He warns Republican Leaders he will not support their health care bill. This is daybreak asia, live from bloombergs u. S. And asian headquarters. I am Ramy Inocencio in new york, where it is just after 7 00 p. M. Yvonne i am yvonne man in hong kong. That nailbiting vote just past. We can Start Talking about what is next for health care. The reason we are seeing records again. Ramy especially for the s p 500 as well as the nasdaq, hitting records. The dow hit intraday records. Into the want to go bloomberg terminal and show you what is happening in terms of earnings. This is the spx function. 143 of 500 securities have reported. It will be interesting to see if we can continue that trend. We will talk about that in a little bit. Yvonne the equity market story is one to watch. The bond market, we saw big moves as well. Take a look at that. It was ahead of the fed. With german bund yields, up six 0. 57. Points to we also saw yields on the u. S. Treasurys up aces eight basis points. This will be key for the boj to watch as they are set to announce the long and today. And not exactly joining the party on this equity rally. We did see trade numbers blowing up at surplus, which was quite positive. Take a look at the kiwi, we see it marginally higher. Other dovish comments coming out from the governor. 7422 for the kiwi right now. Australia, a big speech coming from philip lowe. Before that, that aussie rally could mean a bit of a danger here at the head of inflation data out today. The 3 jump in oil today, one to watch. And a greater than expected drop 48. S. Prices, and brent back up to 50. In japan, a weaker yen story that should help with the nikkei 225. Unchanged for futures, but we could see modest gains. 111. 87. Look atking up closer what happened in u. S. Equities today, they gained for the first time in four days. As it takes up steam, we will get a recap with su keenan. Talk to us about all the green we are seeing. We talk about surprises with the chart at the top of the show and surprises on the wind side and the loss side. Up byw definitely pumped the fact we had a lot of big winners. Lets go into some of the big movers to take a look at those. A big deal in terms korse michael coors takeover. Seagate, a big story for the nasdaq 200. The ceo is going to be moved out, bumped up to chairman. Storage has shipped away. It is weighing on their outlook. Mcdonalds boosted customer traffic, turn the store around bigtime. A big pop to the stock, which was already up 20 going into this session. Lets look at the bloomberg g btv 7081. The nasdaq filled with tech stocks broke its winning streak. Seagate had plunged. Google disappointed, that was down. And facebook, which we will be reporting wednesday, was down ahead of those earnings. That broke a 12 day winning streak. Such a longd winning streak since 2013. Yvonne we are really in the thick of earnings seasons. Caterpillar another one to watch. Surging due in part to large sales in china. In ae will get to wynn second. Caterpillar is so important in that it is considered a bellwether. They make big Construction Equipment and construction has been booming in china. That was a sweet spot for sales. Lets take a look at the things in the 2015 earnings outlook. The stock was up almost 6 . Lets talk about one analyst was saying, that they are getting back to normal. Revenue returning faster than cost. It promoted the third best performance in the dow in the year so far. Lets talk about the not so muted reaction to wynn s numbers afternns the bell. Even though there has been a big rebound in macau, the palace Beat Estimates. The earnings did come up short. The adjusted earnings. That had to do with a profit shortfall in the macau resort. Again, the strong recovery underway in macau. But the industry revenue has rebounded. This was clouded a little but the chinas chinese theents attempts to profit rose to 118 a share but missed the average we were looking for. We will see how that plays out. And how will play out in hong kong, as well. We will have more macau earnings. First word news now with nina melendez. U. S. Commerce secretary wilbur ross st saideel is among is among histeel priorities. He also said nafta was out of date and needed an urgent revamp. On china, ross said the two sides were the early stages of trade talks. Was proof that came to pass, and that was good. There was a more difficult phase, because there are trickier, bigger issues, more deepseated issues. It is a work in progress. President trump tweeted of a new chapter for u. S. Ties as British Trade a secretary continued talks in washington. After brexit, the u. K. Will be free to negotiate deals around the world. He said 700,000 american jobs are supported by trade with britain. Trump attacked the European Unions transatlantic trade and calls for it to drop barriers to commerce. The conditions we set in the we are notandards, members of the european union, neither are we banned from the united dates. It is an hour mutual interest. Raising forecast on growth in china. That gives policymakers reason to curb excessive borrowing. By 6. 7 from a year ago, and 6. 6 in the next period, according to the median of a Bloomberg Survey. These are 1 10 of 1 higher than a month ago. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am nina melendez. This is bloomberg. Yvonne republican efforts to repeal obamacare have cleared one hurdle. Lawmakers finally agreed to begin floor debate on a bill to overhaul health care. It was a razor thin victory, mike, Vice President providing the tiebreaking vote. We are joined now from washington. Joe, good to see you. If you asked about this a week ago, they would not have even imagined this could happen. The big question is, what is next . We are not sure what we will be voting on. Morning. Yes, it is still unclear what they will be voting on. In any event, the senators are facing a long week in washington. The next steps will be for them to begin considering amendments to an existing piece of legislation, which will essentially be wiped clean. The senatenell, majority leader, still expects to get a final vote by friday. To do that, he will have senators in there probably all night thursday in through friday morning, voting on multiple amendments, as they are offered both by democrats and republicans. It is unclear they could get a final piece of legislation done. Several republican vendors who voted to proceed today said it did not necessarily mean they would vote for the final legislation, unless it has all their concerns addressed. Yvonne perhaps the most heartfelt moment during that session was senator john mccain making his appearance after recovering from brain surgery and urging for bipartisanship. Will that be enough to sway the conservatives or democrats in at least the issue of health care . Joe i think that that will last about as long as most pleas for bipartisanship have lasted in the past. Mccain is quite a figure in the senate. He came here as a special flight, as he is recovering from the brain surgery. But he did vote to go ahead and repeal proceed. He is one that said it did not necessarily mean he would vote for whatever legislation comes along. He did make an appeal for democrats. I do not know that they would be able to get that unless they start over again. Ramy Mitch Mcconnell is aiming for a final vote by the end of this week. To that, what type of legislation is the most likely to come out . They are looking at what is called a skinny obamacare repeal. That would pluck a few provisions out of the existing law that most conservatives are objecting to. The individual mandate requiring people to buy insurance, and requiring businesses to provide insurance, as well as attacks on medical devices. That does not leave much of a piece of legislation. But it would at least be an accomplishment. It does not end there, it still has to go back to the house for the vote. Ramy a lot of wrangling for the next week and beyond. Thank you very much. Plenty of big conversations ahead on bloomberg tv. Lynch next hour, merrill joins us to discuss the new positive asia outlook. Yvonne odyssey asset management, we will get their view on what to expect from the feds latest meeting. Ramy plus, if youre up for latenight night stack, were joined on the back of the latest result at 11 10 p. M. In hong kong. This is bloomberg. Yvonne we are counting you down to asias first major market open. A cloudy picture outside the imperial palace in tokyo. Points. Utures up 130 the dollar seeing strength, but still hovering around 111. 86, against the dollar. I am yvonne man in hong kong. Ramy and i am Ramy Inocencio in new york. Lets head to the car market. They Beat Estimates, but it was not all good news. General motors warned the second half will be tougher for both both protection and earnings production and earnings. We will key end with a senior nds. Com as well as edmu chief analyst. Lets unpack what is been happening with gm. As we were talking in the last hour, not a robust picture. Is there any positive we can take apart from this. The risks on the truck side are not unforeseen. Redesigning vehicles and plants, taking down production, building inventory not something surprising in that sent sense. You could spin it as good news, this may finally give gm stock a bit of a stress test where it has not been getting a whole lot of credit for performing well in a plateaued market. Perhaps at the seasonally adjusted rate or sales come down a bit and they can still prove the earning power, the market will look at them more favorably. A little more positivity. Jessica, where we headed into the future, generally, for the Auto Industry . Pop into the terminal, g btv 7913. The green here are auto sales. We can see they are at a low around 2014, 2015. More of the same, jessica, as i move into the second half . Jessica it should pick up a little. We have high inventories across the board. Even suvs, which have sold well across the past few years. Because of the high inventory, automakers will have to increase incentives. Usually summer is the time to do it. People want to buy cars. Between now and october is a bigtime. And also from black friday on. November 1 to the end of the year we could see strong sales. If the incentives are there, it could take up a little bit. If not, we will see more of the same. Yvonne a lot more of the same. Kevin, if gm is focusing on relying mostly on the north American Market where you have reached the peak auto and we are past that, can it continue on this momentum of record earnings . Kevin i think it is the plateau or slight incline. 2015 was a record year, as was 2016. Even a mild pullback is still at historically high levels. The thing you also have to consider is that while the market has plateaued and moved awn 2 your today, there is mixed shift from carter truck that has been dramatic. Even on a relatively flat market, the shift has been to higher revenue contribution and profit contribution, from trucks to cars. Ramy jessica, you touched on incentives. I want to point out that some folks say the current incentive rates are unsustainable. Do you think those are unsustainable . Or do think the consumer could benefit more . I would say they could probably get more favorable. But automakers will have to start pulling back. Especially with lease deals. Lease deals per month. I think automakers will have to head to their risks there. In the shortterm, they still have the potential to grow. For consumers, it will be a good time to buy a car. Ramy what carmakers are best a crisisd to weather or a downturn . Pointed out, kevin this year is edging to where we think it will be in the u. S. Year, a 17 million unit that is still the fourth best in u. S. History. A lot of the automakers will do better. It is less of an automaker versus automaker game. It is more of a car versus light truck game. The light truck divisions are doing well and the car divisions are tanking. There is a good part in a bad part of the business. Think there is light in that tunnel. Ahead kevin, as we look to ford, will it be a similar story to what we saw with gm . They are more dependent on the fleet sales and a lot of focus on the new ceo. Fleet penetration is much higher than what General