong
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time. hike was potential for a as you can see at #9140 on your terminal. byare betting on a rate cut europe which is pushing the rat -- castrate below percentages. a last word on asian emerging currencies. david having a good start to june after a solid may. have seen the kinds and they in the past seven of 10 years. wells fargo is expecting obstacles ahead with the fed expected to raise rates this month. he says the dollar and the korean yuan are looking to be the most vulnerable. we will see if this is as good as it gets. betty: thank you so much.
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let's get to the first word news. rosalind: president trump has renewed his criticism of the south london mayor. let had no reason to be a long. president trump said it was an excuse. treasury secretary says the white house should change focus in focus on things that should matter. he campaigned on creating jobs and that should be his job, not antagonizing allies. >> we are spending our time on budgets that did not add up and scandals and on tweets. america's problems are solvable. they can be salt, but you have , but they can be solved
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you have to focus on them and not issues of personality. rosalind: qatar stocks fell the afterince 2009 losing 7% many countries cut off ties. planes can no longer land in the kingdom and will be barred from saudi airspace run today. dubai emirates are suspending flights to and from the heart along with a few low-cost carriers. apple is entering the field of voice activated speakers. major hardwarest product. potential for a company heavily reliant on the iphone. shipments surged more than 600% in the first quarter to more than 4 million users. for us it is not about being
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first, it is about being the --t in giving the user and s on experience that the lights them every time. we do not let that in patients result in -- in patients shipping and something that is not great. rosalind: global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. i'm rosalind chin. this is bloomberg. ♪ betty: thank you so much. central bank watch continues around the world. reserveworking for the bank australia policy decision which we mentioned was hours away. brace for the fed second rate hike when it meets next week. global economics and policy at other kathleen hays is here. >> let's just go home. what is interesting is the fact that you have several banks meeting this week and not doing anything. turning tois already
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where the central banks are heading. maybe some different directions people have been anticipating. that is the case with the rba. they are going to keep it at 1.5%. jobs growth has picked up. retail sales looking stronger than expected. tost-quarter gdp is supposed pull back 0.3% to 1.1% the quarter before. wages are stagnating despite faster job growth. you're seeing a turn to more part-time jobs than full-time job and there is a question beingquality of jobs created. household debt is rising. it has risen quickly. on the other hand, the rba in many businesses would like to see currency. let's jump into the bloomberg and look at #6486. what you can see is the house price index. as you wish you bought a house 10 years ago in australia? then you have the household debt
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to income ratio, the yellow one. then you can see the rba rate target is down quite a bit lower. that is where it is expected to stay for some time. in fact, 80% of economists in a survey say by next year sometime the reserve bank of australia and see enough growth concern over household debt and the housing market that it will hike rates. one of the loan people in this growing group -- one in five surveyed say the next move is going to be a rate cuts. it mightaustralia say not come into the second half of 2018. here is what she said. >> generally, our senses that the economy will disappoint relative to rba forecast. over the next 6-12 months, we think the rba will be cutting rates as it becomes clear that
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domestic the man is not strong enough to get core inflation back to target. >> let's put that in perspective. projections will show the odds of a cuts anytime it might come in the third quarter. she knowledge that earlier that it might not come to next year. you can see traders are placing in low on. although those odds are higher than they have been. there is a sense that maybe the rba could move in that direction. the reserve bank of india has a similar story. they're holding their key rate at 6.25%. while there gdp and inflation are slowing, traders are starting to say, their next move might be a cuts. we will be watching that central-bank very closely as well. bank: the european central is not expected to move either
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later this week. why is that when the euro area looks like it is getting stronger? saw the euro area's pmi for manufacturing and services at years -- six year high. is cautious. his worried about inflation being below target. on thursday is expected to cite more balanced growth in the euro area. 90% of those we surveyed for a bloomberg estimate said that. inflation hanging over the ecb. what is expected? let's take a look. mario draghi and the ecb signaling that there is no rush to change policy. there is no concern about waiting too long to make a move very a majority in the survey said they would not drop interest rates until july. bloomberg intelligence they could happen this week.
