♪ is time to negotiate with china has tit-for-tat trade tariffs rattle markets. beijing says it won't be pushed around and slaps reciprocal duties on american goods, but the door is open for talks. of 87ebook says the data million users has probably been shared, but mark zuckerberg says he is still the man for the job. iscurved screen, touch

control, how apple plans to keep the iphone ahead of the game. we are live in san francisco. >> hello from sydney. i am haidi lun. this is "bloomberg daybreak: australia." 6:00 p.m. in past new york. i am ramy inocencio. we will be looking at the action and how it plays into your asian trading day. u.s. market volatility and how housele it was, the white hints at negotiations, offsetting concerns about an all-out trade war with china. su keenan is here with more. we are looking at a bullish reversal. >> whenever you see a market close way off the low -- and let's go right to the chart, down 1.5%, not just yesterday, but starting this morning, coming back, the biggest two-day gain in five weeks.

check out the intraday chart as you look at the bloomberg. were going to go to a bloomberg chart. this is the s&p 500 spread. wherever you have seen big drops andhe s&p, here earlier again the recent selloff, you see a huge spread between the high and the low. are called these reversal days and set up for positive action in the next session. let's go into the market snapshot. we saw the dollar fall. safe haven demand is back. a see a pickup in oil despite surprise, or this came as a surprise drop in u.s. supply. see the huge you because of this

tit-for-tat and reassessing of whether this is a trade war or proposals that can be negotiated. we see boeing heavily hit, down almost 6%, slashing the loss by the close. u.s. steel was down 4.5%, almost came back. tot also has been reacting the threats of a trade war from a soybean tariffs -- war, soybean tariffs. on the see this bloomberg. the increase in american exports , which has come down with this talk, but what we see with areeans is u.s. farm goods very much affected by the potential retaliation by china in that china is the largest buyer of american soybeans,

worth $14 billion annually. the concern on hold with the talks that this is about proposals, not an actual trade war. startingybe just a point. thank you for that. on our newsoybeans show focused on risks and things across resources. you thebe bringing voices and insights in today's commodities markets. let's look at markets in asia. it is a holiday. chinaong, mainland shuttered today. the kiwi dollar was the outperform are in the g10 space. australia, the trade balance number out at 9:30. sydney looking to pop at the open. the aussie dollar sustaining

some of that momentum. futures, a bid down there. new york crude seeing gains after a better-than-expected result when it comes to u.s. stockpiles, a bigger than expected drop, still weakness across industrial commodities and metals. let's get the first word news with courtney collins. says theup, facebook data of as many as 87 million people may have an improperly shared. it is the first confirmation of the possible size of the scandal, which was initially put at around 50 million users. facebook admitted scanning the links and images sent on messenger. posts to make sure content abides by those rules. >> i'm the first to admit that we did not take on those

responsibilities, but there are billions of people who love the services we are building because iny are getting real value building relationships on a day-to-day basis, and that is something i am proud of our company for doing, and i know we will keep on doing that. >> apple working on touchless control for iphones to help it stand out in an increasingly crowded market. it will let users perform some tasks by moving their finger close to the screen. the technology is two years away, even if apple goes ahead. apple is said to be working on led screen that can be curved or folded, also two years away. and a discussing amazon huge pentagon contract over dinner with president trump. she complained the cloud computing deal was designed deliberately for amazon. the president said he once fair

competition, but made no indication he would intervene. he has issued a series of tweets attacking amazon and jeff bezos. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. ramy: thank you very much. back to tensions about this possible trade war. will it be negotiation or all out conflict? that is the question over the global economy after china matched president trump's tariffs, as well as the war of words, escalated there. kathleen hays has the latest. china's response did not seem to faze donald trump. >> i would say he is doing what disrupting,o do, full flat out, more than expected on china. china came back with their $50 billion. donald trump put out a defiant

tweed, "we are not in a trade war with china. that trade war was lost many years ago by the incompetent people that represented the u.s. . now we have a trade deficit of $500 billion a year, with intellectual property theft of another $300 billion. ." cannot let this continue a chart looking at the u.s. trade deficit with china now. look at the chinese exports to the u.s., larger and larger. those of the imports from china into the u.s.. the white lines, that is what china is buying from us. meanwhile, the trade deficit continues to get bigger. is this a game of chicken of the beginning of a real trade war. nobody knows for sure. president trump has directed to write a directive on

