♪ anchor: polls close in italy after an election marred with delays and confusion. also unlikely to produce a clear result. the advisors of president defend his calls for terrorists -- tariffs. america's allies will not be exempt. endor: the boj signal the of the easy money era. >> and the chart of political and -- a potential trade war

looming. hello, from sydney where it is just past 9:00 a.m. this is "daybreak australia." >> kicking off the week in asia and ending the weekend here in new york. i am betty liu. we will be looking at how all of the action on wall street will play into the pacific trading day. we are waiting the results of the elections in italy. we have the national people's congress in china kicking off a lot of economic data to digest. including, at the end of the week, fridays nonfarm payroll reports. week --u can imagine a the week it will be for the markets. inuick check of the markets the u.s. on friday. you can see the mixed session as traders and investors are digesting the impact of the tariffs. the s&p closing 0.5% higher.

the nasdaq gaining. you can see some traction, up 1%. confusion in the equity and the bond markets leading to a more volatile session in asia. have our markets already open. new zealand has been trading for just over a couple of hours. looking like this. currently higher by 0.1%. the kiwi dollar also showing strength against the greenback. more of the dollar weakness story there. futures in australia pointing to the upside after a tapered end to what was a pretty tapered week. up by 0.2%. not a lot of change in the aussie dollar. the kiwi aussie prostrate is also little changed -- cross rate is little changed. and gold has been cashing in on dollar weakness. keeping an eye on the energy

stocks in australia as we want to underway in about an hour. the price of iron ore is also sinking. coming off ofnto last week. we will be getting a lot more on that story later on. first, the first word news. >> good morning. china's elite are in beijing for the annual session of parliament which will chart the course for the nation for the next 12 months. they will launch the congress with a work report and economic targets. this comes as strained relations with the u.s. they say they do not want a trade war but will defend its interests. south korea will send two high-level envoys to persuade the north to open talks with the united states. the visit is aimed at the

denuclearization of the divided peninsula as well as improving ties between north and south. seoul says it will brief the u.s. after the trip. europe and british prime minister has spoken to the first ministers of scotland and wales after her latest speech on brexit. she repeated her desire for a deal that would allow frictionless trade with the eu as well as ensuring no hard border between ireland and the republic. she still did not lay out how that would happen. merkel moves closer to a fourth term as chancellor with her official nomination by the president. to months ofnd political negotiation and paralysis. position strengthened when the social democrats voted to support her in a renewed version of the coalition. welcome turnbull will remain in power in tasmania after winning

saturday state election. sidelined byd been an extramarital affair involving his deputy. this will help his federal government which according to due to an election next year. global news 24 hours a day powered by our 2700 journalists and analysts in more than 120 countries. this is bloomberg. polls in italy's national elections have just closed. voters are divided over taxes, immigration and the relationship of the country with the european union. emery horton is in rome. in rome.arie horton is how soon could we see results? we just had the first exit polls. you need to take these with a grain of salt. what we need to know is about the projections which will come

out at midnight local time. polls, at the first exit we have a strong showing for the five-star movement. -- i am atther mean the party headquarters by the way for the five-star movement which is a eurosceptic party. it is calling for a referendum on the euro. this is an antiestablishment party and they have a very big showing especially in the southern region. the former northern league which is also showing strong results. depending on how the projections come out, the league could be the one to create a center-right coalition. headline are getting a with these exit polls coming in that the burlesque on a block is

leading the five-star party in the elections -- that the berles is leading the five-star party in the elections. staying on the five-star party, what is the sentiment? ahead of to some polls the elections, they seemed to have a chance to dominate. that is right. they could become the single in terms ofominates votes and getting the majority of votes around italy but new italian election laws forced -- force coalition. they need to get 40% of the vote and that is not likely to happen. they may be the biggest party in terms of electric chair, they will not likely be able to seek to form a formal government. and that is when berlesconi

becomes the kingmaker. he can either form a coalition party with some other right-wing parties like the league or he could potentially form a grand coalition. caretakerly have a government. they could form a grand coalition. berlesconi could have some options in coalition building but i need to stress that you need to take these first projections with a grain of salt. in 2013, the first projections were way off. the markets moved on it and they had to backtrack. at midnight, we get the first projections of actual votes are not the closing polls. we will then have a better picture of what is actually going on with the election here. we talked a lot about the migrant issue in italy. was that the primary issue that drove people to the polls?

