Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20170521

We have the world covered here on daybreak asia with the wrapup from the trade ministers meeting over the weekend. Help President Trump fared in riyadh shortly. This is daybreak asia. I am betty liu in new york. A. M. In just after 7 00 hong kong. Political risk will be dominating the headlines once again this week. The first leg of President Trumps middle east trip. It seems as so far so good, the opec meeting, the fed meeting this week, but plenty on investors place. Ceos like lots and lots of money being invested in their own home country, so pretty smooth sailing as you say, but there are still a lot of questions about the Political Risks. You saw Goldman Sachs taking down their target for the 2. 75 , ayield down to bearish a signal there. Markets have been choppy, but we have not seen total collapse. On jamesld depend comey when he testifies this weekend whether we get new information over the russian meddling scandal. See how things going. Asia kicking off so far, following the lead up from wall street on friday. We have erased some initial gains. , up. 2 . Minister saying opec is all on board when it comes to extending output cuts for nine months. Oil has already rallied more than 5 in the past few sessions. Futures up 26 points at the open in sydney. Japan, trade figures this hour, futures also pointing to some gains, but could be limited given the yen strength trickling through given north korea firing its eighth Ballistic Missile over the weekend, so something to watch. That is an early look at the region this morning. The sentiment so far has been beyondu need something the political noise to deter the balls from stock buying. You still have a strong Earnings Growth story, and Global Growth seems well intact. Betty thats right. The fundamentals looking good, although nothing changes the markets more than sentiment, right . Inn if the numbers come solid, but people are feeling as investors, they are little bit more nervous, then that can have a real world impact. As we talk about the markets, lets get some first word news. President trump has told arab leaders that the war on terrorism is not a fight between different faiths, easing concerns that america is at war with islam. Foraid they must not wait the u. S. , but in short terrorists find no sanctuary anywhere. The president has tried to ban people from various muslim majority countries from injuring the United States. When young muslim men and women should have a chance to build a new era of prosperity for themselves, it has to be done, and we have to let them do it. With gods help, this summit will mark the beginning of the end for those who practice terror and spread its vaio creed. Vile creed. Vows to continue its program after another test of the weekend with a missile traveling 500 kilometers across the sea of japan with defense official saying appeared as a shorter range weapon. North korea said it will continue to develop Nuclear Weapons and conduct more tests. Officially announces the first round of Capital Commitments for the Tech Investment Fund with more than 93 billion. The saudi public Investment Fund as well as apple, foxconn, and sharp are participating in the top 100und, expected to billion dollars and will focus on startups in the United States. Dimon remains optimistic about the Global Economy and the prospect of Regulatory Reform under trump. Exclusively with bloomberg, he said the imf feels the economy is growing faster than expected. Some of the guest of americas corporate names are in saudi arabia as the kingdom edges towards a more diversified economy. Growing more than in 15 years. Europe is doing rather well, all things considered. At 2 , is moving along give or take, so all that is pretty good. Even the imf is now saying the world will grow faster than expected. News 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Global trade and the threat of protectionism dominated talks in hanoi. A post summit statement was diluted, pressure on ministers not to criticize the protectionist trend. Lets get to our chief correspondent Haslinda Amin in hanoi for us. Good morning. It is interesting this water down communicate, that Team Following the g7 and the g20. You are right. The u. S. Pretty much topped the agenda and dictated the outcome, a diluted statement. Apec trade member servers pledged to remove barriers and regulations, but there was no mention whatsoever on resisting protectionism, and like you indicated, we saw this at the and g7 summit when secretary mnuchin refused to sign off on any strong wording resisting protectionism. It is suggesting that the u. S. Isrica first agenda dominating all talks on trade everywhere in the world. Newman of the hour is the , alltrade representative the trade ministers here at the aipac meeting wanted a bilateral meeting to get a gauge of what u. S. Trade policy will be with the respected countries in this part of the world trade dominated talk, but he apparently shares very little of what u. S. Trade policy would be ministers here could we spoke to get some clarity. Take a listen. Is everybody who wants clarity, what the u. S. Thinks about its trade policy. When they talk about the memorandum of the form, that were 20 countries that agreed, and one country that did not agree on anything. Intend todo you approach the u. S. For a meeting . Have they approached you . No. Haslinda your thoughts on trade under trump versus obama. There is a lot of u. S. Companies working in russia. Any pressureutting on those companies and they were doing business in russia and continue to do so, so we look at the economicsfrom and work with the companies. Haslinda countries are pulling back, the impact of that . All of the opec countries ths and work with the companies. Haslinda are supporting free trade and development and eliminating barriers. There was a strong position from china. Sense to does it make look east, the pivot to asia . We were working with Asian Countries before all these things happen it will continue to do so. We are intensifying our contacts with china, doing a great job in terms of improving trade relations with japan, and working with all the Asian Countries. It is always open. It is not us. It is the u. S. Haslinda what do you see as the biggest risks to Global Trading growth right now . The protectionism everybody was mentioning the story today, more barriers, higher tariffs supports all this stuff and will have a negative impact on growth. Trade is not growing that fast thise past year, so if negative trend continues, it will negatively impact Global Growth. A great interview, but what about clarity on u. S. Trade policy in asia and aipac . What did you get . Haslinda there is little clarity. There was some indications from the u. S. Issaying after free and fair trade. What that means, we dont really know, but the sense we get froms leaking to trade ministers here at apec is that it means what is free and fair to u. S. Industry. Essentially that translates to protectionism. Lighthizer did mention the u. S. Does have a big trade surplus, trade deficit, with a lot of countries in this part of the world, and that needs to be addressed. We spoke to the japanese trade minister to talk about what he hopes to achieve in the months to come. Take a listen. The tpp is the only agreement that has indepth coverage of things such as digital trade, intellectual property, customs procedures, and so forth. The tpp covers all these areas. It is highly regrettable that the u. S. Decided to withdraw, but even without the u. S. , trade remains hugely important. Tpp was also a key discussion point here. Apec ministers were also signatories on the tpp and decided to push ahead even without the u. S. , but challenges remain. Countries like malaysia say there could be some renegotiation because the reason why they signed up to tpp was greater access to the u. S. Market. Given that the u. S. Is no longer part of tpp, there is reason for them to consider. Thank you so much for that. In hanoi. Min looking ahead, counting down to the beginning of trade and the latest trade data out of japan. We will bring you those numbers of the cross to bloomberg later this hour. The former u. S. Ambassador to saudi arabia joins us to discuss the news from rihanna. Riyadh. This is bloomberg. Down toe are counting asias first major market open this morning. Higherfutures also following that strong lead on friday in new york. Toabout. 