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make a they will not decision on reducing bond purchases until september. that is down from more than 60%. a little less certainty that they will move as aggressively in that direction as you thought. betty: how much longer can mario draghi avoid that dreadful word "taper." yvonne: what is the latest on the federal reserve? management eases a little bit but shows strength and services in the u.s. expectations falling better throwing future rate hikes into question. we know where central banks are now, maybe the landscape is shipping. there will be different outcomes than we might have thought. there is a bloomberg profits says there is talk in
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the bond market of june and done for the fed. this might be in for 2017. maybe even looking into 2018. are being reflected in this rally we have seen in treasuries. let's look at #8059. you'll see the 10 year note yield. you can see how it is now testing the lower part. it has been breaking key levels and now it is back up to 2.17 or 2.18. she says that is a signal. if energy prices are not going to rise, if wages are not going to rise, what is going to boost inflation? one more thing, the feds balance sheet reduction plan shows that it might hike rates less this year. in terms of what they will be doing in terms of the new plan. ande talking about cap's capping the amounts that could be reinvested.
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$10 million for treasury, $5 billion for mortgage-backed securities. janet yellen should lay out more details on how the balance$10 mt reduction will proceed. a lot of questions about hiking rates in june, but can you hike them again this year? it will be a very interesting press conference. yvonne: thank you. you mentioned the australian economy. we will ask questions about that next. we have on exclusive interview live from beijing. the bank has been pinched by the banking levy as well as headwinds in the housing market. we will ask all of those questions coming up. betty: up next, another exclusive. of aounder and chairman group giving us his property outlook in hong kong. this is bloomberg. ♪
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betty: this is "daybreak asia."
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on betty liu in new york. yvonne: i'm yvonne man in hong kong. our correspondent is that the jpmorgan global china summit today in beijing for day two. to deceive. what has been giving the developers a list? lift?ist -- a reporter: the deleverage campaign is underway as we get closer to the congress at the end of the year. ofs is the property mogul shanghai. complex.very famous what is happening in the property market in china? extending their curves, other cities and other parts of the economy are relying on construction and property for growth. >> in the first and second tier
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cities, i have not seen anything harsher than this. they restrict the price, they restrict the timing. permit to apply for a from them and they will make sure that the timing is right. construction -- restriction on mortgage and the restriction on your right to purchase. despite all of permit from them and they this, it is g well. reporter: how much of a risk is there of overshooting on the tightening? deleverage and they want to take the risk out of the economy, but at the same time they want to maintain that growth. can they do that or is there a risk of overshooting on the regulations? >> so hard since the all right. in the first quarter of this year, six .9%. there 6.9%. 20 million more jobs the been created the last year. things seem to be moving along. , do expect after the congress
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april relax a little for the property market. things my slowdown. reporter: a lot of people have been talking about the deleverage campaign picking in after the 19th party congress. they think it is bad now and it could get worse. what are you doing to deleverage? i know you just sold 80% of one of your signature properties. i assume that is to help you pay down debt? want to allow our clearing to 50% at the end of the year. right now it is that 68% or 70%. the thing is, i don't feel comfortable with the way the world is going. years we are going to have a major disaster? i don't know. i prefer to take a more cautious approach. debt so casher our
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is available for other opportunities. reporter: what time frame are you looking at? >> in the not-too-distant teacher we will make another. reporter: why would the company that you sold it to, what can they do better at this time? they are more willing to assume the risk? probably feely that they can lower their costs, which i tend to agree. if it is just residential properties, the cost is lower than ours. developers, they can cut corners a bit and we can't. reporter: how about hong kong? moody's just downgraded hong kong along with china. there is a lot of talks about
