Say they were hit by the firms thirdack as on the expectation of more. We will be in beijing and china. In tokyo to see why japans biggest banks are forecasting a fourth straight dip in profits. Washingtonwill be in as the of work continues over President Trumps dealings with russia and james comey. This is daybreak asia. I am betty liu. Betty liu in new york, where it is just after 7 00 p. M. Yvonne it happens to everyone. It is just after 7 00 a. M. In hong kong. I am shery ahn on tuesday. I have got to say, it is a live it is a live day. Nothing, to be honest, as as whatg happened in the u. S. The s p 500 is close enough 2400. Betty maybe because there was also a lack of Economic News or any really comments in the fed that investors went back to focusing on some old standbys, which, for instance, oil prices. Oil prices routed. And Energy Shares zooming higher. We also saw it on the nasdaq as well as the dow, closing up. It sets us up very nicely for gains in asia. Shery let us see how they are early tuesday morning. New zealand, the only market. 2 , after losses. The kiwi dollar gaining around 68. 89. Do keep an bang on the commodities and currencies such as the aussie dollar. Oil of course surged. In the 200 barely moved last session, but when it comes to futures, they are pointing upwards. 3 . The aussie dollar not doing much at the moment, but keep an eye iba. He the on the iva. The nikkei barely moved in the last session. The japanese yen was the only g10 currencies to weaken against the dollar overnight. We are seeing some strength now. 113. 65. What wean early look at can expect in the regions this morning. Betty. How did it look this morning and the u. S. With that first half of the s p 500 . Betty as you mentioned, the new high for the s p and for the nasdaq. Let us take a closer look at how we got to these records. Su keenan standing by with more. Su we got a big boost with oil and we will get more for the optimism over the opec in a moment. If we go to the closing numbers, what we saw is not a big jump. There is a lot of green on the screen and fresh records. Behind that, a combination of factors. Earnings are still a driver. Ae Cyber Attacks now entering third day have put the focus on the companys that prevent them. And other companies. We have a deal in the works. Apillon ipo. Po p the movement in the s p has not been large. Let us go into the bloomberg and take a look. Chart, where you see big spikes going several years. It is not unusual on any individual year to see wide moves. If you go to 2017, hardly any moves above the 20 day moving average, which is that white line. In the last 30 days, there have not been any moves that have hit the 1 range either higher or lower, so we are kind of in a zone of calm. Shery and of course, all of that had to do with what is happening in oil. Interesting longterm projections as well. What is the story here . Su oil rolled back on the gains it had made because of the opec record, going down 46 and 1. 3 we are coming back almost 250. We had 49 at one point almost to 50. We had 49 at one point. Russia and saudi arabia trying to extend the output agreement until march of next year it when they meet indiana at the end of the month, perhaps there will be more on that. There is an optimism, so if we look at where oil is going, let us go to the bloomberg again. The longerrange projections together and they all seem to spell the 50 range, where projections converge. It happens to be very close to where we are right now. Shery let us get the first word news with Nina Melendez. Nina bloomberg has been told that Jeff Sessions and his deputy have met eight potential candidates for fbi director. They include republican senator john cornyn, the acting director of the fbi agents former government officials. A lawyer, and a judge. The white house declined to say whether President Trump would hold personal interviews before leaving for the middle east on friday. The state department has flatly denied media reports that President Trump revealed higher classified information to the white house last week. The New York Times and Washington Post said the president jeopardized critical sources of intelligence on the socalled islamic state. However, secretary of state Rex Tillerson says the report are completely untrue. Anddispute between toshiba Western Digital is moving to another level. Toshiba wants to block its partner from the venture that they share after threats of legal action over who made by the unit. Buy the unit. The joint venture agreement stipulates that a partner does not need to seek permission from the other to transfer the ownership or the joint venture itself to a thirdparty. Western digital did not seek our consent on the sun this ndisksition su acquisition. The sale is not in violation of any existing agreement. Nina the nikkei news adds that adding name to the chip unit may ease concerns about going abroad. Seeking id to be foxconn possible investment from other american companies. Under the plan, they may maintain a profitable state in the unit. The leading Japanese Companies say they are victims of the global cyber attack come with computers hacked at least 600 locations. He taught she is among those hitatchi has been among those pure no ransom has been demanded. Business is barely affected. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am Nina Melendez and this is bloomberg. Let us go straight from washington, where the White House National security adviser, h. R. Mcmaster, is holding a news conference. Let us listen. [crosstalk] well, he just had conference in fact. You can see him going back into i see house, saying only a couple of headlines. The story on trump disclosures is false. This is the story we mentioned earlier about trump possibly releasing classified information to russian officials. Sources andligence methods were not discussed. Room, and thethe trump disclosures did not happen. A very short press conference by the National Security adviser h. R. Mcmaster trying to dispel some of these reports. A new twist in the comey firings. At a all of this coming time not only on the fallout from comeys firing, but also at a time when they are looking into a new fbi director. Also just before donald trump heads to his first foreign overseas visit later this month. Of course, mcmaster did update us on that trip earlier this israel, theg to vatican, and saudi arabia. We will have more on this breaking story, as we get it later in the show. Let us had to china right now, because more than 60 countries involved in the belt and road a jointve have issued communique, promising to expand trade and investment. It comes after xi jinping says the plan is already in full swing. Tom mackenzie joining us now. Tom, how much progress has beijing made to move this hugely ambitious plan forward . , and manyy ambitious would have argued that it was very illdefined. What we are getting now is a solidification of some of these parameters, clarity on some of the parameters around this initiative. Still lots of questions that need to be answered. The communique was put out by the belt and road members. The members who came to beijing vowed to continue to push forward with globalization, trade, and investment. They said they would cooperate on everything from ecommerce to smart cities. Details arounde financing proposals. 26 countries signing up to a document on up by china around the financing of some of these initiatives. There was some policy lenders in the private banks as well. Concerns been voiced by the likes of the germans. The bidding process may not be transparent. It may not be fair. The germans are pushing for more therapy on that. Detailsare getting is about some of the deals we heard from the indonesians. They secured 5 billion in credit. We heard from the chairman of the biggest oil and gas company that he signed about 20 million worth of deals, so clarity on some of these issues, some movement, bilateral cooperation as well. Aroundgest idea is whether the u. S. Will give their participation. Their backing of this initiative mark mobius said it is time for the u. S. To get on board with this initiative. Take a listen. Mark there is no question the u. S. Will be impacted. I believe they will have to join in this effort and join the one dull, one road program. There is a lot of benefit to the key to buy u. S. Companies in this program. The chinese i think are going to be very, very careful not to favor Chinese Companies unduly, so there is going to be enough for everyone, let us put it that way. To therkets reacting initiative, and the end of the summit, with a bit of positivity. We saw shares taking up upginally ticking marginally. Will help thehis renminbi. Anchor tom, how much was this about xi and his image on the domestic and International Stage . Did this really help . I think it is worth putting it in context of what is happening in washington, really, because what the president is trying to do, and many are saying, successfully, demonstrate that he is a leader that is respected and in control both domestically and internationally. All the machinations in washington, all the navelgazing, all the controversies, not to mention the fact that the u. S. Has pulled out of tpp and is focused on america first, has given china this space, and president xi this space to carve out this image. Not just increased political influence, but burnishing president xis credentials. It is coming out of this crucial part of congress. Interesting to note that president xi took personal credit for this initiative, saying he launched it in 2013. That is unusual in a leadership and system where it is usually the collective leadership at the fore. Many are saying he is the thengest leader since 1990s. This summit helping to move this forward as the dealmaking, the horsetrading, goes on ahead of this party reshuffle. You will not be surprised to hear that state media hailed this event as a triumph, and it was all in the context of a wonderfully and bizarrely manicured beijing. The air was suspiciously clean, the shrubbery perfectly pruned. That offsetting the fact that slogan lined the road. As boring as you can imagine, many believe. The optics were pretty positive for president xi. Shery i do wonder how north korea will affect that image. Thatn, they just fired Ballistic Missile hours beforehand. 