5 on the nikkei 25. This is daybreak asia. I am betty lou in new york. I am if unmanned and hong kong. The u. S. And saudi arabia have signed deals worth hundreds of billions of dollars during President Trumps visit. Walk us through all the cash involved here. Ramy it is a huge number. Seen donald trump tweet anything about these finances, but if he did, it would probably be in all caps, so big, so big lets listen to his own words first. Yesterday we signed historic agreements with the kingdom that will invest almost 400 alien dollars in our two countries and create many hundreds of thousands of jobs in america and saudi arabia. Ramy you can see that ornate there, about 50 u. S. Ceos and representatives of 40 Saudi Arabian Companies Come all part of the vision 2030, an attempt Itsaudi Arabia to modernize economy and diversify it self away from oil, especially with oil being so volatile these days. Lets look at some of these companies in focus in terms of the deals that have been done. You can see on the board, General Electric, dow, exxon mobil, and a plethora of defense companies, notably Lockheed Martin, raytheon, general dynamics. Up to belectric comes one of the biggest winners here, 15 billion in terms of improving saudi arabias power grid and energy capabilities. Of that is coming in terms of goods and services directly from General Electric. For theis a huge boom company there could Lockheed Martin is also a winner, six ian dollars in terms of building 150 100 50 black hop black hawk helicopters. Lockheed martin saying saudi arabia has expressed an interest in not just the 6 billion deal, but something four times more, 28 billion in terms of air and Defense Missile systems, combat shifts, and raytheon another one. Raytheon is saying it will not build anything, at least not yet, but will establish a new branch in saudi arabia called raytheon arabia. They will want to develop defense, aerospace come and security, and that will be based in riyadh. Companiese many that,g, but not only there is the largest weapons deal in u. S. History Rex Tillerson said 109 billion has been anchored in terms of tanks, fighter jets, combat shifts and thaad missile system. What is next for the president . Part one of a fivepart city or country trip. He moves west and gets over to jerusalem, israel, as well as the west bank. Why dont we throw up that map. That is a great way to illustrate what will be happening. He will be meeting Prime Minister Benjamin Netanyahu and the president of the Palestinian Authority, going to the western wall, and would be the first sitting u. S. President ever to go to the western wall. He will go into the church of the holy sepulcher, where jesus was buried and resurrected from that area. After may 24, rome and vatican city and meets pope francis here it you will remember that President Trump said the popes criticism of him trying to build , border wall was disgraceful so will he mend ties with the pope here . You can imagine that he might want to Say Something so direct to the pope, but then again he has set a lot of things, so may 25 goes to brussels where he visits the European Union headquarters, and he will have dinner with 20 heads of state to there. He has said that nato was obsolete, but last month, he said it is no longer obsolete, so changing tack their, and he in six trip insidiously at the gseven summit. Quite a trip. Thank you so much. One feature on the bloomberg we would like to bring to your attention is our interactive tv function. Yes, you can find it, type in tv to watch us live and see previous interviews and dive into any of the securities are bloomberg functions that we talk about. Pretty cool. You can become part of the conversation by sending us instant messages during our shows. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Betty this is daybreak asia. I am betty liu in new york. Yvonne i am yvonne man in hong kong. All the Oil Producers on board for a ninemonth extension. Speaking to bloomberg in reality , khalid a. Alfalih said they wont pick up any slack from producers who dont agree to the limits. Have spoken or heard any country that is against the extension per se. Everybody once the extension because we realize we have not achieved our objective of bringing global inventories to the average. You concerned the market is pricing the production cuts in . Im not looking towards the market. Im not looking for a specific price. Looking for is in agreement, consensus coming clarity for the markets that we are steady as we go, committed to bringing inventories to the there is average, that a large group of producers, opec and nonopec, working together, and that should encourage investment. My objective clearly is clarity on where the market is going so that people invest. I am less concerned about prices and markets over the next 12 months than i am after three years come into this decade, short andies may be demand will be approaching 100 million barrels, and we have the annual decline that has taken place. Unless we invest and overcome with new,ne significant capacity coming in, we will face a shortage. We in saudi arabia dont want the market to be squeezed. I understand you are not targeting a price or want to talk about a price, but ive been covering opec for two decades, and shale producers are now part of the equation. Lets say your extensions dont have the effect longerterm, would you think of over pumping so the price goes down and you squeeze the americans out . Been part ofever the calculus. We never over pomp to squeeze anybody out. I think supply and demand need to balance, and we have said saudi arabia has Spare Capacity and opec will do what is necessary. Market was structured, was off with the diversions between supply and demand, and any opec action in 2014 would not have done the job with theof cutting, so restructuring of supplydemand trajectories that took place over the last two years, opec is now able to calibrate its supply with our partners from outside to bring the supplydemand balance together, bringing inventories down come and give clarity for investment to flow back into the industry. Again, that was the Saudi Energy Minister Khalid Alfalih with bloombergs francine lacqua. The latest check of headlines, subaru may make electric versions of existing models as it joins the drive towards batterypowered cars. Recordpany plans investment in r d and is considering putting a electric motors and current models instead of redesigning new ones. The ceo says that would let subaru capital rise capitalize on its repetition and eliminate the need to find a harder. Cathay pacific is to cut almost 600 staff and its biggest round of job losses in two decades. The South China Morning Post says 190 management positions are to go immediately, and another 400 nonmanagement roles cut by june. Cathay pacific is under pressure and cheaper chinese rivals middle east carriers expanding into asia and last year saw its first loss in eight years. Sharper may see its first profit in four years. It will pose earnings as much as 360 million this fiscal year. Topreport says sales could 19. 8 billion dollars, meaning a 10 gain from a year ago. Sharp is planning to apply for a really listing the Tokyo Stock Exchange as early as july. Plenty more to come on bloomberg television, the data out of the u. S. , home sales likely to show robust growth when they come out this week. We look at what investors should be watching in the days to come. This is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Yvonne 7 a. M. On this gloomy, rainy monday in hong kong. P. M. Sunday 7 30 evening in new york, friday markets ended up higher. , but netp almost 0. 