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the anniversary of the handover in 1997. there are parallels, the property prices have gone past peaks.7 you see a risk of a crisis? >> i don't see a crash happening in hong kong anytime soon. for hong kong, as long as the chinese economy is going reasonably well, hong kong will do all right. raise thebut they stamp to 15%. they almost doubled it. that didn't suppressed prices. what does that tell you about the continued chinese demand? >> >> the chinese buyers want to buy a piece of property in hong kong. there's been talk about the depreciation, so buying in hong kong is probably the safest ask for them. reporter: now revenue is going stronger compared to the dollar. >> better gains in the foreign-exchange, nobody knows. had tor: as we hot --
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july 1, whether the expectations of the new chief executive? have you rates are so far and what is going to be her biggest challenge? do a good job because she has been in civil service for over 30 years. she knows the procedures, the rules, the people. i know she is very determined to try to do something. hermost important thing for to take charge of immediately is the housing supply. otherwise, prices will continue to shoot through the roof. the young people cannot afford it. it is unaffordable. reporter: you have been on record in support of unleashing the national parkland as well for developers, right? our land in0% of open space. we need land for the young people. if you don't have a roof over head, what is the use of a
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country park. reporter: this is the biggest risk to hong kong in the confidence level, the widening gap between the rich and the poor? head, what is the use of a country park. that is where people took to the streets of years ago. july 1 will probably get people on the streets again. >> our political structure and system is not working so well. we need to fix that. chance,s ago we had the but the democrats voted it down. we need to work some more on that. reporter: we talked about the rising shares of developers. defaulted in the property sector, but we have seen a real surge in the property shares. ever grant leading the way. what is behind this resurgence in buying? >> people looking at the market
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situation. arerestrictions on buying so tight, but these developers are still selling. they are making good profits. at aare selling substantial discount to the asset value. i guess the market is saying, this is still a good bet. reporter: thank you so much for joining us today. always a pleasure. back to you guys. betty: great interview. of aounder and chairman group. we will be back with him a little bit later this hour for another big interview. ,e have been talking about this on exclusive chat. that will be at 8:40 hong kong time. 20 minutes from now. 10: 40th you are in sydney and eight: 40th you are in new york. this is bloomberg. ♪
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yvonne: that's due in check of the latest headlines. a merger between t-mobile and sprint indicated stock deals might be the preferred option. deutsche telekom and softbank still don't know if they wanted deal. they're also talking to other potential partners. they need regulatory approval. aims to raise $2.3 billion by selling shares to investors. they want to sell to strengthen its balance sheet in the face of worsening bad loans. debt in india is at its highest level since 2001. last month first quarter profit more than doubled. has askedble creditors to extend the facility until the end of the year.
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it needs breathing room to survive. needs anllion facility extension. it is the lowest stock in 17 years. two years of losses after accusations of in proper attack -- accounting.
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which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. yvonne: another cloudy picture in alliance city this morning. in hong kong. in the big betty liu apple. let's get to the first word news with rosalind chin. rosalind: the white house says president trump will not use executive privilege to prevent toes comey from testifying congress this week. he will likely face questions about conversations about investigations into russian meddling in the election. many legal experts say it is not clear if he has the grounds to invoke executive privilege in
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this case. >> though the president's power to exert executive privilege is well-established, but to have a swift and thorough examination of the facts, president trump will not assert executive of which regarding james comey's schedule testimony. rosalind: the top u.s. diplomat in china is said to have resigned in protest from president trump withdrawal from the paris climate records. the new ambassador arise. tellingover the weekend colleagues he disagrees with the president's decision. the plot strengthen as the bank of thailand says it is trying to reduce private sector compliance costs. aims to improve clarity and eliminate redundancy, saving $29 million a year. they say they are monitoring it and ready to act if necessary.
