i am tom mackenzie. this is bloomberg. tom, thanks for that. chinese conglomerate hna group are in talks. that deal would value what of asia's largest asset manager that more than $2 billion. a conglomerates reporter is covering this for us in hong .ong is is one of the most exuberantly inquisitive conglomerates in china. what is the market doing as a reaction to the news? >> so we put out a story yesterday about the potential share sales, and once the markets opened in the afternoon, the shares jumped back 11%, so it shows the market reacts really positively. one of our sources told us that the transactions could value the company at more than 2 billion u.s. dollars, which is higher than the current market share. company sentt, the out a statement confirming the therman is in talks with third-party about the potential share sell. prudence: the company shares will resume today and we will see if the shares will go up further. prudence, what does asian a/c in terms of this investment see in terms of this investment? prudence: [indiscernible] pru

i am tom mackenzie. this is bloomberg. >> thank you. shares in bhp are gaining about .2% after reports that the minor may meet elliott management later today to discuss aspects of elliott's aggressive plan to unlock shareholder value. paul allen joining us from sydney. having ay saw bhp shale holding since 2012, that we could see further sales. what is this about? paul: this is something that elliott management was calling for an answer or, to unlock -- was calling for in its report to unlock shareholder value. bhp was strident in its criticism, saying they destroyed $41 billion in shareholder value in its u.s. sale. another $9 billion in overpriced share buybacks and criticizing bhp for it called a do-nothing approach for management, who rejected elliott's suggestions. anyway, it looks like bhp might be warming up to some of the ideas about the u.s. shale assets. andrew mackenzie was speaking in barcelona late tuesday to a conference there. he admits mistakes were made over the $20 billion u.s. shale as

i am tom mackenzie with first word headlines. police have confirmed 19 people were killed and a suspected terrorist attack in northern manchester. 50 others were wounded at the manchester arena. anti-terror officers are meeting. the number of deaths make it the worst such incident since 2005. opec's hopes of draining the oil glut are being undermined by the second largest member. 80,000 more barrels than agreed by the curbs. the restrictions are expected to be extended through march when opec meets later this week. iraq's noncompliance may persuade others to break the agreement as well. noia says there should be premium on crude sales to that part of the world. with opec held secretary-general indiana and said the cartel had subsidized western bars at the cost of asian kleins for too long. oil, imports 86% of its 70% of natural gas, 95% of its lpg from opec. the european union has finalized a tough brexit position, reiterating a hard line on the potential divorce bill and refusing to discuss trade ties until agreements are made o

angie: tom mackenzie live in beijing. you are seeing that spike and deputy i crude at 48 point 62 right now on the heels of that, part of that russia saudi arabia deal is that concern about demand coming out of china. in fact, momentum and sign a may be softening. factory output investment and retail sales growth all slipping from the previous month in china, and all below forecasts. we have more here and hong kong with stephen engle. >> the numbers are good, but decelerating from march. the first quarter was a blowout with higher expected gdp growth at 6.9%, but which are starting to see is perhaps that march was the peak and we are starting to see a deceleration. not a lot, but a little bit. let me read you some comments from a press conference with the head of the national bureau of statistics, saying most industries seeing improvement in the supply and demand balance, so putting a positive spin on the numbers that were below forecast. retail sales, industrial production, fixed urban asset investment all below. keep ac

tom mackenzie joins us now. you have been there on the ground for quite a few days, so take us to the grand plans and how they might impact the world. tom: this is about china and xi jinping trying to recast globalization in china's image. use investment and infrastructure to link at this overland route and maritime route, linking asia to the middle east to europe, to africa , and they want to open up new markets. president xi jinping said this was a project of the century and would be a force for peace in a and theth many traumas difficulties, and he committed to an extra $70 billion of funding. china's development bank has allocated $240 billion, and it is thought china makes 10 $500 billion to this project. president xi jinping lang this out in front of many dignitaries, including president putin of russia, president erdogan of turkey, who sent the center of economic gravity is now moving east. this is also about china securing its energy supply because china is the number one importer of crude. it has become