7 loss after the big tumble beside market on the back of the coming regulation revelation. Comey revelation. Im betty liu in new york. Yvonne i am yvonne man in hong kong. Now to first word news with stephen engle. Stephen the south korean president has nominated a finance minister and deputy Prime Minister. He is the former chief of government policy coordination, faces but host of challenges including household debt, high youth unemployment and weak domestic demand. At talks inatement hanoi suggesting pressure behind the scenes to avoid criticism of protectionism. Regulation and red tape and contrasts with their september meeting in peru when they had the determination to resist protectionist measures. They will pursue a regional trade deal you without the United States. There is a lot of unity amongst all of the countries in designing what the country is, and agreements from the economies and the people of the countries, asking other countries to join. Stephen saudi arabia says Oil Producers are in agreement extending output curbs another nine months to drain the global glut. The have minister said maintaining restrictions through the First Quarter of next year will bring the stockpile to a fiveyear average. Opec members and leading independence will make the decision when they meet in canada vienna later this month. I have not heard of any country that is against expansion per se. Everybody wants expansion, because we have not reached our objective of getting to the fiveyear average. Stephen brazils president has urged the Supreme Court to suspend a corruption inquiry against him, saying it was doctored evidence. He was set up during the conversation, to make allegations against him. The stocks and the riyal slumped revelationfter this he engaged in passive corruption. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am stephen engle. This is bloomberg. Betty we are counting down to the major market opens in the asiapacific. Lets go to bloomberg market reporter adam haigh joining us from sydney. Seems like we may finally get a boost from the strong finish in the u. S. Stock market. Our we over the worst . We over the worst . Adam there is still risk in equities. We will see a big move on the Positive Side this morning when rockets markets get started. It looks like it should wash through, and we start higher in bit,alia, trickier into a making way on shares. A big move this morning is in the oil market and west texas saying crude is extending the big runoff we had on friday, up 0. 6 this morning. All of it leading into thursdays meeting and prices continuing to push time hi on the expansion. That might be the interest of when thefew days meeting takes place. Lets take an eye on that. Elsewhere, we are watching the fed speakers. We have kashkari at the end of the day. It is interesting because with everything going on later this week, people will really be scrutinizing every word of the central bankers. Weve are talking about this earlier, Goldman Sachs falling back on treasuries you tell us the new target and what it means about the u. S. Economy. Upm this is nicely summed if we bring the chart up on the so weal of goldmans call can make the comparison on how they have changed at the beginning of the year. It was 3 tread tenyear treasury. They had brought it down to 2. 75 percent this year. That estimate that is below the estimate of people we surveyed on the u. S. Bond market. This is showing reaffirming of what we have already seen in bond markets. It is still a tough call around the trajectory of said tightening. Fed we will be getting minutes from the meeting on wednesday. Analysts are saying we have met speakers here over the next couple of days. Plenty of disagreement into how quickly the fed will be able to lift rates, given how the Inflation Numbers in march and april have missed expectations. So certainly, plenty of uncertainty around the u. S. Bond markets still. Plenty of disagreements, which from a trade perspective allows for some Risk Appetite and gains to be made if you are keen to play in and out, but plenty of uncertainty remains. Betty thank you so much, adam haigh in sydney on the outlook for the markets this week. The same outlook, there is a lot to focus on for the week ahead, involving news events of course the biggest mover, President Trump. Su has more. We have more housing data. Su that will be big. Lets talk about the direction of the market. That is what so many people are focused on. With the bloomberg, look like we were going to go lower, and we pulled out with the strong rally. We have not really had backtoback in a while. We have a second chart going out, oil, 50 a barrel. Lets go to video if we can about the earnings we have had. What we have had is medtronic, tiffany, canadian banks all reporting. No video there we are. We are at the tail end of earnings, and most companies have beat expectations. They were overdue after so Many Companies where barely making it by. This is generally a positive earnings time. Yvonne and betty mentioned the housing data. What is on tap . We have some reports on housing, one of the strongest areas in terms of rebound. Housing sales of existing homes, it is typically something we focus on, but new home sales out on tuesday. That held the nineyear consistency. Home sales probably robust for april. It is an indication we can see the benefit of the economy. On wednesday we get the previous sales, easing a bit for april, but they have been on the strongest face in a decade. One other piece of data is the factory data that shows the strength of the factories, durable foods, getting an idea of what companies are our spending. Strong, andme in gdp will be revised. It was very weak firstquarter gdp. That will also be closely watched. Donald trump continues to go to the group of seven meeting, then to saudi arabia you leaves israel, creating a lot of very interesting and unique photo ops. Absolutely, thank you. Investigation for nafta. We will hear from canadas minister of trade. This is bloomberg. We are counting down to asias first major market open this morning. Futures getting a boost on this monday morning, also trade figures out in 10 minutes time. We will get those through the bloomberg. This is daybreak asia. Im yvonne man in hong kong. Betty a quick check of the business flash headlines, told ang has been Investment Group made up of Goldman Sachs and pagoda has agreed to buy Australian Health care company icon cancer care. They will pay more than 1 billion australia, evan hundred sd billion dollars u. S. To close the deal. The deal may be made sometime this week. Yvonne audi has reached an agreement with dealers in china, and they will dispute ending a dispute with volkswagen. They may china audis with the saw group. Their profits could be under threat. The deal now reached means any seic produced cars will be distributed through the existing sales network. And the alien series newest on it has the top spot, toppling guardians of the galaxy. The 20th century fox movie made his debut with sales in 36 billion according to estimates from comscore. Guardians of the galaxy can second. Then Everything Everything and gary tyree of a win begin the long haul. Looking at trade, canada is confident of a good outcome in negotiations on a new nafta. Speaking in hanoi, the International Freight minister trade minister told bloomberg that talks with the u. S. Trade representative went well. Meeting. A good first trade issues, but any discussions between canadian and u. S. Officials start with the backdrop of the present of our relationship. Billion ofchange 2 goods of Services Every day. It crosses the border. We are the largest in the United States. 