tv Bloomberg Daybreak Australia Bloomberg April 8, 2018 6:00pm-7:00pm EDT
♪ haidi: slow and steady, the fed chief says inflation wages and jobs indicating the gradual rate hikes are the way to go. betty: china will be the first to blink on trade, trump says, because it is the right thing to do. haidi: malcolm turnbull loses a 30th test of popularity that is a sticky test to be others. betty: and deutsche bank names a new reason to replace their fired ceo john cryan.
-- person to replace their fired ceo. haidi: this is daybreak australia, two hours away from the open of asia's first major markets. betty: it is after 6:00 p.m. in new york. i am betty liu. we are looking at how all the action of wall street will play into the asia-pacific trading day. what a day we ended on friday in the markets, down almost 700 points on the dow or over 700 points. it was finishing lower by 573 2.2%,, the s&p also down the nasdaq losing ground as well, down over -- up do 2.3%. rightl be a week of trade on the agenda. we have the fed minutes, inflation data, and mark zuckerberg of facebook will be facing the music in congress. haidi: these congressional testimonies really are calling
of theestion the future social networks like facebook and how they will be regulated, and sheryl sandberg meeting with european regulators. but investors are pushing for some sense of equilibrium. how do you position yourself given the unknowns? that look at the set up. we are pretty mixed, we have trading in new zealand area there is quite a bit of downside with kiwi stocks. the kiwi dollar 72.73. we have seen stability when it comes to the trade exposed risk currencies like the kiwi and aussie dollar, the aussie 76.75, not that three-month low we have been languishing near. sydney futures pointing to the downside. gold is a bit up, that safe haven play coming into play. the u.s. 10 year seeing the biggest gains. crude falling just shy of $62 a barrel. we have a key opec report out this week as well.
iron ore from the australian government, a bit of a mixed message. seeing higher prices but weaker demand as china seems to have cut its steel outlook. deutsche bank has named christian as the new ceo. the veteran replaces john cryan who relieved -- who leaves the bank after three years in charge. su keenan has more. amidstllenge to the ceo of this huge management shakeup for deutsche bank. su: the future of germany's biggest lender is at stake, and there was pressure on the top to make a change. the supervisory board met in the most recent hours and decided it is christian, a lifetime career executive at deutsche bank. began as an apprentice come a work his way up to coed of investment banks, and he becomes ceo immediately. the former ceo john cryan,
removed after three years at the top, amid mounting concerns about the future direction of the bank. there have been a number of challenges facing him. john cryan was charged with a turnaround that has had increasing crosswinds. the stock year to date is down 28%. it depends in large part on trading revenue which has been under enormous pressure, and 2015, since then there has been a significant drop in trading revenue. that has increased the drumbeat of powerful investors to make a change and make it quickly. betty: we will get more bank news. we have bank earnings starting this week. what will be the key challenges awaiting him? su: the change was to make an executive dynamic change. if we look at the problems john cryan faced, he was brought in in 2015 to clean up the bank, and there were a number of
issues he presided over. yet to cut risk. he had to settle multibillion-dollar cases involving misconduct with the bank. he had to raise capital. his main objective, to raise the revenue for the bank, was not meeting the goals in terms of the immediate pressure that have mounted in recent weeks to change the supervisory board. they met over the last couple hours there they had wanted of course to find new leadership. this is the third major change at the top and six years. the praise that christian has gotten is that he has led the bank's internal probe into money-laundering which ended up closing down the securities unit . he had praise for job cuts, and he is the man taking the bank forward again effective immediately. all right, thank you, su keenan with the latest on deutsche bank and that change.
