♪ it is 8:00 a.m. in tokyo, the first major markets open. to see if japan's trade balance moves back into surplus when june figures are released. this is "daybreak asia". ♪ and donaldby brexit trump, the g-20 meeting says more needs to be done to sell the benefits of economic openness. verizon.inner is, for rise

>> the fed cast doubt on the yen as a haven currency. disunity, the party chair to quit over claims of bias. we will be live in philadelphia for more. to you live, i am if on an and hong kong. betty: i am betty liu in new york. it is going to be a big trading we this week with two central bank set to make decisions on andrews rates. we are watching the u.s. and japan. yvonne: the stakes could not be higher. thinkelming majority, 78% the central bank will help do something, the highest decision since governor kuroda began three years ago. it seems like a relatively soft

open in asia. stocks pretty much flat in the first hour of trade, up 10th of 1% and australia. stars may be a lining for the australian bears, the austrian dollar at $.74. stocks could see retracement. we mentioned the boj meeting. has stabilizedn after the brexit vote at 106. stocks could see a bump this morning, so it could be a mixed picture. how does it look on wall street? betty: we did close at a record again. the picture will change this week. you have the central bank .eetings, but also g-20 they reiterated their support for globalization and the economy. the, earnings out, so picture will be different this week. su keenan has more on the markets.

part of it will be the big deal announced by verizon. >> it is supposed to be announced before the open, bringing to an end months of speculation about what yahoo! is to do. is to pay $5 billion for the core assets, may include real estate, intellectual property could be sold separately. yahoo! steak and alibaba and yahoo japan are worth $40 billion and will likely remain. how do the two companies benefit? >> it ends a lot of searching for an alternative and pressure from activist investors. there seems to be a strategy shift. charge advertisers for eyeballs instead of charging

customers for traffic. yahoo! will likely keep intact to compete with google and facebook. it may well end the reign of marissa mayer. noteded on a bullish friday. we had records across the board. 80% of stocks higher. did have commodities, golden oil, lower on the stronger dollar, and some are saying that going into this week that investors will look for justification to keep stocks higher. yvonne: set us up for tomorrow and the week ahead. >> you should expect hillary clinton and the dnc convention and all the drama to dominate headlines. we also will be hearing from the fed. they are expected to stand pat on interest rates. earnings front and center, google, ford, deutsche bank to

report. unless earnings come in like gangbusters, stocks could be due for a fall. data, gdp, jobs, consumer confidence, but the big note will be the expected acceptance of hillary clinton as the presidential nominee for the democrats. yvonne: thank you so much. first word news. the democratic party's chair is stepping down over claims of political bias, threatening party unity as the convention opens. debbie wasserman schultz will quit after the convention following wikileaks release of e-mails suggesting the nc staff tried to undermine bernie sanders during the primary. both hillary clinton and president obama issued statements calling wasserman schultz a friend. flooding and china has forced more than 300,000 people from their homes, leaving 114 dead

and 100 missing. worst flood damage since 1990 eight, with 53,000 houses destroyed and 30,000 hectares of crops ruined. direct losses at $2.5 billion. economists a third quarter economic growth could be cut by .2%. rolled prime minister out early elections and so the government plans a multibillion-dollar infrastructure fund to keep growth on track. the government is trying to limit economic fallout from the failed coup. in an interview, he said the purges of those accused of involvement are nearing an end. that thise are saying has come and gone, and the national will and the will of the citizens has destroyed the plotters. life is back to normal in turkey, and you can continue your long-term investments.

we will eliminate obstacles before you. we are laying out the turquoise carpet in front of investors. we have all kinds of tax incentives, investment incentives, and we are giving priority to value added investments. >> global news 24 hours a day powered my board then 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ thank you. g-20 finance ministers and bank governors reiterating a pledge to use policy tools to boost confidence and growth following a two-day summit. china correspondent, tom mackenzie, has been there all weekend. what were the key concerns voiced at the summit this weekend? top of the list was global growth, weak global growth, and particular the the brexit effect. that is what are a lot of people are talking about, trying to get

some clarity on that issue. the imf cut forecasts last week for its global growth picture, so that has focused minds. we spoke to the president of the world bank and the secretary-general of the oecd to get their views on where global growth now stands. take a listen. >> we have wanted to give good information, good news, two people for a long time, but we keep having to downgrade. it is understandable and this context. we thought the u.s. was solid, the european union, the eurozone, seem to be getting better, even japan doing better, but then brexit was a big hit. trying toll understand exactly what the implications are, but it looks like global growth will be disappointing again. >> we will renew our projections in september. then it will go country by country in november. weortunately, i think that

are going to have some weaker performance, especially in the european theater. but also inrexit, general of the recovery has been weaker than we thought. what everyone we have been speaking to hear, finance ministers, central government bankers, and the oecd there, they have said they are very theerned about anti-globalization sentiment we are seeing articulated in the brexit vote and the rise of donald trump. there has been an increasing focus on fiscal support and structural reform. there is a concern now that really there has been too much emphasis, too much weight has been put on the backs and shoulders of central bank governors, and now some countries do have a bit more

room and they should start spending now to support growth and tackle this rise in optimist sentiment and the anti-trade sentiment. the presidents of the world bank and the oecd are concerned about it. questions about coordination, china calling for closer international coordination here, but the u.s. pushing back, saying let's take it step by step. those are just some of the issues discussed over the last few days here. the european theater, did we get more details when britain might start negotiations over the e you departure -- the european union departure? washancellor philip hammond very much in demand. we spoke to the european commissioner for economic affairs said time is of the essence. the french finance minister said

the very latest we want to hear that article 50 has been triggered preferably by the end of this year, at the very latest at the beginning of next year. different words in different sounds from the u.s., saying you have to understand that the british need time to prepare for these negotiations. yvonne: tom mackenzie, thank you so much. two months before the yen is to basket ofd in the imf reserve currencies, a new report casts doubt on their ability to achieve payment status. setback for the yen after a year of questions about its credibility. >> that's right. as you say, some unfortunate timing a couple of months before it is due to be added to that imf basket. what this report finds is that the yuan may have lost ground.