definitely migration has been a big election topic here in italy and it is definitely one of the reasons why we could see people going to the polls. also, stagnant wages, jobs. although there have been reforms in jobs, people bought full-time employment. people are concerned with what this means for the european union. which party comes to party. markets have barely slid leading up to the election. it will be interesting to see, once we have a better picture, who could potentially govern, how the markets will react. so much.ank you our bloomberg news reporter covering the election and we will continue to watch those as we get more poll results. president trump continues to threaten a global trade war even as true -- trade negotiators continue to work on updating

nafta. mike mckee joins us now from mexico city. how does all of these threats from the white house affect the nafta talks? this is casting a shadow over the nafta negotiations but we are in a weird kind of parallel universe. in washington, they are talking tough. the sunday talk shows, the president's men went out and offered the old threats of further actions. >> the president has made quite clear that if it comes to a done deal or no deal, he is likely to opt for no deal. take a not need to terrible deal. the terrible deal is how we got here. mike: here in mexico city, the

work goes on. negotiators have completed a chapter on transparency and discussions on chemical industry issues according to people familiar with the talks. there are 30ugh chapters and there is a lot more to be done, there is some progress. u.s. trade representative arrived here this afternoon with his mexican and canadian counterparts. they will meet tomorrow to assess the state of the negotiations. they are running up against a clock. ex ago votes for a new president on july 1. the u.s. has midterm elections in november. while they have tentatively getchell and eighth round in washington next month, they may agree after that if they have not gotten further, to suspend the talks until after america votes. paul: it is very difficult to make predictions with such an unpredictable white house but what are the chances of the president just pulling out of nafta?

mike: as you say, with donald trump you always have to admit the possibility of anything. what republican members of congress including a congressional delegation that was here to meet with members of the negotiations, do not want this to happen. i am told that the ambassador was like to get a deal done. there is still hope that the talks can proceed despite the rest of what is going on in the world of trade. world of trade is a rather interesting place at the moment. we are all waiting to see if the u.s. starts a trade war. do you think that is in the offing? mike: it is hard to tell but among those very interested in finding out our mexico and canada because they are two of the biggest steel suppliers to the u.s. if the u.s. were to put tariffs on them and include them when the president signs the

thislation -- the measure week or next, they say they will impose tariffs. his people said today that they will be included. exemptionill be an procedure for particular cases where we need to have exemptions so that business can move forward. but at this point in time, there is no country exclusions. that case, who knows. the canadians, the mexicans, the germans, the u.k. -- they may impose tariffs. and we have not heard from the chinese who are starting their congress this week. , thank you soee much for joining us from mexico city. coming up next, we dig deeper into president trump's tariff strategy. it is the start of a

momentous fortnight for china's economy. we go live to beijing for what to expect from the national people's congress. this is bloomberg. ♪

♪ it is an overcast morning in sydney that futures are looking fairly bright after what was a quiet week last week. we are up 0.2%. the market will open in a little less than 45 minutes. i am betty liu and you are watching "daybreak australia." the trump administration is showing little signs of watering down the tariff plan despite the opposition from u.s. allies and lawmakers. joining us now is the center director for economic research, carl smith who is also a writer for bloomberg view. thank you for joining us. the markets are a little

confused. looking at the bond markets, how can we interpret these new threats? how economically devastating could they be if the -- if implemented? reporter: the actual steel -- the actual tariffs are not so bad. the biggest concern will be the effect on u.s. energy. u.s. energy infrastructure requires a large amount of steel. it affecting the consumer, that is not the biggest concern. the biggest concern is where this escalates and how it affects other trade arrangements, nafta going forward. even a month ago there was some talk about rejoining the transpacific partnership. how will it affect that? the escalation into all of the is therade agreements

unknown, the uncertainty to business. we were hoping to see a lot of investment coming up. that is going to be undercut by fears that we do not know where the next tarrif is going to go. betty: you mention that contagion effect. we were just speaking with mike mckee in mexico city on how this might affect the nafta negotiations. wilbur ross, the commerce secretary had talked about how this would affect the deal. >> the president has made quite clear that if it comes to a done deal or no deal, he is very likely to opt for no deal. he does not need to take a terrible deal. that terrible deal is how we got here. betty: you can imagine many of areold this miss friends

