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tv   Bloomberg Daybreak Asia  Bloomberg  April 1, 2018 7:00pm-9:00pm EDT

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♪ >> we are live from bloomberg world headquarters. daybreak asia the top stories this monday. the first day of the new quarter, it is going to be subdued with many market still closed for easter. manufacturing robust in china. shove off for war, to answer the u.s. terms. betty: i am in the global headquarters in new york where it is after 7:00 p.m. on easter sunday. president trump delivering an easter message threatening to dump nafta. in seven share month years, investors say the model three is more urgent than ever.
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elon musk was poking fun with that april fools week, we will get to that at some point. let's take a look at the chart here. up to the search of every week, we can see the geopolitics that is going to dominate trade. is it going to be economic data. i think it will be volatility that is going to be the focus this week. the s&p kind of evens out without volatility. no doubt it has continued to indexteadily with the vix as opposed to the s&p. no wonder it equity investors are so nervous these days dumping shares. it has gotten the attention of
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bond investors who may be looking at geopolitics or looking at economic data and wage growth. it is volatility that has their attention these days. why the yield is down 2.7%. right, we have talked to our guests, they say the fundamentals still remain strong. if you are looking for any kind of fundamental change, i think volatility is the one thing elevated. if we look at the second quarter, things have not reset much. are we looking at more ugliness? betty: we will see what the markets open on monday. let's look at thursday on the easter weekend. of agot a little bit reprieve here, the s&p 500 bouncing back 1.4%. the dow also rising 250 points. the nasdaq also ahead with the tech shares getting their momentum back. 1.6% gain that we saw on thursday. that may give a little lift to
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the markets in asia. yvonne: we saw a pretty decent japan,n friday with korea, and china all in the green. australia, they are still in holiday mode here and hong kong. the markets are open in japan. looking at the futures trading in chicago right now. we could be seeing a slight bounce back after that 1.4% come back we saw on friday. be in 50ey is going to minutes. we will gauge how that first quarter is going to be for japan. as well as how they feel stronger. betty: let's get to the first word news. >> thank you very much. for us china, factory output rebounded after showing their first gain. that is manufacturing shrugging off a trade war parade the emi rose to 50.5.
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that is a posted median estimates of 50.6 and 50.3 and february. nonmanufacturing pmi also improved grade the economy say the results bode well for the gdp and the first quarter which is expected to be higher than the official target of 6.5%. inino revenue beat estimates march underlying the city's recovery from china's crackdown on luxury and excess revenue came in at the equivalent of $3.2 billion last month, rising 22% and topping forecasts of 17% increase. to the middle east, israel threatening to use greater force to suppress protests in gaza, against them and traders that people dead. friday's protests were meant to dramatize the palestinians plight as refugees, israel said they were cover for militants to attack soldiers and said bombs. the hamas leader described the killings is a massacre.
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space, china's first space lab will no to earth on monday. scientists a it is likely to break up completely before hitting the ground. in septemberbreak of 2011, it is far smaller than other international space station's. the main structure of the gradual burn up in the atmosphere, santos a there is little chance of a collision with aircraft door the lab hitting anyone. global news 24 hours a day powered by more than 2700 journalists and analysts, in more than 120 countries. this is bloomberg. thank you. president trump has renewed his attack on amazon and say this on twitter. it is reported the u.s. post eache will lose $1.5 for package they deliver for amazon. that amounts to billions of dollars. if the post office incases their parcel rate, amazon shipping costs would rise by 2.6 billion. they must pay will cause and taxes now.
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let's go to our editor following this from washington. thisdo we expect out of one set of war, is it going to continue, and what does the trump administration plan to do, if anything? >> it is hard to know what the trump administration will do and when can we do have a comment from the white house for thursday sent there was no imminent moves plan. velileds a failed -- theyt from the mad running reelection campaign, they could crush the bottom line. a lot of uncertainty about what happens next because amazon did shed $53 billion in stock value on wednesday after it was reported trump is obsessed with amazon. say, with a 2.5 billion
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dollar increase in shipping may not seem like a lot of money. it is not clear what will happen next. it is possible the administration could see antitrust acquiring -- inquiry into amazon. with the stranglehold they have on online shipping, they could pressure the post office to withe the deal they have the e-commerce giant. they may raise their postal costs, that is something that would probably be passed on posthumously rather than crushing the bottom line. amazon overs for government contract. there are lawmakers who agree the taking a look at dominant position. bernie sanders was one of those today who talked about that. one of the few areas where he actually agrees with trump. it could be an interesting week. bezos is still rolling and it, 120 billion dollars is what he is worth.
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i don't know. in the meantime, president trump also use twitter to warn he is going to pull out of nafta if mexico fails to stop the drug. this is what he tweeted. mexico is doing very little if not nothing to stop people from flowing into mexico to the southern border, in the u.s. they laugh at our immigration law. and must stop the drug people flow, or i will stop their cash cow, nafta. is he serious? even if he is, can he really follow-through on that? >> he has been saying for months that he would pull out of nafta if he does not get the deal he wants. we know from some previous trade deals, really from the entire time of his administration, the self-styled deal master, he likes racking up trade deals with geopolitics. he has done this and with china, he did the same in the past week delay a trade
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pact with south korea until the north korea question is resulted that is no simple task. he does have a history of talking about putting trade and geopolitics together. there is also a sense that there is a time in his tenure where he is following his instincts, he is taking advice from some of his true believers. has become a little bit more of an unpredictable time in his presidency. prospect ofthe pulling out of nafta are not high, anything is possible. we will just have to wait and see. betty: we are talking about nafta and the big trump story which is china trade. we are getting close to the deadline for the u.s. trade representative to announce the additional tariffs on chinese
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goods. >> that deadline is friday. be extremelyo interesting, the u.s. has been targeting 50 billion in chinese goods. it could be anything from high beh to shoes, we do not now china has put into affect the day the baby steps they are taking on tariffs in response to u.s. steel and aluminum from a couple of weeks ago. they have gone after the u.s. with some foreign products. mostly, agricultural at this point. with the value of about $3 billion, i think if the u.s. goes ahead with that much bigger package targeted specifically at china, you will see a lot more pushback from beijing. over the course of the week, definitely watch out for that. yvonne: we will see if those embolic rules -- moves turn into something more. given the fact that they are
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targeted at some of these type specific areas. thank you so much for joining us from bc story,looking at the expectations that there is is business stalling. that story from bank of america. as the figures across the bloomberg. betty: betty: up next chinese manufacturer shrug off a trade war, we are going to discuss how markets will interpret the latest pmi data. this is bloomberg. ♪
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♪ this is daybreak asia. markets may be close in australia this morning, i want to turn to the global markets editor, he is going to look at how the first quarter ended and how the second quarter a look