the yuan 11-2015, measured against market volatility swings managed to gain against some of its peers, but over the past year or so, it has lost ground and things have started to come apart. as market volatility rises, the yuan has performed badly against these safe haven currencies. what the founders have said is that findings do not support the isgestion that the renminbi a safe haven currency, but more critically, questioning the notion that the renminbi is progressing towards the status of potentially being in the future attaining safe haven status. there are other ways you can look at it, in terms of the amount of paents the chinese currency accounts for globally,

1.72%. certainly a dent to confidence ahead of that october inclusion. yvonne: i don't think anybody really considers the yuan to be a safe haven currency. >> that's right. i think it has a long way to go. that is accepted wisdom in the markets. a lot of things need to change before the yuan can come close to be considering a safe haven currency. over the robustness of chinese institutions, reliability of policymaking. just because you are a reserve currency, it does not mean you have the status of a safe haven. is theyr critical thing keep talking the talk when it the capitalning

account, but further measures would need to take place before we can think of the yuan in those terms. latest still ahead, the indication on japan's economy when trade numbers are released later this hour. we will have immediate reaction live from tokyo. jp morgan expecting or strain central banks to ease. we will talk about its investment strategy. this is bloomberg. ♪

betty: you are watching "daybreak asia". yvonne: a quick check of business flash headlines. of hong kong stock exchange bringing back a closing auction for the first time in seven years. the new 10 minute session will feature a random close in the final minutes. some brokers oppose restrictions on amending orders.

closing options are a staple of other markets designed to reduce volatility and manipulation. it plans to boost staff at its u.s. securities unit by 60 people in the fiscal year, including hires for the underwriting business. bigger slice after winning from royal bank of scotland. iron shore ipo after concerns of financial strength. the insurer has put forward an offering of $100 million, proceeds going to the chinese conglomerate who bought it last year. shore has been assigned a negative outlook because of the drag of the credit profile and high debt leverage. i look at some stories we are following. manchester united and manchester

city are going head-to-head at national stadiums in beijing monday night, the first time in 135 years that the derby is being held outside england and comes with china ramping up investment in the sport. earnings season gets underway in japan on wednesday with nintendo one of the first numbers willnow not reflect pokemon go. shares surged to record highs in the last few weeks, but nintendo had been struggling to adapt to the smartphone gaming market. struggling no more. panasonic reports friday, trying to expand sales. it is said to be targeting 60% growth and asian sales outside japan by 2018. boj makes its latest monetary policy decision. whethers waiting to see

governor kuroda may announce a fresh wave of economic stimulus. japan's growth and inflation forecasts are also due to be updated. the key events this week with laura fitzsimmons. she joins us live from sydney, australia. the biggest thing we are looking at may be the last thing we are looking at, which is the boj meeting. what are we expecting? everything short of helicopter money from the boj? >> that's right. going tonk that we are get another round of easing friday. essentially, j.p. morgan expects the size of it to be increased to $100 trillion in terms of asset purchases. we are also expecting a cut in the and it will be trillion -- interesting for the markets. fiscal stimulus is obviously

what everyone has been talking about. we only expect a package of about ¥10 trillion. i think expectations generally and the market were around ¥20 trillion, so probably on the low side, therefore a strong risk of disappointment this friday. also, going forward over the next few months, we think dollar-yen will be on the decline back towards 100. betty: what does that tell you then? the immediate reaction, what is priced and exactly in the yen right now? >> that's it. i would say market expectations are around that 20 level, but there was further dollar-yen buying on the back of that nikkei report that it could be as much as ¥30 trillion. in terms of extra asset purchases and increasing purchases of etf's and all those things, that is what he much

consensus. theess the problem is if boj under delivers, there is a lot of positioning out there and therefore we could see a big selloff. prize or could be as a big disappointment. i want to talk about the fed. be a surprise or big disappointment. i want to talk about the fed. if you take a look at what traders are pricing in, but what about currency markets? do you think the markets in forex are underestimating a move right now? >> yeah, i think they are. we have seen markets repricing to some extent in the last few weeks as the u.s. data has started to improve and we had that good non-farms number after the shocker in may. people have been repricing. at one stage we were looking at

cuts being priced in, but clearly most clients with, that was not their expectations, but the market was a long way in pricing hikes again. we do expect the fed to resume hiking in december, at view shared by many on the street. if the data does continue to improve strongly, then that could be another one for contention. does not feel it like it given the proximity of the u.s. elections. we feel that december is the most likely outcome. betty: the renminbi, we have seen them defending this level. strengthening the fixing when the dollar rose, is that a concern to you? >> i mean do i have to admit that this has gone off the radar. yeare beginning of this and august last year obviously, there was plenty of volatility and focus on the renminbi, but it has been more of a slow burner.

wyman most people expect to see gradual appreciation, it's not something they are position for at the moment. betty: thank you so much. j.p. fitzsimmons from morgan talking to us about the big central-bank meetings is week. still to come, austria six strengthen currency weakness. dollar, why it would be advantageous? this is bloomberg. ♪

betty: this is "daybreak asia". am yvonne man in hong kong. suggestions that the aussie ,ollar could slide back to $.80 i focus on the reserve bank. those comments were made on the sideline of the g-20 meeting and china. let's get over to paul allen in sydney.

interesting comments from the treasurer. i want to show this chart of how forecasters are looking at the aussie dollar. quarter forecasts are divergent from where we see things now. so why is the treasurer relaxed about the aussie dollar then? paul: treasurer's typically are relaxed about the dollar in australia. the former treasurer, could never get an answer out of him. he was responding to suggestions from amp that the aussie dollar could climb back into $.80. scott morrison saying follow till to be expected as part of being in a transitioning economy. inobviously the range it is has been advantageous for us,

and that strengthens our position in regard to markets, in particular exporting. we tend to not get ahead of ourselves. we see how things play out. it would be helpful to maintain a position roughly where we are. scott morrison making those remarks on the sideline of the g-20 over the weekend, where he says growth remains the key challenge. yvonne: two years ago, australia was chairing the g-20. the former treasurer lau did an agreement -- lau did what happened there? separatethousand pleasures were made on infrastructure investment, tax, competition, all designed to add $2 billion to the global economy. according to the imf, the global economy has shrunk by $4 trillion with christine lagarde saying implements nation --

saying implementation is difficult. so once again the gulf between words and deeds evident. betty: thank you so much. much more ahead,