limiting investment from china, but they are still trying to back down. there is a 60-day comment period , so we have two months for something to happen that does not lead to a trade war. tensions, battles, and the next question is what. ramy: if this tit-for-tat trade threat actually turns into a trade or all come in terms -- trade brawl, what happens? >> it will not sink the u.s. economy. ok, $50h of trade, billion of goods being hit with these 25% tariffs, for the u.s., .2% of gdp, for china .03% of gdp. that's $13 billion to the u.s. economy. a $.13 equivalent of increase in the price of a gallon of gasoline. the dallas fed study put out

impact, but amall big trade war impact. tariffs on metals will cut long-run gdp by .25%, but a full blown trade war could cut gdp by 3.5%. a trade war would cut the trade deficit to zero. nobody is looking for that, but in some extreme way it would be effective. isdi: the other question does this change the outlook or make the outlook more uncertain when it comes to what the fed does? >> trade war clouds. that is what it is all about. todayl fed officials answering questions. to bullard says it does add the downside risks. it is too early to gauge the impact on the economy. it is ainard says material uncertainty and does add to the risk. neel kashkari says it depends on what it means for exports, but

he also says we have to avoid a trade war, but says if tariffs open markets, that is a positive. this could lead to a positive outcome. jim bullard saying there is a growing consensus that china has not been a fair player on trade since it joined the wto in 2001. it seems more and more people are saying there is a legitimate complaint here. the question is how do the two sides work it out. haidi: thank you so much for that. washingtonver to with the developments on trade. our editor joins us now. is this all going to happen, or is it just posturing? interesting the comment from wilbur ross. >> that's right. ross and larry kudlow, the

president's chief economic advisor, to aims to emphasize the fact that there still is ,ime, the 60 day comment period and china will not implement their tariffs into the u.s. implements theirs. you have to look at the history here as well. the president talked about the steel and aluminum tariffs. he was going to renegotiate the trade pact with south korea. getting are quickly some agreement and principal on nafta without radical changes on the pact. korean pact. there have been multiple temporary exclusions from the steel and aluminum tariffs the president announced previously. there is perhaps some room to breathe, and that is the message that has been coming out of the white house, other than from trump's tweets. have seen a little walk

back, at least from the chinese ambassador to the u.s., saying that door is open for negotiations. what are any concrete signs, if any, that the white house might also open a door here? >> larry kudlow in an interview with bloomberg emphasized there is still time. we are talking. other members of the administration have said that as well. there is a lot of pressure in the u.s. congress to step back from the brink on this, because a lot of the chinese retaliatory tariffs would have big impacts in republican areas. these are the rural areas where soybeans and hogs are grown. ramy: we have a map to show you later on. let's leave it now. a lot to cover. thank you very much. more on the u.s.-china trade spat ahead when we asked be him oh capital markets -- bm

capital markets whether there is opportunity among the risk. haidi: later, the details of apple's plan for foldable screens and the touchless iphone. this is bloomberg. ♪

>> i do think we have entered a new era trained china and the u.s., but i am not expecting this to be the in game. i think it is the beginning of the negotiations. so much focus on whatever probability you want to put on an escalation in the trade war. morecould end up being than incrementally positive for growth and risk assets if you move away from the rhetoric of increased tariffs and have a negotiation around lowering

existing tariffs, which is a reasonable outcome. with this increasing the way we can address these fundamental issues rather than applying tariffs to each other is clearly the better way. it is going to be in everybody's best interest. it is not just the disadvantage of the emerging economies. it is bad news for everybody. ramy: we have a lot of people talking about what's happening between the u.s. and china, and some mixed views and strong opinions on the outcome of this living trade war. let's get some more perspective with the head of u.s. rate strategy at bmo capital markets. what is your reaction to this huge bullish reversal here? when you saw stocks drop out of the bottom, then in the near session highs, it is a surprise. >> very consistent with the idea we are coming into an important period of uncertainty.

when we had the headwinds of the trade for, data not shaping up like people had into zepeda it would, then the idea we will have this back-and-forth in volatility that adds layers to that uncertainty resonates. inare seeing that play out the equity market, a lot more than the bond market. ramy: speaking of the bond market, the change was almost unchanged, and people were saying that was the bellwether to focus on. what is your take? bond market person, i always think the bond market is right. there are two important factors competing in the bond market. on one side, still risk for inflation. there is a concern that the chinese might sell some of their treasuries, which would put upward pressure on yields. that competing with the implications from a slower growth profile and what happens if tariffs start to undermine the real economy.