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after all of this carnage here in the equity markets. as you know, it was a quarter characterized by not just an uptick in volatility. we start to see that spill over in the bond market at the fx markets. it is really taking traders and investors sometime to react to this volatility environment. it is not something we are used to for many months, if not years as we, above those record low levels of volatility. i think that what that has been, we have had the correction and the equity markets with this chart. it shows us just how much money is being damaged in the u.s. market, $2.3 trillion over the course of the last two months and those really volatile periods. what this has done, it has given us a valuation reset. if you look at forward rice
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earnings, all couples across any of the major markets, certainly of the u.s. and the msci world. what we have done really is see the valuations come back below their five-year average now that we have had this correction. the have had this shakeout in equity prices. for the long-term, we have the global allocation perspective it a provider that way for people to come back in and remember april is a historically strong month for equity. it would not be a surprise if some money did start flowing back into equity given the fact that valuation has come back down again. largely, the goldilocks environment is still very much intact, global growth is still doing ok. the inflation worries that we of back at the tail end january, two east february, it has largely dissipated. we have seen that in the bond market with the 10 year yield, it is was sitting up at 2.8%
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level, inflation is less of a worry in terms of it coming back in to the fed having to go even more aggressive on rate hikes. the global perspective is thinking that it will continue that historic and seasonally strong picture with some funds flowing back into equity. betty: this morning a very tough quarter, they actually hold up of theely well amid all volatility. what you think that trade is holding up so well, has a got further to run? a bitin a sense it may be of a surprise to hear the markets were of performing in terms of global stress. they are typically a high market, they will move very much -- in an exaggerated form of those when you see that with the global market. the fact that the emerging-market equities outperformed -- u.s. markets,
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japanese markets over the last quarter, it does give some reassurance to people who have been adding to their em equity position. if we look at one interesting point around the dollar hedging costs have and down since those peak set the end of january. 5606, after ae is 8 government of the expensive to those dollar positions into asia and the emerging markets affects. that has kind of come off now. there is the price of some give and that there is a lot to worry about how the global trade environment plays out with this position.t for cap there is some that's expect that to rise again. you could see emerging markets continuing to outperform and remember this rally really
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started two years ago. it was back in general 2016 where we saw the start of this huge bull run through emerging-market equity. this has sputtered a little bit. you are seeing some outperformance with valuation level -- in many parts of the emerging world, particularly attractive to global money. it is not a huge surprise to see this continuing to em. betty: thank you. looking ahead to the second quarter. we just got this from china, on the trade front. they are hoping the u.s. would withdraw measures violating wto rules. china also saying the dispute should be resolved by a dialogue , according to the ministry of commerce. of course, we are going to continue to see some of these trade tensions deescalate. it looks like they're looking at a more diplomatic approach, board dialogue in these negotiations. perhaps, we could be seen thing simmer down, we will look at the
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markets and what impact that has with the investment strategist joining us from the city. thank you for joining us. we are seeing a little bit more diplomacy coming up from china once again. i have been measured when it comes to these retaliatory efforts on trade. i want to bring up what adam mentioned. are we shaping up when it comes to valuations to dip your toe into these markets? >> i think, when we look at valuations, some of the markets have a historical average. there are more interesting opportunities. i think by a large we should encourage investors to be more april, as itg into is going to be fairly high. there are anyif pullbacks, it will be an interesting opportunity to start to add some risk. the signs ofare
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caution you are seeing, it seems there is to trade tensions so far, there is also inflation haserns, a hawkish fed, it not been supported this equity bounceback we have been seeing. james: among the risk you have highlighted, i think the biggest risk is the protectionism risk. ,e are seeing that to and fro it seems like it has softened a bit this week or so. nevertheless the risk is still there. if the rhetoric starts to spike up again, i think the assets will take a hit. i think that is one area where investors have to be watching out for in terms of protectionist risk. having said that we have seen these pmi numbers which have rebounded, the first that we have seen some kind of uptick since november. does that give you an encouraging sign that perhaps the manufacturing side would
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withstand some of this trait hawkishness? james: it is still early. it shows the economy and china is very strong bid there is a sense that it is still solid and healthy. they have not taken into account the trade affects. so far we are seeing some of the trade tariffs on steel and aluminum, it is extremely small. tat, it is the tit for seems for the data, through april, may, june, these data points we will be watching out for. we will start to be worried about this treatment. nevertheless, i think we should be a little cautious through april. yvonne: that is the thing about data, we need to wait a month or two before we see that visible impact. the impact that we have been
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seeing for volatility, that has been felt all about equity market here in the u.s. i want to pull up this chart i had earlier which shows you how volatility is steadily rising over the last several years in fact. if you look at this and realize the basis which has even doubt the daily movement in volatility. despite that we have seen so far, i went to note that we are close to 2015 levels. not quite where we were in volatility really spiked in 2011. does that give you some perspective? muchps we are seeing too of this volatility and it is having too much of an impact on the treasury market? james: i think you put in perspective, last year was abnormal. where it isg adjusting to hire market volatility. --have seen that presses
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given that growth is moderating somewhat. acting to pick up. i think volatility is going to for the, i think investor's point of view, it is going to be choppy or. nevertheless, i think grow old -- global growth is still solid. thes reverting back to volatility situation. yvonne: thank you so much, james joe, senior investment strategist. don't forget our interactive tv function. you can catch up on past interviews and dive into the bloomberg functions we talk about the us, you can become part of the conversation by sending us instant messages are in our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
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is testing the confidence of investors. the latest headlines show that safety investigators say they are unhappy. they reveal about the -- details about the latest crash in california. the trouble is mounting. elon musk tweeted out this april full's jokes about bankruptcy. >> the line in my head popped up, in humor truth. the fact that he is making light of this, he is trying to diverse some of the attention. this is no laughing matter. we are talking about two fatal crash has been we are also talking about the recall of 123,000 cars. there is some serious stuff going on here big case in point, hop to the bloomberg terminal. in just the past month, i have highlighted here, they shares of tesla had fallen 22.4%, this is the second worst month on
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record. the last time this fell harder was back in 2010 when it was 25%. this is a one-year low. the reason here, most recently it is because of that crash on march 23. teslae ntsb is not happy, got ahead of the ntsb. they were coming out with their preliminary report to the next few weeks. a blog post already came out with their reason. they said the driver basically -- blaming the driver, saying he did not have his hands on the wheel, he was given several warning cues including one audio cue, nothing was done. ,he ntsb says they are unhappy they want to raise concerns about the autopilot. those previous concerns include the washington post reports over the weekend of sand the driver had complained about that autopilot, tesla is saying it was above the navigation system. we are looking at the report in the next few weeks. yvonne: thank you. still ahead, hitting out after
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the expulsion of two australian diplomats from russia. we will have the latest coming up next. this is bloomberg. ♪ retail.