47 states have, canada as their primary reception market. So when you start the discussion, you start with saying, we are the first client. We have said with respect to nafta, mr. Trudeau has been clear this is the agreement that was negotiated two decades ago, the president has commented on it, so we are happy to sit at the table. We have things to propose from the canadian side as well as the mexicans. Reporter the u. S. Minister said what is needed begin nafta negotiations. What are the deal breakers for canada . What is unique between canada and the United States is we dont just sell things to each other, we make things together. Smart. Been Prime Minister trudeau has this relationship with trump, and we saw that evidence recently with the phone call. The fact of lets come to the table. Reporter what do you think people would say about nafta being dimmed . Doomed . It was made two decades ago, and we have amended it 11 times. When you have the present relationship, it is like the Prime Minister said from the outset, it is something you should update from time to time. Betty that was the Canadian International trade minister speaking to Haslinda Amin in hanoi. Jpmorgan Ceo Jamie Dimon is confident about boosting market share despite rivals. He spoke to bloomberg in riyadh. He is optimistic about Global Growth and the opportunities being present. The world is going to double in size in the next 12 to 15 years. There are plenty of opportunities and threats. But we spent a lot of money in technology. We are know what we are doing, operating around the world, helping companies around the world your emerging markets are growing twice as fast. We are comfortable with the future. Can you break down where you want to defend market share and where you are pushing it . Jamie i want to grow everywhere. It is harder in some areas where we have higher market share, and clients dont want multiple vendors or suppliers. That is understandable. May bestment banking harder to gain share, but does that mean we cannot gain in this part of the world, so we have not given up. Reporter what about fixed income . We have a good share, and it will be when we look at it, you look at the number, yeah, when you look at what we can do in that country, see if we can do better around the world. A lot will go to technology. Competition is a good thing. I have never been worried about competition. I want a competitive world. Reporter as long as you are better than them. It is what we try to do. Reporter we spoke in paris and talked about regulation. What is the mood now . Are you confident about wall street . Jamie yeah. The Administration Want to deregulate certain things, and most of us think regulations have been holding back growth. It has hurt all citizens, not just j. P. Morgan. I am still optimistic you will have some Regulatory Reform. After recent years of regulation, it makes sense. It makes sense to look at what was done, what can be done better, what can simplify the burden of businesses, what can help people expand and grow the economy. No one is asking for a whole skill paired down, but look at what was done. Reporter we talked about the modern investing, which investors are concerned about what that meant. Jamie glasssteagall wasnt part of the problem. So i think with the term glasssteagall was saying, it is perfectly understandable. Let them sort it out. I dont think it will stop for a good come tentative edge. Reporter are you on the hunt for something . Jamie i would not say now, but i wont take it off the table. Reporter i dont know if it is a region or a specific operation. Area wehere is no cant go organically. So we can have figures in countries, private, corporate, ranches in the United States. My first is organic, but there may be acquisitions in technology in countries that make sense, but they would have to make sense. Reporter so like syntax or something. Related, customer service. We announced having online self investing and online account opening. Right now, you can buy and sell we had the affect trade on their mobile phone. We are just getting a lot of services that makes clients happy. Reporter how much will be transacted . Jamie a lot. If you look at the consumer side, it is used for mobile. If you look at bill pay, we are moving there. Corporate, we have seen fx, you will see equities. When we say mobile, it is all the same to me, it is how you want to access the service of j. P. Morgan chase. Reporter what about the animal spirits . Jamie pretty good. Japan is growing more than it has in 15 years, europe is doing record well to all things considered. America is chugging along give or take, and it is pretty good. Even the imf, which is always worried about stuff, it is faster than expected. We got breaking, japan trade news coming out on the bloomberg, and it is a slight miss when it comes to the trade balance. At ¥481. 7 billion, it started billion number, so sos leads to 100 20 or billion yen shy. What we are seeing here is export growth not rising as much as import growth, import rising 7. 5 , also coming short of estimates worth 8 , but the import is still quite intact. It was reduced. We keep talking about this, how the reflation theme is reaching its peak. We talked about that in the export story, and they side with the strong yen. Betty the strengthening yen we have seen since november. To pull up my terminal here, i will show you the take by take movement in the japanese currency. It had been weakening slightly ahead of those numbers when you mentioned the dan strengthening throughout the year the yen strengthening throughout the year. The import an expert numbers really showing that. Japan growth, we will take it, every little bit. You can get around at the the stories you need to know to get your day going in todays edition of bloomberg. Go to the terminals. Also available on mobile in the anywhere app. You can customize your settings so you only get news on the industries and assets you care about. This is bloomberg. Yvonne this is daybreak asia. Betty i am betty liu in new york. North korea has warned it will continue its Nuclear Weapons program after testfiring another idiom range missile on sunday. I will go to seoul now and are be our bureau chief. There is no room at all for a softer approach. Testter yes, it is a real to the south korean president who pledged a more conciliatory approach and talked about going to pyongyang and talking to kim jongun. These two launched two missiles when he took office may 10, so a challenge to his policy near north korea. Yvonne we see those concerns once again with the eighth Ballistic Missile. President moving making key appointments. What do you make of those . Reporter significant appointments. He made them on sunday, showing emergency of them. The key one was finance minister. Wellrespected, basically a long time Civil Service worker who basically rose through the ranks, to the highest position you could attain, without being appointed. His background is interesting, came from a poor family, could not afford any of the major universities, which is often a newequisite, so when the president announced that, we talked about how he appointed this person because he may a more sympathetic to the hardships folks that are facing here in south korea. Yvonne plenty more to come. We will talk more about korea. Our bureau chief out of seoul. About thisn talking on daybreak asia, watching earnings on thursday, profit projections in the Third Quarter of the Worlds Largest computer banker struggling to rebuild its pc and smartphone business. Tuesday is the next scheduled Court Appearance of park geunhye, the former president. She denies leaking state secrets, and prosecutors argue she pressured big business to donate tens of millions of dollars in favor for official face of favors. I have a chart to show the performance we have seen in korea, which has been a big performer. Many of us scratching our heads given the geoPolitical Risk, and we still see the kospi in yellow, holding onto records with the advancement of the south korean won. If you look at the Early Warning signal risk index, it is in white. That has come down quite a bit. We should probably start worrying about north korea given the fact how unpredictable kim jongun is. Betty that is right. We will be watching twitters annual general meeting on monday, shareholders voting on a radical proposal to start the companys user owned corporate it. The board has not recommended a vote against the proposal. Opec meters meeting in the yen at to determine to extend the oil producer curve. They will discuss strategy. We expect cuts to be extended. President trump dials the rhetoric as u. S. Companies