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bloomberg has been told india once apple to commit to investment in job creation before it will consider making iphones domestically. the government has asked apple for detail plans after it started making the new model last month. the finance ministry turned down the request for lower import duty. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. i'm rosalind chin. this is bloomberg. ♪ but see how the asian markets are shaping up. >> i want to focus on what is going on in the major markets in asia. starting off with the nikkei 225 falling for the second day, down by .1%. drive care the biggest falling over 1% in tokyo. we did get plymouth area wage data for april. wages rose for the first time in two months amid the labor crunch
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we have been observing. as enough to spur consumers to go on a shopping spree. let's take a look at tokyo. we saw some pharmacy companies leading the drop. the loss of her six points today. that stock is downgraded at ubs. over the past few months, a selling has seen its target price trimmed by analysts. take a look at the flip side. look at what is going on with this holdings company, up almost 2% in a day. jumping to the highest in almost a year. one of the leaders is this consumer stock. forecasts.ker roses we're seeing asahi group getting caught up in that rise there. let's pull up the stock on the board. we are also seeing it again today. earlier rising 4.4%. the stock was rated to
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outperform at credit suisse. but what is going on in sydney. v.a. the asx 200 following 5.8%. all sectors in the red share. real estate is leaving the drop. housing is very much the focus when the rba decides on policy rates. we will be waiting on commentary from the governor on that. like it energy stocks falling over 1%. oil prices raising the gains their following what we saw with qatar having its highest cut with the likes of saudi. betty: thank you so much. sophie kamaruddin on the markets. president has further strained relations with the u.k. renewing his mockery of the mayor of london, doubling down. also putting prime minister in a tricky situation ahead at the june 8 elections. ramy inocencio following all this for us.
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this is still are most read article on the bloomberg. ramy: over the past eight hours it deftly is. when you talk about the transatlantic tensions happening with two of the strongest allies in the world in front of twitter and the world, this is really interesting. everybody wants to click on it. it is a special relationship that has been shared for the last seven years. dudley getting scratched up in the last few months. fromarted with a tweet donald trump criticizing the london mayor. i went to show you with what is being said. at least seveng , and the49 wounded mayor said there is no reason to be alarmed. the reason is that trump linked that there iste no reason to be a long. the mayor was telling people not to be alarmed by actor police on
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the street. theish media later asked mayor for a response. he said he was focused on the response and then added this, i just have not got times to respond to tweets from donald trump, i have better and more important things to focus on. giving short shrift to the president. donald trump came back early this morning, 11 hours ago, and said pathetic excuse from the london mayor who had to think fast on his statement. the mainstream media is working hard to sell it as he claims. a lot of tit-for-tat and back for in fourth. . there is some diplomacy happening across the atlantic. there has been bipartisan support with some leaders of congress. house majority -- senate majority leader mitch mcconnell is saying they will continue to stand by the british people, especially in this time of great difficulty. the democratic leader charles schumer also saying the u.s.
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ought to stand shoulder to shoulder with our friends. looking on the mayoral side of things, bill de blasio said mayor khan is doing an extraordinary job supporting lenders during this time of pain. he said president trump's attack on him is on acceptable. we will see if this continues. if you are a bloomberg terminal subscriber, you can keep tabs of from donald tweet trump. you can see the headline and also click in to see the full three. was around the 6:00 p.m. mark. last thing we were talking about. a lot of back-and-forth. you can go right into the terminal and see it all play out. my the most popular functions we have on the bloomberg these days. put in aay is also tough spot. she is under criticism for not
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condemning donald trump earlier. ramy: this coming as her lead in the polls shrinks. the latest poll, is a matter of four percentage points. she addressed donald trump attacks on the london mayor at a press conference. she finally gave in after aborting it several times. it was not a call reaction. >> i think he is doing a good job. wrong to say anything that else. he is doing a good job. said she is not afraid when trump gets things wrong like his latest withdrawal from the paris climate accord. she is also under rising pressure to withdraw her invitation to donald trump that she extended for a state visit later this year. mr. khan also weighing in saying i don't think we should be rolling out the red carpet to
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this president. his policies go against everything that we stand for. thank you for that break down. the u.k. prime minister has called on tech firms like google and facebook to do more to help combat terrorism area apple ceo tim cook told bloomberg the company's vigilant about curbing hate speech on its products. --these terrorist attacks our heart goes out to everyone affected by them. horrendous. -- for us, we have been in the u.k. the whole length of time for our company. they are ake neighbor. we have thousands of employees there. our heart goes out. what do we do from helping with this?