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♪ yvonne: 7:30 a.m. monday in hong kong. most of the city sleeping in from easter monday. no trading in the city as well as many other markets as well. we are 30 minutes way from the first major market open like japan and south korea. betty: hard at work. back at it again. 7:30 p.m. sunday here in new york. or just, gorgeous spring day. market -- markets are closed on thursday and friday. we ended on a good note on thursday for the close. i am betty live. yvonne: i am yvonne man. you are watching daybreak asia. first word news with remy innocence you.
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ramy: good morning. first to china and president trump's response to metal tariffs goes into effect later. of u.s.t 100 types imports like pork and fruit. the ministry of finance said the decision has been taken with the full approval of the state council. china has said it since this plans to seek confrontation -- compensation. trump spent this easter sunday on social media posting a series of tweets calling for the end of the dreamer policy that protects the children of illegal migrants . in three messages he said quarter agents could not work patrol properly because of liberal laws passed by democrats. he blamed mexico for not stopping people entering america illegally and threatened to jump nafta. k pop later role in the forward relations between north and south korea as kim jong-un attended a rear conference --
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rare conference. they gave two performances over the weekend as the country's work towards the summit later this month. wife reports said kim's and sister were at that concert. south korea last ascent a pop singer to the north in 2005. ready playererg's one is head of the box office, giving warner bros. its first top-ranked debut of the year. comscore said the effects laden million over$41.2 the extended weekend, topping last weekend's leader pacific rim uprising was collected just $9 million, then fell to fifth place. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. inocencio. this is bloomberg. ♪ yvonne: thank you. we are counting down to the open in tokyo and seoul. the latest with sophie
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kamaruddin. seems like it will be a quarter that is quiet. sophie: i am here to alleviate your losses. global markets still off for asian holidays -- major holidays like australia and hong kong. korea, at japan and muted start to the week. this after asian stocks finished the first quarter on a positive note. it was still a rough ride. when you look at the map for the regional benchmark, they dropped their first quarterly loss since 2016, moving .6% for the first quarter. investors might be looking for a breather after the march madness and the start of april. 23 of the last three years, april has turned out an average monthly gain of 2.4%. now process of better earnings, thanks to recent it could data and chinese results, that could trigger the next leg up. trade tensions remain top of mind.
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china say it will build tariffs on imports starting monday. south korean investors will have the latest comments on the bilateral trade deal, trump might delay after the confrontation with pyongyang is resolved. korean trade figures were released sunday, something to consider. exports grew less, but they were more than the previous month. yvonne: we have got to talk about the k pop diplomacy. front.out the data it will be jampacked this week, the jobs report friday, but in asia we have the," serving coming out. -- the tankan survery. sophie: we will see what they say about the prospect of the yen, given the currency's recent strengthening and looking out for how asian factories have been faring. we have chinese pmi rebounding for the first time since november and later this week japan and south korea, industrial output is due on friday.
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i want to highlight some stocks. i'm watching toshiba after it announced they missed a deadline to sell the chipmaking business. also watching nissan which may -- an executive telling local media that is not likely. costco suchcript -- a result that announced results. the steelmaker has been trying to identify its business, getting into new materials and infrastructure. we are trying to see if there will be commentary regarding trump's tariffs. yvonne: will be watching that. betty: china's official manufacturing dates we mentioned showing activity rebounded in march with robust export demand. china correspondent tom mackenzie joining us from beijing. this is encouraging, amid the simmering worries so she mentioned -- sophie mentioned about the trade war.
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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
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ank saying this points to expected robust number in the first quarter in terms of gdp and leaves the window open for policymakers to continue their and the expansion of credit. benefits policymakers as well. adam: what about the chinese factories? are they weathering the trade storm your -- storm? tom: they see the globalized growth picture, the demand from the u.s. and europe, particularly when it comes to chinese exports, that have bolstered the manufacturing sector here. the key, one of the key potential headwinds are these trade tensions, not playing fx in these numbers other than potentially the manufacturing sector just ramped up exports to ensure they got in there below the terrace or before the tariffs are imposed. most $50 billion worth of 150ffs trump will impose on
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different chinese products. raymond young saying this may be a step up in terms of exports. more broadly we have got potential headwinds as well when it comes to the de-risking campaign and the crack down pollution, but is manufacturing numbers are going to be proving positive. we will get this picture rounded up with a private survey that is out 9:45 hong kong time. the expectations are for a mild pickup from february. yvonne: all right, thank you. we will look ahead to those numbers in a couple of hours. hasralian prime minister react -- has reacted to the ofloration -- the removal australia diplomats from moscow. he said there is no expiration for this move. this was expected, wasn't it? paul: very much according to the playbook, and those two russian
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diplomats expelled by australia left the country last night, heading back to russia. australia was following the lead of 26 other states around the world, expelling russian diplomat. this has been in retaliation. so of course russia has expelled australian diplomats in retaliation for the explanation ingetting rid of the ones moscow. there is no justification for it, the start of moscow carrying out their duties. while he is disappointed it is not unexpected. the government has updated his travel advice for australians in russia as well. paul: this is the department of travel affairs, and advisor say due to the heightened political tensions, be aware of the possibility of anti-western sentiment or harassment. they are warning australians to
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brace for potential harassment, saying to exercise a high degree of caution of traveling in russia and commenting on political developments. they are not aware of any issues at the moment. betty: thank you so much, paul allen, there in sydney on the latest. you can always find in-depth analysis on the newsmakers bloomberg radio. daybreak asia from six the clock a.m. hong kong time. you can download the app or access by room -- this is bloomberg. ♪
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♪ this is daybreak asia. i am betty lou in new york. yvonne: i am yvonne man. a look at the business flash headlines, u.s. auto regulators have criticized tesla for the model x crash in california. they say the computer log in the
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vehicle showed autopilot was engaged and the driver did not have hands on the wheel. there are reports victims have complained about autopilot, and the car was prone to swerving, though tesla only mentioned separate navigation systems. betty: a power generator that pleaded for trump's help in bailing out: has filed for bankruptcy. they are listed -- bailed -- they will continue working amid the chapter 11 filing. the company called on energy secretary rick perry to deliver a grid emergency and guaranteed profit in the industry. yvonne: sony enters the new fiscal year with a new boss. he takes the reins as ceo. he spent five years as the chief financial officer. investors like him for his proven style but for managers tell us he may not have the passion for the kind of gadgets that makes sony a household
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name. betty: the battle for streaming supremacy is on. soprano five is dropping -- spotify is dropping their biggest playlist yet and plan to go public. alex barinka explains. ♪ alex: spotify is becoming a public company, but don't call it an ipo. the music streaming service is sidestepping the traditional public offering process in favor of a direct listing. that means they themselves cannot be selling shares, and it will skip the share price discovery protest -- process usually essential. when a company goes public, management and it advisors decide on valuation and embark on a roadshow. they make their pitch to wall street and judge interest for potential shareholders. the night before the stock starts trading, they use that input to set a final price and number of shares to be sold. then the shares opened based on
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that dollar amount the next day. spotify is skipping all that and going straight to the trading on listing day existing private shareholders will simply be able to sell the stock to public market investors. established companies rarely do direct listing. the risk is the stock will tom built -- will humble immediately or swing the company has not gone through the exercise of matching supply and demand. spotify is betting its reign over the streaming market will get investors excited. the streaming giant was a valued privately at eight -- $8.5 billion in the march 2016 funding round and since 2017, the shares have changed hands in recent private transactions valued from $6 billion to $23 billion. going public will be more investors will have the potential to bet on the future of the music streaming company. spotify is promising investors big things. up to 96 million subscribers by
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year-end. that is 36% more than it currently has, and revenue, up 20% to 30% more this year, reaching 6.5 billion u.s. dollars, but investors will be keeping a close eye on operating losses. with spotify expecting $283 million to $400 million this year, but shareholders cannot count on having much of a voice. spotify's cofounders will hold shares with super voting power after the listing. with the streaming music market predicted to hit $34 billion by 2030, you can bet investors hope they are plugged in to the market winner. ♪ yvonne: that was the bloomberg reporter. there are plenty of big stories coming up this week. we are covering them on daybreak australia. daybreak asia i should say.