ramy: i want to bring in bonds and stocks together in my bloomberg terminal chart. i want to show you this chart that says gone to extremes. the blue line is the s&p 500 index rising in a bullish fashion, but the white line is the ratio between the volatility the volatilityd in bonds. do you think we will be headed higher? that is what this chart implies for the s&p 500. suggest there is put protection being purchased, which is what drives of the volatility index on the equity side, people looking to ensure the gains they have been placed. ,f we can get through this time

and i could see as recovering back to some of the highs we have seen earlier this year, but that is predicated to a large the treasury fact market will remain and arrange and we won not see 3% 10 year yields and the type of damage that has arguably become to do to the equity markets. assume the trade tariffs were to be implemented in any kind of meaningful way, how inflationary would that be in combination with fiscal arymulus, or how deflation the countermeasures from beijing would be? have a few key episodes where we can see what has happened. what has typically resulted are pockets of inflation that function as stagflation rather than demand-driven inflation, so we might see upward pressure on headline cpi am a but that

underlines the spinning power of the u.s. consumer and we would expect more downside in that situation in the following quarters. haidi: i want to throw up a quick chart. this is the relative performance of stocks versus bonds. we have declined even further. in terms this tell you of the aggressiveness or sentiment you are seeing from investors? this year is different from last year, which is highly unusual. happened to 3%? is it too early to make that call? >> i think it the beginning of this year that every bearish factor that was in place that would have pushed 10 year yields to 3.5% was at play. tohad inflation appearing come back, although that has been more moderated in the recent print. we had the potential for more

treasury issuance, which would be a supply side story and push rates higher. the has been focused on front end of the curve. since then, we have seen some of the downside risks associated with higher rates, particularly on the front and when you look at the libor situation undermining the potential for the consumer and the broader the goldilocks scenario, which is what we brought in at the beginning of the year, optimism was high, and that is a typical seasonal factor in the treasury market. the reality is we see the data flow through and those ambitions are tamed a bit more. that is what is transpiring now. haidi: what is going on with the dollar? even if they won't say it, it feels like the administration is comfortable with and almost at factor weak dollar policy? >> i would be surprised if they went on record saying that, but

i agree there seems to be a reluctance to try to talk the dollar up. a weaker dollar will be good for the export sector, and if the administration is making a concerted effort to push forward with bringing manufacturing onshore, it into a delete follows that they would continue to turn a blind eye to that. ramy: earlier this week you talked about the potential of a flattening yield curve. is thisct, how reliable as an indicator for a possible recession? based on what we have been seeing in the past few days, do you think is holds? >> historically if you look back , the fed in particular likes to look at the bill versus the 10 year spread, reasonably good indicator. however, one could make the argument that it is just the investorsarket and getting ahead of the cycle anticipating the fed has gone too far.

now the curve is not inverted and not flat. we have still been pushing for with that trend, translation mechanism to a flatter curve. willicipate the curve invert this year because the fed has enough justification to continue tightening. they have well-established tightening path of 25 basis points a quarter, and until something really gives in the economy, could be risk assets, could be of further determination of credit spreads and could be a number of things, but until they blink in that process, the curve will grind flat. does, we will have you back on. thank you very much. asking about rates as well reaction to what's happening on the markets today. meantime, bloomberg users can interact with the charts shown. you can catch up on key analysis

and save those charts for your future reference. this is "bloomberg daybreak: australia." this is bloomberg. ♪

ramy: welcome back. a check of the business headlines. sony will post a gain of $1 billion from its stake in spotify and reflects the proceeds from the sale of shares on the company's first trading day, as well as a higher value on sony's remaining stake. sony and other music companies bought into spotify several years ago. haidi: testing a subscription service, lyft is hoping to lock into customers. it discourages customers from shopping around for the best price. eventually the majority of miles traveled in the u.s. will be on a network like lyft using subscription plan. amd and nvidia saw a sales

boost. technologies companies are offering similar products. this is bloomberg. ♪

haidi: it is 8:30 a.m. in sydney. futures looking positive. it is a holiday. i am haidi lun in sydney. ramy: i am ramy inocencio in new york. you are watching "bloomberg daybreak: australia." first up, the trump administration has indicated it is willing to negotiate with china as trade tensions escalate. beijing has announced reciprocal tariffs on u.s. products roughly in line with the duties ordered by president trump. china is targeting soybeans,

automobiles, and aviation, and says the measures will take affect when the institute -- when it institutes its own tariffs. >> china will not back off from its 2025 program. they will work very hard. they developure their economy and future technologies. we will not be able to slow down that much. some of their practices in pursuing that 2025 are not fair. a lot of them are fair. -- has to start developing our technologies at a much better pace. >> fed officials morning the potential trade for ads uncertainty to a bright economic outlook. early to says too what it might mean for jobs, inflation, and policy, james bullard says there is downside risk.