probably dialing his private number over and over again to talk some reason into wilbur ross. in any case, there are many ceos in the private industry that want trump to stay in nafta and don't want these tariffs. it seems like ross is rising in influence in the white house. reporter: that is extremely troubling to us. when trump first came in, there was a lot of talk about trade wars. it seemed like steve mnuchin and really worked hard to press down on that. what we hear is that gary cohn was probably the most key in holding a lot of that back in talking to the president about our relationship with china and telling him how important these trade deals were for american exports and agriculture. what seems to be happening is that ross is rising in stature. one of his advisers, peter

navarro, who is a big tarrif kalk is rising in -- tarrif haw is rising in stature. there are were some talks over the weekend -- there were some who spoke about gary cohn resigning. there could be a paradigm shift for this administration from entireonstrained to his protectionist instincts being let loose. and it is difficult to know what we will get out of that. enough forat is not markets to digest, we have some important data coming up on friday. we had the nonfarm payrolls. some strong saw wage growth and the subsequent market fall. was that an outlier or do we have an embedded trend? reporter: i think what happened last time was a bit of an

outlier. we saw the wages bump up. we think some of those were related to bonuses. there is an underlying trend towards wage growth as the labor market continues to tighten. my view that i have expressed on bloomberg and number of times is that we have a ways to go until the wage market is so tight that we set off a wage inflation spiral. -- it is not back to the level it was before the recession. i think we have another percentage point to have them pull -- pulled back into the market. the wage growth will pick up, it should pick up. we would like to see that but we are not in a danger zone yet. and i think the markets have overreacted a bit. context, you think

the fed might be willing to let inflation run a bit. reporter: i have written a lot about the issue of workers. his i saw jay powell give testimony, he spoke to some of those issues talking about the fact that we have not pulled people back in that left the workforce during the great recession. the great recession was so long that people got detached from the workforce. especially in the u.s. where a lot of people went on disability and we have the opioid epidemic. some people have the view that those things are baked into the cake now and there is nothing we can do about it. wageew is that a stronger market will help. we are seeing people coming off of disability and looking for jobs. that is what jay powell actually how -- we will not know many workers we can pull back

into the market unless we try. that is encouraging that he is aware of the same issues that i am and he may not be as big and inflation hawk as the market fears. cohn, you mentioned gary what are the chances that he will actually leave? reporter: personally, i don't think the chances are that high. not higher than 20%. the reports are frightening. there are people who said he was very upset and leaning towards leaving. we heard the same thing after charlottesville, after the president made some anti-semitic comments and of course gary cohn is jewish, but he did not leave. and in a week or so, he seemed to make comments that his relationship with the president was repaired. my personal take is that he will probably stay but even the possibility of him leaving, that

uncertainty, that makes everyone nervous and pull back a little bit. betty: thank you so much. karl smith. thank you for joining us. for breaking news wherever you are, bloomberg and twitter have launched tick-tock. the first global news coverage. jump on twitter, follow tick-tock by bloomberg. this is bloomberg. ♪

♪ let us get a quick check of the latest business flash headlines. a partial privatization speaking ahead of the national people's congress. the chairman said the airline wants a more diverse ownership. he said the plan would improve

efficiency and strength for the carrier on the global stage. betty: it says it may rethink its u.s. operations if the president proceeds with tariffs. it says it could negatively affect expansion plans and production. yundai goes beyond toyota and ford. told bloomberg has been that -- is in talks. a market value of $11 billion. the deal could be announced in the coming days which would be the biggest in interest since 2015. the business has become ripe for takeovers as policy prices increase. still ahead, china's

biggest political event of the year kicks off in beijing. more than 3000 delegates attending the national people's congress. a look at what to expect,. this is bloomberg. -- a look at what to expect, next, next, retail.

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>> it is 9:30 a.m. in sydney. the market opening in just 30 minutes time. i am paul allen in sydney. >> i am betty liu in new york. you're watching daybreak australia. let's get to the first word news with ramy innocencio. ng --polls have closed in italy. a new voting procedure is expected to produce a clear winner. show axit polls five-star movement in the lead with up to 30.8%. this still finishes on top. terrace proposed by president trump on feel and aluminum

imports will end up reducing the global prosperity. stephen trouble told sky news that australia is seeking an exemption from those proposed levies but unclear whether those would be granted. yet -- australian evzio group said they could be among the biggest losers in a global war. net the negotiators are have said to have reached a deal on transparency in the seventh round of talks due to finish on monday in mexico city. the source says they also rapidly discussions on chemicals , industries is by president trump's latest trade threats to the rail that progress, canada is the top export of both steel and aluminum to the u.s. while mexico is the fourth biggest deal provider. and here is china introducing an iv system linking travel documents with mobile phones. plan to boostf a regional trade between hong kong and the mainland. they have advocated making hong hub, similar to the