Motors is. The inventory levels are more manageable than where gm is. Ands retooling factories inventory to prepare for downtime. Ford was through that when they redesign the f150 in aluminum. Ford is in a better position for supply versus demand. Where the risks lie for ford is north of america, exposure to the european market, south American Market, where gm is starting to pull back from those regions. Yvonne kevin come i want to talk about the news from germany. Allegations that daimler, bmw, and of have allegedly colluded when it comes to technology. Do we know that magnitude of this scandal yet, if in fact these allegations are true . Kevin the fine can be as high as 10 of global revenue, which for a company like volkswagen, is significant. Been some rules that say, if you come forward with these things and provide evidence for the investigation, they are more lenient on it. If volkswagen is the company that tipped off the e. U. , there may be a lower fine. Companies, with some airconditioning and cooling companies. This is with regards to the diesel emissions. It goes back into companies, t. With some help from the investigators, the fines will not be as great as 10 global revenue. Coming off the fines they paid for the cheating emissions scandal, it could still be hard and the reputation, as well. Ramy we have to leave it there. Thank you very much. Do not miss our interview with daybreak at 7 30 p. M. Tonight, if you are watching in hong kong. Breaking news we want to tell you about. Uber ceo shortlist is said to include hpes meg whitman. They are also narrowing the list to fewer than six candidates. Uber is saying to expect a ceo appointment within the next six weeks. Yvonne interesting. Meg issman for hp saying really committed to hewlettpackard enterprises and wants to get her work done. Course, a leadership vacuum in uber they need to fill. But this could be the first step. You can get a roundup of stories to get your day going in todays edition of daybreak. On youryb terminal. It is also available on the mobile app. Customize settings to get the news and assets you care about. This is bloomberg. Ramy you are watching daybreak asia, i am Ramy Inocencio in new york. Yvonne i am yvonne man in hong kong. Profits Beat Estimates as indias largest wireless carrier invested in up price war with reliance. Income declined to 57 million. Slashed prices up reliance offered free calls for life. And there was an introductory period that ended on april 1. Ramy chinas largest developer expecting profits to have tripled from a year ago. And fourth on third tier cities has paid off, as beijing has curbs on cities to rein in prices. Third profits have surged more than 250 this year. Perpetual securities will have boosted profits. Yvonne they have abandoned a plan to build a 27 billion terminal in canada, blaming changing market conditions. The project won government approval after opposition by environmentalists. Committed toins gas assets in canada along with its partners. Ramy handing majority ownership tothe flagship miem mine indonesia, as long as the price is right. They want to ensure market value for any development of grasberg. Freeport directly or indirectly controls 90 of the operation. ,ming up on daybreak asia donald trump says it yvonne 7 30 a. M. Wednesday morning in hong kong. A live look outside of the harbor. Hoping for no rain, fingers crossed. Ramy it is 7 30 p. M. Tuesday here in new york, where markets closed up against the major indices. The s p 500 reaching a major high, as well as the nasdaq. The dow hit an intraday high, but could not hold that. It still closed in the green. I am remy innocence you in new york. Yvonne i am yvonne man in hong kong. You are watching daybreak asia. Senateamatic day in the saw mike pence cast a tiebreak vote to allow debate on Health Care Legislation to proceed. However, it is still not certain if it will go to a vote. Senator john mccain returned to apply both sides to applause by both sides. He said he will not support the latest version of the republican bill. Taking a greater role in financial regulation. They will step up supervision of institutions, a job that previously fell to the China Banking administration. The bank also says it will pursue monetary policies to keep money growing at an appropriate pace. The two new boj Board Members say it is too early to talk about the program because inflation remains far below target. Replaced Board Members who lost faith in governor kurodas strategy. They underlined the view that japan may be behind its peers in unwinding stimulus. Raise three point 5 billion in its first visit to the International Bond market in more than three years. They are trying to move on from a debt crisis that forced them to have multiple bailouts. They are selling 5year note at a yield of 4. 6 after tightening terms twice from its initial target of almost 4. 9 . Lastg up a little short order, failing to cap capitalize. Wynn palace resorts topped estimates, but down in trades. Macau is seeing a strong recovery with casino revenue rising in the second corner. The city generate 64 of revenue from wynn resorts. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Melendez. A this is bloomberg. Yvonne we are counting down to some of the major market opens in the asiapacific. Lets get the latest with adam haigh in sydney. Good to see you. Great work with you and your team on the survey you have conducted with three investors and strategist, asking them what they saw or when they would see the end of this bull run in stocks and bonds. Most said, late 2018. What will lead up to that . Adam good morning, yvonne. The bull market going into its last phase. A key takeaway, the median estimate is looking at the last quarter of next year for the start of the bear market and the s p 500. This has been a really good bull run it has gone on for a long time. It is the second longest bull market in u. S. History. The main concern now from the survey participants is the worry around centralbank policy and of exit from these years unprecedented stimulus from some of the big major Central Banks. Wast of this