♪ haidi: the first of many president trump's 50 billion and tariffs and more to come. betty: wilbur ross expects a measured response at expects china to buy more american goods. haidi: beijing's u.s. ambassador calling the white house to cease and desist and china isn't afraid and will defend itself. betty: stocks dropping the most in six weeks on the news that fed ex is a early loser due to

its strong presence in asia. haidi: from city we are just have to and :00 in the morning -- it is just after 9:00 in the morning. betty: and it is just past 6:00 in new york and will play out how to date is in trading, president trump going to implement $50 billion in punitive tariffs on china. the markets took it on the chin, down the most in six weeks. 15 days now for u.s. trade representative's office to come up with exactly what are the products that are going to be headed with these tariffs. fedex mentioned earlier, is a early loser at the dow losing 700 points on this news and setting up for a losing day and asia. haidi: what i found interesting

is so many strategist we spoke to send the market can rush -- brush this off, and they are not going to become addict and go back to the fed, but plenty more arsenic trade war is going to the to-this year. this is all paragraph when you are seeing the reaction in the markets. we are also seeing reaction in aina saying we don't want trade work with the u.s. or anyone else but we are not afraid of it. if somebody tries to impose a trade war on us, we will fight. making it clear beijing is willing to retaliate even though they have taken a backseat and a rational response so far to the kind of orders coming from washington. take a look at the set up and asia, in particular with trade vulnerable commodities.

and currencies as well, new zealand over 1% and the kiwi dollar at 7212. sydney futures also going into this friday's session, we have to lows of the year, and unchanged. int is one currency to watch being the canary in the coal mine when it comes to trade tensions in asia. betty: very interesting and it seems like the trade war we talk about is going to dominate the markets talk. we will talk more about the impact of this and will be joined by the former acting deputy ambassador, wendy cutler. stay tuned for that. let's get to first world news now with courtney collins. courtney: mark zuckerberg has been summoned by congress to explain the data scandal at facebook.

zuckerberg said he is happy to testify if yes considered the right person to do so. the house energy says he is indeed the right person and a staff briefing left many questions unanswered. said they are not issuing a subpoena but it is always possible. president trump's lead attorney has resigned. john dowd maintained a position of cooperation toward robert miller's investigation, but the hiring of those -- joseph claiming he was from by the justice department. the recovery in oil prices has not sparked the investment the industry needs, and opec and independent producers will continue to work together for 2019 and beyond to drain the got

and we balance the market. the progress isn't enough and crude fell as equities sold off over concerns of a trade war with china. >> so far, the prices we have seen has not brought investment back that we need. we are $1 trillion investment to levels below where we were before the downturn for oil prices. the pricing signal that has come out of the recovery has not been sufficient. courtney: qantas is expected to launch the first nonstop flight from australia to the u.k. puts europe's financial at opposite ends to make money by stripping weight from the boeing streamliner and pena with top-tier passengers.

global news. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. item courtney collins. this is bloomberg. betty: let's get straight to our top story. president trump or drink tariffs on chinese goods that could escalate trade tensions. >> we are going to be doing a section 301 trade section that could be about $60 billion. that is a fraction of what we are talking about. betty: just a fraction. -- says guest witness we are on the brink of a trade war. wendy cutler joining us in washington. are we on the brink or are we in a trade war? think we are headed towards

a trade war and the president's actions signals we are prepared to race tariffs against selected chinese imports and china has been shy today. they say they will retaliate and protect their own interests. unfortunately, i think we may be headed towards a trade war. betty: on the retaliation we are expecting from china, wilbur ross had comments on how he thinks china will respond. this is what he said. response and it will be a measured response. these are thoughtful and very serious people. they know the president is being very thoughtful and very serious. i do think anybody is just going to have to knee-jerk reaction to any of this. betty: would you agree, wendy? wendy: i think he will have a skillful response.

may do of early, but what i feared they may make it a little difficult for our businesses to operate and to trade in china in ways -- in regulatory ways. not going forward with inspections or holding back certain procurements. betty: this that mean if you are the ceo of any global company right now, who is either in china or looking to expand in china, are you facing -- what are you facing? uncertainty? what are you doing at this point? you are facing uncertainty and you have to pay attention to what is going on. when the list of tariffs is published in the coming days, you need to look at it very carefully to make sure there are no products on the list that is going to hurt your business. betty: we have hurt u.s.

