President en and the may be on different paths next year. We have world coverage here on daybreak asia. We will be live in San Francisco later on to talk about the latest person to leave uber. Betty we are counting down to james comeys testimony, the former fbi director. We will have an update shortly. This is daybreak asia, live from bloombergs u. S. And asia headquarters. I am betty liu here in new york where it is just after 7 00 p. M. Yvonne it is just after 7 00 a. M. Here in hong kong. I am yvonne man. Super thursdarsday is here. Not sure how i will keep up between the ecb conference, james comey testimony, and the u. K. Election. What you watching out for the most . Betty it has got to be comey. Saying yesterday, must see tv. I think the entire country will be glued one of the most anticipated hearings in decades on capitol hill. The markets did rebounded today. Not a lot, but we did see banking shares helping lead the index is higher. That writtene testimony from james comey, no big bombshell, but it read like a suspense novel. The question is, what is going to move the markets in the next 24 hours . Lets see how things are playing out in the asiapacific so far. Not as a risk on as we are seeing from the wall street session. 71 on the the kiwi at 96. A lot going on in australia, futures pretty timid. The aussie holding onto those gains from yesterdays relief rally when gdp came in line with estimates. The big move overnight was wti, biggest drop in three months, sliding beef below 46 a barrel. For theheading lower asx. Japan, lots of data out. Gdp, current account balance, we are seeing the dollaryen move 10 and lower, given more concerns about north korea firing its 10th the missile. 109. 76. Could be pointing to mediocre gains this morning. Take a look at all the action in the next couple hours. I will have to do an all nighter to keep up with everything. It looks like this written testimony from comey took a little bit of edge off of the wall street session yesterday. We will continue watching that. Tensions boiling over between government as india tackles record low inflation and the steepest growth in two years. Six month after launching an independent committee to oversee interest rates, the government is expressing frustrations the bank chose not to ease on wednesday. Six point 25 on the Monetary Policy committee. The government will give its own testament of the economy to the reserve bank. That is the number one thing. Whether it is done in writing, is immaterial. It is important input that views arebuse developing. Respectiveect jurisdiction. Ramy indirectly blaming saudi arabia for two terror attacks in tehran. Thatsaid it is meaningful it took place so soon after President Trump criticized iran during a trip to riyadh. As a global ratings place it on negative watch. The escalating dispute with its neighbors will begin its finances. Aa. R is now reassess by the next review scheduled for august 25. Chinas Foreign Exchange stock climbs for fourth month in may, the longest streak in four years. Reserves grew by 24 billion, 3. 05 trillion. The currency surged 1. 2 in may, the biggest monthly advance in more than a year. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am ramy inocencio, this is bloomberg. Stocks halting that today flight. Banks rebounding, crude fumbling. Down to 45 a barrel. A potentially significant event for investors. Here to give us the rundown is su keenan. Have a lot of stocks close off their low because of the power of the banks offsetting that sharp plunge in oil commodities. Lets look at the close. If we look at the big movers, they are all energyrelated. That has a lot to do with commodities being down. These were big drops, down as much as almost 6 . If we going to the bloomberg, we have a chart for you that lot th commodities being down. These were big sends conflicting signals as to what direction we might be going in for oil. Average foroving oil is below the 200 day moving average. We may have the death clause, it signals lower prices ahead. But if there is any snap up in the price, it could turn into a golden cross. That is a close these signals are. That would be positive. Although it does not look like it will happen, it shows how difficult it is to call direction. Betty what are the oil prices . Su we have seen it trading below 50. We have countered the supply curves. A big surprise in the inventory. Lets go in again to the bloomberg. What we see here is the signals, which is the death process i was talking about. The inventory we had was a sharp 3. 5 Million Dollar gain. This could just as easily have a positive goal for oil, as for negative. It makes it very difficult for traders to know how to position. Looks the traders said it as if fear oversupply is driving the markets once again. There have been indications drillers have been at it for 27 straight weeks. It puts supply concerns back on the map, even though there has cuts wouldsm opecs reduce the gluts. Look at where we are in terms of price in the shortterm. The nigerianbump, exports terminal and the diplomatic crisis in the mideast is banning all vessels from qatar. Mixed signals on where we go from here. But it makes for a very volatile oil trade. Yvonne we heard big heavyweights of the spoke this week, and colluding jim cho chanos. Bill gross warning asset prices are too high for risktaking. Su he said typically you would buy low, sell high. Highany are forced to buy and cross their fingers. Returns will be lower. If you want to sleep at night is,accept the market as it low volatility requires lower returns. Su lets go into the bloomberg again. An interesting conundrum developing. Alan greenspans conundrum back rate04, 2006, there was a year cycle, now we have almost the same thing. Slowing growth and inflation marking a return of this riddle. Especially after china, the secondlargest holder of treasuries, said it is ready to buy. Lets take a listen to another fund manager talking about how active prices and equities also are highly valued in that is of concern. It worries me a