sign multibilliondollar deals and riyadh. Shares Asian Pacific extending wall street close, oil rises, giving Energy Companies a lift. Betty the Saudi Energy Minister says Oil Producers on board with new output cuts. Khalid alfalih expects a ninemonth extension. Nowne the softbank boss has almost 100 billion to make his dreams happen. This is the second hour of daybreak asia live from bloombergs asia headquarters. I am betty liu. We are getting the week started. Lots of questions on what else we are going to hear from trump. It seems like pretty smooth sailing over the weekend, specifically for the companies there, but also markets. Worth for 11illion companies, quite sizable. We will get to that later. A goldilocksre in situation when it comes to equities, a modest rebound on friday, strong earnings season, low yields, commodities cheap, cash looking for some returns. Lets get to the market open. Sorry, i meant first word news with paul allen. Good morning. Paul good morning. Ministersic trade issued a diluted statement in hanoi, suggesting pressure to avoid criticism of protectionism. The focus on regulation, red when and contracts ministers reaffirmed their determination to resist protectionist measures. The meeting go out to pursue a regional trade deal without the u. S. There is a lot of unity amongst the countries and desire to Work Together to find. Greement among the 11 it is also open to other countries of the world to join. Paul saudi arabia says Oil Producers are in agreement on extending output curbs to further drain the global glut. Khalid alfalih said maintaining restrictions to the first trimmednext year will stockpiles to a fiveyear average. He also said opec members and independent Oil Companies will make the official decision later this month in vienna. I have not heard of any country that is against expansion per se. Everybody wants expansion because we have not achieved our objective of bringing mobile inventories to that level. Softbank announces the first round of Capital Commitments for its Tech Investment Fund, 93 billion. Backers include the saudi Investment Fund, foxconn, apple, and sharp. To vision fund is expected top 100 billion when it closes and six months. It will focus on startups in the u. S. The brazilian president has urged the Supreme Court to suspend a corruption inquiry against it, claiming recorded evidence was doctored. He says he would set up in a taped conversation and the recordings failed to support allegations against him. Stocks and the currency slumped when prosecutors said he obstructed a graft investigation and engaged in passive corruption. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. The Political Risks continue to dominate headlines throughout the week, not just d. C. , but also brazil. Lets get a market check. It is monday. There so excited to get market started. It is a positive session with korea leading gains, up. 6 . We are getting a positive start on the back of that rally on wall street on friday, near record highs. Japan continuing that rally. Markets are starting to price in the fact that perhaps what we are seeing in washington and calm fory he more equities investors, asx 200 up. 3 . Lets show you what we are seeing in bonds, acrosstheboard lower. Yields are higher, showing a little bit more risk on this week. Crude oil is what you want to watch it we have seen a big jump in wti contracts towards 51 a barrel. It had one of its best weeks of the year so far, up 5. 2 up last week, the fact saudi arabia said we will see most countries continuing with opec cuts and that has given a supply boost to the oil contracts. In terms of stocks, the energy all straight up. Firstnk has close that round of the planned 100 billion Investment Fund, up almost 2 . Sharp rising on a report over the weekend that it may have net profit of ¥40 billion in fiscal 2017, better than what the market was looking for. Start, a pretty positive to equity trading across asia this monday. Betty indeed. Looks like a nice start. The u. S. And saudi arabia signed deals with hundreds of billions of dollars during President Trumps visit. Us throughncio walks the companies and cash involved. Ramy i want to show you how significant this money is in terms of the possible trade that happens between the u. S. And saudi arabia. Ectr function, the trade between saudi arabia and top partners. Saudi arabia is number one, 45 billion, number two is the United States at 37 billion. We are talking hundreds of millions hundreds of billions of dollars here when it comes to potential money flows between the u. S. And saudi arabia. Lets listen to donald trump and tell us about the actual number. Yesterday we signed historic agreements with the kingdom that billionest almost 400 in our two countries and create many hundreds of thousands of jobs in america and saudi arabia. You were talking about the bullishness we are seeing on the markets. We are also seeing bullishness when it comes to saudi shares. The index jumped. 3 in the last trading day. 75 in the last trading day. You can look at my terminal and bring this up, there you go. You see that pop on the last trading day. Up 2 the past week. 50 u. S. Ceos, 40 saudi businesses, a huge affair here, all of it to modernize the economy of saudi arabia and diversify away from oil. Lets look at some of the companies that are involved. ,he likes of General Electric Lockheed Martin, raytheon, general dynamics, honeywell. We are billion is what talking about, improving the countrys power grid and energy capabilities. Half of that money coming from goods and services directly from General Electric into the kingdom. Lockheed martin, 6 billion to build 150 black hawk helicopters within the saudi arabia. That is supposed to make 450 jobs in the kingdom. The, Lockheed Martin said kingdom has expressed an interest in doing more business, not just the 6 billion, but 28 billion on top of that in terms of air and Missile Defense and combat ship readiness. Raytheon once to establish a new branch and saudi arabia. General dynamics once to make tanks, armored combat vehicles to localize the country and the sign and engineering and manufacturing there. Number, buta huge it is not all there is. It turns out Rex Tillerson said aat they will have inked 109 billion in defense spending. This is the biggest arms deal in u. S. History. Tanks, fighter jets, combat ships, as well as the thaad Missile Defense system. Ceos from all of these companies were present in addition to Lockheed Martin and dow, so a huge boon for all these years companies, saudi arabia and their attempt to modernize and diversify their economy. Dayse it was a busy two in riyadh. The president heading to israel next. What can he do to continue this momentum given the political crisis at home . When he goes to israel to meet Prime Minister Benjamin Netanyahu and the Prime Minister the Palestinian Authority bek loaded image he will going to rome and the vatican. You can see this map in terms of his trip westward from where he is right now, both of those two events, you will remember he criticized the pope a few months ago when the pope said he did not agree with some of his policy that he was pushing. He said that was a disgraceful thing the pope was doing. It will be interesting to see if he will try to mend those fences. Then he moves on to brussels, sicily come italy, in order to meet with nato allies with the g7. That is economic and a military alliance. The big question is will he will fall feathers or will he mend fences . , but this isod just the first leg of another four days overseas. Certainly a long trip ahead. Remy inocencio, thank you. Nations issue a watereddown statement of protectionism. We are in hanoi for a wrapup. Betty a view on emerging markets and that growing crisis in brazil. How that might affect emerging markets in asia. This is bloomberg. Betty this is daybreak asia. I am betty liu in new york. And hong am yvonne man kong. Emerging markets, materially undervalued, and earnings expectations under and by strongerthanexpected growth. Joining us from singapore is the head of emerging markets and as you said