tv Bloomberg Daybreak Australia Bloomberg April 4, 2019 6:00pm-7:00pm EDT
>> welcome to "daybreak australia." shery ahn: we are counting down to asia's major market opens. haidi: here are the top stories we are covering -- president trump says negotiations are going well and a monumental deal may be announced in the coming weeks. the president has less flattering words when it comes to jay powell -- he says the u.s. economy is doing well despite the fed's destructive
actions. shery ahn: boeing says it must eliminate risk as ethiopia backs its pilot. >> let's get you started with a quick check on how markets closed. investors more bullish on equities. the s&p 500 gained ground for six consecutive sessions, the longest winning streak since february of last year. we had more optimism over a potential trade deal between the u.s. and china, not to mention some positive economic data. we had jobless claims unexpectedly falling to a 49-year low which sets up well for the jobs report coming out tomorrow and friday. the nasdaq was weighed down by tesla, of course. they plunged after a record decline first quarter in deliveries. how are we setting up in asia? haidi: we looking at a little ,it of a holiday thin session causing hong kong and mainland
china markets to be closed today, but we are getting a little bit of a decline coming through new zealand where trading is under way for this final trading session of the week. sort of broad strengthening of the u.s. dollar along with that longest rally of the year for u.s. stocks. just adding to the decline of almost 1% we saw yesterday, one of the worst performers in the region in yesterday's session. in australia in particular, we will be watching for more clues as to how close we really are when it comes to this u.s.-china trade deal. ed: president trump has resumed his attack on the fed saying despite its "destructive" action, the u.s. economy is doing fine. he added that trade agreements with china and mexico are moving
that along. the president intends to push ahead with plans to nominate herman cain to the fed board. trump supporters stephen moore is the president's other pick. u.s. jobless claims fell last month dropping to a near 50-year low as the labor market tightened. the less volatile four-week average declined to its lowest level since october. at the same time, the aep research institute said firms added the fewest workers in march since 2017, potentially signaling weakness. australia's likely next prime minister is vowing to cut taxes for low-paid workers. responding to the government's pre-vote budget, he made a clear pitch for support saying australia needs united, stable leadership which has a vision and is prepared to make hard
decisions. slashingsaid to be growth forecasts and raising the projected budget deficit as the economy stagnates. sources in rome tell us the treasury will lower its outlook for expansion to just .1%, in line with a bloomberg survey, down from 1% in previous forecasts. italy l into recession late last year and is carrying a debt ratio of more than 100% of gdp. initial reports into last month's ethiopian airlines crash said pilots were overwhelmed by malfunctions and alarms as the plane plunged into the ground. the transport ministry said the automatic anti-stall system forced the jet's nose down minutes after takeoff due to a faulty sensor that has been linked to the crash of a similar plane in indonesia last october. >> they followed all the procedures repeatedly provided by the manufacturer but were not
able to control the aircraft. >> the pilots have told us erroneous activation of the function can add to what is already a high workload environment. it is our responsibility to eliminate this risk. we own it and we know how to do it. : global news 24 hours a day on air and at tictoc on twitter. haidi: let's get back to our top story. president trump says a deal with china is not finalized yet but a deal with china may be coming in the coming weeks. he spoke to china's top negotiator, the vice premier, at the white house today. >> very unique set of .ircumstances
could be one of the -- i guess it is, if you think about it, the biggest deal ever made. this is the granddaddy of them all. let's get the latest and the nuances in the state of play when it comes to these negotiations. soundrd the president largely positive saying we could get something in the next four weeks or so, but lighthizer saying there are still big issues at play here. >> i think what we will here until the end is that there are issues. that's the nature of trade negotiations and the nature of the in game. the end is always the most difficult part, and it is going to take a while. the president today laid out a timeline that can see talks go on for another four to six weeks, dragging well into may. potentially, if you look at the arendar, he and xi jinping
looking at the end of june. there are some people who think it could drag until then, these talks, but what we heard from administration officials in the time since the president sat down with the vice premier in the oval office is that we should not be reading this at all as a sign that things are not going as planned. the issues that they are talking fundamentally very difficult and you have this huge issue of the tariffs. 250 billion dollars in chinese imports now targeted by the trump administration with tariffs, and how you unwind those is always going to be a knotty issue. >> president trump saying be acement could still chinese issue. could we expect tariffs to continue until this deal? >> of slowly. bob lighthizer said there was only one tool he had and that was tariffs.