let's get to first word news with haas haslinda amin. -- with haslinda amin. haslinda: jerome powell said the outlook for inflation and jobs supports the gradual rate hikes, but the lack of wage gains shows the labor market is not right. and since becoming chairman, powell said policymakers are aiming for 2% inflation and will retain the current strategy of slow but consistent hikes. >> it remains the case raising rates to slowly would make it necessary for monetary policy to tighten abruptly down the road, which could jeopardize expansion. raising rates to quickly would inflation stay below our objective, and the gradual rate increase is intended to balance these risks. the united states says north korea is willing to talk
about nuclear weapons when president trump meets kim jong-un. sources tell us washington has confirmed kim is ready to discuss the issue, following indications from seoul. -- talks have been having there are is talk they have been holding secret talks. the venue is yet to be announced . the malaysian prime minister is offering peace and prosperity as he heads into the election campaign. he is promising to help rural voters pay off debt and provide affordable housing for the police and the military. it is a strategy aimed at his key supporters, muslims and the leadings and opposition party is going to fight on despite being suspended. >> we are going to carry on as members of this party. we are not going to accept that this party has been deregistered. and we will put in an appeal
against the legislation to the minister. haslinda: former brazilian president has spent his first night in prison after handing himself into police. he surrendered after defying a court deadline and hiding in the headquarters of the metalworkers union outside sao paulo. he was flown to another city where supporters and protesters clashed. became was fired as he -- began his sentence for corruption. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda amin. this is bloomberg. ♪ haidi: thank you so much. china is running out of room for a tit-for-tat on trade. take a look at this chart. we bring up this chart?
ok, no. all right. as trade tensions simmer, president trump predicting china will give in first. he said that he and president xi will always be friends, and china will take down its trade barriers because it is the right thing to do. for more on -- he expect reciprocal taxes, a great future for both countries. ros krasny following it all from washington. does president trump have any reason to think china will buckle or, are they going to do the right thing? ros: it is unclear, and we don't enance is forv trump to treat that this morning. -- tweet that this morning, saying china will step down because it is the wrong just the right thing seems far-fetched. his treasury secretary was asked
directly about this comment and about whether china has any sign of concession since friday, since the big drop in the markets, since president trump's latest ratcheting up of trade talks, and he said, i can't comment. he is supposed to be leading the talks with china, but he said basically we will see something when we see it, and couldn't talk specifically about anything that may have happened in the last few days. so we do feel like the u.s. administration, led by president an artis sort of doing of the deal negotiation here. one of my colleagues wrote today, president trump is counting strongly on trade negotiations. we have seen it with nafta. we have seen it with south korea , comes in strongly, that ultimately takes concessions that might be less than we expected. perhaps that is what is going on with china, but people are
worried. haidi: do you know anything about the back channel talks that larry could low has been looming -- kudlow has been referring to? there is volatility in the markets and what affect could they have? ros: according to president trump's advisor, stephen mnuchin and robert lighthizer, who have been trader presented of leading the talks, it is certainly not clear any actual talks could be scheduled in this place or that place, but we have to assume that channel talks go on all the time between the u.s. and china and they are continuing to go on during this time. both stephen mnuchin and larry kudlow, president trump's new economic advisor, talked about the market. they say the stock market is higher than when trump took office.