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the r.b.i. will watch that closely. they are expecting donna patel to keep rates on hold -- governor patel to keep rates on hold or will they build back on the hawkishness we did see in the last meeting? there are some signs they could strike a more dovish town -- tone this time around very one big reason is inflation is slowing. whether you'd like a look at the yellow -- you take a look at the yellow bars, or the blue bars, those showed signs of slowing ever since december. we are well above the red line which is 4% midterm target for the r.b.i., but certainly this trend shows it is countering the pickup the r.b.i. had forecast when it came to inflation. you also need to look at other factors as well, some of these investment limits for foreign investors. those have also relaxed. all those points to yield actually going to be coming lower for government papers. if you look ahead, we should
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resume using. bloomberg is thinking we could as early asut -- june. need to look for that change in language this time around. betty: quite the opposite here in the u.s. of course. we are searching for that inflation here and not getting it. on friday, we will have the all-important nonfarm payroll data for march, meaning estimates for testing a gain of $189,000 -- 189,000 jobs. it will deepen the question on where the wage growth is in the jobs market. i will pull up this chart, 1225, here,shows the story which is after the financial crisis. the unemployment rate has steadily fallen in multi-decade lows, 4.1%. when i find interesting, the green bars, it shows you jobs growth has been fairly much in a
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range. has been steady. what has not shown up of course is the wage growth, the wage pressures, and any way you look at it, it is a mystery at this point. that is what investors will be looking at friday. more important than that is going to be what happens on the geopolitical front and the equity market. yvonne: we keep getting used to these 200 plus or 1000 or 300,000 plus job gains. we have more numbers. certainly one great rate chart. we have more data on the tankan survery results, and we will have immediate reaction from bank of america merrill lynch. this is bloomberg. ♪
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♪ yvonne: breaking news out of japan, the tankan survery, large manufacturers, the index missing
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estimates across the board we look at manufacturing and nonmanufacturing, 24 for the manufacturing index. this is missing estimates from the 25 surveyed by economists. largely the manufacturing outlook shows diminishing to 20. this is also missing estimates. nonmanufacturing at 23 which is still missing estimates from 24 we saw. rise in capexa which is encouraging as well and better than expected at 2.3% ,rowth for the first quarter but not as strong as the bounce back we saw in the first quarter revise number. interesting the small manufacturers actually having a better-than-expected outlook as well. 15 for the first quarter and the outlook looking better as well. betty: i did find that interesting the small manufacturers seem to have a brighter outlook.
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let's get more analysis on this area we are now joined by the head of japan economics at think about -- bank of america merrill lynch. to get your reaction, let's start off on that point. large manufacturers are more pessimistic than the smaller manufacturers who are sometimes more sensitive to what happens in the economy. why do you think that is? i think in terms of the man -- large manufacturers, they tend to be more outward looking especially the manufacturers. if you consider the headwinds that japanese manufacturers faced in the first quarter of the year, you had a bit of depreciation on the yen and some private test protectionist noises out of washington. it is not surprising they are not founding -- seeming as optimistic. overall this is a pretty good tonton result was a lot of positive. betty: it is, and i'm looking at the numbers we pointed out. , it even though it is slightly
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more pessimistic, that is expected to rise in the fiscal is expected toex rise. they are putting their cap to work. how want to underscore impressive that number is. in the tankan survery, the survey tendency is for numbers to be weak. it would not be surprising if the initial number were negative where we started with a positive number, it is like you to get revised up over the coming quarters unless we have materializing. yvonne: i looking at the material forecast from dollar-yen, manufacturers here, forecasting 109.66 for the fiscal year of 2018, which is stronger than the 110 we saw last year. how big a headache will that be for some of the japanese big
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investors? think that shows that if dollar-yen doesn't actually recover higher from current spot levels, you will see some downward pressure on profits. overall, that also underscores the fact that the japanese industry is actually not too worried about the volatility we have seen in the first quarter of the year. they are taking things in stride, encouraged by the fact global fundamentals are quite solid. that is also very encouraging to see from the boj's perspective. yvonne: we do see a stronger yen for 2018. that could fly the slowdown in profit growth and spill over into capex as well. is there any suggestion that perhaps we have reached sort of investment peak for japan? izumi: you know, in terms of
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sentiment, we have seen a plateauing especially in this quarter. it is unlikely to see manufacturing momentum kind of accelerate from here, given that we are already at high levels. i think going forward the focus will be on the nonmanufacturing sector. the fact that small manufacturers are quite optimistic in the tankan survery is a good sign the domestic economy is resilient. given tailwind from wages after negotiations, the sector will perform well, which is going to be a positive sign for the boj. betty: we are getting reports that japan prime minister on a will be discussing the u.s. import tariffs on steel and aluminum and meet with president trump later this month. is there anything abe can impress on trump to buffer the impact or buffett the impact of these trade tariffs?