we know donald trump likes tariffs. he said it again today. in the past, he has called himself a tariff man. he thinks they give him leverage, and they are very keen in the white house and this administration not to remove any of that leverage too soon to make sure china lives up to its promises in a deal when we get a deal. it's interesting if you consider how that is going to work with respect to tariffs. if our report this week proves to be correct and they get another six years in terms of compliance with regime, there's a question of what happens to him for stability during that period. >> absolutely. what of the ways we've been thinking about this trade negotiation is that it will somehow lead to a trade deal that is a classic trade deal. actually, this is an incredibly transactional negotiation.
in some ways, we should be viewing this more as a legal settlement, the kind of thing you get enforced by a court when resolve theire to differences and lay out a timeline of milestones that the perpetrator has to live up to. in the case of the u.s., they believe that is china, and in whateverhey will get benefits there will be from this settlement. i think this is going to drag on term.while in the short it may well be june before we get a final deal, but the important to keep in mind throughout all of this is that is just going to be the start of a process that is going to drag on for many years afterwards. haidi: thank you very much for joining us today. into the u.s. market close, stocks rose for a six day as investors remained bullish about trade talks and key friday
drug numbers. su keenan has been watching, and the gains came in even before president trump said we could get a very monumental trade deal. that seemed to encapsulate sentiment in the market. we got the largest rally so far this year. one strategist said it is a view of when, not if on the trade front. what you see also is investors are awaiting jobs data on friday. nonfarm payrolls expected to be up 175,000. you also had energy stocks oil was at a four and five-month high. let's take a look at what jamie dimon with jpmorgan is saying could mean more volatility ahead. notice that every couple of years, you get a peak in in 2015ty as you had and again here at the end of
2018. jamie dimon is saying the fourth quarter volatility we saw is likely to be a harbinger of things to come. this really underscores the thesis here. let's take a look also at what we saw as the big movers of the day. we had a big ipo that was expected to do well. trade web, indeed it did. getting a big spike on the trade optimism sentiment, which shows you that trump's concerns over the maxygen issue right now weighing on the stocks. clout-related stocks were under course, and tesla, of very much in the spotlight as it reported its big drop in fourth-quarter deliveries. sequentially% drop that really plays into the fears about demand for tesla's product. yeah, record drop on those delivery numbers, not just
because of the demand question on the production question weighing on investors' minds, courtso elon musk was in today with his battle with the sec. what is the latest? judge has determined there's two weeks for musk and the sec to go back to the drawing board. notice there were quite a lot of paparazzi and onlookers. he was sort of greeted as a rock star as he came out. his mood is bit more of the on the way out then on the way in. the sec concerned he continued to tweet after there was a ban on his tweeting agreed to, so that is the key issue. take a look quickly at the five-day chart of tesla. you will see the big drop, and this is bearish news weighing on the stock. again, it's a combination of things. haidi: let's now turn to oil
futures. analysts say we could see analyst being a little bit dollars. brent today also topping $70 a barrel. that was significant. . strong 200-day moving average it managed to close below 70, takeaway is the momentum is in favor of the bulls. we also closed just off the high of the session, but again, we alsobeen at 62, and that lines up with bloomberg surveying analysts and traders and more than 55% believe it will be higher next week as well. busy trading session overnight. still ahead, a preliminary report paints a harrowing picture of the system malfunctions and alarms on the crashed if he of the and airlines jet. we will have the latest.
are counting down to the start of trading here in sydney this final friday. despite a very exuberant session for u.s. equities, the longest winning streak of the year, we are seeing a bit of a flat start when it comes to trading in asia. futures indicating a downside of just about .1%. shery ahn: you're watching "daybreak australia." president trump says a trade deal is not ready just yet, but a very monumental agreement may be announced in about a month or so. closing guest says negotiations without something
could jeopardize the process. she joins us now from wisconsin. great to have you. there is a feeling that markets have been looking for a reason, looking for a catalyst to push higher. is there an indication we are going to sell on the news as the president is suggesting? >> i think there is a little bit of a risk that it is a sell on the news isn't, but i think the devil is in the details. what do the details really say about the deal? will beerm, the picture how much confidence this deal gives to the market, to andorate ceo's to go out feel better about their business and their ability to spend going into the future. there's animal spirits, the investment side of things, but also, if there is an unwinding of these trade tensions, what sort of meaningful impact do you see on trade earnings?
