China. The expectation is for the weakest reading since september. We have world coverage here on daybreak asia. Live in San Francisco soon to talk about ubers latest speedbump in self driving cars. Betty what a story there. We will be live in washington, the controversy surrounding the trump administration. , live daybreak asia from bloombergs u. S. And asian headquarters. I am betty lou. Yvonne it is just after 7 00 a. M. In hong kong, i am yvonne man. Breaking news from south korea. Industrial production, a big miss of the month on month protection figures, falling for the month of april. We were hoping for a slight rise of 0. 6 . Inramatic fall from the 1 march. Those have been revised to 1. 2 . Year on year coming in at 1 at 1. 7 . Of 5 from estimates economists. We continue to see this recovery in global trade reaching a peak. Export growth figures have been off of the highs. We seem to have stabilized. It continues the story, is this as good as it gets when it comes to the numbers . Business confidence numbers from south korea a couple hours ago. Those remain at threeyear highs. Still optimism when it comes to manufacturers for moon jaein and his efforts to raise fiscal spending and create jobs. We will see how korea reacts when the markets open in about an hours time. Lets get a quick check of how asia is. New zealand heading lower as we get the u. S. Market return from the holiday, with a pullback from record highs. 7086. I at says there is risk to the dairy center, which remains vulnerable. 7459. Sie dollar at we did see modest marginal gains yesterday. Futures are flat. We did see a wider selloff in commodities overnight. Crude heading lower. At lets go to japan for details on the bojs monthly debt purchases. Analysts are saying the stealth tapering may take a break. We do see mediumterm bond yields pickup. 0. 85. Ryen changed, 11 seeing a modest losses at the open at the nikkei 225 in tokyo today. That is what to expect in the region this morning. Wall street, trading and tight ranges. Betty and we ended lower. We have been seeing this winning streak of seven days of gains in the markets. Lets pull up the board. We had Consumer Confidence numbers come in this morning. They show we are spending, but not as robustly as we are looking for. The s p ending down 0. 1 . The dow off by 50 points. The nasdaq lower, as well. Back in the red for the u. S. Market. Now we have first word news with nina melendez. The next couple of hours will bring a check on the chinese economy, with manufacturing pmi ae, economists are expecting reading of 51, the weakest since september. The lower pmi rating would be consistent with the view that chinas growth this year has passed its peak. The data are out at 9 00 in beijing, 9 00 p. M. In new york. The fed governor says inflation may force a rethink of the pace of rate hikes, even if Global Outlook is brightening. Unemployment is at postcrisis low and Consumer Confidence is strong. Yet inflation has cooled, making policy decisions more complicated. Brainard said it is hard to make the call. There are signs the economy is holding full employment, signs of tentative progress on inflation may be slowing. If that tension between a progress on employment and the lack of progress on inflation persists, it may leave me to reassess policy in the future. Although, it is premature to make that call today. North korea has released pictures of its latest missile launch. The scudtype rocket had automation, and hit a target seven meters wide in the east see sea. It landed in japans maritime economics lunch. It is the third launch since moon jaein took office on may 10. China discussed at the launch at rare talks in tokyo. The counselor began a threeday visit, saying the situation on the divided peninsula can only be resolved with negotiation. It Japanese Foreign minister said his arrival was timely, and as norththe importance koreas provocations have reached a new level. President trump has a tax meeting again. He drafted up a pursuit that is the bedrock of europeanu. S. Relations. Twee, helymorning criticized the trade deficit with germany and says they pay far less for defense. He added, this will change. Admittedrkel Transatlantic Relations are strained. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am nina melendez, this is bloomberg. President trump preparing for a first meeting with the Southeast Asian leader, welcoming vietnams nguy . N xuan phuc to the white house. He is keen to talk bilateral trade. Washington abandoned the tpp. Lets cross over to washington and bring in alisa parenti. Good to see you. This might be a welcome relief for the president , with the russian inquiry going on. That crisis only growing while he was abroad. What is the latest on them . Alisa he is looking to shift the focus away from the investigation. But we continue to have developments. In the last hour we learned that Michael Flynn will provide documents to the Senate Intelligence committee. Sources close to flynn say the documents involved two of his businesses, as well as personal documents they have requested it last month. The person said flynn plans to produce these documents by the end of the week. On thete in the day, house side, the House Intelligence Committee has requested and is looking to subpoena trumps personal attorney, Michael Michael cohen. A lot of developments. Yvonne it seems it has been overshadowed, when it comes to the comey firing. What about the search for a new fbi chief . Alisa that does continue. Trump has interviewed two people he is considering, including the number two at the fbi, and at one point ran at the tsa. The other person we are told in the running is chris ray. He was a former assistant attorney general. Betty we have been following the pariscision on climate accord, which he seems to be stepping back from. That trumprts are told those closest to him, including scott pruitt, that he will not support the accord. Supportlone and did not the communicate with the