i am courtney collins. this is bloomberg. ♪ news a bit of breaking coming out of new zealand. the new zealand with the billion surplus of $2.5 for 2017-2018 that is less than we thought in the pre-election update. forecasting that surplus to continue contracting in 2018-28 -- 2018-2019. growth forecast similarly year,d 3.3% in the coming versus 3.5% prior. 3.4% in 2018. 2019 at 3.5% had been expected. this on the back of a change in government in new zealand. a coalition comprised of two parties, with the third-party in support. a few big spending plan to new zealand. the first year of education, free. a lot of spending going on. that is behind these forecasts. the kiwi dollar, not a great deal of change. to improveeffort productivity in new zealand and reduce inequality with programs put in place by the new government, contributing to lower forecasts in new zealand. let's take a look at how the markets are trading in reaction to this and other headlines. david ingles with a look at the open. a good start

let's get the first word news with courtney collins. courtney: president trump is warning china about illicit deliveries of crude oil to north korea. say u.s.er in seoul spy satellites have seen chinese ships transferring oil to north korean vessels at sea. the president tweeted, caught red-handed. disappointing -- disappointed china will allow north korea. many said to have been released from detention in the crackdown on corruption. the princes have left the written -- the ritz-carlton hotel in riyadh. they had been held since early november. several suspects have bought their freedom to avoid trial. the italian president has dissolved parliament, opening the door to elections in march and the possibility of an inconclusive result. italy is the eurozone third-biggest economy, but the recovery is trailing most of its peers. the antiestablishment five-star and a potential center-right coalition. apple is under pressure again over the performance of the latest iphone. it says it is aware of public dissatisfaction over battery life and wi

i am courtney collins, this is bloomberg. thanks, courtney. we're counting down to china's trade numbers for november. representative, will join us in about half an hour. kathleen: and, our exclusive interview with sun wei christianson, from the fortune global forum. this is bloomberg. ♪ ♪ kathleen: this is "daybreak asia ." i am kathleen hays in new york. paul: and i am paul allen in sydney. everyone from president xi jinping on down has warned about the need to rein in leverage in china. what is gone little recognized, a group of companies has already done that. data compiled by bloomberg, nonlisted enterprises are in the best shape in over a decade. let's cross to the global foreign forum, where tom mackenzie is standing by with the head of morgan stanley's business. >> very pleased to say i am joined by sun wei christianson, the ceo. how well positioned our china's coffers for the deleveraging term? one of the advantages and important aspects of these leveraging policies is really to help the corporation improve their performance. it h

i am courtney collins, this is bloomberg. yvonne: thank you, time to see how the asian markets are shaping up. you see the regional benchmark down about 0.1%. the story has been in the bond markets. we are still trying to figure out what led to the jump in yields. sophie: the third day of yield curve steepening. this sticking around the 2.5% level. the pressure continuing for asian bonds. korean debt yields rising three basis points. korean bonds sliding along with the won. the kospi falling to an october low. this index snapping a three-day drop. let's take a look at what is happening in south korea, them kospi falling for a fourth consecutive session. the biggest laggards of falling almost 4% this morning, stocks like hyundai and lg electronics. amid the bleeding, a slight rebound when it comes to tories amend cosmetic stocks. pulling up the board to see you those -- to show you those movers. concerns over china banning tourists. but they say they do not know about tourist suspensions to south korea. i want to highlight kor

i am courtney collins. david: thank you for that. let's talk about copper, quite a pop. three-month contracts there in london. this after china ordered its top producer to halt production. the metal on track for the best performance since 2010. garfield reynolds is with us in sydney. very good morning to you. help us understand what is happening with the dr. copper. well, dr. copper got a boost as you pointed out from what is going on in china. in general ao been pickup in demand, so it was primed to go up. as china seeks to reduce pollution, it has said stop that factory. a similar sort of thing happen with aluminum earlier this month when they backed off on production. that has given a big boost two copper going into the end of the year. going forward, will that supply constraint continue out of china? china had to reverse some restrictions it had on coal because it did not have enough natural gas. will they have to do the same thing with copper production, and what will the market make of that? at the mo

i am courtney collins. this is bloomberg. ♪ paul: thanks, courtney. let's take a quick check of the markets in new zealand. it is friday afternoon, we have 0.1% -- we have the zx up about 0.1%. all the stocks are online, and we are looking off about 0.33%. the aussie dollar weakening slightly against the u.s. it is around 76 cents. one of the biggest afters on the asx, planning to raise $1.5 billion to finance a tunnel. crown resorts surging in sydney, selling a las vegas plot for $3 million. one of the biggest losers in sydney, macquarie alice -- atlas . let's look at what we should be watching is trading gets underway in asia. adam haigh is here. pimco had predictions. they see global growth improving, but they have a warning, brace for a downturn, and maybe zombies? adam: ultimately, they are saying the goldilocks environment of steady growth but not inflation to worry investors, remains intact in 2018. it is a place you want to be reasonably invested in. they are warning into the second half of next year, whether inflation does start to pick up ma

i'm courtney collins. betty: thank you so much. still ahead on "daybreak asia," the global shipping industry after the loss for samsung heavy. we will also look at losses for other customers. david: that is up next. the possibility of a shutdown in washington and how it is investing around geopolitical risks. stay with us. this is bloomberg. ♪ ♪ we are counting down to the first major market open this morning. japanese futures are looking like this, a little brighter are the u.s., up .4% as we one hour away from the open in tokyo and seoul, korea. i am betty liu in new york. david: just to give you an update on the tax issue and the progress there, senate republicans have voted to begin talks on reconciling the two versions of the bill and both members hope to get one final version signed and on president trump's desk before christmas. chargelion is the likely if the senate version does pass, that is citibank. let's talk with invesco global markets. nice to see you. nice to have you in person. we have to start with how do you a