this is an administration that is often talking about the stock market. president trump and his family and administration often claim credit for the fact stock market has gone up. if they see markets go down and heareople nervous, they from industries, agricultural industries, the tech industry, worried about what they are doing, it will give them some pause. cap ins more than one the white house. traderst trump's free like gary cohn have exited at this point, so it is unclear who is leading the way here. there are others asking for some kind of approach rather than some thing on trade. larry kudlow doesn't think there will be a trade war, but the u.s. has bid on the table, $150
billion. china has outmatched that. one thing to look out for is president xi. . he spoke at a can on the conference on tuesday and he maketh a signal about -- an economic conference on tuesday and make them a signal -- give a signal. haidi: thank you for that. we will talk more about trade next. its applications on the markets if china comes back from a holiday. sean stanton will be here. betty: and later we will talk to someone who used to have that head of the credit export agency. the longest serving chairman, he joins us in half an hour to continue the trade discussion. this is bloomberg. ♪
betty: good morning. i am betty lou in new york. .aidi: i am haidi lun you are watching daybreak australia. chinese markets resumed trading sessions off. watching how traders respond to the trade war with the u.s. joining us this the tribeca portfolio manager. $3helped management in billion. the market investors are getting more used to this bombastic negotiating tactic of trump, trade policy by twitter. ? e they really you are still seeing knee-jerk reactions. i thought they were, but friday proved me wrong. the volatility is back. there are reasons you have trade tensions, but i think also the fact that we past eight central-bank limitations good you see that how this spreads,
and you see volatility coming back to the market. are getting the tensions, which we had last year . the markets are starting to react. that is interesting. haidi: this is the ultimate question of what investors are asking, more than ever unknowns to take into account here you want to stay in the game, but are you more cautious, looking towards value and growth? sean: volatility brings opportunity as well. really focus on the fundamentals what is driving the market and heightening opportunities. the trade wars, we are talking $150 billion on worth of goods in the u.s. economy that consumes $300 , bution, so it is an issue it will not cause the economy to collapse or cause inflation to breakout. the merger drives inflation. growth is still strong. policy is common.
we like it more so what we have like to before, inflation hedges, commodities and industrials, cyclical value. we don't want a really hard is reallyich susceptible to this volatility. betty: in the last few weeks we have seen how much this momentum, these stocks, how fast they go up and down. i want to pull up the btv chart we just showed you, the u.s. versus european stocks among the s&p versus the euro 600 index, and it shows you the right hand side how much the correlation between the two is falling, and i am curious, when you look at u.s. vis-a-vis europe or u.s. these of the age of, -- asia, what is the coupling how do your -- vis-a-vis asia, what is the coupling?
sean: liquidity is driving everything up in concert. it is going away. we are looking more at different markets, opportunities. welle is pairing along as -- powering along as well. it is not involved in a trade fight with china but europe through germany has trade linkages with china as well. a lot of weakness in china can go through this. thate short-term, some of correlation is breaking down, but if you really hit a big pothole, then correlations go back to one again. it is good, correlation breaking down, giving investors an opportunity to make money and get rewarded for the risks they are taking. betty: it does when you see those correlations breakdown. this week we will get data points are we will get the fed minutes coming out. are you looking at those minutes in particular for any clues on
interest rates or where the fed is thinking in terms of inflation? sean: definitely. i think powell taking over, they are more hawkish, and the u.s. economy continues to strengthen. it is doing well. you look at tax cuts that we have not releasing the impact of yet, there is probably an infrastructure stimulus plan to come. terrorists drive inflation -- tariffs drive inflation. week andoll out really inflation numbers from last year we had one-off hits from telcos and health care. you will start seeing headline inflation and poor inflation print higher, and the market will shift. the fed will continue to show the rate rises in particular the possibility of four out of three. betty: are we looking at more selloff to continue in intensity? sean: yeah. keeparket where things
going up there after day, i don't see global session on the horizon or anything like that. anything is -- earnings remain solid. there will be good days and bad days and rotation in the market, so you want to be in stocks delivering earnings and have leverage to improving earnings on strong and cyclical growth. expected --is your your expectation, giving the earnings season and the sellouts and -- the selloff and forward? sean: strong growth around the world, so cyclicals benefiting in the u.s. certainly, industrials, transport doing asia, tax haved been off. you continue to see strong earnings from international focus companies. domestically consumers sort of hang in there. they will not go away. but expect to see earnings
♪ haidi: i am haidi lun in sydney. betty: i am betty liu, you are watching daybreak australia. business flash headlines, deutsche bank's advisory board has named a new ceo, replacing john cryan amid a wide overhaul. the co-deputy ceo was an early favorite. he is a deutsche bank veteran and heads the private and commercial arms.