business from amazon to walmart talk about how this is going to be best this is going to hurt the u.s. consumer. some of this depends on the list a half, and also, is it really going to be true? is it really going to hurt consumers in the end? wendy: we will meet to see what is on the list. to be industrial products like machinery and other products or is it going to include footwear and apparel and the products we are used to b uying at department stores? haidi: are these concerns that president trump thinks he is addressing that she looks at trade deficits in china and this clearly tells us america and american companies have been taking advantage of all these years. is he right and what should he be doing if not trade tariffs?

wendy: i think his concerns are absolutely valid. with half concerns over the years of weak ip our production in china along with the practices of technology transfer. we had made progress and the issue is getting worse. i agree with the concerns, but what i don't do with is the approach. what we should be doing is working with other countries and form a united front and discuss everyone's concerns with china. other countries share our concerns. haidi: to that point, we have heard reports that the administration has support in allegiance is from other trading partners to be on the same page. is elected to get that support the pressure countries like china? wendy: i think you'll get some support, but let's keep in mind that tomorrow we impose tariffs

on aluminum and steel that may hit a number of hours on allies and close partners. theirk it will dampen enthusiasm to work with us on issues like china on fair trade practices. haidi: if you look at nafta talks, there has been some bright spots of optimism. you did the latest development and implementation of a rollout of steel and aluminum tariffs will derail the possibility of getting any goodwill for a trade negotiation? wendy: we will have to see. the next round of nafta will be held early next month and there are important issues on the table. the president has linked the permanent exclusion of canada and mexico from still and aluminum tariffs to the actual negotiation. cannotthat and we proceed on that basis. it is clearly a very exciting

and also dramatic time on the trade front. a lot of going on. betty: a lot is going on. is there any roadmap we can look at in history to see where this may end up? wendy: i have to say i have never seen so many issues come to the forefront so quickly with such a -- involving so many countries. it is not a roadmap but at the end of the day, nobody wants a trade war and everyone realizes this is not in their interests. i am hopeful the u.s. and china and other trading partners will find a way forward on all of these issues. haidi: where does asleep institutions like the wto? wendy: the wto is sidelined on these discussions now. the administration has made it clear they don't think the wto really addresses the issues we are facing with china, with the exception of one issue today

that was announced. we will be pursuing a case discriminatory licensing practices by china in the wto. it is not a relevant but it is not front and center right now for this administration and other trading partners. haidi: certainly getting sidelined. wendy, we appreciate your insight. and also a former acting deputy of trade ambassador talking about trade tensions dominating our top story today. we also turn to bloomberg for the top stories, for commentary and analysis expert editors. this is bloomberg. ♪

with -- youerned

hit and they hit back, and at the end of the day you have a war. in a world in which the rules of for an eye, that is a world where you have a lot of like people. that is not the way we want to go. >> of course there is reasonable retaliation which is always hurtful and trade wars, there are only losers, and the losers are normal citizens lose jobs. betty: some of the big names reacting and talking about and stocksa tariffs tumbling the most in six weeks after the announcement of a concern and trade wars. that are lots of negative factors working against any kind of a rally here in the markets. this one being the biggest in the last 24 hours. haidi: you could say that

resilience and sentiment since the february and generate route and markets are falling back to february lows. you see the classic risk off and safe haven play in assets like treasuries falling to 2.8% and the u.s. 10 year, and look at the dollar-yen. it is going to be a painful open going to tokyo. they do have strength in the dollar-yen, and falling to the lowest since november of 2016. thatd various calls saying it will go to close to 100 -- and one strategist with spoke to earlier -- it will be interesting to see how the bank of japan and how japanese lawmakers respond to this in terms of intervention. let's get over to atlanta where we are joined by matt toms. music earlier, this was

telegraph that president trump was white to do this. is it surprising to you how surprised market seems to be? >> we are surprised by the degree of the reaction to the markets. that equity markets a very violent move and we were also surprised given the relatively cautious tone in his press conference speaking about having relationships and further relationships going forward. we will take this as a overreaction of the market out of the gate and likely it is combining with the powell testimony that created enough moving parts to make the market unsettled. a overreaction in our opinion. haidi: where do we go from here? this is a market looking for excuses after what happened earlier this year? matt: absolutely, this is a year where volatility returns and the fed is starting to unwind volatility late this year and a