lot. Valuations, ift there is such a thing as the 11th decile, that is where they are. Bond bullse crazy and stock bulls have been doing well. But everyone thinks that will change soon. Yvonne it is interesting, bonduries the least bad investment at the moment. We will watch that bond rally. In the meantime, we take a look out of washington. Fired fbi director james comey set to testify to congress that President Trump asked him to end the investigation into the then National Security adviser mike flynn. His prepared remarks were prepared prior to the hearing. It lets bring in our National Security editor to track the developments out of d. C. Good to see you. What was the biggest take away out of the written testimony . It was a pretty dramatic day, even though congressional testimony does not tend to be exciting. This was the opposite. Comeys testimony was almost literary. Three things really stand out. One is that early on in a oneonone dinner at the white house, trump really pressed comey for a pledge of loyalty. Comey says that when this happened he just stared back at the president and they just looked at each other in an awkward silence. They eventually moved on to say maybe what comey could offer was honest loyalty. That is never really defined. He confirms the statement by the president on at least three different occasions he said the president himself was not the target of an investigation. President ompting the and his supporters to claim that he is vindicated in this case. We learned that trump forbearancesought on Michael Flynn or asked the fbi director to ease up on the investigation of Michael Flynn. That is one issue senators are really going to hone in on at tomorrows hearing in washington. Betty is any of this in peach of . Are any of these impeachable offenses . Bill i do not think there is a smoking gun. President of the the United States asked his top Law Enforcement officer to ease up on an investigation, that is the kind of fodder senators on both sides of the political aisle and lawyers are going to dig into. They want to see if they can get more details from the james comey during his testimony tomorrow about that. Byre is a separate probe led special counsel. Counsel, robert mueller, well get more information we are not ready to write privy to, right away. Betty do not miss our special coverage of james comeys testimony before the senate committee. It will begin at 9 30 p. M. Tonight if youre watching in hong kong. May be pulling an all nighter . Yvonne i might have to. More insight from our next guest. Former u. S. Ambassador to china joins us. ,nd the changing global order taking a chance on the world stage. This is bloomberg. Yvonne we are counting down to asias first major market open this morning. Watching moves on dollaryen, 109. 80. North korea firing multiple unidentified projectiles, this is daybreak asia. Betty i am betty liu here in new york. Investors will buy more than 99 of a write off, raising 4. 3 billion for the banks turnaround plan. The second share issues since the ceo took over three years and three years ago. In april, credit ditched plans to list part of its lucrative operation. Yvonne toshiba fired a legal missive at Western Digital, demanding it stop what it calls harassment over the sale of their flash memory chip business. Toshiba claims it has the rights to auction off the units. In to avoid being delisted tokyo. Their concern the Chip Technology may fall into the hands of competitors. Shortselling is alive and well in hong kong. They are now betting against a furniture maker whose stock slumped 10 . The companys biggest twoday retreat since 2011. There were undisclosed liabilities and inconsistencies. Separately, geotargeted a group whose shares tumbled on that news. Yvonne hong kong becomes offset. One feature on the bloomberg we would like to bring to your attention is the interactive go function. An find it at tv charts you lot of can copy onto your own library. Become part of the conversation, send me and betty an instant message. This is for bloomberg subscribers only. This is bloomberg. Betty this is daybreak asia, i am betty liu in new york area new york. Yvonne allegations of harassment and discrimination, Corporate Culture amazingly reach even further. Our reporter joins us live from San Francisco. We were talking yesterday about these firings of uber. Now you report goobers head of business in asia has left the company. What happened . Troublingomewhat incident. Alexander, in business development, have the case file whose india rape victim uber driver was convicted of rape. He had her medical file. , theof the top executives ceo and head of business, both speculated about whether the rape really occurred and whether their competitor had been responsible for it. A number of troubling allegations around their handling and thinking about this case. What are we expecting next in terms of investigations . What does it tell us more of in terms of the Corporate Culture in uber . What is broken right now . Former u. S. Attorney general eric holder deliver this comprehensive report to his subcommittee of the board of directors. We do not get to see that. We were initially promised by morena huffington findings. It looks like we will get their recommendations. We do not know how much those will look backwards. It is not clear right now whether stuff like this india the koreannt, karaoke rape incident, whether these will be dealt with head on will be in this report next week. Or whether we will change executive structures but not necessarily a backwards looking review of what happened. Betty was there any kind of conclusion whether or not uber was framed in india . Eric it does not look like it, no. The point is more that they were wildly speculating. I do not think the evidence was strong and i do not think anyone would say today they would believe that. I think the story is more that they were looking for every , the true story. Atty seems we get more news on uber. Fired fbi director james comey is making headlines even before he arrives on capitol