♪ haidi: russia faces new u.s. sanctions with links to chemical weapons in syria area trump said the attacks were mission accomplished. betty: u.n. ambassador nikki haley said washington is sending a strong message, and everyone will feel it this time. trade, the tpp and north korea's nuclear program are all on the list with shinzo abe visiting mar-a-lago this week. the boston fed president worried about rates. eric rosencrantz here, low unemployment, low inflation economy not going to last.

hello from sydney where it is past 8:00 a.m. this is daybreak australia. we are an hour from the major market open. betty: it is after 6:00 p.m. in new york. we are going to look at how the action on wall street will play into the asia-pacific trading day. there was quite a bit of nervousness on friday in the markets. we saw all the indexes in the red. there was anticipation of what president trump was going to do .ith the strikes against syria they happened friday night. the president declaring russian accomplished on twitter saturday morning. you can see that nervousness in the markets. the s&p down, the dow off 123 points. the nasdaq also lower half a percent but interestingly enough, it seems like the markets are taking these strikes in stride. we have not seen a lot of movement in the yen and the middle east as the markets open there. they actually advanced,

believing that these strikes are contained in limited. the positivething reaction is very much in the energy space. but elsewhere not too much of that flight to safety being seen. tois how resilient they are the geopolitical risks the last couple years. looking at the setup, very much a sense of the direction of trading this week, trading new zealand, seeing downside. the kiwi dollar at 73.51. over to australia, this is how we are setting up. we have a pretty big week in terms of the china gdp and domestic activity numbers. that will weigh in on the aussie dollar and sydney futures looking lower, 77.67 is where the aussie is trading. and the aussie kiwi is that this. we sought a little bit of a move when it comes to u.s. treasury's. gold not touching much of it bid

-- catching much of a bid. $67.57. 6757 -- they say it is a good time to own a oil assets, brent crude could be $80 a barrel with sanctions on iran and the scope of the syrian civil dispute expanding. looking at commodities, seeing weakness across the board. let's get the first word news with ramy inocencio. reporter: the trump administration is stepping up its criticism of china's trade imbalance with the u.s. but has yet to brand it or any other nation a currency manipulator. the semiannual fx report adds india to a watchlist and indicates washington may expand the number of countries being monitored. they include the usa's 12 largest trading partners plus switzerland. japan and china say they will work together to encourage north korea to abandon its nuclear program and the latest sign of

improving relations between asia's to largest economies. foreign minister in tokyo the first of its kind in eight years and came ahead of a korean summit and president trump's potential meeting with kim jong-un. the will be a visit to japan next month. tougher lending standards threaten to cool australia's once red-hot property market. an inquiry into the financial industry misconduct is likely to lead to greater regulation of the $1 trillion plus mortgage market. the banks have an unrealistically low living expense report, and ubs says a genuine report could reduce borrowing power by 35%. profile of raise the this island by including horse racing and sports lotteries, almost in a move sources say may seek casinos on the mainland for the very first time.

beijing bans all forms of gambling but allows two types of watery and some racing, but betting is not allowed. shifting gambling policy could threaten the $33 billion casino industry of macau. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. inocencio. this is bloomberg. ♪ betty: thank you so much. the trump administration imposing new sanctions on russia related to serious use of chemical weapons after friday's airstrikes were carried out by he u.s., france, and the u.k. ros krasny following all of these of elements from washington. let's talk first about the sanctions. expectations are steve mnuchin will be announcing sanctions tomorrow? ros: a very interesting comments from nikki haley. she said steven mnuchin would be announcing these sanctions on monday, but we have been working

the phones today and have not come up with any details. it remains to be seen exactly what will happen tomorrow and if they will go ahead as she said. in one of the interviews she was less definitive that something may happen. then she came out on cbs and said they would happen. the treasury department as a rule will not comment on pending sanctions, so we will have to wait and see as we know from the commander in chief, donald trump, he said saturday it was mission accomplished in syria after the bombing raid friday night. anything indicate coming from his side that there could be more on syria, but we don't 100% no. betty: it is unclear, but it sounds like interviews with allies where johnson for instance, noting it is one and done, one strike and there