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i think he will try to make the case. reported that there is high steel, very hard to manufacture, anywhere else in the world. and to underscore the strategic importance and you get firms to apply for exceptions, but it will be very difficult series of talks on trade because from the on., they want japan bilateral negotiations, which the japanese side has been avoiding doing for some time here they want to stick with the multilateral framework. given the differences, i am not sure we will see much breakthrough on trade in this summit at least. betty: thank you so much. the head of japan economics at bank of america merrill lynch, reacting to the first quarter tankan survery results. we are counting down to the open in japan and south korea. let's get a quick check on how u.s. -- japanese futures are
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trading. the nikkei futures down .2%. we are seeing a slight rebound in the dollar-yen. this is bloomberg. ♪
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>> 8:00 a.m. in hong kong. welcome to "daybreak asia." a quiet day expected as asia enters a new quarter. volumes are cited to be subdued for several markets closed for easter. a bust in china as factory shrug off the trade war. beijing prepares to answer u.s. tariffs. just after 8:00 p.m. sunday evening. confidence dented after tesla's were share month. the model free is more urgent than ever. strike a red velvet
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diplomatic note with a rare concert in north korea. ♪ betty: talk about k pop layer, but the fact or's are singing a nice tune here for the first quarter. the survey showed up better than expected. still looking pretty resilient for the manufacturers. still holding onto decade highest for some of these numbers. this is a breakdown here between the large and small manufacturers. you could see 24, we are still holding onto the 13 year high we have seen for these exporters up there. the outlook is still missing x -- estimates a bit. still holding at 20. it was the more resilience we saw for small manufacturing's --
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manufacturers that focus on domestic companies that could be better. also with the yen as well. we see a little bit of a weakness in yen last week. it seems like japanese manufacturers are expecting this rally to resume. they are thinking 109 for the rest of the year. agree.iu: i absolutely we have the put all of that in perspective. these manufacturers have been able to keep their outlooks and businesses stable, despite the rattling going on in global trade tension. i thought it was interesting from our earlier just noting that it will rise 2.5 percent. noting that is significant. a pretty bullish sign for the japanese economy. let's get to the first word news. rebounding in march showing its first gain since november as manufacturing shrugged off fears of a trade war.
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pmi rose to 51.5 compared to meeting estimates of 50.6 and 50.3 back in february. nonmanufacturing pmi also improved. economists say the results are well for gdp in the first quarter, which is expected to be higher than the official target of 6.5%. the gaming capital, casino revenue beat estimates in march, underlining the revenue from china's crackdown on luxury and excess. revenue came in at the equivalent of $3.2 billion last month, rising 22.2%. stopping forecast of a 17% increase already. to the middle east and israel is threatening to use greater force to suppress protests in gaza rejecting accusation of excessive firepower against demonstrators that left at least 16 people dead. friday's protest were meant to dramatize the palestinians plight as refugees, israel says the cover for militants to attack soldiers.
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they describe the killings as a massacre. first space lab will crash back to earth later monday, but scientists say it is likely to break up completely before hitting the ground. it was launched in september of 2011 and is far smaller than other international space station's. the main structure of the crash will burn up in the atmosphere & just say there is little danger of a collision with aircraft. news, 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: let's take a look at how your regional benchmark is now. we are up 1/5 of 1%. muted given the fact that many markets are still closed for the easter holiday. we are seeing the likes of the nikkei rallying here today. we are anticipating light volumes given back markets are on holiday. in tokyo we are seeing gains for
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the nikkei 225 and the topix. gaining 2/10 of 1%. financials gaining ground in tokyo, the likes of electric power jumping 3.7% at the open there. for theseoul, the cost third session, with consumer stocks in position. we do have investors looking to achieve stock valuation and earning prospects to widen the move. we saw it as the worst quarter for asian suck -- asian stocks since 2016. trade tensions remain in mind. diplomacy is lightning the mood on the korean front. when it comes to south korean investors, we had the trade figures coming out on sunday. exports scoring less than forecasted in march i quickening for the previous month. we do have trumps comments on the bilateral trade deal. he said he might delay that until after the confrontation of pyongyang's resolve. we will get a sense of how
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asians factories have been performing after what the chinese pmi data is that we got over the weekend. we are anticipating japan and south korea a just their output due on friday. i want to highlight what is happening with the yen, trading one owes ask 1 -- 106.35. .e do have a capping the worst week since october. it has been consolidating. then that it finished off first quarter with a 5.7% gain against the u.s. dollar, it might see a resumption of the value we have seen so far in 2018. as was pointed out a few minutes ago, the fact that the survey started up the year with a positive number, that does bode well for the first quarter to start on a weaker note. we can anticipate upwards ahead. we did have the boj saying that firms do have a conscious outlook, but that sentiment and s a little effective.