their biggest revenue source is trading stocks and bonds, and income has fallen 32% since the end of 2013. haidi: struggling commodity trader noble group is moving its headquarters from london to hong kong as it sees a controversial restructuring of more than $3 billion of debt. the group said the move took effect over the weekend and is registered in bermuda, so their research began to question business, and accounting. betty: australia is forecasting record annual energy exports this year, worth $176 billion u.s. that is a 7% increase. the changes based on rising lng and iron ore volumes. the industry reports commodity trend crisis trending down next year before stabilizing and supply and demand mismatches.
haidi: australia is sending mixed messages, expecting the price to stabilize but demand from china that ultimately eases off. what is it? what is the official forecast? paul: this is the latest forecast from the department of industry, innovation, and science. the rest of the outlook, $61, is ag off to $81, and that revision upwards and quite a big one. it was 52 dollars $.60 -- it was $52.60. the department says the prices are expected to moderate. they will better reflect the fundamentals across the supply and demand from brazil and moderating demand in china. that is the flipside here is chinese demand. china sees iron ore imports easing off 40 million tons through 2023 and steel outputs
falling in the same time. haidi: supply is up. paul: it is not. we have trials -- stockpiles piling up in china. you saw china a moment ago over the first past five years, you have seen those iron ore stockpiles building up. at the same time there have been record shipments leaving from australia, 42 million tons left last march. it was a record up from 39 million tons last year. d minen brazil, this 11 ramping up production, at the same time china attacking -- cracking down on pollution. that is hurting some companies like fortescue. haidi: a bit of a mixed report, mixed outlook from the government. coming up next, trade wars or not, why the fed sees strengthen the u.s. labor market to keep raising rates this year. we are breaking down that report. this is bloomberg. ♪
♪ haidi: it is 8:30 a.m. in sydney, the start of a brand-new trading week with markets open in 90 minutes. futures in australia looking gloomy, start to the sydney session. wonderful day in sydney, another whiplash session as we react to the trade war threats. i am haidi lun. betty: it is 6:30 p.m. in new york . lots of swings in the market. let's get to first word news with haslinda on. -- kaluz -- haslinda: president trump will be first -- says trump -- president trump says china will
be first to blink on a trade war. he said it will be the right thing to do, suggesting a deal will not be struck on property rights. this will be struck on property rights -- a trade war can be averted, claiming this as part of a long-term growth strategy. >> this is not a trade war there this is no war. all we are trying to do is save and defend american technology which is crucial to american economic growth. haslinda: the leaders of europe's biggest economies visit washington within days of each other, hoping to avert their own trade war with the u.s. the clock is ticking on the may one deadline for e.u. proposals to stop washington imposing tariffs on steel and aluminum. a possible solution made lie in white house efforts to forge a trade coalition to talk to china over the unfair practices. president trump's trade threats
have left president xi with a tricky balance. the chinese leader addressed the , reassuring both domestic business and foreign investors. beijing will fight to the end of trade and will target politically sensitive u.s. regions with retaliatory tariffs. china's foreign currency holdings renewed gains as beijing maintained capital curves, and the yuan cap its best quarter in a decade. reserves rose $8.3 billion to $3.1 trillion in march, below estimates. march has turned around from february where chinese holdings fell for the first time in 13 months. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am haslinda amin. this is bloomberg. ♪ thank you for that.