to 2019 and the ecb will begin to follow. volatility is on a structural increasing glide path and we think these are the exact sort of events that induce volatility into the market. is likely to maintain. that is in fixed income as well. you see long dated volatility picked up even as a short data has ticked lower. those types of shifts are widening corporate bond spreads so there's more volatility ahead. from an acute standpoint it didn't look too strong in our opinion. haidi: there is a great deal of uncertainty of the unknowns. on one hand you can argue a trade war certainly trumps fed hikes, and on the other hand it creates so much inflation the fed has to stick to its plan. how does it play out given the information we have now? have ise information we

the u.s. policymakers like to start as aggressive and bombastic away as possible to score the maximum amount of political points, and then negotiate to a increasingly less bombastic and rational point. we expect some stepping back much like you have seen on nafta talks where it is inclusive the stock and now much more narrow. we predict a narrower path and not a quick escalation. will see a response from china but we expect all parties to understand that a all-out trade war, no one benefits in. this is about a renegotiation of terms. betty: i don't know if this is too early to say but is this a buying opportunity? matt: in corporate bond space would say that this location of short data incorporates that extended today looks like a buying opportunity. you had a lot of t-bills issuance caused some clogging in the short-term pipes.

and a widening of the corporate bond spread was exacerbated and we think that is the first signs of an opportunity. there's so many opportunities out there at the places of more volatility in international ties like em, who would still be patient. betty: given the reaction today, such pointed reaction on tariffs, does that tell you anything about what we heard from jay powell and the fed and how the market digested his comments and statements? matt: we are a little surprised. we digested the statements to me it would at any future hikes to 2019 and 2020 and not debate a fourth hike in 2018. that sounds patient and dovish. the market may take that as a uncertainty in the outlook. we take it as patience. betty: patience and more agility

perhaps? is that what he is trying to signal that the fed is maybe going to be dependent on data and maybe a bit more agile to react to what the data says? matt: i think that makes total sense as you get towards a neutral point, we estimate the be in the two or two and a quarter percent range. it should also infuse volatility into the market. what are thethat, key points the fed will be watching and how much do think it will be paying attention to how this trade spat evolves? matt: we think inflation is the lead actor in the fed's might and the global investors mind. is clear to us you have wage pressure to the upside and the fed sees the market sees that, and in reality you have had a offset of international trade flows and technology suppressing

the ultimate inflation number. this potential for a trade war would likely reduce that offset. wages in our opinion is a given, the question is if international technology continues to pull that down at the end level with cpi. we believe that is likely to persist for a couple of years and a trade work with actually reversed that quickly and would be concerned about higher inflation and need the fed to react. that said we think that is a low probability scenario. haidi: we spoke earlier about the opportunities in buying, what would you be staying away from given perhaps what we don't know? matt: we are still in a environment work that is not a lot of cheap acids in the world. if you step back and see what has 2018 done, you see the same on equities with returns lower, and financial assets have headwinds. what we look for is to avoid things with a potential acceleration into the downside.

an example is hard currency sing inflows and influence. looking for flows and velocity, we look to avoid those downside potentials and e.m. hard currency would be one area in particular we would avoid. haidi: matt, thank you so much for joining us from atlanta. you can get a round of the stories need to know and the friday edition of daybreak. go to dayb on the terminal. pay attention to one story as we round up the asian trading week, and also get it on the mobile and anywhere app on the industries and assets you care about. this is bloomberg. ♪

betty: more breaking news and a

revolving door of officials, -- according to the new york times, resigning as the national security advisor in the white house. he will be replaced by a more hard liner in the administration, john bolton, the former u.s. ambassador to the u.n.. this is according to the new widelymes, and also, telegraph discussions for his departure as special security advisor. haidi: it highlights the turbulence when it comes to foreign policy and public policy in this administration. we had the story a week ago suggesting this is going to happen according to the washington post. we now hear from the new york times about his resignation and his replacement. we go back to trade and talk about the aluminum and steel tariffs going into effect tomorrow and take from south korea, the trade minister saying they will be exempt from these steel tariffs until april.

another reason to think that some of this is a policy and negotiation lever. will talk more about trade. ♪

haidi: another exit from the trump white house with the president tweeting that the national security advisor to be resigning, saying i am pleased april,unce effective 2018, john bolton will be my new security advisor. i am tackle of general mcmaster and and he has the an outstanding job. reportse had rumors and that this is going to happen a week ago and is a week after rex tillerson made his exit as secretary of state.