tom mackenzie has more on the numbers. tom: a divergent and mixed picture in the industrial profits, strong but pointing to forward indicators. , wehing out the numbers have a terminal chart showing what is going on because in .arch they were up 23% at the same time last year in april and march, they were up around 3%. the industrial profits being driven by strong demand, so a lot from the u.s. and europe as well with consumer sentiment strengthening. they have been investing in things like warehouses and production. what they have noted and came out of the data is they are feeling a credit squeeze as well. the cost of credit is becoming expensive as the deleveraging campaign continues in china. that moves us to the forward indicators, things like investor confidence. they are saying this investor confidence is slightly on china. medium-sizedmaller enterprises also being less confident again, flagging concerns about the cost of credit. these are crystallizing this strength the surprised in the gdp number was the peak for g

tom mackenzie reports now from beijing. tom: china has been fleshing out details to reshape globalization .nd its image announcing plans for additional funding for the initiative. credit suisse says that in the next five years they could commit up to 500 billion u.s. dollars for the scheme. we also saw development banks, private banks, coming together to form a framework amount -- around financing. and then there was indonesia, securing finance and credit from the chinese on a whale line. all because the oil and gas producer had deals worth $20 billion in the last few days. there are concerns and questions with the biggest risk to this initiative being whether or not private investors get on board. and then we had the germans expressing concern that companies may not get equal access to these projects. we are expecting to get more details later today when china publicly communicates on the forum. tom mackenzie, bloomberg news, beijing. david: for more we bring in the senior percent -- senior policy atof trade cornell, sonal

anna: tom, thank you very much. tom mackenzie, thank you very much for the input. a what to talk about in terms of china. very: the data was depending on -- was varied. factory output, industrial output, 6.5%. retail sales at 10.7%, fixed asset investment at 8.9%. many they all missed, places showed a retreat from the previous month as well. the bigger picture is the big investment story. let's talk about china. peter allison joins us here in the studio. great to have you. give us your thoughts on china. we have had a few weeks where markets were kept on their toes. chinese assets are under pressure, stock market under pressure, bonds increasingly under pressure as a result of concerns about chinese activity to pop bubbles in the chinese economy. then we see the big infrastructure push for the chinese over the weekend. what are your latest thoughts? >> there's a lot going on in china, obviously. in many ways, a a lot of the stuff that is going on is positive. the fact that bond yields have been going up is positive. -- i was looking at one of your charts earlier, a

tom mackenzie is in china. these are not going down. it. it does not look like we are waiting for the overall number. we are still waiting for the price rises. details from beijing, shanghai, and shenzhen. beijing, house prices of 22 point 5% in april, year on year. for april, house prices in shanghai of 14.2% year on year for april. shenzhen, house prices for april up 6.7% year on year. monthly basis, house prices unchanged, so cooling in shenzhen, but beijing strong indeed. the overall number, prices in china in april rose in 58 cities of the 70 monitored, down from the 62 we saw in march. really that march number surprised many, much stronger. so prices rising and slightly fewer cities than the month before, but still showing relative strength. has been number explained because people said a rush as people sought to block him before more cap's were put into place. cities, the major cities come have put in regulations to make it more difficult, bigger deposits, harder to buy a second home. if you don't live in the city or are from the cit

tom mackenzie in beijing. thank you so much for that wrap up your looking ahead, more than 70 countries being hit by the cap. we will have -- by the hack. we will have an update by the security company mcafee later this hour. betty: australia courts a new agreement with hong kong. we will hear from a trade minister. this is bloomberg. ♪ betty: this is "daybreak asia," and i am betty liu in new york. shery: i'm shery ahn in hong kong. a pet trade mr.'s are heading to c tradehis weekend -- ape ministers are heading to hanoi this weekend. minister told us australia sees opportunity from the chinese initiative. for us to betunity able to work in a cobbler mentoring away with this initiative. australia of course has a great relationship with china, especially when it comes to trade. we have a lot of knowledge and its variants we can share, so i'm confident going forward, australia will be able to play its role as part of the broader initiatives being executed across the various countries and throughout asia and i