>> it's going to take a while for it to really influence of earnings. i think the market is anticipating a little bit of that confidence coming back and probably a little bit of earnings growth as well, but as you know, it takes a little bit of time to play into the market, so it is at least probably two quarters before really comes into play, but you will see the multiple expansion happen before the earnings come in. ahn: how about volatility? we continue to see volatility falling. will we see volatility gain ground again, or is this the new normal? partthink the abnormal about volatility we saw happened in 2017 where we dropped to unusually low levels, and we had the spike up in the end of 2018, and we are at more normalized levels now. i do expect we could see increased volatility, given all the macro issues that we have and the headlines we see every day, but overall, volatility can
be a positive. it gives investors opportunities to buy stocks at a discount, and those are the opportunities we are looking for. it feelsy, although bad sometimes, it actually can be an opportunity for investors to take advantage. about discounts on the energy space. we have seen oil continued to gain ground, brent breaking above $70 a barrel, but this chart on the bloomberg showing that means energy equities, if it's in the oil producer sector or the equipment and services sector, they really have trailed oil prices. could we see some good bargains? >> it is definitely an area we are interested in because of that gap, and that gap is unusually large. when you see the commodity price increase and demand stay relatively strong, especially given the fact that we are in a global slowdown. stocks,d mean oil
particularly the e&p stocks, should be more attractive or start acting better, and they are trading at attractive levels, so that is an area of the market we are paying more attention to, particularly the names in the permian space in the u.s. that is an area we think is trading at a large discount and is an area we think is attractive at these prices. again, if you get that deal, the trade deal, that should also have an impact. the more growth there is, the more energy that is needed, and growth and demand has not been an issue to date, but you will see an increased level of demand, which would give rise to energy prices, and again, that gap should close. shery ahn: everyone in the market has a view a's to what the recent yield curve inversions mean. some say it needs to be more than just a flirtation for it to be meaningfully pretending gloom
and doom in the economy to come. what are your thoughts, particularly given that we are seeing some particularly significant struggling factors? >> i don't want to ignore history. curveversion of the yield and history would suggest is not a positive event, but there are some things that could because $50distortion, and having trillion globally in a negative rate environment i think is causing a real distortion. we're looking at that carefully. although history is something you don't want to ignore, there are reasons to believe that what is going on today is different than what history suggests. i do also recognize the longer that yield curve is inverted, the more pressure it does put on the economy going forward. it is something we are not panicked about but we are paying
attention to. shery ahn: thank you so much for from wisconsin. jpmorgan ceo jamie dimon carlisle chairman david rubenstein in new york. he says he is not ready to leave the ceo position earlier than planned. he has also been asked if he wants to run for president, and he says he did not consider formally running for president and that he would not accept a cabinet role from president trump if offered. his annual letters to shareholders have more than tripled in length since he and reallyin 2005 dedicated more to public policy, so he has been getting a lot of speculation about that. in that letter, in fact, he warns investors to get ready for more wild rides like the one we saw at the end of last year. we're going to leave that there, but bloomberg subscribers can continue watching. you will find date diary entries
ahn: you are watching "daybreak australia." optimism that a u.s.-china trade deal is near pushed boeing shares higher, seeming to outweigh a preliminary report that faulted a 737 max 8 jet in the fatal ethiopian airlines crash three weeks ago. alan leven joins us now from washington. what are the key points in this report? >> for the first time in actually almost a month now, we finally have details of what happened. there's really two main threads here. confirmation have that this boeing automated driving down the
nose, and that exacerbated the ability of the pilot to control the plane and ultimately sent it into a dive, but at the same time, the report also details -- it'sby the pilots clear it was a very confusing situation. it is kind of hard to second-guess them, but it does did not follow the complete procedure for how to counteract this boeing safety system, and there are also some other very curious things. they were going extremely fast -- far faster than was necessary. it's unrelated to the accident, but it raises a lot of questions. ahn: what was the reaction we had from boeing? and i guess what happens next. put out a statement acknowledging that they were at
least part of the issue and they were working on a fix for this system. what happens next is actually quite complex. you have at least a half-dozen reviews of this plane and how it was certified. you have lawmakers in washington looking into it. there's even a criminal probe, so i think it's going to take at least several weeks, possibly months, to get the plane back flying again. shery ahn: our bloomberg news aviation safety reporter in washington. interesting, we saw boeing actually rally in the overnight session. "daybreaknext on estoril," we are in permanent pause mode. the ratee discussing path next. this is bloomberg.