this is the third exit for national security. say, thely, as you rotating door. betty: it is different than the tillerson the parts are as this seems amicable between mcmaster and trump. the reason it was telegraph is because president trump appeared to want to have his national security team in place before this upcoming meeting with the north korean president. having both in come on april 9 is helping complete that assembly of his team. we will continue to monitor these headlights coming through, but let's get the first world news with courtney collins. courtney: president trump has taken a bolder step to level the economic playing field with china, or drink sweeping tariffs products -- range of and in a move that could raise

tension with the world's two biggest economies. 11 carries on chinese imports and to produce a list of targets in the next two weeks. section 301ing a tode action that could be up $60 billion. that is just a fraction of what we are talking about. commerce secretary wilbur ross expects what he calls a measured response to the tariffs and saint leaders on both sides of the argument are thoughtful and areas. is lookingtration for a $100 billion cut in the trade deficit with china, which had a record 375 billion last year. ross told bloomberg one of the solutions would be for china to import more american goods. productss agricultural could be more purchased from the

u.s. than they are at present. there are a number of agricultural products that so far are being relatively resistant by the chinese for meaningful import. they could relax those restrictions. isrtney: china says it strongly is appointed at the u.s. action and is urging the trump administration to cease and desist. beijing's ambassador to in a videosays posted to facebook that china is not a freight of a trade war also says in a statement that the u.s. trade action ignores rational voices and china is confident and capable of defending itself. >> we are not afraid of it. if somebody tries to impose -- we will fight. courtney: goldman sachs ceo

lloyd blankfein says he will have to discipline to leave with no plan b. he says the lack of clear options for a second career -- he says speculation that he plans to step down this year is rock and make him right once he makes the decision. that's when goldman sachs made david solomon as is likely heir apparent. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. and courtney collins. this is bloomberg. betty: for more on the day's big story, president trump's tariffs and a trade war, let's discuss the prospects with noah holdings group kenny lam. great to have you here, joining us from hong kong. i know many of your clients are chinese entrepreneurs and business owners and they must be

concerned about the possibility of a trade war. if you look at this long-term and short-term, long-term china is a open market has 10 trading partners with over $100 billion in terms of trading value. long-term this is not going to be a big impact from our clients. short-term the sentiment is going to be a bit worse. there will be needs for diversification in terms of risk. we look at it long-term and short-term. betty: is is going to have any impact for your outlook for expansion and your business here in the u.s. at all? kenny: that is why we are quite -- we are expanding into different markets and we see clients are looking to diversify. we see clients not only investing in the u.s. but also clients expanding into markets like canada and australia.

we are looking to expand it different markets. betty: which is still expanding to those markets if it wasn't so tense right now? i know when you look at expansion you look at multiyear strategies, but does this make you want to expand into other markets more quickly and not focus as much on the u.s.? plans are not affected by the daily news and we are looking into, as he said, a long-term strategy. it is to serve global investors. we are based in china but we not only serve chinese, so i we look at market expansion, it isn't affected by debuted -- by daily news. betty: you opened your first office in australia, i believe in melbourne. australians always criticize me for not pronouncing it correctly. [laughter] in any case, why australia? we have been strategic in

picking countries want to expand to. i think melbourne and estoril you represent a market with a andng connection -- australia represent a market with strong connections to china. those clients from australia have an interest in investing back into china, and leslie we also look into investing back into china through our asset management firm. a lot of opportunities in australia we think are interesting. haidi: is their resistance? about protectionist policies from donald trump and the sensitivity when it comes to chinese and australian trade investment too? kenny: we are not here to just buy properties and establish prices of properties. we are looking at sectors we think will help the economy of australia. tech, creative

industries, that we think our capital will be helpful to boost the economy. to build them out was red here to build an australian company and that is what we tried to do. we have yet more risk off from safety the markets, and the reaction --g this the safe haven flows we have overnight in the likes of u.s. treasuries and the japanese yen, very interesting going into the tokyo open and equities will come in to pressure. the currency issue something you pay attention to in light of the uncertain global circumstances that we are in at the moment? kenny: we do. in fact, in markets like this we anda lot of volatility

currencies is at the cost that will perform quite well in such markets. oft is why quite a few products we are late yet now for clients we are looking at four currency as an asset class to invest in, especially when we race volatility. betty: what are the areas where you see the most robust investment? areas that you see the biggest opportunity right now? kenny: it is a light with what we do in china between us and china and other markets. there are three or four other sectors we look at. culture and education, and we look into consumer finance. the real estate sector will revise a bit in china and those for sectors -- four sectors are aligned with client interests. betty: what about the recent national people's congress that wrapped up earlier this week?