let's get a quick update on the markets as they set up the trading week. new zealand, quite a bit of downside as we get into this monday's session, half a percent lower for the anz. do dollar 72.77. the aussie is a little lower. the u.s. dollar is lower against the yen and the kiwi. the aussie dollar 76.78, languishing at three-month highs for the past of a fortnight, but some pressure given we are waiting to hear more details about the trade threats. let's look at the broad view their the japanese yen in tokyo, 107 handle, a bit of respite. sterling trading at 148. we have the classic safe haven, the u.s. 10 year yield, dropping six basis points, 2.77% is where we are at in the s&p 500,
closing lower. all major benchmarks in the u.s. close ofver 2% at the trading friday. let's look at what is going on with the -- global editor adam haigh. this trade situation looming, what are we expecting? adam: the setup for asia is very negative from an equities point of view in terms of the sentiment and continuation of this trait debate that continues. it was a very tough session on wall street friday, and that payrolls number as well. no one was able to find any reason to kind of take incremental, additional positions in equities, so i think pretty poor start to the asian session. we have chinese local and mainland markets coming back online. nikkei futures looking negative. i suppose the bright spot is we in theen a little less
s&p 500 news. they are up a bit, which may suggest some stabilization in that rout we saw on u.s. equities friday. the tricky thing, as we have seen on that number of occasions, the early moves in the futures like the asian trading session, can get whipsawed into london when the european traders come in and start their session. it is no means a signal we will get gains in u.s. equities today, but it is something to keep an eye on. will be a stuff -- a tough start to the week. betty: looking for opportunities, and one place where it looks like assets are performing well is bond markets in china, but not a lot of people are really paying attention to that. is that because it is inaccessible to foreigners? adam: i think in part it is due to the relative inaccessibility still of foreigners being able to go in and own chinese bonds. as this chart shows here, this
really shows the extent of the runoff we have had. some of the chinese bond funds are up 5% or 6% this year, which if you asked people at the start of the year and say we are happy to those returns one quarter through the year, they would have taken that in a heartbeat. to there changes international axis regime to china's markets, but at the moment it is considerably -- considering what is going on with the u.s., considering the issues around inflation and liquidity in china, given growth coming off decent growth rates, giving off a little bit. these returns, you know, pretty decent at one quarter into the year. betty: adam haigh, bloomberg global editor. jay powell sees strengthening in the labor markets to keep raising rates gradually, but
what about the specter of a trade war? does that affect the fed? here with more. let's start with the jobs report friday, undershooting estimates. kathleen: maybe one of the measures looking stronger. bottom line what happened was we expected pretty much. the march jobs report was hit by unseasonably winter weather, very harsh on the east coast, compared to february with unseasonably warm weather boosting numbers. let me give you details to show you what i am talking about. 103,000 inre up march. the forecast was 185,000. that was down from 326,000 in february, averaging 200,000 a month. unemployment was steady. it was supposed to drop. now basically holding steady. average hourly earnings were up 0.1% to 2.7% year-over-year. that is acceleration.
production workers, 80% of that pool. their wages were steady. jay powell in his speech, the new chair of the federal reserve, said there is no acceleration. there is a lack of labor market but given the whole economic outlook, be ahead on gradual rate hikes very let's listen. 2%continue to aim for inflation and strong labor market. as i mentioned, my fomc colleagues believe that as long as the economy continues broadly on its further path, gradual increases in the federal funds rate will best remote those goals. speakers,two more john williams, about to become the president of the new york fed, is on board with three or four interest rate hikes. charlie evans of chicago has been dovish, says he thinks a rate hike again. he's talking about june with another press conference.
said it works beyond that only if inflation is 2% or the data indicates inflation is moving in that direction. the consensus behind jay powell's view for possibly three or four. that does leave for room for what will happen this year. haidi: within that room, i wonder about trade. what about the trade conversations being held about that slow down? kind of put a stop to this rate hike trajectory. kathleen: but has a lot to do with market volatility. jay powell was asked about this. he said it is too early to see what the impact of tariffs will be on the economic outlook. you don't know how long they will be or expensive. charlie evans said the impact is relatively small for the national economy. neel kashkari, of minneapolis, spoke on saturday and i believe he was on fox news. he said yes, paying attention to
the dispute, it could be a trade war. interesting comments on friday, , fromn by roberto perley the fed board of governors. he has a fairly high position. he said it is hard to think more bad news on tariffs will not slow the fed down. bill gross called it a week job report. he is looking for one or two rate hikes this year. haidi: and keeps so much for that, the global economics policy editor kathleen hays. a lot to think about going into the fomc minutes throughout this week. she also has an exclusive interview you won't want to miss tomorrow on daybreak asia speaking to the dallas fed president robert kaplan live out of beijing. that is 10:30 sydney, 8:30 p.m. new york. betty: the former chairman of the export import bank of the u.s. weighing in on how the u.s.-china trade spat is going to impact businesses.
