15. 8 . The expectation was 14. 5. Kind of a mixed picture. It seems like that export picture will be the same. Butct here in large part, asia demand will be the big question as that is expected betty the biggest is a good segue to ask you about some of the asian Tech Companies. , know we have got this chart talking about amazon with a nice comparison with amazon still huge in market cap against the big asian Tech Companies like alibaba and tencent. Do you see Companies Like that following the lead of amazon . Mark i can cover alibaba, they surprised the market two weeks ago giving and outlook for almost 50 . They are benefiting from some of the same growth amazon has in the past, different ways of facebook and google. They are doing it in a market where they have an unusually strong market share. Alibaba china is greater than amazon, and it can sustain at those levels. I dont think i think the valuation is good for both sides. The basic underlying driver is you have secular growth with find onend if you can or two ways to do that, those can be consistent profit growers for several years, they can be good investments. Alibaba is good for sure. Yvonne great to have you. Rpt Capital Markets in hong kong. We have got plenty more to come on daybreak asia. This is bloomberg. This is daybreak asia. Investors y of on investors plates. We will have it all on daybreak ina, a big week in toshiba particular as we see the race entering the black lab bid. A winner could be announced as early as this wednesday. We are told a group led by baincapital and aj have offered 15 billion, slightly less than the billion then the u. S. Chipmaker broadcom. So the big Sticking Point remains whether this company or the chip unit can stay in japanese hands. Whats like with incj and baincapital, that will get the green light from the government. We see about the swings in toshiba, very volatile. With the news out of whether it the be on sale, obviously news could be broken dn as we. One of the most extreme movers really so far outweighs the rest of the nikkei market. I guess as we alluded to the development and who is with the connector business, the pride tool of toshiba for the week as well. You stayed with this company, you will be rewarded when the volatility it seems to be the. This chinese shares has been a long awaited decision. The msci global and smart. Benchmark. We are awaiting the 2017 market classification review, and we will see whether the shares are included in the emerging markets index, which would be huge cause for Global Rebalancing in portfolios, but this is a , which wegnal, yvonne call the shanghai death cross. The 15 Day Moving Average on wednesday fell below the 200 Day Moving Average, which happened before in 2015. That moved to an 18 tumble in stocks come so there is concern we will get good news this week, but with the markets falling considerably they have fallen before, so there is some consciousness to this survey or decision. Look at the surveys we did, half of these people think they will get the green light. Betty i am sure they wish it was more. We will have more ahead. This is bloomberg. Anchor asiapacific stocks face a mixed start. Macron with a healthy majority in france. Anchor toshiba near a winner in its chip sales. Anchor a year after the brexit vote, negotiations are finally set to begin. Opening skirmishes will be played out in brussels. Anchor disneys bet on china is finally paying off. They are close to breaking even after just one year. We will hear from the ceo, bob iger. Anchor anchor this is the second hour of anchor daybreak asia, coming to you from bloombergs asian headquarters. Betty i am betty liu in hong kong as well, joining for the week with yvonne. News to cover. F we just actually had the japan trade numbers as well. Gave credence to the boj wanting to keep the pedal on stimulus. Yvonne Haruhiko Kuroda is treading water very carefully because he cannot speak to much about this exit strategy despite the fact that you get the pressure from the fed and ecb. They have to be able to stop the ulge. This was a mixed picture. A mixed year for exports. Imports beating. We will see how that goes and gets to the latest with reaction to those numbers. Sophie slightly more favorable move with the numbers we saw on friday. Slightlyks ended higher. The nikkei 225 out the gate up. 2 , despite the surprise swing to the deficit. Less than forecast. Shares in tokyo now rising for a second straight day. Looking elsewhere in the region, weakness in seoul. The asx 200, swings between gains and losses at the open. A possible driver for investors of course this morning. Chinese Property Prices for may due later in the morning. We also have something for investors. That megadeal for amazon to buy a whole foods. With amazon looking to switch that mindset around the whole paycheck by cutting costs across the supply chain, that can help inflation and give treasury investors some reason to then be bullish. We did see treasury yields fall below the 2013 level last week. We do have the ki dollar rising after Consumer Confidence for the Second Quarter is looking rosier. That rose the highest since the First Quarter of 2015, and we have the aussie slightly steady as we do have iron ore on the up about. 5 in singapore. The yen, that is marginally lower at 110. 