san francisco bay area. speaking i had, they also call for policies to enhance security in online financial services. global news, 24 hours a day powered by more than 2700 journalists and analysts, i am ramy inocencio, this is bloomberg. paul: let's get a quick update on the markets, zealand has been trading for just over an hour and a half. the kiwi dollar showing a little bit of strength against the greenback. more of a dollar weakness story that anything else. you just in australia are looking higher. they are up 2/10 of 1% after a flat and to the week. week on the asx in a little while. for the first time in a

little while. japanese yen,the against theosing in u.s. gradually sinking there. here's the focus on the coming days. the potential tariffs being imposed by the united states and the s&p 500 ending the week up half of 1%. >> speaking of those tariffs, the trade war with the u.s., one of the big issues facing china is they opened on monday, they are trying -- tom mackenzie is at the great hall of the people in tiananmen square. how has china responded to president trump's threats of steel and aluminum tariffs? there was a press comment yesterday where this question theaddressed and clearly line from china is one that is trying to dial back these

tensions. they said they want to avoid a trade war. they have said they do have the right to take their own steps to attempt their own interest. it follows on the press conference. this was in washington, of until saturday. he said he wanted to see a greater collaboration between china and the u.s.. they also told business leaders that they are prepared to take further steps around economic reform and opening. he said that is likely to be a dialogue. we are still more details on that. there was a report suggesting that we are indeed going to get a regulator looking at my nasal risks in china. those are some of the key issues coming out of the weekend. clearly this u.s. china trade relationship is something that

is going to cast a shadow. 3000 elegant will be piling and they will be issuing animating out there were reports. >> 3000 delegates are dissenting on beijing, what are we hearing from those? one very common name is the chairman of tencent. tony spoke over the weekend and he talked about what he said was artificialr greater intelligence in trying to do risk some of the concerns around financing. take a listen at what he had to say when he gave his press conference -- he was at his press conference. marketscale of money funds have been growing increasingly bigger than any strong volatility. many caps on providers posted risks to the financial state of

the country. the a proposale by using ai and the data. to detect and prevent the illegal conduct. they're also talking about the greater bay area, something he pushed last year. see greater connectivity between southern china, hong kong and macau. he wants to see an id system went to mobile phones. that may cause some concern in hong kong. it is they should be taken seriously. this is not :00 a.m., we are getting the work report on a: 30. we'll get some clouds on what the gdp targets are for china. they will lay out some details around the deficit. of course, it will be about the policy agenda for policymakers that will be laid out.

like theganizations national development reform commission as well. there will be a lot of those kicking off that :00 a.m. in beijing. mackenzie, they very much for joining us. join us for more on this is richard mcgregor. very much for joining us. our depend upon obama those earlier points that tom was making. some are quite conciliatory on this but it is not surprising, there isn't a great just to lose your and potentially a lot to gain. is very bizarre, china was meant to be in the u.s. crosshairs by the country's most hit by this are canada and europe. canada and europe are both considering heading back against the u.s., just at the time when canada, europe and japan would like to work with the u.s.. the market open is inside china. it is all going in the wrong

direction, there is an old chinese saying, i think mr. trump has picked up a stone only to drop it on his own. that is why the chinese are playing a critical right now. >> do you expect to hear any more about this? how do expect them to move? >> i think china will wait until they are actually imposed. is how it issue affects global trade will countries like south korea as well as china start to look to to move their stock. i think we have to wait to see how it plays out before we start a trade war which is a rather accurate way of putting it in some respects. >> we know the chinese government has been hinting that their focus to less and less on getting hard targets and more about qualitative growth. do expect that will hear from the work report is a little more vague but not as focused on

giving our gdp targets? >> it is a good question. this is something that is a little skeptical. that is not because the central government doesn't want to. the economic growth in china is largely driven at the local level. these localities, whatever the central government says still have to find their own health and education and the like. they will be going for growth even if the leadership says to ease off a little bit. i think we will see an indicative target in this report as well. out for that,ch staying on the economy, what about a reshuffling of the economic team and of course we the newwatching appointment of the pboc governor. >> that is right, that will be interesting not only to see who the new evidence is after such a lengthy term by his predecessor.