♪ >> it is the beginning. i hope we are not going to have a full on trade war. >> we need to understand the difference between noise and signal. preposterous.e is it is quite understandable. important cars, 4.5% in the u.s., 25% in china, so who is the true manipulator? i can agree with some of trump's positions. >> i think we are in a trade war . people speak about the moving trade war. i think it is there. it is possibly a looming expansion of the trade war. >> the chinese are sophisticated in the way they negotiate.
i think -- >> it is a danger we may end up in a direction we don't want to. yes, how do we minimize that? >> the trade war is not a zero-sum game. it is a negative sum game. in trade war's everybody is a loser. that is what we are facing now. betty: those are some of the views on the ongoing trade tensions between the u.s. and china as you heard from everyone. everyone is a loser. joining us is the former chairman of the export import bank. fred hochberg joins us from cambridge, massachusetts. the mission is to support american jobs by facilitating the export of goods and services. fred of course, you are indeed trade.ert for sure on you agree there is losers in a trade war, everyone is a loser? fred: without question.
it is very disruptive. presidents are elected for peace and prosperity. this threatens our prosperity and there are numbers of threats to peace from north korea and the travel ban to taiwan. there is a lot of risk. betty: there is a lot of risk, but what is missing in this tit-for-tat? what are we missing in these headlines? fred: one thing we are missing -- we are still the second-largest exporter in the entire world, and there are a lot of consumers in china, southeast asia, and other parts of the world, that we are beginning to sell more of our goods and services to. that is a risk. with china when they have these spats with japan over the islands in the south china sea, they mobilized people to be very anti-japanese in buying products and cars. china has that ability. that would be a long-term risk
to the u.s. if they were in some ways to taint the idea of buying u.s. goods, cars, products. they would be more effective than we would be. betty: you mentioned this is a time when the country like china is seeing a rising middle class. they are buying more goods. we are the beginning of that, and to launch this trade war seems bad timing. i want to pull up a chart. it is a gtb chart that shows you how much china right now is importing u.s. goods. it isn't quite as much as the terrorists the president -- tariffs is threatening. -- the president is threatening. it doesn't even equal the amount of tariffs the president is threatening, which is why he seems to be comfortable in this position threatening this trade
war. fred: i think so. the fundamentals we can all agree that china has been a trade cheat from technology to property, they have been doing that for a long time. the world has tried hard to find a remedy for that. -- ink on top of that sorry. haidi: continue. i was going to ask, shouldn't these issues be better addressed under wto? isn't that the point of it? fred: it would be better working because other nations have the same issue, the same problems with china. japan, the e.u. people do not enjoy or like to trade with china. they trade with china because they have to. we find sympathetic people and countries that would go along with us if we recruited them. haidi: china with say they are making efforts to open up, to
liberalize the financial system am of the trading system. the trading system. if countries like the united states, european countries have their time to develop in their own time, why wouldn't you give countries like china and india and developing countries the same benefit? good when its very suits their purposes. they are an important developing country with billions of people. when it does not suit their purpose, they are an economic powerhouse. ofy do play to both sides that paradigm. that is one issue. i think the other issue that is a larger issue is technology, information, data, warehousing of credit cards and so forth. what we want is trade. china is concerned about the opening up its country into information to the internet. that is a different threat to china. they look at it differently.