♪ betty: it is 7:30 p.m. sunday evening in new york where markets closed pretty hot. iron at a record. yvonne: yes, pretty hot here in hong kong, temperature wise, 70 1:30 a.m. monday. 30 minutes away from the first major market open in the region. betty: i am in new york and you are watching "daybreak asia." yvonne: let's go to first world news. have expressed concern about a ways of globalization sentiment and pledge to double down and defended the group's core principles, meeting in china one month after the u.k.'s grexit

vote to promote inclusiveness and growth. verizon is set to buy core assets for $4.8 billion. the announcement comes before monday trading begins in new york. the deal was sent to include yahoo! assets with some intellectual property to be sold separately. yahoo! will continue to hold stakes in alibaba and yahoo japan. a report is casting doubt on the yuan ability to achieve haven status for investors. it's relative value had fallen as record market volatility increased. global news, 24 hours a day powered by more than 2600 journalists and analysts in than 120 countries. this is bloomberg. yvonne: thank you so much. a lot going on. let's check in how asian markets are set to start this week with

a new trading week ahead on this monday morning. this is what we woke up to one saturday morning, pretty good buying across the screen from the s&p 500 with record highs. you can see the asia index closed time which is great news for our region, of 4/10 of 1% in the china-u.s. index up 2/10 of 1%. it is going to be a big week in terms of the boj in the fed really taking into stage. we have seen a little bit of a push back into some of the safe haven assets as well. ig markets saying that is a growing feeling that the risk rally we have been seeing lovely could be running out of steam. looking at the futures market, a bit of an upside on the nikkei futures. australian futures pretty flat. i think the reason we are seeing the flatness in sydney is because the little bit of weakness come through the mining and energy players today. betty: how about commodities?

>> well, we have seen a little bit of a downside in terms of the credit contract. m down 7.2%. day ter we have seen a lot of oil rigs come back online and they are far outweighed demand at the moment. the number of oil rigs in .peration rose by 14% if we have a look at the crude contracts of the moment, it is slightly higher in the asian session. there is a little bit of did coming through. lower, down by 3.6% in now holding a $55. yvonne: we are mentioning, you have central-bank meetings this week, lots of economics in numbers as well. how will play an asian trading market? >> it absolutely is going to be the boj and said --fed.

we are waiting to see what the business package from kuroda is looking like. outlso have japan trade due shortly. we are expecting a surplus up from the prior month's deficit. that is even as we see the yen appreciation. betty: thank you so much. finance ministers and central bankers have stepped up emphasis on fiscal and structural policies in boost of monetary policies. a report where the finance chief met this weekend. give us a sense, is there a sense of the central bank could be running out of firepower here? sensety, that is the among many policymakers over the last few days. they are concerned there is a

growing level of impotency when it comes to central banks and somewhat want to the boj and its failure to meet that inflation target by some distance. they point to the relatively weak growth in europe. we spoke to the president of the world bank who said, yes, he does think effectively that the time is running out for central banks when it comes to the monetary policies and just how effective those are. take a listen to what the president has to say on this. how far can you go with negative interest space? >> some $12 trillion of government bonds are holding negative instruments. who would've thought that would be possible? soon they are going to run out of instruments, and so the countries and nations that do not fiscal space, they will slowly move toward stability. >> the president pushing for

more fiscal support and structural reforms and saying that many countries now have the wiggle room to spend more to support. it was not that long ago we talked about the whole austerity today. it was not really on the table at the meeting over the last few days. you do have countries like australia focused on cutting the deficit that the scope support that they are in the minority. yvonne: you mentioned earlier about global growth brexit issues that were raised, what else is worrying the g-20? banks are a concern. anditalian banking crisis just with the italian government is going to do. there is a debate as to whether they bail bond holders or they use public money to bail out those banks. that is a debate in the deal that is still being worked out with some concern. many finance ministers were keen

to point out there is very low risk. they set other european banks will remain fairly solid. there is concern about turkey and the attempt to coup and the fall out of that, and turkey wanted to get a lining of said work into the market. the europeans push that aside and said, no, we are too concerned about what is going on with this crackdown after the attempted coup. a couple more concerns discussed at the g-20. yvonne: thank you so much. joining us live. the democratic party's chair is stepping down after claims of political bias. debbie wasserman schultz is resigning after wikileaks released e-mails suggesting dnc staff try to undermine bernie sanders during the primaries. she said she had made the right decision. ago told you a long time running anc was not

fair operation, that they were supporting secretary clinton, so what i suggested to be true six months ago turns out to be in fact true. i am not shocked, but i am disappointed. megan murphyberg's has been following all of the developments out of philadelphia. how significant is this? >> it looks like it is a battle as to who can have the worst start to the convention after last week as he fireworks with donald trump. the democrats will start with their own convention looking to have unity between the bernie sanders can't and hillary clinton can't and we have "daybreak asia essentially --debbie wasserman schultz essentially forced to resign. supporters of bernie sanders long suggested that she was supporting hillary clinton for the presidency. it is stunning, remarkable. tonight, we have a party disarray going to the week where

they need to solidify party unity. betty: is that going to affect the convention at all this week? >> it is already have a huge material impact and it will hang over the convention all week. debbie wasserman schultz is an incredibly divisive figure. many thought she should have accident months ago when the accusations surfaced and instead, the e-mails of the latest hammer blow. very big deal. this is someone who is a leading , a spokesman for the dsa, out there in front of has been a very visible figure now she not only can it be -- is either going to be allowed to participate in the convention. yvonne: remarkable indeed, and wanture the clinton camp the public and press to be focused on her chosen running mate, tim kaine. that is what they want to focus on, i imagine. so far, what has been the reaction to his selection as the vice president? >> people here are shocked on

the event of today and what is happening with debbie wasserman schultz, but tim kaine is bringing controversy from the not aso feel they are advocate of blocking free trade as they are. we have a ton of bernie sanders supporters protesting closer to the arena, six miles closer to where we are now. a lot ofhere he has support, among the bernie wing, he is not a popular figure in the expect them to make their voice heard as much as they can this week. betty: thank you so much. megan murphy at the democratic national convention as it kicks off this week. much more ahead, the bank of japan facing big expectations to add stimulus. look around the deliver that -- will kuroda deliver the? this is bloomberg.