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japan taken things in stride. china's official manufacturing gauge showing activity rebounded in march. expert demands driving pickup on the factory floor. china correspondent tom mackenzie joining us now from beijing. this is encouraging. amid the worries about a trade war. tom: it also underscores the view that was articulated in generate and sever a. there was distortion in those numbers. that is why you saw a softening of the manufacturing data for the first few months. those effects seem to be stripped down to the march numbers. pmi numberturing coming in at 50 1.5, smashing party estimates that 50.6. we are seeing those lunar new year's playing much less of an effect. the factory doors have swung
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are seeing a-- you strong demand for exports. that export component has strengthened considerably in the march number. that synchronize growth picture is helping china's manufacturing sector. also nonmanufacturing data coming in stronger than expected. 54.6. the view from the likes of cic, the chinese investment bank, it is in the manufacturing sector throughout this year. their view from the likes of the bank is that these numbers suggest that the first quarter growth is going to be pretty solid in china. of course it underscores policymakers efforts to be with the economy and helps them continue in those efforts. we could be seeing a first quarter about that target. what are the trade tensions? we talked about how on a large-scale, these tariffs are not really going to have a big dent on exports, but have we
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seen any impact from china's manufacturers? impact that we have likely seen, again referencing, we may have seen a tick up in exports as a result of the desire by manufacturers here, but also their customers abroad to get those products before any tariffs kick into place. we are still waiting for the details and the trump administration around exactly which products will be hit by the $50 billion -- $50 billion worth of tariffs. fx are playing out, but in a positive for now. it is the number one potential headwind for china's economy for at least the trade site of the economy. the other potential headwind is the crack down on pollution that doesn't seem to be having -- we have been choking on terrible air. also the de-risking campaign is another potential headwind. these manufacturing numbers for give the policymakers
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more room to tackle risk. we look at this number fleshed out one week it the data out at 9:45 hong kong time. focused on the smaller medium-sized enterprise, giving a more rounded picture of the trade and of the manufacturing environment and china. tom mackenzie in beijing. joining us more reaction for reactions,ial pmi senior emerging markets economist. the you make of stronger-than-expected ?anufacturing numbers the economy and china continues to come along despite the trade tensions. i believe that it looks like, overall, the data looks positive. pmi, it wasial
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relatively stable. this year it looks like it's unusually volatile. if you look at the overall turn, which we see china's growth profile. right now the trade tensions have not inflated into any kind of sentiment indicators. not yet, that is the key phrase. in theabout to get, united states, a long list of tariffs on chinese products from the white house. we have not seen this play out. this is still in the early stages. you expect that this might be possibly the peak to see a number like this? think, to be honest, i do not think a trade .ar is economic it is far beyond economics. i think from china and the u.s. perspective, it has been quite complicated, especially china
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and north korea at this moment. we should have to prepare for some upside risks in the trade war. for example, if china imports more from the u.s., a trade could be good weather -- rather than worsen. it is something we have to prepare. there is always a downside risk from the trade war. for china, the problem right now , the risk comes from the property sector. this is the key risk for china in the coming year. yvonne:, so you have to look more inner than outer. you mentioned about opening up in terms of negotiations. his china really where -- really ready to open up its economies ?ike tech transfers and joint
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is do we know that china really serious about opening its economy? what parts of the economy? it is obvious that china will announce policies maybe as early as this week. alreadychina has outlined the areas that china wanted to open up to the korean , especiallyn firm in the financial sector. some things like the energy sector. is problem is that, if that really what the u.s. demands from china, china opened up technology. there is still some gap between china and the u.s.. china and the u.s. should sit down on the negotiation table to has for a what china
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also it u.s.d demands or requests from china to open up. both sides should come up with an compromise a talk it -- a topic to have a package between the two countries. betty: what has been fueling the growth numbers this year, much of last year has been the external side in the external demand, which remain strong. the monetaryt does policy began to be reflected in the numbers? in general, the monetary policy has been quite stable. looks like china has shift its policy focus from markets to regulations. that in the coming
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months we do see that china could be stable, but the most important thing is that the growth of the bank, especially a small bank could be growing significantly. we do see that trend in the past quarter already. get yourm curious to take on this. do you think the reason why people are kind of downplaying how much the trade tensions will be, or the implications of a trade war is because we have seen so far on the chinese side that the reaction has been pretty muted? i think china is quite and did not lay big tariffs on the impulse from the u.s.. i believe china has prepared and still wants to have more friendly negotiations with the u.s. because trade, at the end
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of the day is important for china. i don't think it is strong for china at this moment. senior emerging markets economist joining us there ahead of the pmi data. lendingwing on my sector is feeling a squeeze from regulators. we will discuss the prospects in an exclusive interview. singing a geopolitical tune in north korea. the latest on keep up diplomacy, next. this is bloomberg. ♪\
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betty: this is "daybreak asia." chart topping k pop bandit red velvet can add international diplomacy to their string of hits. a special performance over the
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weekend. they were in front of a special audience including kim jong-un and his wife. peter, we are not sure if kim jong-un is a big fan, but how significant was it that he was in the crowd? visually, it was very significant. particularly because of this geopolitical change that is of relationswing between north and south korea. it was very symbolic in the sense that this is the same machine a year ago that threat start a war because of the loudspeakers that the south korean military had on the border blasting out red velvet songs, which the north koreans had dubbed a decadent capitalistic influence. the even threat and to war because of it. yesterday, kim jong-un, the leader of this regime was there watching.
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he chatted with the red velvet girl group, as well as taking photos with them. pretty significant contrast there. we have seen these types of diplomatic shows. back in 2003 the boy band. it was met with a frothy reception. was quitethere upbeat. what you think came out of these discussions? does this type of diplomacy actually work? seems tosually, it have. we have report saying the audience cheered, got up. much different reaction than 2003. of course, kim jong-un being there helped. him shaking hands with everybody afterwards. there seems to be far more energy behind it. particularly from the north korean audience. that is suggesting that there is
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indeed, at least on the north korean side, friendlier relations with south korea. of northen you think korea and kim jong-un, you rarely think of k pop, but there you go. note, theserious drills, are they still a flashpoint between north korea and the u.s.? peter: the timing of the start of the drills was interesting. it happened on the same day as a concert. by the way, red velvet sing one of their most popular songs called "bad boy" in front of kim jong-un. he apparently liked it. .ery entertaining we will get to see it, north koreans control the content. live, so we show it will get to see it april 5 here in korea. that, the drill itself started on april 1 yesterday. on the same day that the concert happen. it seemed symbolic in the sense
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past,north korea, in the it was another issue that they with ran to go to war because they always thought the drills were a prelude to a preemptive strike like u.s. and south korean forces. criticism or complaints have arisen in the last few days. normally we hear a lot of chatter from north korean state media saying that you cannot do blah.blah, blah, the drills of north korea seems to have no problem with it in suggesting that this thawing of relationship is continuing. sole bureau, our chief. don't forget our interactive tv function, tv go. you can watch us live and catch up on past interviews. you can dive into any of the
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rubrik functions. you can send us instant messages. this is for bloomberg subscribers only. check it out on tv . this is bloomberg. ♪
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tesla's troubles are testing the confidence of investors. federal investigators are saying they are unhappy the company revealed details of the fatal crash in california. , the newsatest now that comes of an april fools' day. ramy: we are getting negative headlines. here on april 1, which is to just and only -- traditionally a day for pranks, elon musk says the country is not bankrupt, it is bankwupt.