tom mackenzie coming to us from shanghai. singapore's gdp fell in the first quarter, however, that contraction was less bad than had been forecast. let's get over to our southeast asia economics editor for more. we do know that singapore is a must a canary in the goldmine -- coal mineecause -- because of how burnable it is to headwinds. morning.good that is exactly it. with the gdp numbers showed today is we are starting to see that recovery in export demand, particularly the pickup in demand from china and the global growth picture becoming more rosy. we are starting to see that benefit singapore, the manufacturing industry did cra k contract on a quarter to quarter basis, but less severe than the government estimated last month. also, interestingly enough, the government came out with their ,wn predictions for this year keeping the headline projections the same, 1% to 3%, but said the gdp will actually come in for topfull year close to the end of their target, so above 2%, which is good news for an open economy like singapo

tom mackenzie in beijing. we have been speaking about the fed speakers that we will be watching for. jamese one in particular, bullard, the head of the st. louis fed, yes, he will be joining us exclusively here on "daybreak asia" to talk about all the news ahead, including the jobs report and what is on his mind. are we going to get three rate hikes? >> that's right. we heard from james bullard on friday during a lecture in tokyo , saying he is concerned about the u.s. falling short on its 2% inflation goal. he said it was worrisome, so plenty more to ask him tomorrow from the st. louis fed president. looking ahead, japan raising the inkes, preferring a casino osaka rather than tokyo. we will hear from the melco boss soon. >> trade and rising protectionism on the agenda as preparations begin for talks with the eu. this is bloomberg. ♪ >> li keqiang the chinese premier is in europe for a summit with the eu leaders, it of the answer to a american protectionism. a look ahead to the trip with the president of th

tom mackenzie is in beijing. tom, what does china need to do then to make this incredibly ambitious plan a success? anna, it is an incredibly ambitious plan. i should point out i am in front of the bird that stadium built for the olympics in 2008. an example of china's building prowess. all these leaders will be meeting over the next few days. china really needs, in terms of momentum and pushing the forward, to convince leaders around the stadium that this is not just about carving out political influence. a sphere of influence and beyond. it is not just about the economics. it is about opening up new markets, not just for china, but for other players. there are jubilant of all concerns mounting up around countries like india, that is concerned about china's work with pakistan and ha contested regions like cashmere. they are worried about pulling oil into china. there are examples to date, because it was launched in 2013, where some of these projects have gone awry, for example in myanmar, protests against the da

our china correspondent tom mackenzie joins us now. take us through the details of this grand plan we are hearing about. -- it is a grand plan. we have had presidents in town. notably, we haven't had any g7 leaders, other than italy. fully have had in terms of the details, we heard from president xi jingping outlying an additional $78 billion usd going toward the project. sayst suisse, by the way, eventually china could pump in up to $500 billion in the next five years. we also had 18 countries sign up for a financial proposals paper as part of this project. and we had a meeting of the development banks, the likes of the world bank, the aiib, china development bank along with state and policy banks, and private banks like standard chartered and santander to drop of financing framework. and you have had comments, of course, from some of the leaders here about how they think they can benefit from this initiative. are moreven't had details on the level of transparency that many are looking for on this, and whether or not this is any more

tom mackenzie has the story. tom: this farm could point to the future for chinese agricultural. -- agriculture. spanning an area almost the size in new york city come it is one of the biggest organic farms in the country. ofike the fast majority farms, this one does not rely on has to sides. it relies on water filtration and soil monitoring. that is in line with the government's push for a more ecological agricultural sector. he has run the farm since the 1990's when it cover just 15 hectors. few thousande to a sheep and takes and produces tens of thousands of tons of fruit and veggies. for organic is growing as people increasingly focus on food quality and personal health. bumper crops is hailed as a model business. the central government pushing for more high in food production as incomes grow and it has invested 500 million dollars. that is money that help to fund the wind turbine and a complex filter system. it is an approach that could be rolled out across china. >> so this can be replicated in other provinc