lyle brainard also things trade tensions at uncertainty to the outlook. on chinaares fell tariffs, but then a raised losses on the news that its upgraded 737 will be exempt. would escape levies based on weight limits outlined by beijing. the bigger threat is for older 737s and some gulfstream private jets. china it needs new claims to satisfy its rapid growth in domestic airlines and travel demand. and hollywood could also be hit by a trade war. overseas ticket sales saved the day last year with the worldwide box office growing 5% to $40 billion. international markets account for 73% of studio revenue, and all of the growth. the movie industry could face a backlash from china after president trump's complaint about beijing stealing intellectual property.

global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. haidi: thank you for that. let's get more on what we should be watching as trading gets underway in asia. huge swings in the u.s. equity session, and some major markets close in asia, so we could see some volatility. >> still looking like a topsy-turvy session, light-find session with the holidays. thise u.s. overnight, chart shows you the swings and gains in momentum in the u.s. equity markets. there are still a lot of people in the market who have not adjusted to this new paradigm, if that's not too strong a phrase to characterize it, but certainly an new environment that investors and traders have not been used to over the last few months and years.

one thing that could point to the fact that maybe equity swings have gotten too pronounced is what is happening with the bond market relative to the equity market, and this chart here shows you just how moved,e vix has essentially volatility, options white linethat having spiked is the ratio between equity volatility and bond market volatility. soause that has pushed up far, some are suggesting that could mean equity volatility does need to pull back, so maybe we see some narrowing or dissipating of some of the swings, but the thursday session looking like from a volume perspective, still plenty going on and a lot to get your head around, but each and every headline that comes out of the u.s. and china continues to be watch closely. talk about borrowing costs. we are seeing this surge come

impacting lots of areas in markets, including japan. what is the situation with the higher hedging costs with regional banks? remy, the uptick an escalation in short-term borrowing costs has been a global phenomenon play out with the libor spread and some of these key measures of short-term funding. in japan, we are seeing the struggle on the side of lenders generally, but especially regional banks and smaller banks that blend into the regions across japan. this chart shows us that these vendors have been parent back their foreign holdings, hedging costs getting higher as short-term borrowing costs go up, and these banks have been reluctant to buy more assets based overseas, and the drops we have seen in bank holdings has

doubled what we have seen in the bigger more national, multinational banks, so clearly quite significant those most recent numbers we got out yesterday. without that pullback in borrowing costs we could see this tech on for a few more weeks or months, certainly something to keep your eye on their. ramy: thank you very much as we look ahead to the asian pacific trading day. let's turn to tech. facebook has revealed that up to 87 million users may have had their data in properly shared with cambridge analytica, up from the earlier 50 million estimate. reportersrberg told he is confident that the social network is making progress on security. thatam the first to admit we did not take a broad enough you as to what our responsibilities were. there are billions of people who

love the services we are building because they are getting real five you in building relationships on a day-to-day basis. that is something i am proud of our company for doing, and i know we will keep on doing that. more, let's get over to san francisco with sarah frier. walk us through the latest details we need to know here. >> the first thing to know is the 87 million is actually an estimate by facebook of the worst case scenario. facebook itself has not audited cambridge and analytica -- cambridge analytica. they have gone through and looked at the people who downloaded the app. then they took account of all their unique friends, and with that the highest total you can get to is 87 million, so facebook is basically trying to confirm what it expects to be

the worst case scenario before any worst-case gets out there. ramy: so they are setting the bar higher as we wait for the official numbers come through. facebook has put all privacy controls in one area, one new thing is it has disabled the tool that allows profile scraping. what happened here? >> this goes back to how facebook is setting the bar to stay inest possible terms of how many users were affected. in that particular disclosure they say pretty much everyone who has a facebook account at some point could have had their data scraped through the search tool. by default people would be searchable using their email , andss or phone number using that information to scrape public profile data, just download all the information of people they put on their facebook profiles. haidi: that doesn't even sound

pleasant, does it? has there been any meaningful impact or result when it comes to add revenue or advertisers losing interest. we will find out when we see facebook's earnings in late april, but for now mark zuckerberg said there is no meaningful impact from the campaign or the pullback from advertisers. remember that facebook and google have a duopoly in mobile advertising and are gaining all the growth in that market right now. it is unlikely that even if advertisers are upset, they will it, butess cycle out of they will still have to end up spending on facebook. thank you. you can turn to your bloomberg for more on this and other top stories. liv .