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he was passed out with teslaquila. this may me smile initially, but we have to take a step back. i mentioned earlier, in humor there is truth. elon musk may be trying to get away from these massively horrible headlines over the past month. i am calling it a terrible, horrible, no good, very bad march. if you happen to my bloomberg terminal, we will go into g #btv 5528. you could see her that over the past few months, shares have dropped 22.4%. this is the second biggest drop ever since tesla went public. the last time was back in 2010. this is because of the two fatal crashes. callbackecause of the of 123,000 model esses. this is the production we are expecting by the end of this quarter. what you are seeing now on your screen is the most recent fatal
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crash on march 23. what is really happening now is that ntsb, the u.s. federal regulator for transport, is now unhappy. that is the quote, unhappy with what is happening. tesla actually got out ahead of their preliminary report that was expected to weeks from now. your european investors are now significantly less enthusiastic about the tesla. ramy: absolutely. if you going to the line chart, the shorts are at a year high. coming up at 26%, you are seeing that in the orange line. that is a lot of negativity here. cars a week.0 they will probably not hit that. some analysts say that for the quarter they might hit 8000 units, bloomberg says maybe 9300. a lot of investors are wondering how much further can they go? how much more can they get that
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task before the start to take a bite? betty: we will have much more ahead on "daybreak asia." " this is bloomberg ♪. ♪
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8:30 in singapore. opening of trading in the lion city. some of the major benchmarks are still close. hong kong, australia and new zealand this morning. betty: a little cloudy there it seems over in singapore. you are watching "daybreak asia." let's get to the first word news now. ramy: over to china and the country's response to president trump with terrorist targeting what it 100 types of imported u.s. goods. that includes port and good -- and fruit. the decision has been taking the full approval of the state council. china says it plans to seek
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compensation for trade lost due to that u.s. action. president trump spent easter sunday on social media posting a series of tweets calling for the end of the dreamer policy that protects the children of illegal migrants. entry messages he said border control agents could not work properly because of "liberal loss" pass by democrats. he blamed mexico for not stopping people for entering america illegally. he threatened to dump nafta. k pop played a role in the foreign relations between north and south korea. dash cam general and went to a concert in pyongyang. the two countries were towards a summit. media reports say his wife and younger sister were at that concert. at the box office, steven spielberg sci-fi thriller "ready player one" gave warner bros.
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its first top-ranked debut of this year. 41 $.2 million over the weekend, easily topping last rim: uprisingic which got my million dollars and felt of his place. 20 four hours a day powered by more than 2700 journalists and analysts in more than 120 countries. tokyo and seoul the only ones open. a decent rally on the cosby here. sophie: not a bad start to the second quarter after that miserable lunch that we had. checking in on what is happening. rising for a third straight session is korean cosmetics and tourism related stocks climbing. it is looking to resolve disputes. we do have investors looking for that breather across the region. japanese exporters are rising is
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again consolidates. optimism coming through on the hong kong survey which shows the economy is in a relatively good place. large company say it is time to raise spending despite this sentiment taking a beating. nikkei 225 gaining a 10th of a percent. x raising the gains that we saw this morning. check out what is going on with the yen. it is trading at the strongest level since october, 2014. before the start of geopolitical tensions and trade risks. andyone watching their seoul. consumer shares are the best performers. lg household climbing towards stock, they are getting a boost as the girl band red velvet conducted diplomacy. the group is gaining ground with agencies. what is on the move so
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far and on the markets. cook has come under fire and being forced to defend his company as page erotic. patriotic.as tim, you have looked at apples financials, where exactly is the iphone made? tim: you have to define what the word make means. tim could gets upset when they say it's in a made in china product. on the back of the iphone it says designed in cupertino by apple and assembled in china. i think the more important question is where is the profit made what people forget is that -- where is the profit made? markups.rget about the people assembling the device is not that large. if you go to that supply train
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-- chain and look at them, gross margins are closer to 50%. companies like qualcomm, broad, intel who supply the iphone and to apple. people like to think about it being made in china and china is getting the money. americany, a lot of companies are making very good money from the iphone. you can understand why tim cook gets upset talking about where it is made, where it is built and splitting hairs about those kinds of details. you are talking about the patriotism of apple, there is a lot of money flowing into the united's because of the iphone. people are forgetting that. yvonne: much more that supply chain than in asia. we are looking at honda hi, which is an apple supplier. this one-timefor gain from these sharp shares a reselling, this would have been an ugly report. tim: it would have been. the share sales are a very
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curious deal. shares andhey bought they had class c shares at a very good price. they then fill them to an employee share platform that is employees.n hai they had a beautiful one-time gain in the december quarter. how that employee share platform businesses funded is a bit of a mystery. to make aow hon hai beautiful profit. that is not the only tilde happen. they did a lot of other cells that help them prop up the bottom line. the top line was not that good. the operating level was not a great either. they have been dragged down by the fact that one of their subsidiaries is trying to promote the nokia brand name in a partnership. there are a lot of things going on. in the fourth quarter, the bottom line at the eps level, things look fantastic. when you look at the operation,
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hon hai did not do well during the quarter. it is important for investors to look at that. insaw trading on saturday taipei. unusual to have taipei trading on a saturday. -- shares hai trades fell. there is not a lot of upside there. i think people will be watching for what will happen to hon hai in the next few months. bloombergm, our columnist joining us live in taipei. on my lending sector is feeling the squeeze as regulators tight in the screws and made a broader clampdown on risks. one micro-lender is welcoming the new rules saying bear focusing on loans, the young urban elite is paying off. bloomberg shine at correspondent tom mackenzie spoke to the ceo in beijing. we are choosing the best
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customer. they have a potential in the future to become the mainstream of the society. they become the customers. the systems you put in place to ensure the creditworthiness of your customers? craig: it was based on the customer's current situation or pass situation -- past situation. is used to predict people's future. tom: do you see them as key competitors? compete withl everybody. we have different kinds of focus. the finance is typical. they try to serve everybody. we tried to serve a part of the society. model or a think we will have a lot of opportunity in the future.