our china correspondent tom mackenzie joins us from shanghai. spoke to the ceo, and we ran that interview in the past hour. where does the see -- where does he see opportunities in china? tom: he wants to focus on institutional and -- investments they already have in a china. they have a representative office in beijing. longer-term, potentially trying to provide products for some of china's retail investors. in terms of a time frame, he said maybe 10 years or 15 years away. they try to build up experience and knowledge. they spoke glowingly of alibaba's money market fund from three years ago, now the largest money market in the world. vanguard saying they need partnerships to expand and build on this business. it comes down to the regulators here in china. bill mcnabb telling us he is hearing the right sounds from them in the meetings he had with china's regulators. take a listen. >> regulators tell us what they want to see are more open flow,s, more open capital and development of a more sophisticated retail investor base. retail investors ten

correspondent tom mackenzie is in china for us, and tom, what kind of challenges may have come up this weekend? there are a lot of the discussions on this project for china's one belt, one road. tom: that is right. is on what china's messaging is around its growing political influence as a result of this hugely ambitious economic program, the one belt, one road initiative. there are huge and locations for the u.s., for example. we heard from the former director of china's national security council, and he said that the u.s. would see this very clearly as an attempt by china to expand its spirit influence. problemht say this is a in the making for the u.s. because they pulled out of tpp, but there is an opening for ,hina economically, politically and in other ways as well. and there is tension between companies like russia and india as well, where china is working with pakistan on a road in this region. there are concerns in countries like myanmar, where bans imposed have been scrapped after there was opposition from local residents around environmental concerns. they are also looking a

tom mackenzie in beijing. let's stay on china, beijing auto confirming the government is planning to scrap the current requirement with foreign automakers. the group makes mercedes-benz and hyundai cars in china. the chairman says reform of state owned enterprises is the number one challenge. as one of china's leading auto companies, the biggest ic are the smea reforms. the chinese government has put reform high on the agenda and time is pressing. as the chairman of a traditional as so eat, my biggest pressure comes from this front. the 50-50 joint venture arrangement, i think the policy will get changed and scrapped for sure. the door will be opened for sure. c, this is not a huge challenge. maybe a few years ago this would have been a big difficulty because of that time china's homegrown brands were in their infancy. oflight of the fast growth china's own auto brands, lifting the restrictions on the 50-50 joint venture structure will not be a direct threat to us. >> what do you have to do to stay ahead of pl

tom mackenzie had a conversation with james gorman talking about china. he remained quite bullish when it came to prospects in the mainland. when it came to talking about increasing that state with -- 250% he said he was in the path of increasing that stake right now. let's hear a little bit more about what he heard -- thought about the economy overall in china. mr. gorman: consumption has risen which is a important domestic driver. the leadership changes coming up toward the end of this year but leadership has been stable, consumption is increasing, gdp growth north of 6% and there has been liberalization of the capital market. is a pretty positive tone coming out from the morgan stanley chief. back here in the u.s., he was saying the dirty little secret here that the u.s. economy is doing quite well. we are at full employment. he mentioned that and noted littles less upside or upside and u.s. stocks. essentially on the equity side, it is priced in for bullish growth. yvonne: he called it the world legislative change coming out of the white house. said n