aren't any more which is why the markets have not reacted as violently as you might expect. ros: in early trading we see u.s. futures look like they are strongly higher, so they are taking president trump at his word about one and done, mission accomplished. he said the same thing today as well. not believingess it was mission accomplished in making this historical comparison with george w. bush, but based on everything we have heard from the u.s. and the u.k., we won't see anything more by way of military action for the time being. haidi: we heard from mike pence and justin trudeau saying nafta could happen in the next few weeks. there are some sticking points that need to be worked out. ros: there are two or three or more major sticking point. the biggest one from the u.s. the is is about autos and percent of components of cars

coming into this country that are made in the united states. that is one of president trump's goals to raise the mystic manufacturing base once again. -- the domestic manufacturing base once again. there have not been much movement on that for some time. but i think what drives primeent pence and minister trudeau is looking at elections in mexico, the u.s. midterm elections, and they want to get this wrapped up just in comes intoadership mexico and the united states. might just throw the whole deal out. there is quite some time pressure. even if they are optimistic and it is misplaced, it seems like the leadership of the country will be leaning on the trade negotiators to get going on this and basically the nafta talks are in predominant section in

washington, so they will be grinding on that for the for seeable future. haidi: and on the issue of the u.s. may be potentially rejoining the tpp, the allies have not jumped on the idea reopening talks. when we had the mayor a lot meeting between abe and trump, could there be discussions or breakthrough? ros: we have been hearing or reporting ahead of this second mar-a-lago summit between abeident trump and shinzo that mr. abe is quite keen for the u.s. to come back to the negotiating table and could be the bridge between trump and the more reluctant tpp earners to get the u.s. back in. among the tpp partners that haven't gotten out, trump wants to have major concessions to get back in. they are not keen on that, but abe looks like he might be the

maker in this case, so we will see. they could strike a deal on the golf course in florida this week. haidi: golf diplomacy is what the president does. .hank you so much for that our editor ros krasny in washington. expect,ook at what to we have been traveling to meet in florida. you can get a roundup of the stories you need to know to get your week going. bloomberg subscribers can go to dayb on their terminals but also on the mobile and the bloomberg anywhere app. you can tweak the settings so you just get news on industries and assets you care about. this is bloomberg. ♪

♪ we are counting down to the sydney open. we are setting up at the start of this brand-new trading week, looking like it has opened across asia as we navigate

through the geopolitical concerns, the missile strike as well as china gdp data really dominating this weekend a whole flurry of fed speakers giving us hints on monetary policy in the coming months. i am haidi lun in sydney. betty: i am betty liu in new york. you are watching daybreak australia. president trump has ordered officials to take another look at a tpp deal, tweeting this late last week. would only join if the deal work substantially better than the deal offered to obama. we already have bilateral deals with six of the 11 nations in tpp. we are working to make a deal with the biggest of those, japan, which has hit us hard on trade for years. joining us is the former chairman of the president of the , joining usrt bank from atlanta. good to have you back again. it kind of felt like the last

time you were on, we were on the trade war. now it looks like we have maybe some negotiations at play here. do you think that the leaders of the 11 nations of tpp are going to let trump come back in and possibly renegotiate parts of tpp that have already been agreed upon? >> it is very enticing. they would prefer the u.s. to be in than out, but the 11 have gone forward. they have stripped down something president obama had put in about intellectual property rights and biologics. but it is actually a weaker deal to the u.s. than it was before. the idea to make it even stronger than president obama's would be a tall order. not at the table. mark: it certainly seems that way. is this all talk and very little action? >> president trump i think needs a china policy. this helps old that void.

it also -- build that void. it helps with what people have been concerned about with terrorists on soybeans. you can go into tpp as salt all of that, so politically it is a smart move in a short term for something we are supportive of tpp. i find it really hard to find a path forward that is realistic at this point. betty: so you think the chances of the u.s. actually negotiating a way into tpp are what? what are the chances? >> very slim. it would be wonderful, but i don't see how it really happens. is there oruch room appetite among tpp nations for any level of renegotiation, given this is something that has gone on for years? this is they want to get it

done, and is there a willingness for the u.s. to come back in and dictate any terms? remote toems really me. what we need to do is watch the abe visit on tuesday because president trump would like a bilateral trade with japan. if japan insists the only way to do it is tpp, maybe there is a path forward. president trump has told us he is a good negotiator, so let's see what happens. but i can't see how that is realistic at this time. haidi: is this a better strategy? if you look at trump's ultimate goal as having some sort of ideological issue with china, if this is about a fight in terms of containing the ambitions of beijing is tpp the way to go? >> yes, but the 11 countries don't want to be a tool for containing china.