apple is working on bringing touchless control of curved screens to the iphone. i reporter joins us now from san francisco. curved screens, it sounds like they are playing catch-up. that's right. these are two new features other phone makers like samsung have ushered in in the past. samsung right now curves on the edges on the left and right size, where as apple is looking at a gradual top to bottom curve. gesturechless control has been tried before with the galaxy s four. it did not take off. is addede wants to do

as a core dimension to the touch interface on the iphone. -- termsght, in touc of the touchless, gesture control, how would that work? a feature called 3-d touch, a three-dimensional touch system. the you can do a normal tap, a hard press, or harder press. this would be a fourth level of pressure, this dimension. touch,ght call it four-d hovering over the screen with your finger, being able to do just are's without tapping the screen. maybe pull up a different menu by hovering over it. little am imagining a bit like minority report or something if this comes to fruition. i would be interested to try that out. google's toped artificial intelligence executive. a lot of people say he has a lot of work to do. can he get there? >> yes.

i think it will take a while. was in charge of web search and artificial intelligence at google for eight years. now coming to apple. , sounds pod is awesome great, looks cool, but you start talking to it and using siri, you note how far apple is behind google or amazon. there is quite a bit to do there. let's see what happens. ramy: it works for weather, but not much else. our bloomberg technology reporter in san francisco, thank you very much. up next, more on the looming trade war. scott kennedy joins us from washington next. this is bloomberg. ♪

haidi: i am haidi lun in sydney.

am ramy inocencio in new york. this is "bloomberg daybreak: australia." president trump's tariffs could have consequences for japan. let's cross to tokyo and i reporter there. i understand portions oh update that he probably should be worried about this knock on effect. what is the situation here? yeah, there are a lot of reasons for japan to be worried. the first and most obvious risk is uncertainty and the prospect of escalation of this trait conflict between the u.s. and china, but u.s., japan, and companies around the world have source production to take advantage of lower production costs and goods produced there might be affected by these tariffs. finally just to add another layer of complication, even if

japanese shipments pick up as chinese shipments in tech products, that will increase, especially with the trump administration, so a big mix of different concerns for them. what options remain for japan? yeah, the first and probably the most obvious option is direct persuasion, and prime withter oabe will meet president trump and tried to press the case and convinced the u.s. why this is not in anybody's interest. failing that, japan is in negotiations as part of larger trade agreements in asia, the tpp a love and is the successor from the original tpp the u.s. rcep agreement.

japan can push ahead with those and placed the u.s. at a and may possibly get the trump administration to move away from this protectionist stands for the sake of its and competitiveness. haidi: thank you so much for that. coming to us from tokyo. lots of regional and global ramifications in this trade war. president trump says the u.s. lost the trade war with china years ago. he tweeted the battle was lost by the foolish or incompetent people who represented the united states. with us now from washington is the deputy director at the center for strategic and international studies. the grievances aired by the trump administration, are they in a substantial part historic and part of a country like china and the structural changes that go on? certainly china has never

been a liberal, free market economy, but joining wto did make a difference, and for the first decade plus of its membership, it was on a path towards significant liberalization. since xi jinping has taken power in 2012, china has gone in another direction. there are deep-seated problems ,ith china, market distortions distortions that need to be tackled. haidi: china would argue that beijing realizes the need for opening up, but clearly they are dealing with unique and challenging domestic circumstances as well. do you think this will end and a market friendly way, that these tariffs set up the way for negotiations and there will be concessions made on either side? >> yes, i think if we were talking a few years ago i would