lose: so who has more to at this point? fred: i think the problem is it is going to be very hard to get china to make the moves we want. china 2025 where they want to be a world leader in a lot of advanced manufacturing and technology, i don't see them backing off. one belt, one road in terms of the mercantilism and expansion to asia and into europe and africa am a they will not back off from that -- africa, they will not back off from that. so it will be hard. they will not pass along this you can't steal intellectual property and they will enforce it like it would be in another country. getting to the table and having common ground in finding where to move forward would be better than treating spats. -- trading spats. betty: saving face is a big
thing in china. i am curious that president trump said he thinks the chinese will blink first and cave in. what do you think the chinese response will be? jinping,annot see xi who is president for life, wanting to blink and show weakness. backll have to walk this in a way that is a win-win, and that gives trigger the more -- trickier more rhetoric thrown around. it seems he was unprepared and not fully vetted by other white house staff. it was a reaction. trump likes to his death placed his political base. -- trump plays to his political base. haidi: xi jinping despite being leader for life, he will play to his base as well. fred: exactly. we have the same issue with nafta were the president of mexico and the prime minister trudeau, they have their own base to deal with as well as
come to an agreement at the negotiating table. presidentit seems the is against other leaders who have policies to worry about. haidi: great to have you, fred hochberg of the export import bank of the united states. another interesting week for trade. we will have that keynote address from xi jinping on tuesday. in the meantime you can watch and see past interviews with the interactive tv function. you can dive into securities or the bloomberg function we talk about and join in on the conversation by sending us instant messages during our shows. that is for bloomberg subscribers. this is bloomberg. ♪
haidi: you are watching daybreak australia. quick check of business flash headlines. -- meetll be investors investors for the first bond sale in more than two years. officials will meet potential buyers in the u.k. and u.s. this week, and the government is working with credit suisse and deutsche bank on the offering that could include 5, 10 and 30 year notes. qatar last told bonds internationally in 2016 when it raised $9 billion. betty: boeing is celebrating another win over airbus, getting 47 dreamliner's, a $12 million deal. they are expanding wide-body sales in the u.s. and comes on top of american's cancellation of an order for 22 a350's. that could convince the wide-body customer to switch to the 787. the hawaiian jumbo last month -- haidi: reports from seoul say gm
korea may suspend production because it cannot pay its bills are the chief executive told staff the company is unable to pay for contractors and may have to shut down. workers were told the tracks may be transferred to china. million aover $1 month this -- in this month alone. prime minister malcolm turnbull is trying to defend his leadership after the government launched 30 consecutive poll offers to the executive -- the opposition party. let's get more on this from our economy reporter who is here with us. you look at the kind of turnaround that comes to p.m.'s in this country, it seems like a thankless path. reporter: it is on the front pages of the newspapers, including the commentary. it is interesting. you cannot say he is being treated unfairly when he raised
-- he raised the poll losses tony everett had sustained when he challenged for leadership in 2015. it was a devastating blow. turnbull has another several issues, and he has been lucky on the economy. conservativemore government. but it was the 30 straight poll losses that was devastating. that is what swan nervous people in his party over. swung nervous people in his party over. betty: can he turn this around the euro from an election? -- a year out from an election? michael: the famous prime minister here who ruled for 11 years, he came from a worse edition in 2001. the difference was turnbull's turn in the labour party has been sustained. 30 polls shows you it has been a
long time. the other man came from another position but was much shorter. people say you can reverse these things. we are still dealing with the chance, but i have to say turnbull looks more like another former prime minister instead of edward. he was feted by kevin who returned to the prime minister ship. in a sense they could change leaders. ousteds leaders who were , but they came back. he is not well-regarded by the public, and mostly because his party has not enjoyed [indiscernible] i think that is unlikely. we will wait. betty: all right, thank you for shedding light on these dismal whole numbers. our australian economy reporter. it is almost it for daybreak australia, but we have a lot more on daybreak asia. we will hear from the peterson
♪ betty: asia-pacific markets said to fall for you -- because of u.s. inveighing on investors. haidi: president trump says china will take down its trade barriers because it is the right thing to do. slow and steady. the fed chief says inflation wages, jobs, all indicate gradual rate hikes of the way to go. a new ceo board names for deutsche bank.