they need china as well. australia the active trade of raw materials to china, so they don't want to be seen as doing something that will [indiscernible] china. that is very tricky. [no audio] haidi: we have also got the nafta negotiations, and is good. a few days ago that the president saying they are willing to renegotiate as long as it takes, but there is a sense that time is of the essence here, that they need to get this done before a new wave of political opposition comes into play with the mexican and the u.s. elections. >> the mexican elections are july 1, so that is happening. that is not realistic that that it will happen before. and the trade negotiations may

help usher in a far left government in mexico which is not to our advantage. there are a lot of moving parts here this requires a comprehensive strategy, and that is not something we have seen so far. betty: we know trade and north korea will be the top items when abe goes to meet with president trump down in sunny florida. first off, where is he going to have more success on, trade or north korea? >> [laughter] that is a rock and a hard place. they are both tough. aligned we have some interest with japan on north korea but some diverse. on trade, japan has been a very tough negotiator. i think we have got, there is no easy path here. there is no we do one and then the other. it will both be difficult to solve at this point. betty: there are no easy path at all. thank you so much.

the former president of the u.s. export import bank in atlanta. watch us live, see past interviews on the interactive tv function. you can dive into any of the securities or bloomberg functions we talk about and become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. much more ahead, banking shares slumping on wall street despite -- we will review the earnings from j.p. morgan and citigroup and look at results ahead. this is bloomberg. ♪

♪ betty: good morning. i am betty liu in new york. haidi: i am haidi lun in sydney. jpmorgan and wells fargo have kicked off earnings season. the financials, both banks beating full first quarter forecasts.

they closed out friday lower. ramy inocencio joins us to explain what happened. ramy: you can beat in terms of the top line and the bottom line, but when you get into the details here at least for these banks, basically it was because of the rate hikes we have been seeing that have actually been hitting them more than expected. let's go into the first full screen terminal that i want you to look at your this is for j.p. morgan in orange and wells fargo in blue. this is the mortgage origination. it has been shrinking for the past several quarters in fact for j.p. morgan. this is a biggest contraction ever since 2014. as for wells fargo it is flat, but really higher rates obviously equal more expensive home loans. the cfo for wells fargo has actually said two thirds of the margins declined at wells fargo because of competition in the mortgage market. not only that they say

applications looking ahead for new loans fell $5 billion in atls fargo and $6 billion j.p. morgan. in the bloomberg terminal i will show you while there are weights, there are positive spirit this is looking at sales and trading revenue in white and we can see from the fourth quarter 2017 to the first quarter 2018, we see a good pop here. looking at it ever since the first quarter of 2017, coming up on par. jamie dimon weighing in on all of this. he did not have good words. he said the environment is competitive and lending as you saw was flat for the quarter. one final time back into the bloomberg because after all of that negativity, you can see bank shares did fall. j.p. morgan for example down nearly 3%, wells fargo down more some of the biggest fall in three weeks or both of those.

as for the kbw bank index in white, the biggest fall in one week, 1.5%. betty: we have other big banks, goldman sachs, morgan stanley, bank of america. what our expectations? ramy: there is good trading revenue on this. bloomberg intelligence is thinking this will translate into positivity for those banks. bank of america on monday, before the open. back into the terminal, i will show you this final charge. we are going to be watching this. i am calling is up the course of this week. the major bank revenue and comparisons here, i mentioned bank of america here in blue. we might be expecting that to rise. this is the revenue. tuesday we expect goldman sachs to come in. there will be focus their and wednesday morgan stanley. target, butt high bloomberg intelligence will be looking through the lens in terms of what they were seeing in january in terms of the numbers they were going to hit. betty: thank you so much.

big week in financials. the latest rounds of earnings likely to influence the direction of stocks, investors are focusing on fresh economic data and also the meeting between japan and president trump kicking off tuesday. su keenan joining us with more. let's take earnings and retail sales su:. it is a broken record. typically we see the sales market rise, and we are not likely to see that here, at least by asset charts. look at gtb where you can find these charts. this one is called broken because the s&p 500 has ended 20 quarters of its pattern of climbing during it -- earnings season. 80% from during earnings over this time. there was a perfect streak of runs, whatever reported, but it ended in february with the most spectacular meltdown we have seen from 2011.