fick equities at of the vote. Atand asiapacific equities aviva. Does notical turmoil seem like it is ending anytime soon. I want to set up a chart on zero in have gone from brazil. The contagion seems to be limited in this part of the region, but we hear calls from lawyers and voting in favor of a impeachment of michel temer. You think impeachment could be repairable . They are in a tough position. Temer comes from the old. Stablishment in brazil whether there is a smoking gun are not is a question. You have to look at the history of how he got to where he is right now and wonder whether there are some issues surrounding him or not. Is the impeachment a good thing for brazil . Not. Inly he is one of the least loved president s brazil has had. Ist you are seeing in brazil the fledgling signs of a recovery. What they need is this deeply unpopular president to push through the reforms he has been talking about. He needs to push through the pension reform and get this country back online and running again. An impeachment, even though it might be the right thing, would be detrimental. Are we under the contagion risks . It seems we have this Global Growth story that is still strong. The dollar not getting a haven bid, but are we not looking too much into this geoPolitical Risks right now . When you look at emerging always, there are geopolitical flashpoints, political events taking place in one country or another, or there are economic problems in one country or another. It is a must the nature of emerging markets. Emerging markets fan from latin america to the far reaches of asia, so it is not unusual for something to be happening which is a concern for global investors. Is another political crisis in brazil going to affect u. S. Growth . I dont think so. Will it affect china . I think that is unlikely. Go, this is crises relatively localized in nature, so if you have investments in brazil, it is something you need to be aware of. You could see the impact on the currency when it was announced last week, but does it have a knock on effect to other emerging Market Countries question mark our view is that it is quite limited. Countries . Our view is that it is quite limited. I want to pull up a truck that shows interest in emerging markets. If you take one look at the vanguard emerging market fund. 874 five come on the righthand side, you will see that blue on the screen, how much volume, how much money has been flowing into this etf. It has been piling lots of cash in. The point of how do you play if you are bullish on emerging markets, what is the best way to play emerging markets. Andnot just talking regions countries, but do you just pile into in etf or play currencies question mark had you play emerging markets . Are lots of different ways of playing it, but the first point im making is absolutely right, emerging markets look very attractive. If you put them on a pe multiple and look at consensus earnings, they are trading on 12 to 13 times, and the underlying growth out of emerging markets, about 18 to 20 Earnings Growth. Tradesu. S. Come the s p 18 times, and if youre lucky you will get 10 Earnings Growth. How do you capture that . You can get exposure to broader emerging markets or can find some of the better opportunities. For example, we quite like south korea. President that the has come in with their reform agenda and he has been moving quickly. He just pointed his new finance minister, chief of staff, a very proreform person. In the past, when you look at countries within emerging markets, within asia, when you get a reformist government come irrespective of how much they ,eliver, Prime Minister modi you can see these markets have a strong recovery. Even if you look at brazil with the appointment of michel temer, you saw a strong recovery afterwards as well. We think there are opportunities to benefit from these changes. Who would have thought 12 months later that we would be back in the same position in brazil. On a final note, i want to look at the u. S. Market, not an emerging market, but a huge influence on any outlook on emerging markets. Goldman sachs coming out with this new call saying they have taken down there yield forecast for the 10year down to 2. 75 from 3 , which is key for investors, the 3 yield the comes what you make of that . Is that concerning to you at all with this new forecast of 2. 75 . Think to some extent that it could be beneficial to emerging markets. If you get slightly lower rates in the u. S. , a weaker u. S. Dollar, that historically has actually led to that are emerging market performance, especially as most investors look at emerging markets are almost as if it is a dollar denominated asset class. Feedker dollar tends to into better emergingmarket returns. Go, thee we let you reason i asked about the contagion risk because is there a reason to sell into the strength in emerging markets. The big tail risk has been oil china and its Deleveraging Campaign they are undergoing now. We seem the laughter seemed to stabilize with this china stock market calming down. Will we get enough positive catalyst for a meaningful rebound in the asure market . That is a really good question. I would not say you could look for a rebound when it comes to china, we are becoming more conservative when it comes to our view. We can see china actually crediting and increasing costs. When they start to reduce liquidity, increase credit costs, you tend to see a lag of orsix months before it impacts the underlying economy. What you should expect is a slowdown in chinas Economic Growth six months down the line. Will that derail emerging markets . We dont think so, but it is a time you need to discern between the Different Countries within emerging markets. Brazil looks tough right now, perhaps china deleveraging and increasing regulation, perhaps you want to look at places like south korea and malaysia where there are opportunities. Great to have your. Erspective thank you. You can follow more on this story on our markets live log. Mlivis on bloomberg at. Check it out. This is bloomberg. This is daybreak asia. I am yvonne man in hong kong. Betty i am betty liu in new york. A transatlantic deal that would create a Chemical Company guide at 14 billion. And switzerlands clarion and talks to merge. Own 25 of the entity. The two companies have declined to comment. Saying the nikkei news sharp will post profit of 360 million this fiscal year. Could top 19sales 20 billion, which would mean a 10 rise. Sharp is plenty to apply for relisting on the Tokyo Stock Exchange as early as july. Betty subaru may make a electric versions as it joins the drive for batterypowered cars, planning record investment in r d and is considering electric motors for current models rather than designing new ones. Would letys that subaru capitalize on its reputation for safety and eliminate the need to find a partner. Weve been talking about the Political Risks out of washington and brazil. Just like our previous guest said, no contagion risks so far, but look at how much has been wiped out from Global Equities in the last few sessions. 74. 7 trillion, 1 trillion vanished in the last two days alone. This brings us back to september. The last time this happened, it took a must three months for equities and shares to recover the value lost. It does not seem like this Political Risk is going anywhere or fading anytime soon. It only seems to be intensifying. How quickly, right, you can lose your money and how much it takes to earn it all back. That is life. Course if the fed will help things. We will have much more. This is bloomberg. 