♪

yvonne: you are watching "daybreak asia." betty: a quick check of the latest business headlines this morning. the chinese owner of the brand is planning a domestic ipo by the end of next year. they are i-8 a $5 billion evaluation in this chosen the chinese bank to help with the so. it joins a long list of chinese retail closers. --clothers. yvonne: competitors rank them an aaa holding. they have until august 21 to fully announce their bid. the offer could be worth about $4 billion. william hill has been struggling to boost growth as it continues to underperform in online sales. betty: the latest installment of

the rebooted star trek series top the north american box offices with almost $50 million in ticket sales. paramount's star trek the on knocked the secret life of prts from the top spots. --pets from the top spot. star trek is good news for confidence as it tries to sell its stake in fairmont. does paramount. it is kind of like watching the movies. a big week for the central banks in the boj set to make policy decisions within three days of each other. we are joined by the executive editor for global economics. we hope it does not turn into a horror movie. let's start with the fed. a lot has happened since we had the last meeting 60's here. what we expect -- six weeks ago. which we expect? >> unlike last time, there is no

press conference, no new forecast. we will have to wait two months for that. expect overall a little to change, and opening paragraph double acknowledged economic policies domestically, but will also give euphemistic references. betty: we have heard that repeatedly. a lot has changed in the sense that we have had brexit happen and expectations went down all the way to zero and is now back up to 50-50. do you believe any of that is affecting the said at all --fed at all? >> it is part of the . internationalue and domestic policies in a framework? brexit is the big international thing since the last meeting. domestically, we had a payroll report for june. between this week in the

september meeting, we have two more reports in two months of everything, practically. have not stand fisher been out and about lately. the chair has not spoken since the last day of omc. scheduled to speak at jackson hole and that will be a big one. we are looking forward to the installments of the next couple of weeks as to how this influential group is thinking. yvonne: let's turn to the boj because there is a lot of debate this week. overwhelming majority think of you has to do something. what type of action are we expecting? >> you are right in the sense that kuroda likes to surprise but a failure to act might be one surprise to many. we are looking at one or a combination of the following, bond purchases, in increase in

the etf's and perhaps the more controversial, a server move into negative interest rates. one or a combination of those things, which is so we are clear, kuroda's surprised by not acting would be a major shock. yvonne: there has been a lot of speculation about helicopter money and kuroda did rule that out this weekend. is it really that simple? as you mentioned, the guy really likes a surprise. >> he has set a couple times the last months and then again this week, it is not necessary, and by the way, the for bidding thing is technically true, but it is somewhat incomplete. it is a bit, do not forget the prime minister came off of a very successful upper house election. ,e already has a big majority and laws can be changed. i do not say that is what is going to happen, but that is not prohibited. it is kind of incomplete. yvonne: thank you so much.

our executive editor for global economics. betty: up next, latest trade data released in just a few minutes. we will have the numbers and reactions of martin schulz. this is bloomberg. ♪

betty: let's bring you breaking news of japan were a trade effort has been released and we have the details. >> exports, imports for june not as bad as expected. we were expecting a drop. exports fell 7.5%. imports fell just under 19%. you put the two things together and you have a fallout larger than expected trade surplus of just under ¥700 billion. taking a look at the seasonally

adjusted number, 30 ¥500 million -- bigger than forecasted. exports fell, but the ninth trade we have seen of shipments of japan fall. imports is what we're looking at closely. the price of oil coming down, so we are looking at how the stronger again and cheaper oil are upsetting each other. way throughl the last june. i want to have a look at how the japanese yen actually traded. again, other currencies in the region. june was one of the "bes months in years and gained over 7%. it gained against everyone except brazil. the yen basically gaining against everything major out there. last time i checked, it was still of.

this is a trend we are seeing over the past few years. there you go. it was a breaking story. that is one part of the story. the other part, something beyond the control of japan, where you look at the external environment across asia. exports have been falling, not just in japan. look at south korea, taiwan, singapore. if you took a snapshot of how exports were doing three months back, they were doing much worse than expected. if you're looking at how it is doing right now, a little bit less discouraging. yvonne: let's get reaction to this data from martin schultz at the research institute who joins us live from tokyo. martin, what you get from this? is this a temporary trade surplus, given the fact that brexit not exactly reflected in the june figures? >> brexit is not in it.

that is important of course, but what we have spin see is basically making out of the ing trend, more positive developments in asia with expansionary policies on the ground. we are looking to see which way they are going and looking pretty good. japanese trade seems to be in positive territory. yen is supporting it overall. yvonne: do you think that we do have stronger yen and the brexit shock that the trade is going to swing back toward the deficit? >> yes. we have already seen how strong the yen can become in between, in particular when there is spending overseas. the yen is pretty strong. at this point, a lot more

pressure on the policymakers in japan. yvonne: that is right. if it delivers or disciplines, what impact did that happen the currency? well, in japan, to get the economy moving, you need to try stuff ise big level much as possible. be the fiscal stimulus, the government policy, how much moving with a be driving the economy? it is shifting from monetary policy to fiscal policy. this is the big debate right now. domestic demand will be supported from this year by government spending and investors are positioning themselves here. betty: martin, we were expecting a similar theme from an analyst from jpmorgan, believing that the markets maybe overestimating

the amount of stimulus coming out of japan and the fiscal --kage around 20 try on trillion. will that be a disappointment if they do not deliver on that number? >> delivering on that number means to put everything together. these are currencies for overseas assistance. all of this will have a major impact on the economy this year. if we see freshwater in terms of government spending up to ¥2 billion that would already be a high number. 0.1% to 0.2%round additional growth domestically. it depends on how much the government is moving. clearly on track to do so. margin, it is interesting,

because you care a lot of people talk about the number and size, not so much on exactly what they should be doing. in your view, what could or should be a part of this fiscal stimulus package that is not talked about right now? >> well, the big talk is about the big numbers and that means big projects. these are long-term infrastructure projects, fiscal spending, fiscal pump priming with the government needs to do and what it likes it. what is necessary is going on with the reforms, improving the infrastructure of the city centers, health care, moving on with a really big ip packets to get the economy moving. this is where the government to do a lot of work. betty: what about an

out-of-the-box idea? >> an out-of-the-box idea would be, bank of japan in the government is now, well, not starting to fight about fiscal or monetary policy, not talking about helicopter money, which is really dangerous talk for the bank of japan, now moving on a whole package of measures in the government focusing on smart fiscal spending which would lead to demand in the economy. betty: certainly a tough task ahead. economist the senior at the research institute. you have a big day ahead of you, and they trading day. it is the end of the day in new york, and we will be following you when we wake up tomorrow morning. yvonne: looks like we could see some gains as the futures are

tipping toward this right now as we start the trading week. flip. the yen slipped -- we will see how things