we are going into this season on shaky ground. take a look at some of the big names that are out this week in addition to the bank names. we have netflix, ibm, cash flow is a big issue there. johnson and johnson was good expand capacity to more than $20 billion, which could impact their ability to take over companies. they we have big eco-data, retail data will be coming out. we are expected to see retail positive here. the first time in four months your that will certainly have an impact on the market. take a quick look at the market snapshot because friday was a down day, pressure on stocks, bit of movement into the safe haven. many say that while president trump said mission accomplished with his latest actions in syria, you have those oil and this isestors betting not going to be accomplished. so those are likely to have some

impetus into this week. haidi: and aside from political drama surrounding president trump, he is welcoming shinzo abe back to mar-a-lago. what are we expecting among other key events? trumplk about abe, and invited him back. one of the things that is certain to be talked about, and this is video from a former visit, will be tariffs that are still up in the air and korea, a very big usual topic. we also have a big focus on cuba, which will see 60 years of control by the castro brothers, fidel and then rowel -- raul come to an end very the communist party maintaining its control with its successor. thank you so much. a lot to look out for investors this week. bloomberg users can interact

with all the charts shown using gtb go. you can look at recent chart on bloomberg and catch up on key analysis and save them for future reference. this is bloomberg. ♪

♪ haidi: 8:30 in sydney, the opens in 30 minutes time. futures looking lackluster, tepid open in sydney and across asia. i'm haidi lun in sydney. betty: it is 6:30 in new york. you are watching daybreak australia. let's get to first word news now -- let's continue on to the first word news as we are looking for ramy inocencio. new sanctions against russia has washington and its allies have set their missile strikes on area. the measures will be aimed at companies deemed to be working with bashar al-assad and his chemical weapons program. -- america is

sending a strong message. president trump called it accomplished. haidi: the president has released a barrage of tweets criticizing the former fbi director. james comey naked as slippery and a self confessed leaker. the book will portray the president as a mafia boss, fronting the republican party launching a website to discredit comey. barring him will be one of the finest achievements, the president said. betty: support for the abe government has fallen to a record low. the cabinet has the backing of 26.7% of eligible voters. the first time it has dropped below 30% since abe came to power in may 2012. a kyoto survey showed his folly support after a series of scandals linked to the prime minister. the boston fed president

says he doesn't buy the argument the u.s. economy has a benign mix up on a plane and low on inflation continuing. they are worried the central bank may be too slow in raising interest rates. he said the fed has to be vigilant to ensure neither wage nor rice increases become faster than what is needed in the long run. >> i would say policy mistakes are what causes recession. geopolitical, what other countries are doing. those are not that easy to predict. they are no more -- it is just as hard to predict now as it has been in the past. haidi: global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ let's show you a quick update on your markets as we kick off this trading week. we have trading underway in new zealand. kiwi stocks trading a little

lower. the dollar at 73.50. the u.s. dollar index ending friday, mostly lower across the s&p, quite a few losses friday as we had middle east tensions weighing on sentiment. futures in australia we saw earlier looking tepid. the aussie dollar will be looking out for the china numbers coming through. big branch of china gdp, fixed asset, investment, production all out this week. the aussie dollar at 77.71. we did not see this kind of huge flight into safety given that we did have that attack on syria. investors taking that in stride. 107.56 is dollar-yen. sterling 142.38. we have fixed assets for the u.k., but sterling hitting an 11 month high against the euro into friday's session.

