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tv   Bloomberg Daybreak Australia  Bloomberg  April 25, 2019 6:00pm-7:00pm EDT

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paul: welcome to "daybreak australia." sophie: we are counting down to asia's major market opens. ♪ paul: hear other top stories we are covering in the next hour. tech stocks rally while industrials slumped. amazon amazing analysts with quarterly results and time for compromise. the u.s. may that down on
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chinese trade proposals for american pharmaceuticals. shery ahn: let's get you a quick check of how markets closed in the u.s. stocks mixed mostly on earnings results. we had some big, strong earnings out of the tech sector, and that really helped lift markets, but we had some disappointing numbers out of the industrial sector and that weight on the finished little changed. strong result out of microsoft and facebook, lifting those tech stocks. the nasdaq 100 blue-chip stock index closed at a record high. of course, these earnings have been pretty positive here in the u.s., and that really helped mitigate some of the concerns over global growth. the focus now shifting to first-quarter gdp numbers out of the u.s. on friday. for now, let's see how markets in asia are shaping up. let's go to new england reopening the -- let's go to new zealand reopening today.
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sophie: more warning signals around slowing export growth in asia and some disappointing earnings. will hear from komatsu and sony from japan today. from china, the highlights during a week that may be the worst for chinese stocks this year. the last trading day for markets ahead of the golden week break, stocks looking at a decline amid a second round of trade talks between the u.s. and japan and a raid on jobless data and industrial output figures and looking to hold steady after recent declines after we did see growth worries on that gdp miss, nomura cutting its growth forecast. kiwi stocks opening lower, down 10,000ter reaching the level this week and aussie futures hinting at losses as well. and 11-year high on rate cut expectations and flipping the board that has weigh on the aussie dollar this week. the currency just hovering around that 70 handle that it breached overnight for the first
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time since january. the kiwi dollar is gaining ground ahead of consumer confidence and trade figures from new zealand and we do have the yen steady after rising to 18 of-week high after seeing some short covering ahead of the 10-daybreak. below.the currency slice societe generale hinting caution , an important signal that the global economy is on fragile ground, so they say it is time to start adding to short via positions indicating the dollar has more legs to move higher. thanks very much. let's get the first word news now with selina wang. selena: wall street banks are close to a win with the latest move to overhaul the volcker rule. areces say regulators seeking a clearer and narrower position about what is regulated. regulators are now focused on it
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raising the so-called accounting prong that was the 2018 proposal centerpiece. the rehabilitation of europe's financial industry is on hold after the collapse of merger talks between deutsche's and commerzbank. forced to comee up with its fifth turnaround plan since 2016. a foreign takeover may be in the cards for commerzbank with ing and unicredit said to be interested. shares andnk commerzbank shares decline. democratic presidential contender joe biden says he asked president obama not to directly endorse his campaign. obama did offer praise for his two-term vice president saying they forged a special bond and remain close, but biden said whoever wins the nomination should do so on their own merits. the 76-year-old enters a crowded runners with a voter base that is younger, less white, and more female.
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sri lanka's government has sharply lowered the number of people killed in the easter attack. around 250 people died down from an earlier told of 300 59. they say the chaotic scene after the attacks made it difficult to count an exact number. cautioning against all but essential travel to sri lanka saying further attacks may be likely. shery ahn: the trump administration may concede to a chinese proposal that would give less protection for u.s. pharmaceutical products. it is a move likely to draw opposition from the american drug industry. for more, let's bring in bloomberg economics chief economist. this comes at a time when there is a fierce debate over drug prices here in the u.s. what is the significance of these concessions? isi think the irony here
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that the reason the u.s. has gone into this trade war with all the cost that has brought for the global economy is because of concern about china ripping off u.s. intellectual property, playing fast and loose with technology protections, forcing u.s. firms to hand over their expertise so it can be replicated by chinese competitors. now here we are approaching the trademe of the negotiations and this scoop from bloomberg news suggests that the trump administration is considering a concession which could give the u.s. farmer -- pharma sector less protections in china that it receives currently here in the u.s. paul: i cannot imagine some of this news will go down too well with drug producers or some of .he u.s.'s other trade partners
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what are the next steps in this negotiation? >> that's right. i think it speaks to the shortsightedness of the idea that trade wars are good and .asy to win in terms of the next steps, i would certainly expect they would be a heated debate on this particular point. clearly, it will be a point of concern for the u.s. pharmaceutical sector. inking more broadly, we got mnuchin and lighthizer, the , headed tocretary china for the next round of talks next week. following that, there's an expectation that the chinese vice premier will be back in the united states at the beginning of may, and that is when the deal many people think will be done. clearly, there are still some important moving parts. this pharmaceutical story
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indicates there are some important sectors to it. will it be an automatic mechanism? will china be allowed to retaliate? on the chinese side, there's going to be a deep concern about stay on the table and which are removed. even a long way to go in stay e though time now appears short. >> amazon reported quarterly profit that exceeded analyst estimates as it focuses on cloud computing, advertising, and other high-margin businesses. it was not all good news, though. from mattthe details in seattle. numbers look good, but the stock in late trading has been fluctuating. what is going on? been blown out of the water from a net income
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perspective, just crushing expectation, but they also hinted that spending was going to proudly rise, that they have been on a relative positive terms of payments to build that the billions of dollars worth of data centers. that's probably going to pick up in the back half of the year as their need for capacity ramps up again. >> amazon did drop a bombshell saying it's going to change its prime day standard delivery just oneom two days to day. what is going on their? >> ethic the backdrop to this is when amazon first launched prime, it was as an encouragement to get people to shop more of the site. free shipping and delivery guarantees were a novelty. e-commerce was very young. that's no longer the case. you have retailers all over the making similar pledges, sometimes offering them for free .