european leaders. It would appear he is stepping back from it. Press secretary, sean spicer, says troublemaking decision known shortly. Reports indicate we should know by the end of this week. Betty alisa parenti, with the latest from washington. Something investors are watching, as well. Stocks holding that sevenday ed advance. A wider selloff then we saw in commodities. Give us a break down on today. We have a lot of asset class classes down. Ruptures, dusting it up. It shows there are turns to the market. Lets go to the close again. Almost unchanged. We cannot call it a major pullback. If we go to the movers, there were bigger very big moves. Thatas to do with the fact at least one of the companies is doing well, in terms of earnings and outlooks and patent law. If we can get to the big movers there, take a look at those stocks. Well. Oing tesla, the momentum continues with that stock. Bloomberg,into that if the dow is hitting records, this is really how the economy moves things around. Guess what . It is probably the weakest of the four components. That is a caution flag that any rally can be dragged by the fact you do not have that transportation index. That weakness is perhaps worrying commodities investors, right . We have been seeing these declines in commodities. Su a lot of it has to do with Economic Data. We had better than expected economic spending data out. The numbers are indicating fed is all but certain to raise rates. That is bearish for gold. The gold bulls have a lot going for them in terms of uncertainty. We look at oil, a bit of a pullback there, after two days running higher, post opec. There was talk of it may be new members would come to join in. We are looking, to extend it to 2018. But for now, it is on a positive track. Yvonne we have the first set of a loaded data out from the u. S. When it came to consumer spending, the latest report is on the rise. Supporting the case we could see a possible rebound in the second quarter. That is the expectation. Spending is very important in 70 of the economy. We had the strongest pace in about four months. The gain was at a brisk pace. You consider how week that quarter was, that is important. We also have reports from Credit Suisse that we will see a lot of these malls, 25 of them, close down over the pat over the next five years. It is a bleak picture. It has to do with spending patterns and people moving online. The equation. If we go in the bloomberg to look at computer Consumer Confidence versus actual spending, the white line is the confidence. Thecan see in moves with actual spending. It is higher right now than the blue line. You can see them both pointing lower. Some. S of concern for yvonne also, inflation remaining tame with that as well. Su, thank you. We saw the miss in korea. Japan is up next in a couple minutes. Expected to rise the most in three years. Betty a big leak for Economic Data in the u. S. , much jobs report friday. We will preview that with a fund manager. This is bloomberg. Yvonne a live look outside the imperial palace in tokyo. Cloudy out there. We are counting down to asias first major market open. Japan futures heading lower. The yen Holding Onto Gains in the last three days. We continue to watch the weakness of the dollar after it was soft. Consumer confidence numbers, as we talked about earlier. I am yvonne man in hong kong. In newi am betty liu york. Watching Economic Data ahead of the said review. The fed suggested policymakers want more evidence of the slow slowdown being transitory before taking action or nonaction. It is due this friday. I want to bring in the head of emerging markets at western asset management. He joins us from pasadena, california. I know you focus on emerging markets. But we watched the u. S. Very closely. Em stocksffects on and that. How is how important is this jobs report friday in determining how investors view the outlook . Usit is really important for. Our base case for the u. S. Ofnomy is an extended period moderate growth. Sure, the recent data has been soft. Report durable goods have been disappointing. But other data continues to point to study momentum in the economy. Total gdp we had ised upward from 0. 7 to it suggests a strong momentum on the labor market. We do expect a payroll number to 200. 175 we do think the fed is on track to hike 25 basis points in the june meeting. Betty it has been such a , why it has been more supportive of treasury yields and not the dollar . Chialiang sure. When we think about the feds move, it has been quite interesting to note, there has been, why it has been more supportive of treasury yields and not the dollar . A decent renovation between esynchronization. They have not followed and tracked the last rate hikes. That is why asian local bonds continue to attract continue to be an attractive investment opportunity. Betty i want to talk about this issue we just heard kathleen reporter, talk about. It is the whole idea of the fed Balance Sheet. How are they going to unwind this Balance Sheet . She was saying in this speech it was top of mind for these investors and economists and audience. How top of mind is that for you . Chialiang it is important. The fed has been in communication with the investment community. For emerging markets, in terms of bond opportunities, we want have safe ant to further bonds are not based on the feds positioning. Our sense is that emerging stabilizing, and a more stable base of investors. Those three key points are critical in terms of underpinning demand for emergingmarket bonds. Closely, inng very terms of those factors. Yvonne this is yvonne in hong kong. We are seeing in china i want to get your view on that. It is leveraging campaign out of the mainland is severe when it comes to the bond market. I want to throw a chart to our viewers. We see this trend of Chinese Companies scrapping sales, not issuing more debt. Given this headwind we see and corporate notes in china, it is now above chinas benchmark lending rate. We