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 im 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 im 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 into europe. Shery you are in hong kong at the moment. You are there to launch trade negotiations with hong kong. What are you hoping to achieve out of this deal . Steven there is a lot more to trade than simply goods trade. A number of initiatives we can undertake. What i am focused on, especially in a highly developed economy like australia, is making sure we can maximize our export potential. Basically, around 75 of australias economy is servicebased. We have tremendous opportunities to boost our exports. Only about 22 of australias exports right now our services are Services Exports are there is a real opportunity to a great work around services, modern and comprehensive Free Trade Agreement that touches upon areas like the digital economy. That is what i am focused on. Shery you are absolutely right. You make a great point here about how Service Exports seem to have lagged behind some of the harder exports, like how we traditionally think of australia with commodities, for instance. So how exactly is hong kong going to help you in this respect . What exactly in the Services Side do you think australia can make a name for itself in the trading world . Steven look, i mean, hong kong like australia of course is very focused on services as well. There is not a heavy or Large Manufacturing base in hong kong course so there is of things for them and australia. Australia has a very creative people. Australians are very welleducated. We have got tremendous resources that we can draw upon in terms of the creativity and the ability to develop and design. Take for example the work that ford is doing. They retained a large proportion of their design team in australia. It is picking up on those sorts of skill that australians have that i am very confident we will be able to use in the future to exporters, push by whether it is architectural services, legal services, health services, so many different areas. Anchor that was steven ciobo speaking earlier on daybreak australia. Now, the u. S. Attorney general has interviewed potential candidates for fbi director this is following the sacking of james comey. In washington, there are reports that president shared highly classified information with russian officials. Bloombergs justin joining d. C. The line from we just heard from mcmaster, the national, saying that all these reports about disclosing information, they are false. Who do we believe here . It is tricky. On the one hand, mcmaster was denying the administration leaked sources and methods. That is not actually the thrust of the Washington Post report. They say the president in concerns over laptops being possibly used as weapons on plans, said what city kind of those concerns were radiating out of. That is something that is not public and could have revealed inadvertently the source of the information. The white house is denying this strongly, but not denying the merits of the Washington Post story, but kind of a separate issue. Shery the post also says that the president does have authority to declassify information, so why is this an issue . Steven it is an issue because the Intelligence Community gets this kind of information from our allies. According to the post report, our allies asked for it not to be shared. Not only is sharing it with the russians a violation of that agreement, but sharing it with russia, which has ties to syria and the assad regime, even further deepens the concerns involved here. Anchor justin, thank you so much for joining us and giving us a brief summary of what is happening in this very interesting story. Justin sink joining us from d. C. Coming up next, Top Fund Managers lost large tech stock, while Warren Buffett boosted his apple state. Details of the findings, next. This is bloomberg. Betty this is daybreak asia. I am betty liu in new york. Shery im shery ahn in hong kong. Let us get a quick check of the business flash headlines read hathaway finetuning investments in airlines and tech and pulling back from 21st century fox. Its portfolio no longer lists fox holdings in american airlines. Warren buffett previously disclosed he boosted a bet on apple the First Quarter, as he pulled back from ibm. Betty the largest shareholder in ubs is flashing at holdings, offering a 2. 4 state that is worth about 1. 6 billion. Singapores Sovereign Wealth Fund gic will have less than 3 of the bank after you the sale after the sale ubs is managing. They are purchasing bonds that converted into stop when ubs needed capital to cover losses. Being bloombergs told that a hong kong billionaire is exporting options for his fifth lines on business, including a potential sale. Which is a global commit occasions is engaging interest from a range of potential buyers. The Company Offers hong kong Corporate Access to its fiberoptic network. We are told it could fetch one billion u. S. Dollars. Betty the peoples bank of china says it has created a new units to address emerging Financial Security challenges sparked by technological innovation. The Central Bank Says tech driven ideas have injected vitality into finance and is causing security issues. Of measures up use such as bigoted, artificial intelligence, and Cloud Computing to increase surveillance of financial threats. Shery we are counting down to the opens in japan and south korea. We saw the japanese yen be the only loser among g10 currencies overnight. All right now, it is gaining u. S. D. 1 against the dollar. The yen has 113. 57. Nikkei futures unchanged at the moment. It barely moved in the last session. We had the Carillion Kospi also trading inospi also a few minutes. It could be a different day today. Two in the red anchor it is 7 30 a. M. Tuesday in hong kong. We are 30 minutes away from asias first major market open. Anchor that is right. Clear skies ahead. It is seven p. M. Is 7 30 p. M. Here. I am betty liu in new york. Shery and i am shery ahn in hong kong and you are watching daybreak asia. First word news with Nina Melendez. Opec nations and independent producers may find that room for it to maneuver when they meet in vienna next week. Oil prices jumped after saudi arabia and russia backed extending the