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i have been doing that recently with a big pile of video content, they attached a music business. tos is amazon's way to try make its valuation for prime as useful as possible. it is going to cost a heap of money. they said it's about 800 million dollars in incremental cost they are budgeting for this in the second quarter alone. >> amazon's first-quarter guidance was a bit conservative, mostly because of a strong dollar. did we hear anything about their you can onal business >> the losses in their international business narrowed considerably. -90ating income was only million, down from 600 million is, year ago. they say a lot of what is going on internationally is similar to the efficiency gains they are reaping in the united states and their more mature north american operations. their warehouses are making better use of capacity. they have personnel in place and they are able to reap the rewards of investments they've made in the past two years.
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>> thanks very much for breaking down those amazon results for us. stay with us. we will have more on amazon's crowdpleasing result in the outlook for the tech sector. >> also still ahead, the potential commerzbank and deutsche marriage collapses. this is bloomberg. ♪
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counting down to the sydney open, about 1.75 hours away. back after a trading week hit by a couple of public holidays. futures looking kind of flat. consumer confidence for april rising 1.1%, the kiwi dollar not much changed. i'm paul allen in sydney. shery ahn: you are watching "daybreak australia."
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day fort more on the u.s. stocks with the nasdaq 100, rising to a fresh record thanks to microsoft and facebook. we see a new round of earnings triggering big moves. su keenan has more on this. let's start with the regular session. it really was mostly about earnings. into the peaking of earnings and it has been a good enough earnings season. even though a lot of companies are beating, they are beating reduced expectations. we have a lot of red on the screens. what we are also seeing is the industrials, the biggest decline are in the s&p. notice oil also falling and that is extending after-hours. big depression on the market as well, oil stocks lower. let's look at what was the big
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lift and that was the big stars of the after-hours from the previous session. facebook and microsoft up in a big way helping the nasdaq tech heavy index hit an all-time record. let's look at the big decliners, the. all of these pretty much earnings related. 3m dropping in a major way. one of the big concerns, of course, is that the industrials are those that are in the target of these tariffs, so that continues to be a theme. freeport missing on earnings. this is a closely watched lateny in the news a lot because of their injuries. the company got whacked in a very big way. really tumbling 17%, the most in almost five years. disappointing gross margin outlook late wednesday. several analysts say they are unable to see any opportunity and that again looks negative
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for tech. you can find our library of charts, and this has to do with the dollar rising. technicals say it may continue to rise. some analysts say it has a lot .o do this is something many are thinking about when they look at the mix of global growth stories. >> let's get to some of the after-hours movers, a lot of big names and big movers grabbing the spotlight alongside amazon. >> amazon certainly a big one, quick peek at how the other big names are moving. the moves are fairly sizable. intel, a big miss, so you see the decline. starbucks has been fluctuating between gains and losses.