♪ >> boards in a storm, japanese trade in surplus ahead of the boj meeting likely to ramp up stimulus. , a $5nner is verizon billion to buy yahoo!. the yencats doubt on ahead of it joining the imf global reserve. democratic disunity, the party chair to quit over claims of pro-clinton bias.

we will be live in philadelphia. fromme to "daybreak asia" hong kong and streaming on mobile and bloomberg.com. happy monday to you. i am in yvonne man. we have that record high it from the s&p 500 on friday, and asian markets are taking the cue and running with it. the risk on rally continues. the nikkei up 2/10 of 1%. importantly, that surplus in june to beat estimates. coming online --kospi coming online. , a bit offlat downward pressure in some commodity players. that is where we could see some weakness. have a look at new zealand. it rallied last week to a record

high, up a quarter of 1% on early trade. it is holding on to record highs and is showing that bullish sentiment across asian equities. show you theo currency movers and commodities week are watching. -- we are watching. it is all about dollar strength. the dollar pushing through that 106 handle to the japanese yen, the japanese yen weaker by 2/10 of 1%. that is one symbol of the fact that though we have been seeing risk on rallies and equities, we are seeing movement back into safe havens as well. the crude price had a bad week last week. we continue to see oil rigs in the u.s. come online. thee is not the demand for supplied that is there, but in the early asian session, crude up by two tens of 1%.

big story, to hear from verizon, a takeover of yahoo!. 1%oo japan up for tenths of in the early session. yvonne: thank you so much. japan just released its latest trade numbers. it seems like this was relatively better than expected. it was an improvement from may. you look at the size of the surplus, deficit and ¥40 billion in may, obvously a lot of change from may to june, currency moves, price of oil. , -18%.ort number a lot of that has to do with cheaper import prices. when you lookg is at the export number, it was much better than the most bullish forecasts.

we were expecting a drop of 11%. what we got was -7.4%. phil age route, not as bad, but you look at the trend, nine straight months of decline in exports there in japan. if you put everything together, and we do have a yen that are stronger, oil that dropped to , it offset one another, so the trade surplus was much bigger. just under ¥700 billion. yvonne: exports may have hit a possible bottom, but the fact we continue to see it in contraction, this is beyond japan's control. david: it is. it not just gained against the

dollar, but against every one of japan's peers, except the breeds in -- the brazilian currency. it still continue to strengthen. exports to china fell 10%. that is japan's biggest trading partner. exports fell across the board with the exception of india. if you took this graphic three months ago, you would see double-digit drops, so there is an improvement, but it is not significant. yvonne: do think this latest data will push the boj to do anything? would the only thing that move the needle, and we saw that over the weekend on friday, is if they do helicopter money. there are legal complications to that. the yen strengthened 2105. they are going to print more

money, but then want -- what? the amount of investment is still not back tprecrisis levels. atthat point, when you look that metric, if you don't move the needle on that, you don't get wage increases, spending, corporate's looking inside to expand. they are looking outside. yvonne: it looks like they may have to push inflation growth targets once again. thank you so much. talking about trade figures out of japan, a little better than expected. first word news. the democratic party's chair is stepping down over claims of political bias. threatens party unity as the convention opens in philadelphia. debbie wasserman schultz will quit after the convention, wikileaks release of

e-mails suggesting dnc staff worked to undermine bernie sanders during the primaries. both hillary clinton and president obama issued statements calling debbie wasserman schultz a friend. has forcedd china more than 300,000 people from their homes, leaving 114 dead and 100 missing. it is china's worst flood damage 53,000 houses destroyed. direct losses at $2.5 billion. economists say third-quarter economic growth could be cut by .2%. asean foreign ministers have a paired -- not released consensus.

on sunday, he held talks with his counterpart from myanmar. the turkish prime minister has rolled out early of elections, saying the government plans a multibillion-dollar infrastructure fund to keep growth on track. the government is trying to limit the economic fallout from the failed coup. the purge of those accused of involvement is nearing an end. saying to global investors, this has come and gone, and the national will and the will of the citizens has destroyed the plotters. life is back to normal in turkey, and you can continue your long-term investments. we will it eliminate obstacles before you. we are laying out the turquoise carpet in front of investors. we have all kinds of tax incentives, investment incentives, and we are giving priority to value-added investments. news 24 hours a day

powered by more than 2600 journalists and analysts and more than 120 countries. this is bloomberg. you so much. g 20 finance ministers and central bank governors have reiterated a pledge to use all policy tools to boost confidence and growth falling a two-day summit in china. that's where tom mackenzie is right now. good morning. what were the key concerns voiced at the summit this weekend? absolutely the top of the agenda was week global growth and what to do about it. sentiment at going the negative sentiment we got from the imf when it downgraded forecasts last week. the imf talking about briggs it being a spanner in the works, and briggs it has been a big topic here. about what many see as rising anti-globalization sentiment echoed in the boat in

brexit -- vote in brexit. trump is the rise of the presidential candidate for the republicans. we caught up with the oecd secretary-general and the president of the world bank and ask them what their views are on the global economy. take a listen. >> we have wanted to give good information, good news, to people for a long time, but unfortunately we keep having to downgrade. it is understandable and this context. we thought the u.s. was solid, the eurozone seem to be getting better, even japan seem to be doing better, but then of course areit was a big hit, and we still trying to understand exactly what the implications are, but it looks like global growth will be disappointing again. >> we will renew our projections in september. then we will go country by

country in november. unfortunately, i think that we are going to have some weaker performances, especially in the european theater. brexit, but in general the recovery has been weaker than we thought. >> given those sentiments, the focus shifted on how to tackle the slowing global growth, what tools were at the disposal of leaders here, fiscal stimulus and structural reforms were key components of what many here see are needed now to spur global growth and less reliance on central banks and monetary policy. yvonne: you mentioned brexit. do we get any more details on when britain might start negotiations to leave the eu? britain's new chancellor of the exchequer, philip hammond, was in much demand over the last

few days. he gave a presentation to give his colleagues some kind of assurance and clarity on what are the next steps, but it is crucial that we don't know when they will trigger article 50, which then starts those two years of negotiations. we did hear from the european union commissioner. he told us time is of the essence and thinks we will hear exactly when that will be triggered and september. we also expect the french , he also sayser he wants clarity on this, that he wants to hear that article 50 will be triggered at the end of this year or beginning of next year at the very latest, so time is of the essence. that is what the eu emission are as saying, the french foreign finance minister is saying. they are also saying we have to give the britain's a bit of time to work out their position. what everyone here says is that they need some clarity on the timetable to assure the markets

and assure investors as well. yvonne: thank you so much. tom mackenzie live from china. still ahead, growing expectations to expand monetary stimulus from the boj. will governor kuroda surprise or disappoint? we will ask ig markets next. this is bloomberg. ♪