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most of the chinese companies just want to be big. in the future you'll see more opportunity coming from the customer group. we will grow nicely from there. you think you will become a competitor to the banks here and china. ? craig: i think the banks are our partners in the past and maybe the next five to 10 years. the evolution will be a topic for the banks. if the banks except this idea of efficiency, including give your customer a better experience, then the banks will benefit from this trend. if you just want to do the same model, you will see lack of
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competition coming out. how has the changing regulatory environment impacted the business? craig: it is a good move for the industry. high interest rates are not welcome. the only thing i tried for high interest rates is the risk. illegal collections, definitely no. just collecting money, that is a no. you need to provide a better service to the markets. tom: we are looking at an environment of tighter credit. theret a benefit because is a gap he can fill, or does it make the job difficult? craig: i think it is both. china has finance industry, you and never see it with federal
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growth rates. it is a trickle opportunity for a company. we have to do two things at the same time. education and -- we want to educate the people and that we are the ones who work with them to show them how to use this. betty: that was bloomberg's china's correspondent tom mackenzie speaking exclusively to the ceo of lexington tech. china has a new plan to bring its biggest tech giant back home. this is bloomberg. ♪
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betty: this is "daybreak asia." china is rolling out a
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plan to bring a tech giant back home. that's ringing bloomberg editor -- let's bring in bloomberg editor. we have been talking about the china depositary receipts for about a month. which companies are being encouraged to list china? >> this is all about bringing company listings back home. china, over the past five years has lost about one trillion worth of tech listings to markets like new york, hong kong and elsewhere. this is about trying to get them back into a market that has not been overly friendly to those listings in terms of the rules that are in place in terms of start -- stock market structure. there is only a pilot program at this stage. the china depositary risk that you mention, but also a special
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program to encourage listings of highly innovative companies. companies with their own core technology in cloud computing, internet, that sort of thing. it has targeted the high-tech companies that china wants to bring back home but also keep here. those unicorns and smaller companies that may be considering listing offshore that they want to keep your in the local markets. betty: what are the special features that would otherwise be -- in the chinese market? emma: a company like alibaba has been deterred in the past for listing in china by rules listing.ewel class there is also a ban on certain structures called variable equity infrastructures. they will be blind to that as far as we know. would be like alibaba able to list them here without having to change those structures. -- open to apening
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company of a market value of about $30 billion, which makes a company like alibaba over 460 billion in market value, very much in the spotlight for the program. how do you think this will affect trading shares elsewhere? we have already seen some impact in the hong kong market. shares of the hong kong exchange have fallen. about a month ago at the national people's congress. his idea of cd-r's was suggested by legislators there. it will have probably the biggest impact on hong kong, because of the company is able to list in new york, which has been a favorite for chinese tech it therech companies, is a listing in mainland china and there would not be as much need for a hong kong listing. urehas struggled to l
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other tech companies. this is a direct challenge. in beijing,o'briant our bloomberg news editor. spotify is dropping its biggest playlist yet. the company plans to go public, but in an unusual way. alex explains this. >> spotify is becoming a public company, but do not call it in ipo. the music streaming service is sidestepping the public offering in favor of a direct listing. that means the company will not be selling shares and it will skip the shares price discovery process that is essential for an ipo. typically, when a company goes on ac, managers decide valuation and embark on a marketing roadshow. they make their pitch to wall street and judge interest from potential shareholders.
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stockght before the starts trading, they use that input to set a final price and number of shares can be sold to investors. then the shares opened based on that dollar amount the next day. andify is skipping that going straight to trading. on listing date private shareholders can have stock. large established companies really do direct listings. the risk is that the stock will tumble immediately or swing wildly in the first month of trading because the company has not gone through the exercise of matching supply and demand. spotify is betting its reign over the streaming music market will get investors excited. giant was valued privately at a $.5 billion in its march 2016 funding round. since 2017, the shares have changed hands and they have valued anywhere from 6 billion to $23 billion. going public will mean more musicors can bet on the
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streaming company. spotify is promising investors big rings. up to 96 million subscribers by year end. that is 36% more than it currently has. to 30% morep 20% this year, potentially reaching $6.5 billion. investors will also keep a close eye on operating losses. spotify expects will be 283 million to 406 million u.s. dollars this year. new shareholders cannot count on having much of a voice. according to people familiar. spotify's cofounder will have shares with super voting power after the listing. with the streaming music market predicted to hit $34 billion by 2030, you can bet investors hope they are plugged into the market winners. yvonne: that was alex. for breaking his reverie you
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are, we have teamed up with twitter to launch bloomberg. the first global news network designed for social media, offering live video coverage and hourly updated news reports a verified by us. if you're on twitter, check it out and followed to talk by bloomberg. this is bloomberg. ♪
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betty: this is "daybreak asia."
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yvonne: quick check of the latest business flash headlines. hudson bay's investigating a data security issue at its outlets. information of payment cards used at certain taylor stores. they say details for more than 5 million credit cards are of for sale. last week they reported fourth-quarter earnings that missed estimates. betty: a major step toward seeing biggest companies listed on how markets. announcing a child that with alibaba, baidu and others are traded on the mainland. chinese depository receipts would apply to companies that went public abroad. they have a market value but meet $30 billion. that plan would also allow firms to have money offshore. a power generator that pleaded for president trump file for with energy
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bankruptcy. it list of five hundred $50 million in cash to continue working in me obligations in a chapter 11 filing. lastly the energy secretary rick have aas called on to grid of emergency and guarantee profits in the industry. betty: sony enters the new fiscal year with a new boss. rain as ceo and driving the company's turnaround. hisstors like him for style, but some managers tell as they worry he doesn't have the passion for the kind of gadgets that made sony and household name. yvonne: now for a look at what is coming up here on bloomberg tv. what to expect in bloomberg markets. rishaad: waiting to see if we will have tariffs snapped on china by donald trump.
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this is from the u.s. in singapore. starting for negotiations. was talking to us about market risks. we get a risk every time mr. trump tweets. last but not least, nick joining us from tokyo. it is a bright spot there. certainly when we look at what happened in the fourth quarter. looking at that and what that means as to which way abenomics goes. how does that scandal also play out and affect what is going on with the economy? and what to the fundamentals look like for stock investors? yvonne: a lot ahead to pack in in your show. will be looking forward to
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all your guests there on "bloomberg markets: asia." the us trillion markets in new zealand are closed today. japan and south korea are wide open. of course we saw in japan the survey for the fourth quarter. arge manufacturers has mistake on the outlook. small manufacturers are more robust. 2.3%, a good sign for the japanese economy. japanese investors seeming to like that. nikkei up 3/10 of 1%. kospi following along a 10th of 1%. we have been talking about the k pop diplomacy. that is being reflected on the constitute. how we are set up for asia futures are in singapore. looks and kuala lumpur
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positive. quite marginal, unchanged. i want to talk about earnings provision. we have been talking about this for some time. 8697. this could be a signal of market upsets in the second quarter. we talked about the pace of that warnings -- earnings upgrades of lastt up at the end year. we saw signs that that was stalling now. techoncern on trade, the hawkishness. given the volatility we saw on the fourth quarter, and how much valuation has been sheep, it seems that asia stocks are looking a little bit more cheap for investors that want to dip their toes back into the market. perhaps we will see more bounceback or market upsides here as we look ahead to the second quarter. betty: we heard a guest talking about the financials and the cyclical shares are looking more attractive. this market hinges on where tech
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goes, as we saw last week in the selloff. this coming month we will get a lot of earnings in the big tech companies, including amazon later in april. we will see if those valuations. continueions on tech with the tech valuations in asia. --nne: especially if especially if amazon has a target on that's back from president trump. that is it for us on "daybreak asia." betty: standby for "bloomberg markets." this is bloomberg. ♪
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>> hello, everybody. it is a quiet day ahead. volume is expected to be subdued. several markets out there at the moment close for easter monday. manufacturing remaining robust in china as factories struggle. fears of a trade war. beijing to answer u.s. tariffs. japan answering the new -- entering the new year. there are bright spots in there. in hong kong, i am rishaad salamat. sydney, i am am haidi lun. elon musk plugging into the april fools' day mood, saying tesla is bankrupt. this

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