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china is a big part of that story. mattel, that's a turnaround. let's start with intel. again, cutting its forecast amid a big drop in sales. what we see after-hours, again, , nvidia, amd, a lot of the chip stocks falling after-hours as well. take a look at starbucks -- strong growth in the u.s. and in china helped starbucks. a lot of same-store sales were very encouraging. came in at double he estimates, again and again of 3%. let's look at ford. it climbs back about $10 a share in after-hours trading. the ceo has made a lot more .urnaround progress they are now bringing billions
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of dollars into electric and self driving cars. barbie to the rescue for mattel. they are also making progress on the turnaround front which has to do with focusing on big brands such as barbie and big wheels. a loss was expected on this company three times the size of what they actually came in and .hat is considered a win a lot of big movers impacting the friday u.s. trade. >> thank you so much for that, the latest on the earnings season and actually, let's dig deeper into tech results now. let's start with amazon right they beat big-time analyst expectations, and yet, when it comes to after-hours trading, the stock is rising less than a percentage point. why are investors more cautious? >> certainly what you see is the fact that the company is showing
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the slowest revenue growth year over year in about the last four years. granted, 17% year-over-year growth is not necessarily anything people will walk away from. however, the indications that the company has had that they spending cycle, which will start to potentially compress margins and, obviously, consume free cash flow going into the second half of the year and maybe into 2020 perhaps says that the prophets apprise we saw thehe march quarter of $7.09 a share is not necessarily something that will be repeated. to that extent, we think investors on the stock that has been up 28% or so so far this year obviously may have the inclination here to take profits. >> they say india continues to grow really quickly. will international markets offset some of that growth slowdown? >> certainly the company will be investing in order to position
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themselves for stronger growth, not only within north america but also oversees in markets such as india. at the same time, we have had announcements coming out of amazon that they are actually exiting the market in china entirely. from that standpoint, the international outlook for amazon is somewhat mixed and something that even though the losses overseas for amazon in the march quarter were relatively modest, , downbout $90 million from a $650 million loss about a year ago. bill nowhere near as profitable as what the company sees in north america. the question is for amazon it is a balancing act. , down these businesses are nowhere new the majority of the company's operations and while profit growth is good, most likely that will be going toward funding. the reinvestment in their base business.
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>> certainly here in australia, amazon did not prove to be the retail earthquake everybody was quite expecting, but what about another area for growth? how about health care? could that be big for amazon down the track? >> the potential is there, but the health care benefit they have may not necessarily -- may not necessarily be something they see the benefit of and the next few months. tocks typically tend discount what will be going on six months out and if we are starting to look here to a new spending cycle at amazon, certainly it is serving to temper investors' broader enthusiasm. more broadly, obviously, some of the concerns we see elsewhere in the tech sector from names like intel where revenue will be down year-over-year, certainly causes again broader concern for on thers, that coming heels of what we have seen
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earlier today out of the industrial company 3m, who cited weakness in china, electronics, and automotive is being responsible or their year-over-year revenue climb. >> am glad you mentioned intel because that was kind of interesting, the caution on the coming half, considering amazon has done quite well. why the week sentiment? certainly, you have to look at data centers, very much in the server business, certainly very important for intel, but obviously, they have a broader product portfolio than that. certainly what you are seeing in terms of greater economic caution outside of north america certainly leaves intel exposed. the other elements as well to the extent the expectation is of a stronger u.s. dollar. that will only serve to depress non-us revenue growth and profit for intel as well
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as other technology companies in the second half of 2019. >> we have seen some privacy tech how much will regulatory earningsextend to tech in the future? >> regulatory concerns remain significant. while we are getting up to the anniversary of the introduction privacyu of the gdp standards, you are seeing other regulatory actions being announced in north america in the united states. earlier today, new york state's attorney general announced they will be pursuing action against facebook in terms of its violation of privacy standards, so even though we may have had a settlement between facebook and the federal trade commission that was discussed yesterday and people kind of brushed it off saying a $5 billion number is
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like a two-week revenue spine or a parking ticket, if you will, for facebook, facebook is not necessarily out of the woods. and amazon subject to scrutiny with other names as well like google, microsoft, and others. insight onor your those tech earnings. there's plenty more to come on "daybreak australia." this is bloomberg. ♪