agree that the chinese believe that liberalization with the ultimate goal, but there were practical problems that require them to the patient. i don't think that is the case now. i think we are locked in a good, judicial game of chicken with the u.s. is pushing for substantial changes in the chinese really don't want to give in on these core fundamental aspects of their economy, so i am concerned we will continue to escalate in the coming months. to nextoking ahead week, xi jinping is supposed to speak, and he is supposed to talk about liberalization of the economy, but just now you said you don't expect that, so what might we expect there? do you think he will hit back? >> i think he will have a two-prompt message. one is the message he gave it. osst-last year -- gave at dav last year that china is trying to reform its economy, but it is

complicated and will take time. notother messages china is backing down and will continue to respond measure for measure with united states and hope the united states backs down. hop into the bloomberg terminal. i want to show our viewers this function. ramy: in terms of whether the u.s. would back down, we talk about this all day in terms of the voters. this is not just the pocketbook, but also policies. we can see where the soybean voters are here. how much do think it would take for the white house to back down ? or do you think if china does retaliate that there will be even this bigger spiral-bound? >> sure. don't see the white house backing down unless the stock market really tanks in a that has any, and effect on voters across the country, and it looks like both houses of congress could flip as result.

is in ae house feels it good position and china is on the defensive. china has an alternative view, so when you have two folks looking at each other thinking they are stronger than each other, you get escalation, so we have this for another couple of months, both sides trying to stare down the other. taken themp has strategy of conflating economic and trade issues and geopolitical and security issues. is this a danger given that we are setting up for a series of summits on north korea? >> it could. certainly from the time the white house issued the national security strategy in december it has been clear the concerns about trade with china are also connected to concerns about global rivalry on a strategic -- in a strategic sense, and that also affects regional hotspots in how we interact with the chinese there. i am concerned about where we are going in the next few months on trade, and also longer-term.

it will take good diplomatic skills from the white house and chinese to figure out a way to escape. see some light next week? i am not optimistic about that. we will have to wait and see. you spoke about how much china has changed since xi jinping took power. now he has consolidated his power. if you take aside any concerns you might have with the move away from collective governance, do you think the fact he has consolidated power is better and more effective for structural reforms that china needs? thinksainly xi jinping that. he has gotten everyone else in china to say that. and certainly if it is about making the trains run on time, about making the state more capable, that is true, but this is about state intervention. reformed used to mean

liberalization and the state getting out of the way. now it is about the state being more powerful and making the party more powerful. i don't think that translates into greater efficiencies and more productivity, which is what china needs, so in some way they short-termthe benefits of political control, but sacrificing the long-term economic health of their economy and putting it at this. haidi: great to have those insights. scott kennedy, deputy director there. you can get a roundup of the stories you need to get your day going in today's edition of daybreak. bloomberg subscribers can go there on their terminals. mobilelso available on and in the bloomberg anywhere app. you can customize the settings and get the news and industries on assets you care about. this is bloomberg. ♪

this: that is almost it morning as trading get started around asia. at what were watching over the next two hours. >> is this a trade war or trade tif? markets did a quick turnaround. we did hear from both sides, china and the u.s., that they are willing to negotiate further after being hit with tariffs on chinese and u.s. goods. we will speak to the council of foreign relations, a senior fellow there had an interesting take siding with your last guest , saying china has made clear it will it back quickly and in kind. the threat could deter the u.s., but both sides playing chicken right now. ramy: that's right. , we go into the tech world with the cofounder of aspect ventures, talking about

the made in china 2025 plan under xi jinping. possibly under threat from u.s. tariffs. we will also be exploring the midas touch, the list for top tech investors. we will also talk about gender and culture diversity there if we have time. haidi: one of the questions that remains on answered and risks is china could hit back. we will speaking to macquarie group, a currency strategist there. his hypothesis is that it is more likely the chinese could retaliate using the yuan as opposed to the treasuries market , that gentle pressure, if you will, to get to a position where both sides come together at the table. that is about it for "daybreak: australia." a number of markets closed

across the region. taiwan offline has what is hong kong and mainland markets. turnaroundtime, the session on wall street sing potentially a bright start to trading in sydney and in tokyo. this is bloomberg. ♪

♪ 7:00 a.m. here in hong kong. i am yvonne man. welcome to "daybreak asia." trade tensions, is it time to talk? willingnessicates to negotiate with china as tit-for-tat tariffs rattled the markets. beijing says it will not be pushed around and slaps reciprocal duties on america. from bloomberg's global headquarters i am a ramy inocencio in new york. of 87ok says the data million users was improperly shared. mark zuckerberg says he is still the man for the job.