hill. His prepared testimony says President Trump demanded loyalty, preston to drop an investigation into it then National Security adviser Michael Flynn. We speak with a former senator, who was in china, there on business. Senator, thank you so much for joining us again. I am curious if you have been able to quantify all the news we have had on comey. What do you make of these revelations and what the democrats might do with this new information . Explosive, it is heard around the world. I am very aware of the upcoming comey testimony. It comes down to a lot of good questions asked by both republicans and democrats. Just what did the resident asked of comey . Did he really try to obstructed justice or not . Senators, house members, they will have to decide, are they loyal to the country, or they loyal to the president . Assuming there is a lot of evidence there was significant obstruction. Betty i want to read to you part of the his advanced testimony we got, which is partly the the crux of the matter. This is one of the memos comey wrote after his meeting with he said, i hope you can see your way clear to letting this go, to letting flynn go. He is a good guy. I hope you can let this go. I reply only that he is a good guy. Is this obstruction of justice . Or is this much more vague . It depends upon the totality of the circumstances. That is pretty damning. It depends what else was said in the context of other meetings comey had with of president. I saw somewhere the president had nine private meetings with comey. I am sure comey has lots of toos about those meetings, after that, the Intelligence Committee personnel saying privately. They received pressure from the president to back off on this russia investigation. Thet of this comes down to totality, how it impacts, a really seems to be the case. There is a good case to be made that there could potentially be obstruction here. Yvonne senator, it is fascinating. The president asking for loyalty, i need loyalty, i expect loyalty. He returned to the subject near the end of our dinner. Thats interesting to see comey felt the need to document these meetings and memorialize this oneonone dinnerware trump had tested is loyalty. It was so inappropriate. I do think he did not bring it up . Why was is not reported in real time, do you think . Explainhink he will that, i am sure that question will be asked. Yvonne it is definitely a tough one, for sure. What you think democrats and republicans want to get out of comey on thursday . If you were on the panel, what would you specifically ask comey . Max i would ask for the facts. What did the president say . Including his intention, what was your response . Question. E basic i would ask it to her three times to get all the nuances i could. Move on. Ets we want to talk about the shanghai cooperation operation that is happening right now. We learned a little bit about this. In india, there will be full members of this alliance, which is quite unprecedented, given these countries have such a history. What does this mean about how this relationship will involve, when it comes to the shifting world order . I am very concerned. I have served three years as u. S. Ambassador to china. During those three years, i thought china moving steadily, inexorably, toward building up their power. I merrily in asia, but to some degree in other parts of the world. Shanghaiolvement with organization and potential other members could make a big, big difference. Yvonne yvonne it is 7 30 a. M. Thursday this sunny hong kong morning. Betty it is beautiful and sunny, 7 30 p. M. Wednesday. A nice sunset we are seeing in new york. Markets closing a bit sunnier. 0. 2 from thisst rebound we saw after two days of declines. I am betty liu, here in new york. Yvonne i am yvonne man in hong kong. Youre watching daybreak asia as we have been reporting, fired fbi director james comey will Tell Congress the president asked him in february to end check to Michael Flynn for clearons, to see his way of letting this go. Comey will say he never agreed to the inquiry. He will also say the president demanded loyalty when they met on january 27. Fired anothers series of projectiles said to be short range cruse missiles. Launches fromple defense sources in tokyo. Japan says it will protest surgical medic channels. Say southom seoul korea is suspending further deployment of the controversial onad missile deployment environmental grounds. It means those yet to be deployed must wait. China is strongly opposed to that system, saying it risks upsetting the Regional Security balance. In europe, London Police have carried out a controlled explosion outside the new u. S. Embassy. But says it is not terrorism related. Some cars had been left unattended several days, days before the election. Election,e the security and terrorism have risen to the top of the agenda. They have yet to move into the new embassy. Consultancy firm eca says hong kong has overtaken tokyo as the election, security and terrorism have risen to the top of the agenda. Most expensive asiapacific city and is now number two in the world, behind only the end goal in capital. It is relatively more expensive. Tokyo stays at number seven globally, singapore dropped to number 24. Sterlings postbrexit fall makes london number one. It is cheaper than bangkok, as well as rio de janeiro. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am a ramy inocencio, this is bloomberg. Yvonne not a good label to have. What we should be watching is trading gets underway in asia. Adam haigh joining us live from sydney. Adam, is this the con before the storm . Big surprises that might come from the ecb or britain . Good morning. The pound trading reasonable as we get into this election. The market is expecting a majority for theresa may. That is how we are looking going into this. There is still a potential for a surprise. Surprisest downside were we can see a big slump in sterling would be if we do not get one of the two parties, some kind of Hung Parliament situation. That is not the best Case Scenario which markets have