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>> let's get a quick check of the latest business flash headlines. uber is planning to start marketing shares of its new ipo at price range of $44 to $50 each. earlier estimates have been a valuation of up to 120 billion dollars. is expected to set the terms for friday before a roadshow
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to market the stock to potential investors. >> oil and gas sales held steady in the first quarter as a gain in chinese production helped ease overseas output. revenue was marginally down last .ear just over $6 billion the most sensitive to crude unlike china's three largest oil companies to do with lack of refining capacity. >> nomura's top executives are giving up bonuses after fourth-quarter profit plunged from a year earlier. year loss first full for the firm since the global financial crisis. they announced a three-year plan to cut $1 billion in expenses and have cut more than 100 trading jobs overseas. coming up next, the end of the affair. we look at what is next for
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european lenders after the collapse of talks between georgia and commerzbank. this is bloomberg. ♪
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paul: 8:30 a.m. here in a mild morning in sydney. futures a little bit weaker at the moment. i'm paul allen in sydney. shery ahn: it is 6:30 p.m. you're watching daybreak australia. let's go to first word news with selina wang. >> bloomberg sources say the may concedestration the chinese opposition, drawing opposition from the drug industry. it would give eight years of
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regulatory protection in china, teen of years less than they get under the new nafta. british government has agreed to host economic talks with china in june, despite premier exposing regret relations have fluctuated over tensions in the south china sea. hammond is in beijing for the form where the chinese president speaks later on friday. government official says prime minister theresa may is unlikely to put her brexit bill to parliament next week and will have to accept that the u.k. must hold european elections. despite agreeing to a six-month extension, may once to get her brexit deal ratified. the house of commons program next week makes no mention of the bill. been hit byas another major cyclone. at least three may -- three people were killed on the camorra's island as the storm
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moves for the east african coast. officials are warning of possible flooding. just six weeks since another cyclone caused massive damage and killed more than 1000 people in mozambique, malawi, and zimbabwe. global 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'm selina wang. this is bloomberg. afterkets back in action a holiday. how is the set up? >> futures are pointing to a weaker start for aussie shares highestey climb to the level since december 2007 on wednesday on this rising rate cut. we did have resource companies left out in the cold on that rally. flipping the board, those players may come under further pressure today after china warned of slowing demand and rising output for steel in
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china. given the contraction in industry including property and autos. the group amended its fiscal 2019 guidance, saying overall results will be disappointed with losses in the segment seeming to rise significantly in the second half, so it's of 300 $35 profit million to $360 million. a quick check on the aussie dollar which is hovering around 70 after falling below the level for the first time since january overnight. it is that being driven by interest-rate differential. the aussie down about .5% against the greenback this year, adding to the nearly 10% slump we saw over the course of 2018 that maybe aussie dollar the worst performer in that time. twoysts are forecasting rate cuts from australia this year. >> thank you so much for that. let's get more on what to expect from markets today. let's get started with
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strengthen the dollar. the dollar index is at the strongest level in almost two years. what is driving this momentum? comingw things are together here, but it is partly the contrast between the central is on a the fed positive a but with short-term rates pretty high by g10 standards, we just yesterday had the bank of japan extending its super easing policy, promising to do so into next year. the ecb is in a similar situation there. they are being as easy as they possibly can be. you have two of the three major central banks in the world offering to be very accommodative with policy. although the fed has held back from raising rates for a while, it is by far in a tougher position of the three. plus, with interest rates so favorable for holding u.s. dollars, we currently have short-term rates heading toward the upper end of the fed range,
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so people are being used to seeing the overnight dollar rate somewhere in the middle, but it's trending toward the top of 2.5%, and closer to it will probably stay there through the end of the month, so those factors are coming together, all supported for the u.s. dollar. on top of that, you also have a situation where markets are beginning to get a little bit restless. we have had good rallies in equity markets around the world, but they are taking a cause because they are not too sure what to do. it's very easy to shift everything into the u.s. dollar and sit back and wait to see how things develop in the rest of the world. >> that sense of being defensive, playing into what we've seen on the shanghai composite. it has been a mind blowing run-up, but the last week, it has been about 4%, so what is that telling us about risk? >> it shows you the chinese market is starting to get to a situation where people want more new information to push it