the 10-year yield, we had dropping a couple basis points and just a reminder the s&p out in friday, lowered by .3%, but the monthly or weekly gain for the benchmark at 2%. of get more on what we should be watching as trading gets underway in asia. haigh.tor adam looks like investors are careful with activities in syria. what else is likely to move the markets? this point as investors respond to the serious situation, they are taking the view that now the situation is contained. it isn't a situation which can have a huge amount of fallout. there will be sanctions in the u.s. and the u.k. have both indicated that. and itery much in flux is the kind of an area of conflict that is contained for now. we have seen that in risk assets this morning. we have seen a nice bump up in u.s. equity futures. we have seen weakness in the to rush in andon

by safe haven assets. but to your point about later this week, it is a very busy week and could move the dial in a number of ways. first of all earnings season is of course getting underway, really in essence in the u.s., a lot of coming, give us guidance on how this is panning out especially for equity traders but also the bond market with that yield curve aversion continuing to be in focus. and china gdp, some of the other big data points in china, there will be key ones to watch. there is a huge amount of fed speak with incoming new york bank john williams, one of the key voices, very interesting to get his assessment because there have been a few weeks since we heard jay powell and his assessment on the economy, so plainly -- plenty to look out for. there are concerns about trade tensions, inflation, but

there is a revival on equities. what are analysts saying? is certainly are significant amount of flows back into mutual funds, and this chart in your gtb library shows you, we have had $5.6 trillion worth of fresh cash has been prompt into mutual funds. a lot of that finding its way into equity funds. what this is doing is painting the picture there is kind of that the suggest mentality is waning in any significant way. it continues to be at a point where any selloff is met with instrumental buyers coming back -- incremental buyers coming back. if the u.s. equity market trades up higher today, indications are this morning that it will do. we can get back to the mid-march levels for a four or five week of a lotch has got rid of those uncertainties and

worries that we had from a little while back earnings is the key mover that could shift the dial this week. we had those kind of interesting numbers with jpmorgan on friday, because the numbers themselves were ok but those stocks sold off. goldman sachs later on in the session and quite a few other big moves this week, so that could tip the dollar. for now risk sentiment looking reasonably supported. betty: thank you so much. marketsgh, our global editor. let's get a check of the business flash headlines are struggling noble group said to be sweeping a deal to shareholders after pressure from investors and founder richard ellman. we are told creditors are willing to increase the equity shares and restructured company shareholders would have from 10% under the current proposal. the share could increase to about 50% with ellman offered a nonexecutive director position. haidi: bomb partier is exchanging is jets for more than

12,300 kilometers, topping as a long-distance champion of the private aircraft industry. 480 -- the global 7000 improvements can fly from new york to hong kong or san francisco. the plane is sold out through 2021. heard,as you might have sir martin sorrell has quit following allegations of personal misconduct after three decades of building up the advertising powerhouse. the financial times says he does not have a agreement with wpp, leaving it free to start a new advertising venture if he wants to. it that's on the line now is equity star analyst who covers wpp. he currently has a buy recommendation on the stock. thank you for joining us on the phone. big news. it is one of the most read stories right now on the bloomberg. how much of a hit is this going

to be for wpp? >> in the short term i think the main risk that they will be facing is how their clients would react to this decision. i think what they should do is give signs of stability to the street and their clients as soon as possible. that comes with selecting the ceo quickly. the best one possible of course. betty: these are big shoes to fill, martin sorrell's shoes. who do you think is going to be the next ceo, and will that be an insider or someone external? -- not sure who they will go with as permanent replacement but more likely it will be from within. andrew scott, who will be the co-ceo, coo for the company now, i think both of them would be good candidates for the position. but given the reputation of the

at holding firm and its agencies, i think it would be best for the company to go with someone from within. betty: so going from within, does that tell you this is -- if they were to promote someone from within, does that tell you that the strategy of martin , youll when he was leading know, it is still the right strategy for wpp? if they were to go externally, that would leave -- lead them to believe it is the wrong strategy and he go with something radically different. i think yes. overall it would indicate that strategy was the correct one, especially talking about restructuring to operate more efficiently, given the lower topline growth facing. so i think that is the case. one thing that may be different is the company's decision to sell its assets.

the custom research side of the investment management segment that they had has not been performing that will from a topline perspective. was what we heard, sarao hesitant in selling that side of the business. when you could see one replacement is found, when you can see the next six to 12 months is possibly a sale for that side of the business. haidi: does this change things from a relationship management point of view? no. as i said before, i don't think the departure is going to hurt their relationships with clients that much because he wasn't instrumental in winning new businesses recently as he had been many years ago. but wpp should give signs of stability to the street and their clients, and that will come with selecting the ceo quickly, a qualified one of course. haidi: what other positive changes could come out of this departure?