tom mackenzie at the belt and road for them. a splash in china. we will look at this plan. this is bloomberg. ♪ ♪ haidi: i'm haidi lun in sydney. betty: i am betty liu in new york. you are watching daybreak australia. australian rules football club is betting china will be the first received nation to a doctor the sporting code. they are hosting a match in shanghai. jason scott is looking into the push. what is the thinking behind this game in china? reporter: this has been a long time in the making. it is about a four-year project from adelaide. they are a small working class that australian rules, and was started four years ago. they started thinking outside the box and leaning towards china for a way to pick up their revenue. it started about three or four years ago when business in hong kong and shanghai were forming players. they built up there's, make businessns with the community, including the founder of this major real estate company in shanghai. he bought adelaide, liked it, they hosted the game in shanghai late yesterday. -- played yesterday. haidi: we know t

let's go straight to tom mackenzie in beijing. for that ppimiss number in terms of the estimates, 6.4%. forecast had been for 6.7%. that sixth .4% does relate to the march number of 7.6%, so a small miss from the forecast and a significant drop compared with the previous month. there are weaker commodity prices and metal prices, and weakening base of fax. chinard from the chief economist at standard chartered expecting 6.6 percent, coming in below his forecast. he thought february was the peak in terms of the ppi number in graduald you will see a de-celebration of these price increases for the rest of the year. numberorecasting a between 5% and 6%, and bloomberg intelligence have said it does show the reflation story is honorable because these producer , becauseis vulnerable these ppi numbers have a spillover effect to other prices globally, of that is why this is so important and questions about the push to combat some of that excess capacity, and of course what it means for corporate profitability, because that is likely to be d

tom mackenzie in beijing. we will take a look at the root the rebound in india. this is bloomberg. ♪ 9:30 a.m. in hong kong. we are counting down to the china open. 11:29 in sydney where we are awaiting the data from the meeting, where policy was held unchanged. i'm haidi lun. this is "bloomberg markets: asia." ahead of the rba minutes, take a look at this chart. we have seen a gain when it comes to the aussie dollar overnight, along with commodities currencies getting a boost from the oil story. russianthe saudi and oil ministers seemingly coming together in a cohesive statement yesterday in beijing, saying they are willing to go another bye months to cut supply $1.8 million -- 1.8 million barrels a day. we have the vienna meeting of opec next week. this is what we are seeing. if you are asking hedge funds, they are not looking positive when it comes to the aussie dollar. for a sixth consecutive week.if you want to look at fundamentals , the uncertainties over china, industrial production slowing, industrial commodities downturn starting with the price downtur

tom mackenzie is standing by for us. what have you got? we have 300 companies here in beijing as part of the morgan stanley annual summit come around hundred 900 investors working out the opportunities and challenges in the market. i'm joined by the chief asian economist for morgan stanley. ,e just have the pmi data out 51.2, which was in line with the previous month and above estimates, and in line with your view, which is one of a broadly positive chinese economy. >> absolutely. what is happening is that people are underestimating the role of external demand and stabilizing growth in china. china is tightening, you are seeing a pickup in exports helping to stabilize, and that is what is showing up in the pmi number, that new export orders picked up a bit. tom: exports, you are positive as well, 2017 could be the strongest year for export since 2012, and that ties into the demand picture as well. >>tom: absolutely. this is the first time we are seeing a synchronized recovery in global demand. developed markets in emerging markets are doin

tom mackenzie there for us. nonce first quarter growth came in at the slowest pace since 2014, but the prime minister remains confident in the annual target. he spoke exclusively to bloomberg ahead of a trip to washington to meet president trump. it is true that first quarter in the vietnamese economy is slowing down, but there are a few reasons for this year it however, we have a detailed strategy to achieve growth of 6.7 percent, even in this scenario. we will take concrete steps and measures at each industry down to the product level. the main goal is to create a favorable, open, and enabling investment business climate. i will give you a hint of some very good news. in april and may, data shows a strong pickup in exports, sdi, and agricultural production, and that will lay the groundwork for growth in the third and fourth quarters this year. growth were at risk, would you sacrifice your inflation target? >> although we set the target for growth at 6.7%, we also have a mandate to fulfill on keeping inflation