8 30 in singapore. Rain and thee forecast, the theme in asia across the region. Half an hour away from the open of trading. I am yvonne man in hong kong. Betty i am betty liu in new york. You are watching daybreak asi. Lets get to first word news. Paul president said the war on terrorism is not a fight and america is not at odds with islam. He told his middle east allies that they should ensure that terrorists find no sanctuary anywhere. The president has tried to ban people from verizon in countries from entering the u. S. Young muslim men and women should have a chance to build a new era of prosperity for themselves. We haveo be done, and to let them do it. With gods help, this summit will mark the beginning of the end for those who practice terror and spread its vile creed. North korea vows to continue its missile programs after another test launch. Flew 500 kilometers across the sea of japan with defense officials in seoul, korea, tokyo, and washington saying it appeared to be a shorter range weapon than previous ones. North korea said it will continue to develop Nuclear Weapons and conduct more tests. The south korean president has nominated a finance minister and deputy Prime Minister. He is a former vice finance minister and chief of the offices for government policy. He faces challengers, including household debt, high youth unemployment, and weak domestic demand. Dimon remains optimistic about the Global Economy and the prospects for Regulatory Reform under President Trump. Speaking exclusively to bloomberg and reality, he said the traditionally cautious imf sees the economy growing faster than expected. Some of americas biggest corporate names are in saudi arabia to boost ties of the kingdom edges towards a diversified economy. Growing more than in 15 years. Europe is doing rather well all things considered. Alongan is still moving at 2 give or take. That is all pretty good. Even the imf which is always warning about stuff saying Global Growth is stronger than expected. Paul global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Thank you. I look at asian markets good lets get the latest from juliette saly. So far, so good. Markets bonds lower, higher, oil near 51 a barrel, the Key Takeaways for the monday morning session. Gains, no0 leading surprise with that jump in oil. Now we have the full market open with support from Energy Players and the asx up like. 6 . Korea,ws from south ignoring what happened in north korea with that missile test over the weekend. The kospi up. 4 . Good gains on the nikkei as well, japan import export data, exports growing for a fifth byaight month in april, up 7. 5 percent, below estimates and what we saw in march when exports had risen 12 , but we are still seeing a lot of Global Demand for japans exports. Things looking pretty good for asian equity markets. Lets switch that out and look at some of the stocks moving in this Early Morning session. Some good gains coming through from japan and also from financial stocks. The cba of australia leading gains. That 98 billion dollar plan Investment Fund close out. It is up over 2 . Seeing continued support for financials in japan and australia. There are a few losers. Merck has report that a vaccine approved by chinas drug administration. That is weighing on it as well. You are also seeing some weakness coming through from by moreirport a cut cory on friday. By mcquarrie on friday. Optimism driven by financials and Energy Players. Betty another stock we are watching, shares of takata. The automakers settlement, the biggest rise in four months, a settlement worth 553 Million Dollars to resolve the Economic Loss claims tied to the companys faulty products, tour yoda, subaru, mazda, reimbursing outofpocket asked insist come a providing loners and setting up an Outreach Program to increase participation in recalls. Thatan see by how much stock has risen given the clarity. Lets stay in japan and talk about softbank and Masayoshi Son , formally announcing the first round of capital commitment for its Tech Investment Fund worth more than 93 billion. Asia managing editor for technology in tokyo, one of the richest men in the world, when you open a fund come you will get billions of dollars, so who is income of who is not in, and what is next year . Softbank announced plans for this fund in october last year. It will be one of the cornerstone investors along with the Saudi Arabian sovereign wealth fund. Qualcomm, apple, foxconn all putting in money. To 93 billion dollars, a lot of money to spend of the next few years. One investor not mentioned here. S the chairman of oracle it is not clear whether he is in. It wasnt mentioned in the press release. In any case, a do have the first round of Capital Commitments and goayoshi son will be able to out and hunt for deals. He has not been tentative so far though. He will be swimming in this pool of capital that im sure Chinese Private capital and Venture Capital firms would die for. What are his plans for that fund . He sees even better opportunities for investments than he has seen in the past. He has invested in a range of his this is. His Foundation Business is the Telecom Wireless operation in japan. He has use that cash to invest in hundreds of companies, including in the dot com boom. Goingompanies ended up south, but he was an early yahoo and put money into a littleknown Company Called alibaba, about 20 million at the beginning, now worth more than 90 billion, so he wants to go on the hunt for home runs like that. He has invested and a number of Ride Hailing Companies that inpete with uber and didi china. Investment Payment Services in india, so he has been active across the board already. One of the former coworkers that worked a long sigh him said he is from the future and his vision. Is also concerned about Venture Capital and private equity come so what does that do to that situation . Question. A good experts in private equity and Venture Capital say there is too much money at their that is swamping the market and by the way scherzer being driven up, and Masayoshi Son is not shy about investments. He will go to startups and push more money on them. He did that with yahoo and didi , where he convinced them to accept more money than they thought they needed, so people are concerned that Masayoshi Son may not be just the most influential investor in technology, but one of the most dangerous because he will have this effect on violations for startups. Interesting. Thank you. Protectionism on the agenda at the apec talks in the at, but not in the post summit statement. We will be live in vietnam next. This is bloomberg. Yvonne this is daybreak asia. In hong kong. N betty global trade and protectionism dominated the apec talks. Indicatedummit pressure on ministers not to criticize the protectionist trend. Is there for us. U. S. Policy and President Trump top the agenda. Front and center, and resulting in the diluted state meant from the apec ministers. There was commitment to press the issue of red tape, regulation, removing trade barriers, but no word whatsoever on resisting protectionist policies. We heard the same tone from g7 and g20. Treasury secretary Steven Mnuchin resisted any statement against protectionism. Looking to reshape the Global Trading system and wants to put u. S. Trade laws above international laws, including wto rules as well. President trump has called the wto a disaster. He has threatened to be removed from it and has talked about how justeds to be reconfigured as he has pulled out of tpp and is looking to renegotiate nafta. That countries that act on their own are posing a huge risk to the multilateral trading system. Take a listen. Been a modest improvement. We do expect actually for 2017 numbers for trade higher than 2016. In 2016, we grew by 1. 3 . This year, we expect to grow between 1. 8 percent and 3. 