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forth. a lot of fresh, hot money has piled into china this year, and that is on good reason. there has been a substantial stimulus from the chinese government, so that has helped to improve growth come up with good data coming out of china is also supported with the market. we have reached the point where just in a few days, the chinese government is reassessing. they are happy with the progress so far and indicating they will not be as accommodating for the next few months. they are going to step back slightly and be more targeted in their approach to helping the economy grow. >> thanks for joining us. japan's markets about to take an extra long vacation. what might sound like a relaxing break has traders and regulators
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worried. cashrket volatility, shortages, currency flash crashes. japan is among the most generous countries when it comes to national holidays, but this year's golden week is extra long . the result, a 10-day stretch that wiped out six trading sessions in a row, the longest market closure since the end of world war ii. while japan grinds to a halt, it as usual elsewhere and economicents
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data on the agenda. deutsche bank and commerzbank one built -- pull the plug merger talks that would have created a giant out of two struggling firms. not really sure if we can call it a romance. it was government driven, right? how surprised are we that the talks broke down? >> while talks were intensifying, more problems came up, right? they would have had to cut maybe 30,000 jobs. labor unions were upset. the structuring cost would have been huge. this is something that was increasingly a problem and now, they are going to have to figure out how these things can grow independently. >> we've got deutsche bank earnings coming up later on friday. what can we expect? what is next for the troubled tank? markets did respond quite well in terms of that news from deutsche bank. >> one thing we will see from deutsche bank tomorrow is that investment banking revenue will be lower. deutsche bank's investment bank has been troubled for quite some time. for the last year, we have heard
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a cost-cutting story from deutsche bank, but investors are going to want to hear how the .evenue story is >> of course, we have seen european banks falling far behind wall street. >> it's funny you say this also because u.s. banks are also expanding pretty aggressively into europe as well and in light of brexit and whatnot and all these changes in germany, it is interesting to note that morgan stanley, bank of america have all been increasing their presences. as european banks have been struggling, at the same time, you see the u.s. growing and also getting a little bit lighter on regulation here, .iving them even more headwinds >> thanks for that. gets china's president ready to sell a revamped version of his signature infrastructure plan to global skeptics. we speak to an eu vice
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president. this is bloomberg. ♪
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i'm all allen in sydney. shery ahn: you are watching daybreak australia." chinese president xi jinping will defend his flagship infrastructure project in a speech later friday. he will tell global leaders of his plan to clean up the controversial initiative. european commission vice president is at the event, and he spoke with bloomberg about eu-china relations. >> we have been really focusing on china over the last few months. bigreason is that we have trading partners. we are number one trading partner for china. it is a huge trade relationship,
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and therefore, we want to make the things right. if it comes to the so-called strategy outlook, how the eu perceives china and what we believe we should do, it comes to this joint statement between these china, but all issues have been very precisely named and excepted also by the acceptedartners -- also by chinese partners. what is important for the eu is they would always be respected and establish this new cooperation on the platform we would created, so better informed what is being planned and how we can exchange information and maybe cooperate. >> a lot was made in march of the communique coming out.
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cooperation partner on the one hand but also a systemic rival. perhaps the ec is taking a more blunt approach. is that something, a view you >> in china, it is a very important part. it is a huge country. to solve our differences through negotiations, through cooperation, and we engage chinese partners on all these issues and i have to say that this morning, when i had a meeting with the prime minister, he again reconfirmed his personal commitment. .hat would be our preference it was how to clear the field and some of the doubts which accumulated over the last year's for the future volume of trading.
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it is important we have a level playing field, that we have a clear playing field. all these things have to be sorted out and i believe we will achieve that. >> i would be remiss not to pose one question at least about brexit. some of the numbers we've seen according to calculations at the boe, one policymaker saying the u.k. vote to leave the european union has cost the u.k. about 800 billion pounds, $1 billion per week. other surveys say close to $2 trillion, associated, of course, with the u.k. and europe and with china and germany and others, the u.k. as well, being -- having a major hit. do you feel that maybe the fatigue over brexit has clouded the potential impact we will get to global growth once it actually does happen?