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done, which have are rates the out store -- app store. we don't want hate speech on there. we don't want recruiting kind of things on there. we are trying to be very careful from the beginning about not having that stuff on there. i'm not saying we will never make a mistake, but i do not know of a case where something has gone through in that respect. vigilant on what happens from that point of view. we have been cooperating with not onlygovernment in but onorcement matters, some of the attacks -- i can't speak in detail about that. in cases where we have information and they have gone through the lawful process, we
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not just give it, but do it very promptly. hope that they would say we have been cooperating well. i think some valuable information is given. --re is a misunderstanding encryption does not mean there is no information. exists, and if you are putting together a profile, it is very important. alwaysr: is apple working to make encryption stronger? >> the reality is that cyberattacks on people and governments -- it is happening left and right everywhere. these of fact your safety, your
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security, so it is not just privacy, it is not privacy versus security, it is privacy and security versus security. we are always working to stay one step ahead of these hackers that have gone from the guy in the basement that is a hobbyist to a sophisticated enterprise. it takes all that we can do to do it. we don't think our users should have to think through all this stuff. it is not practical for people. we tried to stand up for users and stay one step ahead of these guys. that was an exclusive interview with apple ceo tim cook. a wide ranging interview on a variety of topics. up next, a battle for market share is getting tougher for australian banks. we will ask and analyst have a plan to fight back in an
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exclusive interview straight ahead. this is bloomberg. ♪
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yvonne: this is "daybreak asia." betty: australia's big banks are facing plenty of headwinds right now, including a new tax and a sluggish economy. we are black at the j.p. morgan china summit with a reporter. ,hen the biggest aussie banks what are they doing to cope with this? directlybe asking that to the ceo of a keybank in australia. reporter: absolutely. let's get right to the interview. thank you for joining us this morning in beijing. the rba -- let's get this out of the way, they will not do anything today? >> i'm not expecting so, but we will wait and see.
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so 1.5% will probably stay on hold. sometime later this year they need to cut. what is the dilemma that they have because they still have inflated prices in the property market, but also sluggishness elsewhere in the economy? is slowing down. the classic theory is that they are gearing for the possibility of a cuts. on the other hand, very inflated health prices around the eastern seaboard. nearly a million dollar median house price right now. >> rba would love to cut from the corporate sector and certain geographies. and raised in the east, but they can't do that. they had decided to keep rates on hold and use micro financial strategies in the housing market. we have seen is put on investment properties and then
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interest only borrowing to try to achieve that. they are targeting moves as well? >> one of the tools the banks have is to change the pricing. to slowrease the price down. we are doing a little bit of the work for the rba on housing. risk ar: is the biggest crash in property? of largest exposure, yes. we think it is a large probability, but it is something that we stress tests a lot and think about. there are very real differences in the australian market that suggest that is likely. on the face of it, it is risky. reporter: are the good times over for the banks? you want to make yourself more agile, but you have margin pressures and interest in this
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-- interventionist governments and a bank levy that is going to be imposed, r the good times over? >> they are getting covered. it is always been hard work. what has driven bank earnings over the last 20 years has been an increase in household leverage which is been afforded because of interest rates. that is not going to drive the future. the future has to be different. we have been getting ready for that for a little while. it is all about capital efficiency and productivity. reporter: what about the bank levy? you called it a regrettable policy, but among the big banks you have been having a more conciliatory tone. are you more resigned to the fact that it is going to happen? >> all parliament supported. we do not think it is good policy and think it will have unintended consequences. we have seen very little value
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and bleeding about it. we should be getting on with the government working on how to best implement this to avoid those unintended consequences. reporter: what about further bank levies? >> we are worried less about the financial implication of this levy, but more about what it says about government policy between government and industry in general particularly around the banks. we have seen the u.k. in particular start one way and then change form overtime. that is where people are worried about. reporter: are we headed toward a prolonged slower growth or negative growth environment in australia? you're not had do scored on quarter of negative growth recession since the early 1990's. the is something that average person in australia is going to have to get used to and the investors in the banks will have to get used to lower profits that the bank as well?