tom mackenzie has been following this for us. you saw the fx numbers of the weekend, how sustainable is it? question iter that is worth going back to january, you will remember the hand wringing win fx reserves drop through that $3 trillion level. seen three consecutive months of strengthening, over $20 billion in april, hitting that $3.03 trillion mark. there are a number of factors feeding into this stronger fx reserves pile, the capital controls, the stability of the yuan, and then the growth picture as well. we are seeing that stronger gdp number in the last quarter of 2016 and the first quarter of 2017, but then you have the considerations as to whether or not the growth starts to slow, particular he after this weaker than expected pmi numbers. bloomberg intelligence saying we could see slower growth in the second half that could lead to a domino effect with the pboc under pressure to stop its rate hikes. it is trying to keep pace with the fed to some degree, raising rates in the money markets. it may be under pressure to st

caroline: that was the sina chairman with the tom mackenzie. now coming up t-mobile came out , with earnings this week, picking up more subscribers to gain ground on rivals. at&t. we will speak with ceo john legere next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪ ♪ caroline: t-mobile has set a high bar and cleared it again, picking up more subscribers to gain ground on rivals verizon and at&t. the u.s. carrier signed more than 900,000 customers in the first quarter, showing some serious growth. t-mobile net income rose to $698 million last quarter from $479 million a year earlier. we caught up with t-mobile president and ceo john legere. >> our four-year-old birthday is on may 1 since we became a public company, and 16 quarters in a row we have added more than one million customers. so we are highly consistent. we had 1.142 million net additions. 914,000 additions were post-paid net adds, and 798,000 were post-paid phone

that kind of did not really sort of tell us where we are going because tom mackenzie is with us. let me handed over to tom. tom: thank you. i will get straight to our guest, who as you say is the ceo of vanguard, and they have launched a offices in shanghai. foreignwholly-owned enterprise which expand your footprint in china, but it is coming at a difficult time. we have seen the selloffs in the bond market, the equity markets. most recently, we have had a credit downgrade by moody's for china over their concerns about the country's that profile. what kind of challenges so that backdrop opposed to your business and your expansion plans for china? >> i think being from vanguard, i am by nature a contrarian. the fact that all of that is happening is a good thing for us because we have a very long year, and so, we have been studying coming to shanghai for quite some time. we expanded pretty dramatically in hong kong and have a representative office in beijing. the idea of coming at morelishing here to learn so that we can better serve our clients, not only here in china, but also gl

tom mackenzie. you can get more on that story and our special reports on feeding china on our website. that is at bloomberg.com. check that story out. betty: asia-pacific stocks signal mild gains things to data indicating the global economy is on a firmer footing. the yen is weakening again. yvonne: president trump's budget proposal is going to hurt the people who put him in office. critics say it is a work of fantasy. betty: a trader faces more pressure today. the stock is suspended and there are reports a potential partner has walked away. menu as china tries to satisfy growing demands for better and safer food. we will have a special report. this is the second hour of daybreak asia coming to you live from bloomberg's u.s. and asian headquarters. it is just after 8:00 a.m. betty: just after 8:00 p.m. in new york. in just a few moments, we are listening for remarks coming out from the boj governor, kuroda as well as ben bernanke, the former fed chief. they are speaking right now. we are watching fo

tom mackenzie is in the capital for us. what are china's hopes for such an ambitious project? tom: we have been getting more details about this vision, china's attempt to recast globalization in its own image. we have heard from xi jinping a pledge of additional $70 billion in funding for the initiative, and don't forget the credit suisse reserve. china could commit up to $28 billion for this. we have seen some of the policy banks, plus private banks like standard chartered, getting on to form a framework about financing. and in asia has told us about a $5 billion credit line they have for a high-speed rail link. are there has been he likes of the chairman of china's biggest oil and gas company telling us of $20 billion worth of deals he has been doing. as you .2, they are concerns here. on germans are holding back this project. they are concerned their companies will not be given a level playing field. they are asking, are european companies going to get the same look as chinese companies? we have heard some concerns from christine lagarde from the imf. she wants to make sure