it is also a look at what kind of role they perform because there has been some suggestions that he will not only form a super regulator if you like but it is also a look at what kind have over all responsibilities to the financial system and where that places him toward wherever does take over the pboc, maybe it will be him. have over all i think china is still working on a new structure for financial regulation and monetary policy. that led the delegation in anticipation amid all this talk about the tariffs. tell us more about him and how influential he will be. he is very influential on the one hand and not very influential on the other hand. cardinalong-standing for secretary she.

he is the number one economic advisor, he hasn't -- is an international character. he interacts well with the global community. ultimately, his authority is circumscribed by xi jinping. i'll think xi jinping is somebody who wants to be -- to see dramatic changes, he wants to bring with refinement of reform of the chinese hybrid economic model. everything has to fit in with that and that is not so easy. >> thank you for joining us and giving us that perspective. next, who are the winners and losers of president trump's trade strategy. it will die further into the room and look at that in just a moment. this is bloomberg. ♪

♪ good morning, i am betty liu in new york. >> i am paul allen in sydney.

utilizing daybreak australia. while the bank of japan has become the latest major central bank to signal it is looking for a way out of it super stimulative policies, the potential for an economically disruptive trade war could slow the part to monitoring normalization. we will look to kathleen hays here with a look. i love these words from the bank of japan, they start to think about exiting in 2019. can you explain that wonderful piece of central bank might wish for us? >> this is very significant. it is the first time even though he has been pressed and prodded and asked by parliament and reporters, when are you going to at least start talking about an exit, you know you will have to be making some day. he finally decides that before parliament, as he gets ready to be reappointed for a second term to make -- answer the question that was put to him that yes, it will be starting around april

2019, the discussion that is looking at what he said, right now the members of the policy 19.d will race to 2% in it is logical they would be thinking about debating the exit. remember, he has not said that in the past. i'm not saying the negative rate of 0.1% and is your present aim for 10 year bond you will never change but it is possible we will be discussing that. this is very significant as well. it did hit japanese bonds but it is also the possibility that meeting to meeting they will look to see if they have to make any changes in those two very important targets. he also pledged to maintain the boj's overshooting commitment to growing a monetary base, even as they start normalizing policy. a couple of interesting things to consider is that on friday, unemployment hit the lowest since 1993 at 2.4% in february in japan.

there are some signs that we may get the kind of movement. a big dealseem like but if you watch the boj, i think it is a big get to everybody who has been wondering when we can make a statement. >> this whole threat of a global trade war contradict, can that really change the mood by the fed and the boj? you have to wonder because they got 2016 one this was coming out of china that really slow down the fed. the financial times spoke to kneel over the weekend and he said that he is nervous about the cost of trumps tariffs to the economy because he will have to make these threats credible. here's what he said in an accident question, he said it is hypothetical. if you raise the still jobs, will make up an economic effect on everybody who is a still consumer? if you look narrowly at that, the answer is going to be a resounding no.

the also know that recently, jay powell, bill dudley, on other fed officials have said yes, hikes are a baseline for 2019 but even in a trade war, are you really going to take it is a good idea to do more hikes in a stock market that has been reacting to this? a great story on the bloomberg over the weekend talks about lessons from 2002 when george bush enacted 30's percent tariffs and another 15% on policy that would be hurt by the still overseas. this was not a big impact of the economy. i think for the fed they will keep an eye on the possible trade war and its ramifications as they wait for the job reports on friday. this is also, market stability. i think this is the big question for central banks. i think they have more of an issue when it comes to making more moves on rates at the bed

or talking about more normalization. this is just as the boj mates. >> it is very packed and a lot of central bankers need to be aware of that. just investors are preparing for president trump's expected official sign-up this week as we have been talking about on global tariffs. we know many american corporations have said that the costs are probably going to be passed on to consumers. ramy inocencio at the wall taking a look at the likely losers here in this global trade war. u.s. it is not just corporations we are talking about, it is foreign corporations that are based in the u.s.. taking a look at the five biggest sectors of bloomberg news and focusing in on in terms of biggest possible losers, autos and aerospace art really the biggest losers here, autos and sunday coming out and saying if this happens we are going to have to pass on a more expensive car to the consumers.