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>> the australian system has done a good job of transitioning from massive mining investment into a construction led boom based on strong migration into the country. now that has to come to an end. growth will be much harder to come by. we have been used to good growth for 30 years. low growth feels like a per session -- recession to a lot of our consumers. they are already starting to act differently about flat growth. reporter: you believe this commodity cycle is over? >> the commodity cycle is not my job to predict. it can be volatile. it has been an enormous benefit to australia. we should not count on another run up on commodity prices for the future. finance: you sold off a and to a group, and so the
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another state. also 38% of a bank in indonesia b holdings in malaysia, what is next? >> we have another think we are looking at, reshaping wealth business in australia. the reason forb holdings in mal, what is next? those best pretty small business. in the lower growth environment you have to be on your game. we can pick a few things and do them well. it is much better to have intellectual and financial resources focused on our core businesses. it is time that they move on. let's talk about the ammb possible sale. 23.9% stake. there are a lot of loose strings
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that could jeopardize it. are you confident that the sale could go through and that the evaluation that some have said? >> we are hopeful. we do not know all the details. we are a shareholder. malaysia isout parties seek approval to negotiate. that approval has been given. nail out at down and deal and will bring it to shareholders. we don't really know the details. i think it is a good thing for them to move forward. they should seek scale in a tough market. reporter: thank you so much. good luck on that strategy. >> thank you. reporter: shane elliott, ceo exclusively from beijing. thank you. you can get a roundup of the stories you need to know in today's edition of daybreak.
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bloomberg subscribers go to your terminal. it is also available on your smart phone in a bloomberg anywhere app. you can only get the news industries and news you care about. this is bloomberg. ♪
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betty: this is "daybreak asia." yvonne: let's do a quick check
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of the headlines. jet airways is said to be in talks to buy it be planes worth $5.5 billion. pitting the boeing against the airbus. the 37 is in pole position. he already has an order in for the max eight. shares jumped in monday -- mumbai. cutne: airbus may production of the super agenda -- superjumbo below once a month. they said rate one should be sustainable. the lack of demand means production is being reviewed. 80s aresaid the a3 backing up because customers are unwilling to take them. korean airlines will be the first customer to receive new
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planes with new engines. they will take 30-35 jets sometime in the second half. they're rolling out the new engines after a series of glitches. since the debut last year, they had a problem with a faulty oil seal. that is it from us on daybreak asia. here's what is coming up in the next few hours. i know you're very excited about next hour. rishad: we will be talking about some of the stocks they have looked at. , he is tired of answering those questions. what is next? their day be racing of reckoning. everybody faces that someday. one of the warning signs and alarm bells they go off for him when he looks at a company's bond she and realizes this is not worth looking at and
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recommends something else. him, hongking about kong stocks might be right for the picking as well. talking about hong kong, beijing, singapore time as it were. rba, and tim cook. he has been criticizing donald trump's decision to move out of the paris of court. we will be revisiting various guests. betty: sounds like a great show coming up. that is it for "daybreak asia." this is bloomberg. ♪
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haidi: it's 9 a.m. in hong kong, 11 a.m. in sydney. i'm in new york. i'm haidi lun. rishaad: i'm rishaad salamat coming here from bloomberg's asia headquarters in hong kong. this is "bloomberg markets: asia." ♪ haidi: the alliance under strain. president trump renewed his attack on the mayor of london. critics say he should focus on more important matters. rishaad: traders are increasingly sure the federal hike next

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