>> breaking news, stock movers out of tokyo. mcdonald's japan falling 10%, the most since march 2011. waiting for nintendo to trade after comments made about the pokemon go, the affect it has spread worldwide. the company saying the impact may be limited to the company. that's probably why we are seeing a pullback today in japan, falling 10%. a quick check of business flash aadlines, will worths --

pretext charge of seven and $16 million from its real organization. the company planning to cut back supply room and supply chain roles. is writing down assets and slowing new store openings. hiring for bond underwriting on wall street. it plans to boost staff at its u.s. securities unit by 50-60 people this year. that will include hires for the underwriting business. the japanese country one a bigger slice last year after adding bankers from royal bank of scotland. ironshore hasany filed for an ipo. it put forward an initial

offering of 100 million dollars, proceeds going to the chinese, glamour the bottom it last year. a ratings firm has assigned ironshore a negative outlook 's creditf fosun profile and high debt leverage. back to the markets, shares slightly up in asian trade. investors looking ahead to big central-bank meetings this week. happening on friday. the dollar-yen, some weakness, a quarter of 1% down following a 3% bounce on friday. also, trade figures out of japan did show that figures were slightly better than expected. a trade surplus back into positive territory. oil futures up 4/10 of 1%, dropping for a third day to the $44 a barrel mark. , 1321 pery much flat

ounce. with chris weston from ig, chief market strategist there, live from melbourne. ,e talk about fiscal stimulus it may not be forthcoming as markets had expected. could we be in for profit taking this week? there are two separate instances here. if you look at the market internals and hong kong, 86% of companies close on friday at four week highs. australia, 90 2% of companies trading above their 20 day moving average. markets are pricing in exuberance and the trend is higher.

what will happen from the bank of japan, a separate issue entirely, which sets us up for disappointment potentially. we will probably get an announcement of a fiscal stimulus, whether that is ¥20 trillion or ¥30 trillion, that is what is priced in. course, you have the monetary easing side of things. there is a whole playbook on how that will end up. there is a chance we could see further etf and jgb buying. these markets are prying inquiries a lot, and i would not the surprised to see a pullback. economist thinking the boj has to do something. percentage west have seen since governor kuroda made that first decision three years ago.

what does the fiscal stimulus mean for investors? will we see significant change in terms of where the bond market will go? >> i don't think so personally. has been a reasonable pickup in overseas funds going into the japanese bond market to take advantage of, front running further asset purchases. you have not seen much pickup in inflation expectations. i think this to me this will be on the infrastructure side of things. toon't think it will move much in terms of japanese equities or inflation expectations. we won't need to see something big from the government. on the monetary easing side of things, well, as i said before, depending on what we hear and the devil will be in the detail, it will depend on what happens to the japanese yen. my base case is we won't get anything on deposit rates.

i expect we will see increased etf buying to the tune of ¥6 trillion. i would not be surprised to see more on the jgb side of things as well. a lot is priced in. the bulk of economists surveyed are calling for this. will we see more? will they give us an explicit recommendation? if we see simultaneous fiscal and monetary easing. money is of helicopter firmly in the cross hairs. if we do see boat these measures failing to pick up market inflation expectations, does the market haven't since we will see changes potentially to the various laws there. they can monetize and

effectively fund the government deficit there. is your take on governor kuroda's comments at of g-20? he reiterated that helicopter money is prohibited in japan. we know he likes surprises. he did the same thing during davos, saying he was not going to go to negative rates, and then he did it. how will we age all of this leading up to the meeting? >> i think you make a great point. this comes down to credibility. i think what it does show you is that the appetite for helicopter the governmentat level and a central level is very low at the moment. a nikkder this to be

topix put. a scarcity ofusly bonds. did they do now? that's when we start seeing markets pickup and start rallying on the idea we will see helicopter money. as i say, i think those g-20 comments show that governor kuroda has a low appetite for doing that right now. yvonne: we will leave it there. thank you so much. up, verizon closes in on yahoo!, what we know about this multibillion-dollar deal. this is bloomberg. ♪

yvonne: breaking news, nintendo 15%.s heading south, down

now they are saying this game that could have an impact limited to the company, so shares falling significantly. mcdonald's japan falling as well. verizon said to buy yahoo! for $4.8 billion. a source says the announcement could come before monday's trading starts. verizon will pay close to $5 billion for core assets that may include real estate, and some intellectual property could be sold separately. yahoo! stake in alibaba and yahoo japan, worth $40 billion, will remain. neither company is officially commenting.

yahoo!, it ends marissa mayer's efforts to salvage the company as a standalone and ends months of alternative searching. for verizon, it is a clear strategy shift. analysts say they are trying to monetize wireless in a new way. advertisersrging for eyeballs. horizon will keep yahoo! in tack to -- in tactic to compete with google and facebook. it could will -- well into the reign of marissa mayer. stocks for both companies gained 1.5% of the close on friday after bloomberg news reported the deal was close to completion. it comes to years after campaigning for changes that yahoo! began. yvonne: thanks so much. speculation could be over soon. next, hillary clinton's turn

to take the political spotlight this week. we will be live in philadelphia as the democrats gather for their convention, but we could see disarray. this is bloomberg. ♪

yvonne: it is 8:30 a.m. in singapore, a half hour away from trading there. you are watching "daybreak asia" . ♪ happy monday. i am it yvonne man. first word news. story, japanese exports fell in june, adding to concerns over efforts to revive the economy. , a trade surplus of