people in the united states don't want to do that. canned goods is another thing. and i first thought of canned goods and thinking of suits, campbell soup's coming out and saying that 10 still use -- is or even enough here that is made? any to import that from elsewhere, canned goods also include the beer industry and the alcohol industry, miller say there is not enough aluminum. the tariffs could hurt the beer industries 2 million plus jobs, technology we know, apple iphones and max, manufacturing agriculture. manufacturing with solar industry, this could raise prices here not just for solar power generation but for the cost of constructing of those things that need to actually lift of solar power panels to reach the sun. finally, the oil here, the association of oil pipelines with the skill of it would add $76 million just to construct one typical pipeline. enough of this, let's go into the bloomberg terminal.

i would say what i'm talking about in chart form. these are the major autos, the choice big three. fiat chrysler in white here. similar falls.4%, for ford, with four we are seeing just a rebound a little bit. nearly 2%is done by over the past few days and jim is down by about 5% there. gt's look this up and go to #btv three 79. i talked about aerospace, boeing is a big one here. , this this leg down here is actually a good proxy of what might happen in terms of retaliation coming out of china there. finally, my other bloomberg terminal chart talking about whiskey and spirits. the etf getting a hangover over the past two days. it is down 1.7% here. discharge a few dozen companies downding -- they are all

3% or more. we are cinema go down by nearly 4%. we can see what is actually happening in terms of the fear. we have not been seen that official sign-up yet but as we know, we are expected that sometime this week. >> global markets there, adam haigh is there. yet is on a continued pressure. >> it is a big debate. it continues to be really front and center for the traders and enter. the yen is entering this environment that you might think would do reasonably well if we around asomething trade war type scenario. you would expect of those kinds of haven assets to do reasonably well. i think if you dive into the bloomberg terminal, look at this chart, this shows us the sense

of how the yen has performed in the. periods of the blue and red. back to 94er mind and 95 when clinton ratchets up those trade policies on japan. he had a real change in the landscape for the dollar-yen. at the moment, there has been a bit of pressure on the dollar-yen. ,he yen has been strengthening that is a haven play over the last few weeks given what is happening in equity markets adjust into a new environment where inflation is more present. we had that ramp-up in bond yields over the last few months. it is all playing into that dollar-yen story whether or not it continues this week is a tough call. report,the u.s. jobs those are the kind of things that might just shift the dial it away. at least in the short term. markets, whyity

are we seeing these reversals? some are pretty large. >> yet, fairly remarkable some of the swings we are seeing. let's dive into the terminal and have a look at it here on the charts. 3515 on your terminal. what we saw is that those big moves of more than 1% of fines on the s&p 500 through thursday. were sold off by around 1.1%. we had that big rally toward the end of the day, the rest is looking a lot better. as is half of 1%. we have not had 15 days in 2015. in had a 1% or more move either direction on the s&p 500. that is basically twice as many as we saw in the whole of last year. it does speak to this new volatility regime that we have entered, a lot of people at the start of february when equities sold off in that they pronounced

selloff. they weren't really sure whether we were going to be in an environment of high volatility over the next few months or whether we would have an initial spike and it would come back off again. but with this still sitting around 20, at a still double the levels we saw the majority of last year. elevatedte clear that volatility is certainly sticking around for now. >> those prices are becoming the norm now. thank you very much adam. some volatility might be added. we are talking about the results of the italian election. this shows what is consistent with what the exit polls are showing. this is the center-right coalition and it shows that they are ahead in these projections. again, this shows the center-right coalition is ahead and that will result in a hung parliament. we will continue to watch these headlines coming in from italy

and how it affects european trade. you can also turn to your bloomberg for more on this story, go to tliv to get momentary analysis right now from bloomberg's expert editors. this is bloomberg. ♪

♪ that is almost a four daybreak australia, with yvonne man and betty liu up next. a very big day. >> china may be the big focus here, of course the work report premier set to drop before his speech at 9:00 a.m.. let's talk about the soft targets, we will see a list aggressive approach when it comes to china. >> we will have this group

policy director richard joining us to talk about the impact of all the chaos. how that seems to be affecting the economy now. this is bloomberg.

♪ 7:00 a.m. here in hong kong. this is bloomberg asia headquarters, i am yvonne man, welcome to daybreak asia. the exit polls show the center-right meeting in italy. the election was marred by delayed confusion. china's elite gather to chart economic and political courses for the year. evidential trade world looms over the two week events. betty: i am betty liu here in new york. it is after 6:00 p.m. on your sunday evening. calling forump tariffs at home and abroad. america's allies won't be exempt. the