: sydney markets open for trading in just 30 minutes' time. pretty flat start to the day and a pretty gloomy, rainy, drizzly friday. does not look like we are much positivity from the u.s. session overnight with u.s. stocks hosting the longest rally of the year, sixth straight day of gains. we have optimism on the trade front. president trump saying we could get a monumental deal in the next four to six weeks. : let's go to first word news with ed ludlow. trump says a trade
deal with china is not finalized yet, but a monumental agreement may be announced in the coming weeks. speaking after talks with aging's top negotiator at the white house, the president said there is a way to go, but the two sides are rounding a 10. the president says the main issues to be resolved are ip protection, tariffs, and how to resolve certain deals. done a dealever like this with china. it is a massive deal. could be one of the -- i guess it is, if you think about it, the biggest deal ever made. no matter where you look, there cannot be a deal like this. this is the granddaddy of them all. ed: the united states is threatening to restrict the flow of information to nato allies if they ignore warnings. mike pompeo made the administration's most explicit t huawei. some nato leaders have rebuffed
u.s. warning's saying the threat in china is not as dangerous as claimed. is the risk to see is the threshold for the united states, we will not be able to share that information any longer and information indo make itsd states will decision. ed: speaking to lci before he was detained again, who said there is a conspiracy -- carlos ghosn said there is a conspiracy against him in news on that dates back to last may. hasbot russian supply ship set a record for the trip to the international space station. the knocks 19 minutes off previous record set by another progress craft in july.
the freighter was carrying three tons of food, water, oxygen, and other supplies. news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i ed ludlow. this is bloomberg. a look at's take where markets stand in asia. we see trading under way new zealand, pretty tepid so far. at kiwi dollar holding 67.58. we had broad dollar strength in the session overnight along with that rally continued in u.s. equities as well. volume also likely to be the state of play today, we had two holidays. let's take a look at what we're setting up for this week. that we mightse
be building up for more market volatility, particularly in equities yet adam: this bond rally has kind of petered out, and the rally in stocks has as well, but what we got overnight was a reminder from germany data that global growth remained incredibly fragile, and the idea certainly is building up that you might get a situation now where volatility will start to pick up again. ourselves, just having a look at this chart here, the white line, the big collapse in yields a we have seen really across the world in sovereign debt markets in the s&p 500 just kind of looking to test those record highs again. certainly for the folks at jpmorgan, this is coming right from the top of the bank would jpmorgan talking about the extent of the potential for an uptick in volatility, but also strategist at his own bank saying if you look at the treasury's market, you are seeing an indication that recession could be coming in the next 12 months, the likelihood
of which could be as high as 70%, they are saying, so you need to be ratcheting up cash levels, trimming out of some of the risk elements of markets that have had a very good start to the year. do not expect a rest of the year to have these kinds of returns we had in the first three and a bit months of the year, and instead, start to layer on hedges if you are prepared to keep risk on throughout the remainder of the year. it certainly feels like there is a little bit of a build now towards expectation and start to get the preparation for an uptick in volatility in the coming weeks. shery ahn: really interesting coming from jamie dimon himself. let's turn to australia because we are seeing consumer staples, now the worst performing sector. how bad is the situation for consumers right now? course, the doom and not the australia is main story, but the extent to
which consumer stocks are underperforming is important. they are up this year about half of the overall market. 5% compared to an average 10% for the market or so. realspeaks to some of the pressure the consumer is facing in australia in the economy. our reporters spoke to a fund manager who summed it up pretty well -- she said weakness in the housing market is ultimately causing consumers to feel less confident and do further spending, and indeed, that is kind of what the data is showing and prices in the market are showing us. we have been hearing from the corporate side, of course. the likes of woolworths and kohl's, both sounding particularly cautious over the last couple of months or so, and of course, the rba themselves talking increasingly about the markete the housing decline is having on consumers' tolets and their ability
keep spending in an economy that is facing its toughest patch since going back to 2009 or so. clearly, consumer staples under pressure here and no sign of that letting up any time soon. shery ahn: thank you so much for that. bloomberg's global markets editor. you can find adam's charts on the gtb library. the federal reserve's dovish pause could become permanent according to one of the more hawkish policy makers. with critical job numbers looming later friday, let's see how much that will play in what the fed does or does not do next. significant is it that loretta mester says the fed could be done hiking rates? cutleen: certainly everyone's attention. for several years now, she has been on the hawkish side, word about inflation picking up, but when she was asked about what she sees for future rate hikes, she did say or at least seemed