have not seen that since 2008. Do you expect the squeeze in liquidities to get worse in china right now . As a foreign investor, how do you view that at the moment . Chialiang insofar as china is concerned, it is the second largest economy. As global investors, we are mindful of the direction of china with the rest of the world. Last year, china contributed 40 . If china sneezes, the World Economy will likely catch a cold. In all senses, most of the challenges in china are mediumterm. We do see the policymakers in china have sufficient policy tools to navigate structural challenges that are highlighted. We do think shortterm risks are under control. Downgradeddys struck a blow at an awkward time, when china is trying to open its bond markets. Does this sour the sentiment further, in attracting investors to this bond connect said to launch this year . Chialiang to take a recap on the impact of the moodys downgraded, impact has been muted. A lot of factors cited by moodys are not necessarily new. That is not to say we want to be complacent about the risks and china. We do believe china has the necessary tools to navigate these challenges. Insofar as demand for chinese securities, that is something they are watching very closely. To the extent the chinese authorities are progressively liberalizing Capital Accounts and encouraging foreign influence, but keeping a close watch, because the technical inflows into china could be substantial, should china be included in these indices. This is a possibility within the next one to two years. Yvonne thank you, the head of emergingmarket at western asset management, joining us live from pasadena. Uber hide it hired a lead. This is bloomberg. Betty this is daybreak asia, i am betty lou in new york. Yvonne i am yvonne man in hong kong. Cooper has fired the engineer that leads its self driving car efforts. There is a legal dispute over also that. Ogy with lets get to our legal reporter, joining us now from San Francisco. What an amazing development. Tell us what the rationale is behind this firing. In midmay, San Francisco federal judge gave uber an ultimatum. They were told, either pony up these 14,000 files love and ask andowskiles lex allegedly stole, or fire the guy. They decided to fire him. The judge will have to decide if they complied with this preliminary injunction by firing him, and what happens next. Is an interesting situation, by firing him, does that a dissolve uber does that absolve uber . Chialiang that is the question, that is the question, to see if it is enough. I doubt it. There will be questions raised, arguments made. But this will probably go toward , perhapsnt injunction a triallike situation where a jury will decide whether they complied or not. Betty i suppose for investors in uber, the big question is, what is it mean for the self driving Program Within uber . Does that put it in tatters . Kartikay is this their only tool toward getting to Self Driving Technology . Our colleagues would probably say no. There are likely other methods for getting to what they want to accomplish. Bys was a fasttrack method, getting one of the top minds in self driving tech. Cant uber leapfrog competitors and get ahead of the technology . Perhaps they do not have that advantage now. But there are likely to be other ways for them to get where they want to go. That talents,buy you buy the knowledge base. Now they do not have it anymore. Thank you so much, our u. S. Legal reporter on this uber case. We will get a first look at how chinas economy fared in may, when manufacturing numbers are released later this morning. This is bloomberg. Yvonne 7 30 a. M. Wednesday morning in hong kong. The end of the dragon festival. Minutes away from asias first market open. Betty fun times. Tuesday evening in new york, where markets closed of touch softer. Kind of gloomy, ominous in new york. 0. 1 , where it closed. I am betty liu in new york. Yvonne i am yvonne man in hong kong. Youre watching daybreak asia. Good morning. President clinton has ridiculed claims that russia has been interfering in elections in the west. President putin has ridiculed claims that russia has been interfering in elections in the west. Says threats to the system are receding because the Global Industry is recovering. The governor governor released the report, saying risks have fallen in the past month. He noticed global uncertainty, saying new zealand could be vulnerable. Security officials will continue talks to extend laptop bands on airlines. Largertions on devices than smartphones remains on the table. Although the e. U. Is pushing back on the plan. From 10 introduced it middle eastern and some north african airports in march. Investigation into how components of the u. S. Missile Defense System arrived in the country without his knowledge. President moon stepped in after learning launchers had been deployed. That joining the election, and called for a review. More evidence the korean economy is slowing. Data in the last hour showing Industrial Production missing expectations by a wide margin. Manufacturing fell 2. 2 in april, against forecasts of a small rise. The year on year figure was equally wide after the mark. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mean melendez, this is bloomberg. Betty the fed governor has raised doubts about the rates of rate hikes. Policy makers may need to rethink their strategy. Policy editor Kathleen Hays was listening in on the speech. Lots of topics were top of mind. Tell us what she said about inflation. Spoke to thehe cornell club here in new york, the first chunk of her speech the economyabout, is looking better, the Global Economy is brighter, the u. S. Economy is in a rebound, things are evolving the way they should, except inflation. Inflation has been softening lately. She said, if it continues to do that, it may cause her to rethink the outlook, rethink said policies. Here is what she said. See some tension between signs the economy is in the neighborhoo