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>> we hope that the remaining the prime minister has asked for from european in thes, would be used best possible way and that we would see an orderly brexit. as we see right now, this would have abest solution, to protectable environment and to minimize the impact. the decisionhen was taken. i think businesses know that, but that was the decision of the british people. i'm pretty sure that at that time, all the aspects of all the ,onsequences presented to them our clear preference is to do it in an orderly way because we will be forever neighbors. paul: that was the european commission vice president
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talking to bloomberg's stephen engle there. let's get more on china and trade. former acting deputy u.s. trade representative. thanks for joining us this morning. we do have dozens of leaders heading to beijing to discuss this. what is china doing to reassure some of those nations that have debt enslavement, for want of a better word, and will those soothing words work? >> i think we will see some of those soothing words in the speak that president xi jinping will give tomorrow, but words will not work alone. we will need to see real change and improvements in the projects with respect to sustainability, with respect to the debt burden, with respect to use of local workers and the list goes on and on. >> we have also had development
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on the trade negotiations between the u.s. and china today. bloomberg reporting the u.s. might be considering concessions on trade protections which would give eight years of protection to china, which is less than the 12 in the u.s. and less than the , which was.s. cna recently negotiated. >> i don't know if that is a really big concession. i think eight years of data protection from a country like china is a long period of time. , eight years was provided as well, so i think that is reasonable. i do not think it is a major concession. i think it is an important development, though. >> we continue to see reports by latemay get a deal may. what sort of relationship should we expect between the u.s. and china after a deal is struck? >> that's a great question. i think there will be -- be a
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brief honeymoon period were both sides will speak favorably about they will start meetings right away to monitor and limitation of the deal. what we will need to see, though, as problems begin to appear with respect to if china is living up to the obligations of the deal, if the two sides can take the goodwill and the relationships they have established through these negotiations and carry that over to implementation remains to be seen. of course, we will have to expect, you know, disputes with respect to technology, with respect to investment, with respect to export controls, so i see kind of a de-escalation of tensions between the u.s. and china, but we need to be realistic. we will have frictions going forward, but, hopefully, we can manage those in a more constructive and quiet way. does the u.s.ic
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have to be with japan? we know that shinzo abe is meeting with president trump tomorrow, but of course, this coming at a time where they are trying to negotiate a deal after the u.s. pulls out of the transpacific partnership, on which the eu worked very hard on. what can the u.s. realistically expect from these negotiations? >> i think the u.s. has the opportunity to proceed with japan in successfully concluding a quick and meaningful deal as long as it does not make unreasonable requests and ask japan to do way too much that it is prepared to do. japan made concessions to the united states in the tpp. it provided market access, for example, on agriculture to the united states. it said it is willing to do that, but in return, it wants the concessions the u.s. made to japan in the tpp. that is reasonable. on a one-sideds
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deal. i fear this negotiation may encounter unnecessary confrontation. >> how about on the subject of auto and auto tariffs? could there be unnecessary confrontation there as well? >> absolutely. we have section 232 threat of auto tariffs looming over this negotiation, and if the japanstration insists implement a quota limiting the number of cars it could sell to the united states, that might eat a bridge too far for the united states. japan has said they want to be consistent with the rules of the quotasd those types of and voluntary constraint agreements are not consistent. again, i think japan is prepared to make concessions in the auto sector, but the key will be for the united states not to overreach and ask for too much if indeed it wants a quick and meaningful deal with japan, which i think it does want, and
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i think japan does want a quick and meaningful deal as well. >> always great talking to you. thank you. we had the bank of korea governor making statements to banks ceo's right now in south korea, saying that the south korean economy is in a difficult situation, but he does not expect negative growth will continue. we have seen first quarter growth contract quarter on quarter, which is the worst number we have seen since 2008, the global financial crisis. the say caution is needed on excessive pessimism on the economy and that the sentiment for corporate investment is needed to improve in order to help the economy. he does expect government spending to recover and that will contribute to growth. of course, we have seen first quarter gdp now worsening and decelerating at the worst pays in about a decade. this is bloomberg.
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paul: you are watching "daybreak australia." australian mining billionaire clive parliament -- clive palmer is making a new run for parliament trying to woo voters with proposals including tax cuts. andrew, what is mr. palmer doing politically? will he make a real impact on the election? well, he very well might. he is making a big play, spending about 13 million of his own dollars to run candidates, to advertise his political push. he is running candidates and while he will not end up as prime minister, he could potentially have a meaningful impact on how the government
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plays out. >> he is can -- he is being compared to president trump. how popular is he? big character who can perhaps quite a wide array of opinions. he is the sort of person who rubs a lot of people the wrong analogy is anrump interesting one because he is a populist. people stufft of they potentially do not want to hear and will potentially have a bigger impact than some of his critics might want. parliamenteen in before and got voted out. he did a single term in the lower house where he did not exactly cover himself in glory. what happened then and what will be different this time around? >> i'm sure clive hopes it will
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be different. it is different in that last time he was in the lower house. this year, he himself is running for a senate seat. potentially clive's best play is to make a real impact through the distributional preferences, given australia's preferential voting system, or win a seat that could give him the balance of .ower in a very tight election either of those situations, he could potentially have a real say and get some of the things he wants to do. >> thank you so much for that. plenty more still ahead in the asia.our on daybreak >> stay with us. we will have all the reaction on daybreak asia coming up next. this is bloomberg. ♪
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paul: i am paul allen in sydney. we are under one hour away from the markets open. shery: i am shery on. sophie: i'm sophie kamaruddin in hong kong. welcome to "bloomberg daybreak: paul: this friday, a tale of two sectors. amazon and facebook lead a tech rally, while industrials slump.


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