to indicate that depending how the economy turns out, maybe this pause is permanent. here's what she said. i'm going to read it to you right now, just a little quick quote. it's coming right up. here we go. here's what she said. could we be done with policy rates this cycle? it is possible. those were her words, but she went on to say if the economy picks up, as she things it will, if gdp tops 2%, maybe the funds rate will need to move a little bit higher. echoing her later in the day, the president of the federal reserve bank of philadelphia also thinks maybe growth gets a little stronger and maybe they do hike rates a little bit more. let's listen to what he said earlier. >> i continue to be in a wait-and-see mode. my outlook for vaped remains at most one hike for this year, 2019, and at most, one for 2020. kathleen: i don't think it makes much difference if the fed is completely done with rate hikes
this year or raises one more time. that could change if the economy is a lot weaker or stronger. the february jobs report was a shocker, just 20,000 new jobs added to the economy. how is the much expectation looking? kathleen: certainly a lot better than that. a lot of people think that was fluky, with the government shutdown in cold weather. as you can see, these blue bars, that's payrolls gains, we have had that 310,000 gain in february, only 20,000 in february. march is supposed to get back up to 77,000. you would not worry about a number like that in this ballpark. you can see they have finally been moving higher in this tight labor market. in terms of forecast for tomorrow, unemployment remaining at 3.8 year-over-year. weighs just 3.4 percent
year-over-year. what to look at what i think the fed will be looking at when they get all these numbers and look at charts like we are going to look at one now. the fed chair keeps saying the economy is in a good place because this low unemployment, .ages are rising as rates have come down after staying pretty flat, wages have finally gone up. that 3.4% looking pretty good. is the fed now, the question if the labor market gets tighter, will wages rise even more, and will that boost inflation? down the road in a year or two, they do not want to say maybe we let it get a little too high. shery ahn is president trump trying to exert more control by nominating people like herman cain this time around? kathleen: it could very well be. he has been criticizing jay .owell
who is herman cain? herman cain is an interesting guy. studied mathematics in college, went into computer science, became a systems analyst, went to work for godfather pizza, worked his way up and became ceo. --ran for president in sick ran for president in 2012. dropped out over sexual misconduct allegations. bottom line, he has a strong background in business. -- big supporter of president trump. set up a fund to protect him from impeachment, in fact. he has an understanding potentially of the federal reserve system and how it works. here is what donald trump said in a press conference earlier today about herman cain. >> i have recommended him highly for the fed. i told my folks that's the man and he is doing some pre-checking now, and i would imagine he would be in great
shape. i find hermon to be an outstanding person, a truly outstanding individual. i would think he would do very well there. kathleen: we would assume he inld stay with donald trump keeping rates low. he has gotten a lot of criticism from even a republican economists, so when it comes to the nomination, when it comes to the actual vote in the senate banking committee, i think we will hear a lot of them. shery ahn: thank you very much for that. we are getting more from ceo jamie dimon's conversation with the council of foreign relations in new york. he is a bit more optimistic when it comes to the china-u.s. trade deal saying china and the u.s. will probably agree on a trade deal.
when it comes to a potential hard brexit, he says jpmorgan hard brexit preparations may be a waste of money, but he says it's a hard brexit does happen, that would cause a bad recession in the u k -- if a hard brexit does happen, that would cause a bad recession in the u.k. you can follow the latest on the bloomberg terminal. this is bloomberg. ♪
picking up of activities. >> with trade tensions, we are seeing a bit of a slowdown. definitelysists, there will be ill effects all around the region. we hope these negotiations come to a quick halt. >> we are all seeing and anticipating the global economy will be weakening. the problem we are going to if each policy maker in those regions has a policy space to respond. >> we are becoming more preemptive, more forward-looking in relaxing hour expectations. joining us now, a hoover institution research fellow. always great to have you with us.
we have heard from president trump we could see a very monumental deal. of course, it's not ready yet, but we could see a monumental one. how much does president trump need a win on trade right now? >> i think it is important because the canada mexico deal appears to be stalled in congress. some of that momentum i think he needs to restore bite getting to deal with china, and let's be honest -- the deal with china is going to be more politically consequential. he has been saying china has been ripping the u.s. off for years. he has imposed tariffs, which have hurt some of the people in his face. if he does get a deal, i think it will be useful for him politically as well as substantively. how difficult will it be for him to get a deal that satisfies everyone in washington? there seems to be some consensus on the front that you need to be tougher on china right now? a consensus. i think he has some tailwinds.