$6.5 billion. the yen has made exports more expensive. warnings that earnings will be affected. verizon set to buy yahoo! for $4.8 billion. the announcement could come before training begins in new york on monday. the deal is set to include real estate assets, with and lecture property to be sold separately. yahoo! will continue to hold stakes and alibaba and yahoo japan. g-20 finance cheese have expressed concern over anti-globalization sentiment and pledged to double down on defending the core principles. meeting in china one month after the brexit vote, the group renewed promises promote inclusiveness and boost growth. global news 24 hours a day powered by over 2600 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: thank you so much.

a check of early asian trade. we are in the green in the region. new zealand stocks at a record high. juliette: that is right. holding at its highest level on record. you can see buying right across the market open today. it is that are than what the futures were suggesting. this is after the s&p 500 hit that record high. there have been calls that this risk on rally could come to an end, but today does not appear to be the day for that. x 200 up, nikkei 225, surplus better than expected, up 4/10 of 1%. up by 4/10's kospi of 1%. there is only one sector in the red, telcos.

big story is pokemon go dominating market sentiment. nintendo coming online, quite a big plunge. on the open, down 15%. this is after it said pokemon go earnings impact is likely to be limited. that is what we have been hearing from analysts, unlikely that the bull run could continue for nintendo shareholders on the back of that one game. mcdonald's holdings coming under pressure, the company wants to tie up with pokemon go. in line withising nintendo, but falling as well today. yahoo japan, that tie up with verizon and yahoo!, so some upside to yahoo japan, up 7/10 of 1%. new chris mining down as it said gold output fell 6% due to a halt at one of its production

plants in indonesia. it is going to record a 766 million australian dollar charge on its supermarket restructuring, but certainly investors like the fact it is trying to get its books in order. certainly a lot of upside in terms of equities to kickstart the trading week today. yvonne: thank you so much. let's talk about japan, exports dropped for a nine strength -- straight month. whatis a smaller drop than economists had predicted. for more, let's go to jodi schneider live from tokyo. what is behind these numbers? out, ninthoint consecutive monthly decline. one analyst told us he sees it bottoming out in the export picture.

we were expecting an 11.3% decline. so it is better than that. concern though about it being down to a number of major trading partners. china, down 10%, japan's largest trading partner. 6.5%, and the eu as well, even though these numbers were before the brexit vote. it is the yen. the yen is the culprit here. the strength of the yen in recent months. like this isooks bottoming out somewhat from the previous monthly decline. yvonne: what does this mean then for the boj? especially as they meet later this week? >> that's right. all eyes are on any piece of data this week, and we will get more data before the decision on friday.

this adds to pressure, more weak data in a weaker economy as two more pressure on the boj. our survey of analysts showed 32 of 41 analysts said they expected easing, the highest percentage of analysts since governor kuroda came to the boj in 2013. there are a lot of expectations for easing, and the largest and most favorite method of that by analysts we surveyed would be an increase in the exchange traded fund purchases. we will be watching the rest of the data coming out this week. yvonne: a lot going on, including the fed meaning. thank you so much from tokyo. the yuan is tore be included in the imf a basket of currencies, a new report is can -- casting doubt on the ability to achieve haven status.

we have had a hold year of questions about the credibility of the yuan, and now this is a new setback on the currency. what this study finds is the yuan may have lost ground over the past five years. it tracks these progress made against some of these actual safe haven currencies. gain during uncertainty, measured against market volatility, and they found from 2011-2015, the yuan did well, but over the last year, it has lost some of that progress as volatility increased. has the -- the yuan performed quite badly. this of findings don't support the suggestion that the renminbi is a safe haven currency.

but more critically, it seems to suggest the notion that the renminbi is progressing is as -- in doubt as well. this comes a couple of months before it is officially inducted into that basket of currencies. that does seem that some of these requirements the imf cited when giving the nod for the yuan to enter the basket, including widespread use, it seems to be falling by the wayside a little bit. yvonne: to be fair, i don't think anyone considers the yuan to be a safe haven currency. it is an interesting phrase to be using an relation to the currency. some, just because

you are a reserve currency as the yuan will be, it doesn't mean you are a safe haven currency. there are a lot of things that need to be fulfilled before the yuan can reach that stage, reliability, transparency of chinese institutions, robustness of policymaking. this is still a tightly controlled currency. it is still within that trading band. all of these factors need to be taken into account in assessing the perspective of the yuan in terms of eventually becoming a safe haven currency. to pboc is still trying raise the rhetoric when it comes ntaining yuan stability. stability as paramount.

we heard from the deputy pboc againor over the weekend, saying china will be expanding its efforts to stabilize the yuan, and also working on improving cross-border and offshore yuan policies. by, thatad a risk five-day game, about 1% last week, the most since october, but keep in mind it was ahead of that g-20 meeting of finance ministers and central bank ministers. unusual to see stabilization ahead of a key global event. where does the yuan end up? 20 traders seeing the yuan ending 2016 at 6.7950. are likely to see stability at this level and they won't seek one way depreciation allowed by authorities in china. yvonne: interesting timing with

their one anniversary of that shocked the violation coming up. joining us live from shanghai. the operator of the hong kong stock exchange bringing back a closing auction for the first time in seven years. from monday, the 10 minute session will feature a random close in the final two minutes. some brokers are said to oppose restrictions on amending orders. closing options are a staple of every other developed market designed to reduce volatility and manipulation. russia's olympic team has avoided a blanket ban from the real games, but individuals will have to meet extra anti-doping conditions. they i oc says it respects the rights of those who have not broken the rules, but critics say it passes the buck to governing bodies of individual sports. russia is accused of running a state-sponsored doping program and its athletics team has been barred from rio. his first state of the nation address on monday, the

communication secretary says he has written the speech himself and it will awaken the patriot and every filipino. a freedoment signed of information order, giving the public access to government records as part of his pledge to fight corruption. stateside, the democratic party chair stepping down over claims of political bias. it threatens party unity as the convention opens in philadelphia. debbie wasserman schultz is resigning after wikileaks released e-mails suggesting dnc staff tried to undermine bernie sanders during the primaries. sanders said she made the right decision. >> i think, i told you a long was not that the dnc running a fair operation, that they were supporting secretary clinton, so what i suggested to be true six months ago, it turns