on toplots of unchanges and president xi appears to have the mandate to rule for life and the consolidation of some of the regulators. that is a lot of changes in china. seeing what happened at the npc, does that change the way you do business and how it will impact the business landscape in china for you? arey: for us i think there two major impacts, one is we see stability in the leadership and that means the framework in china will be a lot more stable, which is good for our business. we are looking for stability. two, this government is quite pro-business, they are going to support the growth of entrepreneurs, which in turn will help sentiment in the market. overall we see it as a positive thing. for us i think it is going to be quite positive. betty: how are they going to

support the growth of entrepreneurs? what did you see that made you believe this way? kenny: in many ways, not only at the federal level, but at the state level, in particular with district that provide release -- relief in particular industries that help entrepreneurs in exports and in terms of both of business. overall the government is trying to find ways to make regulation more supportive. betty: before we go, we talk about private equity money going into asia. there is certainly talk of cross-border deals and m&a activity. int is the prospect of that light of the headlines we got today and the rising u.s.-china pension? kenny: i think the private equity industry will have to be

more specific into the industries they pick. there is a lot of capital raised -- and in terms of the countries that they need to invest in asia and particularly in industries they should be investing in -- the selection will be more stringent. the returns may be a bit more lopsided, but that is what i think is what happened. in the last two years we see capital raised in this industry. haidi: what are your clients asking you the most about and what are they concerned about at the moment? our clients are mostly chinese, and are deeply concerned about the volatility. they are indeed actively thinking about planning to enter a stage in their life where they do family planning, which didn't happen three or four years ago. this questions about how to think about this -- and all these questions are unique in asia and has been asked before.

toare planning ourselves provide full-service not just on investment but things other than investment, like valued services and other areas. lam, thank you so much for being with us. know is the largest private wealth asset manager in china with over $80 billion in assets under advisory. moment, markjust a zuckerberg's mea culpa, assessing the fallout with facebook. next. this is bloomberg. ♪

haidi: i am haidi lun in sydney. betty: you are watching "daybreak australia". facebook remains under fire and mark zuckerberg is

called that's a fight for is called to testify before congress. >> this is somewhat similar to equifax. ande was a breach and data, i didn't see equifax created some sort of compensation fund or anything like that. facebook has to deal with the regulators with the possibility of shareholder investor lawsuits. let's bring in ironic security founder and chief technology officer adam getty. likec is back by firms goldman sachs, is this like a equifax data breach in the same type of situation? >> this is slightly different, because it equifax is case, someone from the outside broke into their system and took the information away, which was a security problem.

in facebook's case this was a privacy problem, the data was secure but facebook allowed the data to walk out the front door and they did it a sure it was been used for the pocket reasons, and it is quite a different challenge them our perspective. betty: i want to ask you more about that come up a hand and we are getting news on the dropbox ipo pricing, about the targeted range despite the turmoil we see in the markets today. of the targeted range of $21 a share. reports of the pricing of the ipo at $21 a share, perhaps a testament to the strength of dropbox and its product and business. adam, back on the difference between what happened at facebook and other companies that have seen cyberattacks. when you saw the solution of the steps put forth by mark zuckerberg and facebook, what was your reaction? is it enough?

are the steps going to guarantee some sort of privacy for facebook users? adam: i don't think it is enough. i believe it is trying to solve a modern problem with very old tools. trying to go out there and ask folks to sign contracts and do the human touch of getting more comfortable with who is going to use facebook user data, which is what mark has proposed. it doesn't scale in a world we have billions of users and millions of developers. betty: they are all about scale. adam: remember in this particular case, the cambridge analytica situation -- it all happened after the developer agreed to the terms of service of what they expect them to agree to. betty: facebook was too naive that they would comply with what they signed with what cambridge assigned. getting to the heart of the issue, is there any possibility in this day and age to have

guaranteed privacy and security? adam: we believe you can and we believe we have been talking a lot as a industry about security, but it is really about trust. trust in the internet enabled machine, it is about two things, security, privacy, which means the appropriate use of so think you have been given access to, and accountability to ensure the right things are axis and the right data and using them in the appropriate way. can't do that with humans at a machine skill, you need to use technology to solve the problem and there is a set of technology that can be leveraged to solve these problems. it is math, it is called cryptography, who want to into details here, but in math we trust. in some of the largest institutions in the world, auditors and federal government agencies -- we are using math to provide them digital trust that

takes account into security, privacy, and accountability for every asset that they have. there's no reason we can't provide that as a ecosystem to individuals. is how our company was founded to provide these opportunities to individuals. haidi: that all sounds wonderful and idealistic, but when you think about the internet as we know it, particularly in 2018, you think about privacy breaches and security breaches and fake news. trust would be the last word i associate with the internet. adam: absolutely, and we are in theicular focused about contest back to the internet through massive technology and not through legal contracts and hand-checks. hand shakes.