1 depending on the environment, so we are going to do better, but still below the historical average of trade growth. Haslinda with the u. S. Retreating, what message would you like to send the Trump Administration and the new u. S. Trade representative. Is tradead it, which is not easy. It is a very complex equation. You move something here, Something Else is affected somewhere else. The devil is in the details. We know sometimes what you want to do, but you have to look at all of this in a careful manner because all those dots are connected somehow, and the new administration is new on the job and just took office, and they are thinking about all this carefully. Haslinda so from your perspective, what is the biggest threat to the multilateral trading system right now . The biggest threat is for countries to decide to do things on their own and to take unilateral action, because once they do, and this temptation exists whenever you have a sluggish economy, near the tendency to find solutions looking inward is that, and if people do look inward and take unilateral action disrespecting everything we have agreed before, the tendency is to have a domino effect where you do something comes somebody else says, ok, i will do this, then you get into this downward spiral which will be extremely negative. That happened in the 1930s, and we know the result. The devil is in the details, so did we get clarity on u. S. Trade policy in asia . Well, there was very little clarity. The newly appointed u. S. Trade representative Robert Lighthizer was the focus. He only spoke at the conference and said that the u. S. Will fight for fair and free trade. He did mention the u. S. Has a huge trade deficit and he wants to address that issue with partners in the apec region. The meeting comes on the back of rising antiglobalization sentiment, and that puts a spotlight on tpp. Tpp signatories came to discuss whether to take the issue forward. Here is what the japanese trade minister had to say. The tpp is the only agreement that has indepth coverage of things such as digital trade, intellectual property, customs procedures, and so forth. Only the tpp covers all these areas. It is highly regrettable that the u. S. Decided to withdraw, but even without the u. S. , trade remains hugely important. Yuan the tpp is not dead, but there are still challenges if tp were to be pushed through. Yvonne what does it all mean . Lets stay with global trade and andg in our bring in our chief economics correspondent. How healthy is the situation right now . Was interesting because it is a continuation of the theme that the u. S. Is looking for a change in the language of these communiques. It started with the g20, g7, and now apec. They want to move away from conventional form to a recognition that the global trade is not necessarily fair. Even though we have come back from the harsh rhetoric we saw during the u. S. President ial campaign, the u. S. Is still pursuing a new trade agenda and we are not sure where it will end up. For concessions and promise more ahead, but this is the first meeting where Robert Lighthizer was there, so it makes it more interesting. Even if trade tensions have ease, the new agenda is in place. Exactly is fair trade . Will we see more bilateral trade . Clarity oncking where it is going to by all accounts, we are looking at more bilateral been multilateral. We know the u. S. Has already pulled out of tpp. That trumpions are will be picking off trading partners one by one. There is a new Economic Partnership with japan. Planneda new 100 date with china and that might be a template for others going forward. President trump will meet the president of korea next month, where the could be more trade concessions made by korea, so it looks like it will be a casebycase basis for the u. S. Rather than a blanket, sweeping approach. Each country will have specific metrics they will want to clarify for themselves. Yvonne we do follow the playbyplay on trade talks, but in the end, even if there were to be some agreements put in place, it will take a while for these to take affect. Going to be changing in the next year or few years on trade . In fact, another way of youing at it is that if look at the 10 point agreement between the u. S. And china, those issues were being debated for years and concessions had been made and they were just reannounced. The pointing case is beef, china allowing u. S. To import beef. Theywent cold and repackaged it and put it in a 10 point plan. It takes a long time for these measures to trickle down to the real economy because finer detail has been hammered out long after the press conference has occurred. It usually applies to specific sectors rather than a national hopingonomy, so they are for a game changer type trade agreement that will erase the u. S. Trade deficit with the rest the world, but they might be disappointed because it could be a case of marginal gains and an inch by inch approach. Yvonne and take longer to get through every single country. Thank you. The wrapup of apec. Cathay pacific coming out with an official statement about its restructuring program. Fromrming what we heard the south china post that they will be eliminating about 600 jobs according to a statement from Cathay Pacific. 25 will be management, 18 andmanager roles are to go, at of those job cuts, 190 will be management roles. Willof the restructuring be completed by the end of this year. Further confirming what we heard from early reports, but it goes the pain that Cathay Pacific has been feeling being squeezed by middle eastern carriers as well as chinese rivals. Indeed. The competition from china affecting Cathay Pacific regionally, but stepping up the for u. S. Airlines as well as a look abroad to expand the stops so a lot be flying to, of pain. In the u. S. , airlines as well. Ofty you can get a roundup the stories that you need to know to get your day going in todays editions of daybreak. Bloomberg subscribers go to dayb in on their terminal, also the bloomberg anywhere app. You can customize your settings to get the news on industries and assets you care about. This is bloomberg. Yvonne this is daybreak asia. Tellingresident trump arab leaders that the war on terrorism is not a fight between different faiths, easing concerns that america is a war with islam. Ourpoke at riyadh, and White House Correspondent is traveling with the president. President trump means business. In his first foreign trip to saudi arabia as part of the president s First International trip, he announced a multibilliondollar deal with including a 109 billion dollar defense deal. He says the deal will help u. S. And saudi arabia defeat terrorism. In his speech to the leaders of predominantly muslim nations, the president delivered a conciliatory tone much different than the one he delivered on the campaign trail. He said the battle against terrorism was one against good called on allnd leaders to Work Together to defeat terrorism. He also criticized iran. Accompanied by members of his family, including the first and, the first daughter, Senior Administration officials, President Trump received a warm welcome. From here, he will travel to israel, where he will meet with the israeli Prime Minister Benjamin Netanyahu, then it is off to vatican city for a meeting with the pope, including the religious portion of his First International trip. Then he heads to brussels, where he will attend the nato summit. Lets do a quick check of the business flash headlines. An Investment Consortium made up of Goldman Sachs, private equity icon cancero buy care. The group has agreed to pay more than one billion aussie dollars, 750 million. The deal may be made sometime this week. Audi has reached an agreement, ending a dispute sparked by volkswagens plans to s. Oduce audi sparked concern a most that profits could be under threat. Cars will be distributed through the existing sales net work. The new spot snatched by aliens, toppling guardians of the galaxy. The film made its debut with sales of 36 million according to estimates. Guardians came second with 35 million. Everything and everything and diary of a wimpy kid, the long haul rounded out the numbers. Time for a quick look at the next couple of hours. When you watching . The apec discussions, talks about the tpp, the 11 remaining members, suggesting they move the on the u. S. Withdrawing from this trade deal. What this communique really antiglobalization sentiment, which side is winning. It comes on the backs of a g7 statement one step down from that shunning of the established sentiment against populism. We will look at that. Plus, what lies ahead now that markets in the u. S. Have calm. Plenty more to come. This is bloomberg. This is Bloomberg Markets asia. I am haidi lun. Haidi oil strengthens after saudi arabia says Oil Producers want longer output curbs. Opec said to expect a ninemonth extension. Energy lifts markets, Global Equities near record highs