out to be true. i'm not shocked, but i am disappointed. now,e: let's get more tracking the developments out of philadelphia. what a shocker. how significant is this? >> this is a big deal. the democratic party wanted to gather this weekend show real unity. we have seen bernie sanders endorse hillary clinton, a sign would becrats harmonious and they would get behind her, then this dropped. bernie sanders is in a strange position where he for a while has said they were being unfair to him during the primary process. speak tomorrow night in support of hillary clinton at the convention, and yet he can't help himself. he has to come out and say, i told you so. the question is not how bernie sanders will react, but how his

delegates will react. there are a lot of people who felt like they got robbed in the primary contest. yvonne: everybody will be listening to what sanders has to say in philadelphia. we also saw some of the news over the weekend when clinton did announce tim kaine as her running mate. the focus should be on that. what has the reaction been so far? >> hillary clinton and tim kaine appeared in florida this weekend. can't imaginey, i it going any better for either of them. he talked a lot about his biography, the mayor of richmond, the governor of virginia, and now a senator for virginia, and all the different experiences he has had throughout all that. she came out and focus the event clearly on him and his past. an ability to attack republicans, coming out strongly against donald trump, so a lot of people thought tim kaine was

a safe pick, but he showed he will be a good running mate this season. yvonne: we will see how things go. thank you so much. the australian treasurer says a weaker aussie dollar is helping the economy. we will hear from him next. this is bloomberg. ♪

yvonne: a quick check of the latest business flash headlines. ms. 16 may look to list in asia. planning a owner is domestic ipo for the end of next year. trending international is said to be eyeing a $5 billion valuation and pick the chinese bank to help with the sale. it joins a long list of clothing retailers that have funded expansion by selling shares. william hill may be facing a takeover. say they are considering a joint offer for

the company. they have until august 20 12 formally announce their bid. the uk's sunday times says the offer could be worth $4 billion. william hill has been striving to boost growth as it underperforms in online betting. installment of the star trek series topped the north american box office with almost $60 million in ticket sales. paramount's star trek beyond not the secret life -- not to the secret life of pets from the top spot. ek's win is good news for viacom. g-20 finance ministers and central bankers have stepped up emphasis to boost growth. let's bring back tom mackenzie in china, where the finance chiefs have met. give us a sense, are central banks running out of firepower.

there seems to have been a consensus articulated over the last few days that there has been an over emphasis on central-bank policy, monetary policy, that they have been doing too much of the heavy listing. the boj is far from their inflation target. some would point to the ecb as well. unorthodox policies are coming -- what isof their available for central banks. that is a concern among people here. the a listen to what central bank president had to say about that. how far can you go with negative interest rates? ofsome $12 trillion government bonds now are held in negative instruments. who would have thought that would be possible? soon, they will

run out of instruments, and so the countries and nations that do have fiscal space, i think they will slowly move towards more fiscal stimulus. tom: that focus on fiscal support and structural reform. doing aseen from japan next her a, and britain as well. britain's chancellor of the exchequer suggested the u.k. government could look at easing the fiscal space in the u.k. as well on the back of brexit. jacob lew saying that the focus is on fiscal support rather than austerity, in the minority of germany and australia. the austrian government still focused on cutting deficit instead of fiscal support, but the consensus is more spending is needed to prop up growth and accompanied the support from

central banks. yvonne: you mentioned global growth? concern, a was a discussion point, and the ramifications of the attempted coup. the turkish delegation wanted to get a line into the final note that came out at the end of the summit, the final communicate -- communiqué, a line of support from them. they block that because they are concerned they have seen. -- concerned with the crackdown they have seen. whether or not the italian government and european commission come to some kind of deal, and stress tests for european banks on july 29, all also in focus. yvonne: thank you so much. the bears are out in force when it comes to the aussie dollar with expectations of further

cuts to the cash rate. for more let's get over to paul allen in sydney. speaking on the sidelines of the g-20, we heard from finance ministers over the weekend. australia's treasurer seems reasonably relaxed about the aussie dollar. why? paul: australian treasurer's typically are. getmount of prodding karen him -- can get him to say much about the aussie dollar. saying theekend, amp aussie dollar could climb back to $.80. a bloomberg survey of 76 economist see it at $.71 by year in. scott morrison was responding to that and saying volatility is to be expected and all part of being in a transition economy. >> obviously the range it has been in has been advantageous for us.

strengthens our position in the global markets, and the tickly for exports. we tend not to get ahead of ourselves with these sort of things. we see how they play out. we would be hopeful to maintain a position roughly where we are. a keyscott morrison says challenge for the g-20 remains growth. yvonne: two years ago, australia was caring the g-20. -- chairing the g-20. that leave them right now? what happened to that? paul: i remember that well. many commitments were extracted. where are we? the global economy shrank since then, once again illustrating the huge gulf between fine words and good intentions and trying to implement them. paul allen live from

sydney. we will see where the aussie dollar goes. still ahead, the boj makes its latest monetary policy decision. we will look at what else investors are watching. this is bloomberg. ♪

yvonne: let's take a look at some stories we will be following. a big match, two of england's are goingll clubs head to head at the national stadium in beijing monday night.

it is the first time in 135 years that the derby is being held outside england. it comes with china ramping up investment in the sport. earnings season underway on wednesday in japan, nintendo the first report. those first-quarter numbers will not reflect any boost from the pokemon go phenomenon. because of that, shares plunging, down 16% in tokyo. mcdonald's japan also down. shares have been struggling to adapt. panasonic reports friday. it has been trying to expand sales and china, india, and indonesia, said to be targeting 60% growth and lighting sales outside of japan. that's according to the nikkei news. plenty to watch with the boj and focus as well as the fed. that is it for "daybreak asia". "trending business" is next.

what's coming up? rishaad: looking at the g-20 communiqué. we will have a little analysis on this and look at the strength of the dollar. looking at what is going on there, currencies generally. we are also having a look at to what the boj does this week, with many expecting governor kuroda to expand the stimulus program. hong kong closing auction could be set to make a reappearance as well. apple versusing at chinese smartphone makers. "trending business" for the next two hours. ♪

♪ rishaad: it is monday the 25th of july. this is "trending business". i am rishaad salamat. ♪ rishaad: we will be calling in on sydney, shanghai, and tokyo. regional equities set to start the week higher. andcy meetings of the doj fed, the hope of further easing offering support although far you asians remain less than compelling. -- although valuations remain lesson compelling.