this year we are democratizing the technology so any individual and developer can make use of the same capabilities that goldman sachs uses to keep their information safe for their own personal information. we are going to do that in a way for free by the end of the year. late for is it too facebook? adam: facebook has to paths. contain the to issue and ignore the fact they are a marketing platform. facebook can embrace that fact and become a thought leader of how you can be in that business and trade off some of the margin to bring back greater accountability and trust to their user base, where they want to users for the marketing platform to be successful overtime. thank you so much for joining us.

the chief technology officer there, and a check of business flash headlines. boeing is headed to its biggest climb into years with a concern of a trade war china will dampen the demand for planes. they generated hordes of cash from a commercial backlog and the risk of a fallout hits the volume from the top spot of the dow jones. indexes tumbling the most in five years as president trump's tariffs appears weaker trade flows and fedex operates the largest cargo airlines, having gained a major foothold alsorival ups -- and fedex has a larger international air network than ups. their co ward the tariffs will hurt the u.s. economy. haidi: steve wood has a stake in a casino company he founded after settling a court battle with his ex-wife and sold more than 4 million shares at $180,

lowering his holdings in wynn resorts. his former wife as a nine .3% stake. want those will begin its first direct flight from australia to europe on saturday, cutting travel time. the london flight is a test that qantas hopes will spend the world i 2020. joining us now is a professor at sydney. i cringe at the thought of 17 hours in a cabin. is is a game changer? >> it is a very exciting moment because, it is the first time these two economies are connected nonstop. is really not a lot when you think about how long it took -- not long ago,

seven stops and days to get from london to australia. now you can do that overnight. it is also very excited because of the increment they are using, which is innovative. and comfortable if you sit in. cabins. onave tested that equipment on route, and also tested it a flight that the norwegians operate. i flew on premium business and it was amazing. it is very comfortable and it helps with the jet lag. haidi: and more efficient. it is really nice because you don't have that uncertainty that you missed the fight in dubai or singapore or hong kong where you stop over.

you can do that nonstop. haidi: does it create pricing and competitive pressures? some extent a little bit, but were caught this has done is really smart -- what qantas has done is smart. they have taken out economy seats, and compared to norwegian or some of the other operators, they have taken out hundreds of seats and brought in premiums, so they're hoping to generate a lot higher yield from business travelers. that flight is targeted to the business traveler and is a smart move from qantas. betty: some critics say this is a pr stunt that sounds like a great way to get some headlines, but there isn't true demand in the boost to the economy. disagree.to

obviously,ising and it is a large enough market niche. byy are currently operating dubai and singapore, and the boeing 787 has 206 it's compared --the foreign at 80 seats compared to the 480 seats. i think it is going to work really well. bankers and lawyers want to fly fast and reliable, and comfortably. and they will pay the premium. betty: that is going to be helpful for those who fly that route, but quickly, how does it set the president's of other long-haul routes?

successfully,ff what does it mean for qantas? this is another part of the excitement because this is the first step. passengers like me will benefit, i am looking forward to trying that flight and connecting via perth. i don't have to stop over a foreign country, and more exciting, contests is talking to qantas is boeing -- talking to airbus and boeing to make flights connecting sydney to new york, london, the possibility. what we are saying is a step in that direction. haidi: thank you for joining us from the university of sydney. we go to the tokyo open and

coming up next, the dollar-yen. "daybreak asia" is next. this is bloomberg. ♪

♪ yvonne: 7:00 a.m. here in hong kong. we are live from bloomberg's asian headquarters. i am yvonne man. welcome. president trump signed $50 billion in tariffs against china and it says there is more to come. and a measured response is expected, with china buying more american goods. and from global headquarters, i'm betty liu, it is just after 7 p.m. on this thursday. the u.s. ambassador calls on the white house, saying china is not afraid and will defend itself. the news reverberating through the market, sending stocks down the most in six weeks, the