the question will be how aggressively democrats will go after it just because it is a trump-led deal. there's a political dynamic where democrats cannot really be trump ising donald for. even if it is a deal a democrat would have struck in a similar fashion, democrats cannot be seen to approve of it. if he is able to guarantee some kind of enforcement mechanism, those are things it will be very difficult for democrats to be against. that reported yesterday under this proposed deal that beijing would be given until maketo essentially compliance on some of these agreements. how much will that be seen us just kicking the can down the road accra what structurally what had -- would happen in terms of you can e >> the question is if there will be some sort of snapback mechanism. that would be a mechanism some would want. the challenge is that the chinese have expressed deep
concerns, and then there's the issue of retaliatory tariffs. i don't think people would perceive it as kicking the can down the road so much as politics as usual. is also a very good salesman. even if it were a kicking the can down the road type of situation, in reality, i think he has the ability to make a sale on this deal in a way other presidents might have a tougher time doing. >> in reality, though, this is not a finish line we're going for. we get a short-term deal you say the president may be able to sell the positive uptick of, but the nature of the conversation certainly sets us up for volatility in the many years to come. >> you are absolutely right. the long-term geopolitical risks are long-term challenges that will knock is solved by a short-term deal. with the president is aiming for
with this deal in china in the short run is getting that current account deficit under control, figuring out something he can sell where he says the chinese have guaranteed they will buy more american products. that is really what he is going for. the longer-term questions around taiwan and human rights and the south china sea are not resolvable in the short run and will require a lot more long-run discussion before we get anywhere near resolution. we are seeing leaks emerge from special counsel robert mueller's team right now. saying theyembers are really not satisfied with what was disclosed. president trump has threatened to investigate the investigation. could there be a risk of he overreacting? is it better to let it go when you are headed into 2020? >> this two sides to this. for his local base, the notion of investigating the investigator is very popular. a lot of people feel like hillary clinton got away with murder, so to speak, so they would love to see an investigation of how that was
handled. the reality is for most people in the middle of the country, most people who are politically independent, they look at this and say the report seems to have exonerated the president on the most serious charges. just let that be. go and fight your policy battles and get wins there is a post of fighting the politics. there is always this tension between going for swing voters and going for the base. quickly, when it comes to swing voters, who should the president be fearing right now? >> there's no question joe biden has been damaged as he things about getting into the campaign, we will have to see if he gets through this, but if he does, i think he will still be formidable. to come on "daybreak australia. this is bloomberg. ♪
pledge to cut $1 billion in costs. japan's largest securities firm will call about 100 50 positions around the world and its pulling out of multiple businesses to focus on low risk transactions. operations outside japan have lost money now for four straight quarters, and the ceo says it is time to "restart" the company. >> one of the world's most famous cartoon characters is cashing in. the production company behind says pig --peppa pig revenue has jumped and its planning new episodes and new attractions in europe and the u.s. there may be a billionaire battle under way to buy a troubled indian tv network. to investorstold
are considering it as telecom carriers race for content in the world's second-biggest mobile market. news of the possible bid to help boost shares paring some of the past year's heavy losses. >> south korea the first in the world to roll out a countrywide 5g service, beating the u.s. in doing so. verizon claimed bragging rights. sam kim joins us. to south korea's 5g service. is anything unique there? >> what is unique about this is the fact that it will be nationally serviced. that means people will have from the area bordering north korea to the southern resort islands. from the u.s.ent
where 5g will be available in minneapolis and seattle. this is the first time we are seeing an entire nation going 5g. that is what is unique about it. >> what is the significance about south korea being the first to roll out 5g, though? >> as you know, south korea is a country that is home to samsung electronics, which is the biggest smartphone maker in the world. this is a great selling point for samsung, and also it means samsung will have one more thing to promote itself with when it wants to have a bigger slice of the mobile gear market, which is basically dominated by huawei, and there are concerns about with security issues and samsung is certainly benefiting from that. with the 5g rollout, nationally,
samsung will have bragging about its potential as a mobile gear provider. numbersng releasing later today. they already had a profit warning. >> it's really a matter of how bad it is going to be. inheard from samsung already an unusual statement, that it will not be as good as estimated. analysts surveyed basically half profit year-over-year. is it going to be worse than that? that would mean the downturn in the industry is basically being extended. it worries investors because it is a good indication of how the global economy is doing. if the earnings are bad, it is pretty bad news for the entire
haidi: very good morning. i am haidi stroud-watts in sydney. australian markets are open for trade. shery: i am shery ahn. welcome to "daybreak asia." haidi: our top stories this friday, talking trade. president trump says negotiations are going well and a "monumental deal" may be announced in the coming weeks. he has less flattering words for jay powell. he says the u.s. is doing well despite the