96. Little changed from friday when the boj cap gets policy unchanged. Take a look at the commodity space. A threeweek low. Oil is holding onto its weekly loss trading, below 45 per barrel as u. S. Drillers are extending their record streak of adding to rates. A mixed picture when it comes to the base metals section. A mixed start to the week in asia. Betty. Betty thank you so much, sophie kamaruddin, with an early look at the markets. First word news with shery ahn. 351 days after the brexit referendum, formal negotiations are about to start. David davis and Michel Barnier will meet in brussels after theresa may notify the e. U. That britain intended to leave. The u. K. Wants parallel talks on the split. The e. U. Insists that is not possible. In mental macron is heading for a big win in the parliamentary election, but not the majority that has been forecast. Marche is en heading for 350 seats. Ore the election turnout is put up 44 , the lowest ever for a french election, and 10 points bel the previous recor new zealand says the u. S. Has signaled it is open to a freetrade agreement and does not see any major issues. The trade minister spoke after talks in washington with wilbur ross. New zealand wants 90 of its trade to be covered by fdas by 2030. The u. S. Will be an important part of achieving that goal and his talks in washington were encouraging. It does not miss out on big ipos like alibaba. The operator poses to make a new exchange that would let Companies List before they have made a profit. Take it to wall street. The new plan will help broaden the types of startups a can attract your global misconduct 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am shery ahn. This is bloomberg. Anchor thank you. A group of japanese investors are winning the race for toshibas flash memory chip unit. Sources say their offer is lower than that of broadcom but has the japanese backing that is seen as a vital to getting this done. Our reporter is tracking this interview. Is it likely to be the companies . This is a deal that has been going on for months and months with things changing on a daily basis. The consortium has remained in the lead sincelate last week. Let us take a look at the highlights of what makes this bid is so strong. The company is offering about ¥2. 1 trillion, which clears toshiba hurdle for the 2 trillion threshold required to pay for the loss in the nuclear business. , fundsinnovation contribute in 300 billion each, crucial for Regulatory Approval in japan. A south korean chipmaker also money, which could strengthen the bid by having a company with expertise. We know pain is talking to bain is talking to kkr. This all that up to a fairly strong offering, about ¥100 billion short of what is offered by broadcom. Bain is likely to face fewer legal consequences or challenges down the road, and we mean a challenge from western digital, toshibas manufacturing partner, thehas threatened to derail whole deal, specifically if broadcom was to win. Anchor thats right. We have seen how hotly contested this has been. What sort of time schedule are we looking at then . From thelk backwards ultimate deadline, march 2018, the end of the fiscal year in which the company has to face the listing from the tokyo talk exchange. Meet the deadline, they have to apply for Regulatory Approval pretty much yesterday, so they are aiming to deliver od newto shareholders on june 28 hopefully saying the deal has been done and the company is looking to beef up its coffers. Bain is looking to finalize its scheme. We are plausibly looking at the final week of this very long ordeal. Anchor we seeing toshiba shares rallying up. 8 in anticipation of any kind of news. Thank you for joining us from turkey appeared still ahead, find out why chinas top property bubble predictor jumped another 50 . Betty incredible. Up next, the search for safety. Shortage of safe haven assets may be the dark cloud. This is bloomberg. Anchor this is daybreak asia, live from hong kong. I am betty. Served the dollar has the city well for more than 30 years and should stay. The Monetary Authority chief says the city is a small and up an economy, and keeping a Stable Exchange rate is important. Hong kong links its currency to when. S. Dollar in 1983, negotiations between beijing and london over hong kongs return to chinese rulspurred a capital exit us. Betty southeast asias Biggest Online luxury retailer is planning to raise as much as 150 million working with Credit Suisse and goldman sachs. They want to boost the marketplace business and expand in south korea. The eightyearold startup was valued at 300 million in late 2013, making it the most valuable luxury ecommerce art up in southeast asia. Yvonne amazon says it will try to keep whole foods reputation while cutting prices. They old to expect they expect to cut some staff to allow them to compete with walmart and other box store retailers. In 1992. Blic it went public in 1992. Betty a dark cloud may be building among emerging economies. The lack of new saint haven assets is creating a dangerous overreliance on treasuries. We have seen numbers that show Foreign Investors are buying these the west bonds. Alicia garcia herrera, the chief asianpacific economist. Great to see you again. Before we get to talking about the emerging market, the bond , and particularly in china, let us talk really quickly about this news we are awaiting this week, which is will the ashares be inducted into the nfci emerging markets asci emerging markets index . It is not significant. That is nothing for china. That will in play demand for chinas ashares. It is significant. Betty it is usually significant. China downplays it, but they want this badly. Hurt . Who loses out if they get inducted . Alicias this is about alicia this is about reducing it for everyone else. You have to think about mexico, for example. Certainly brazil. Countries with very large stock markets will lose if china gets in. Will continue our conversation on e. M. As well as lack of safe haven assets out there in the world. One feature on the bloomberg we like to bring your attention to is our interactive tv function at tv. Not only will you be able to watch us live, but you can dive into the bloomberg functions we talk about on the right side of your screen. On the left side, you can be part of the conversation. You can ask a guest, alicia, or betty and i a question. This is her bloomberg subscribers only. Mixer to check it out at tv. This is bloomberg. Make sure to check it out at tv. This is bloomberg. Anchor this is daybreak asia, live from hong kong. I am betty liu. Vonne i am yvonnen man let us bring back alicia garciaherrero. We have been talking about this greenspan conundrum. This riddle we continue to see, where u. S. Yields continue to head lower even when the fed has raise rates four times raised rates four times already in the last year or so. Is this the same problem we are seeing where people are saving more, or is this a structural issue . Not enough new safe haven assets treasuries. Alicia there are not enough. Regulations overall have helped u. S. Treasurys much more than any european you can think of. Friendly speaking, both the u. S. And europe have much larger public ones than many e. M. Economies. The reason is, their currencies are more monetized. The are scared of their past volatility. The perception of how volatile these currencies are, and of course, liquidity. There is a number of e. M. Fixed income markets that are limited. There are Central Banks purchasing these bonds, but not thath to get closer to dollar in the treasuries. Anchor to what extent is chinas bond market going to be the alternative . Alicia it should be. Chinas sovereign bond market is nearly as large as the european bond market together. We need a more liquid market and frankly speaking, because of capital controls, if i were china, i would try to create a euchre offshore. Curve offshore. We need the u. S. Dollar, chinese there,ign bonds out creating the yield curve. We are not ready for the offshore market yet. We need to see more. If we have seen it, i think we will instill the appetite for chinese sovereign onshore i am sure that is going to come. Betty that is a long way off. Exactly. In terms of now, then, where do we buy . Where do you buy . Alicia korea and mexico. Debt to gdp is very low. This is what i would buy. Yvonne you mention about this in hong kong as well. It could be a way to internationalize the yen as well. Without full convertibility, do you see the remedy taking the renminbi taking a share of the markets right now . Alicia no. I am not ready for the onshore market. The underlying risk is on onshore bonds, mainly thatn help people look at from a different jurisdiction, but it is not going to be a game changer. It is a good start. It is not good create this fully, you know, fl demand for a new market. It is just the beginning. Yvonne if you are looking at longterms, do you think china can afford to go into full of affordability with the renminbi . Alicia i do not think china will be fully out of the woods in five years. It has only accumulated more debt, and the banks will go through additional risks. I do not think they will be ready in five years. That is why i am proposing to start offshore. Then you create the appetite and you fall into that jurisdiction, but you have the same credit risk in a different jurisdiction, which is hong kong. That would be very good for china. Betty alicia, just going off script here and out of the emerging markets, im curious of what you made of the bank of japan, and what they said on friday and the conundrum they are in as well, which is that they need to taper, but at the same time, with the numbers we saw on trade, it is still a mixed picture in japan. Tapering is not what they should be going for. Hey have an immediate problem as Interest Rates move up, not so much lately, it will. It definitely will. Betty why do you think it definitely will . They cannot go lower . Alicia for us, the National Rate is growth and inflation. You have to go up. You know, it defies gravity. Betty yes. Alicia i think jgb yields will follow and the bank of japan has stubbornly, since december, put put thating target. It has forced them to be more aggressive. Into the easy mode. Why cant you just lift that first and that Interest Rates fall to their natural level . 10year jgbs. They can start with that. They dont need to taper. They dont need to scare the market. That would mean natural rates, which in my opinion, is needed. They are just forcing it down, know . I think that is the first thing i would do if i was the boj. I would not talk about tapering now. It is too early. Refrainwe saw the pboc from calling the fed. Do you think they can chart their own course . Alicia so they think. I think basically, they were not the first was to do qe. For reducing this massive balance sheet, they are really in uncharted territory, and i think that is why it is so difficult. Anchor great to have you as always. Alicia garciaherrero, economist. Disneys 5 billion that on china bet on china seems to be paying off. They are breaking even after one full year of operations. That is somethingthin no other has achieved in the last 30 years. Take a listen. We had 11 milln. Just before our first anniversary, that is quite an achievement. We are extremely confident this will continue to grow for a few reasons. People are obviously enjoying the product. Wordofmouth is very, very strong. We know from the people who visit that they just love it because they are spending more time here. They are telling their friends about it. We also know that awareness of this park is tremendous. We expected that the majority of people would come from the shanghai region, certainly in the first year of operation before the rest of the country about it. It is about 5050. 50 from this region, 50 from the rest of china. That is an extraordinary achievement. It just means that not only are people aware, but they are hearing that it is worth visiting. That is good. We have a large these of land, over seven square kilometers. We have developed half of it. We have already begun expansion. Next year, we will open toy story land. There is plenty of other opportunity to build all of this out. After one year, i am pleased to say prospects are really strong growth and to continue to provide the people of china with a unique and , distinctlyy disney chinese themepark experience. Can you give us a sense of how the revenues are breaking down between ticket sales and merchandise and what impact that may have, if any, on changes or tweaks to the Business Plan for shanghai . Want to break even and i can confirm we will. Today is the end of the first full year of business, and this will break even. That is an extraordinary achievement. I am not sure we have ever done that. Certainly not in the last 30 years for a new theme park. That is extraordinary. We do not breakdown from