>> as i mentioned before, one would be the decision to sell one of the non-growing side of the business, which is customer research, the management segment . the other one would be trying to become more aggressive in terms of driving topline growth in the short-term. in the short-term it may not be positive but in the long run i innk they have leeway computing more aggressively in google assist and omnicom and ipg on the pricing side. so i think they need to do this in the short-term to continue to retain their top clients. betty: what about the next step, what about breaking it up? is that in the cards? >> i would, i am not really sure. i would say this year they have very valuable asset.

most of the agencies under that umbrella are highly valued and widely respected. they have excellent reputations. oncei would say is that the begin to operate more efficiently, once they slimmed down a little bit, then maybe the breaking up of the various assets or selling various assets would become more attractive. betty: i want to talk about martin sorrell himself and misconduct allegations. .e has been a controversial ceo pay package was the subject of many doors -- news articles over the last years. is there a sense of the board letting it out of hand, that they gave him too much power? does 30 to be an overhaul internally? -- does there need to be an overhaul internally? >> based on what the company itself has stated, what he has been accused of and based on the

investigation, finally concluding it is not necessarily material. sarao isprising that stepping down without disputing the allegations or the investigation, but then again remember that he does have stake in wpp. i am assuming his decision to step down is what he thought was best for shareholders including himself. inis going to be helping terms of the transition process, so that is another thing to keep in mind. cash: does wpp lose some despite these allegations and as betty said he is controversial, he was such a giant of this world? short-term.n the that is one thing that the company needs to address as quickly as possible. the way to do that is to give signs or indicate, indicate signs of stability to the street and the clients as soon as possible. finde hoping that they can

a replacement very quickly. haidi: thank you so much for joining us. our analyst who covers wpp. shinzo abe heading to mar-a-lago with hopes of getting the u.s. back on board with the tpp. taking a look at the chances of any kind of deal next. this is bloomberg. ♪

♪ morning.od i am betty lou in new york. haidi: you are watching daybreak australia. trade in north korea will be on the agenda when president trump meets shinzo abe this week. talks with kim jong-un and the review of the transpacific partnership will be on the list at mar-a-lago. let's talk about the prospects of seeking progress when it comes to the tpp and these terrorists against japan. against japan.

right to have you. the tendency for president trump to wrap up issues of geopolitics, of security along with trade, is that an approach he is unlikely to take this time? there is a short-term agenda at a medium term agenda. in the short-term, minister of a want to make sure that japanese views are taken into account in the talks with north korea and he wants to get out from under the steel tariffs that were imposed against japanese steel exporters. they didn't get an exemption like many other u.s. allies, for he wants to find a way of removing those terrorists -- those tariffs. haidi: it was interesting japan did not get. it was a stark contrast to the exceptions granted to other trading partners. you think that is in order to give washington more leverage going into these talks? that is the only conceivable

explanation. they are a staunch ally, and the trump administration has long wanted more trade deals with japan to reduce the bilateral trade deficit. i think what we are going to see is prime minister abe coming and agreeing to purchase more u.s. goods, particularly lng and welcoming and the renewed u.s. interest in the future and rejoining the u.s. -- the transpacific partnership. that is something that cannot start until next year. this: onto the tpp and openness of the u.s. to potentially rejoin has welcomed by the markets, but how much does that differ the japanese side for renegotiation, given we have seen sticking points over the past historic grounds of negotiation between the u.s. and japan?

>> having been left at the altar that itpanese recognize was still important to have the u.s. come back. so they took the lead among the 11 remaining tpp signatories and made sure the deal was maintained substantially intact. but as the deal president trump rejected. it is clear that if they want that u.s.-backed, it will have to be a bigger deal and a better deal than the one negotiated by president obama. but that can mean adding more things to the economic agenda, adding more members to the tpp so that the overall economic payoff is bigger, and there are many countries that already are expressing interest in joining tpp as soon as the door opened including south korea, taiwan, columbia and others. betty: we have heard already from some countries, thinking of

australia, officials say there is no appetite to renegotiate tpp. it took long enough to get together with the 11 nations. they don't want -- from australia's point of view, they don't want to go back to the table now. there is a nuance here. they do want to go back to the table to get the united states in. what they don't want to do is rework and change the existing provisions of the tpp. but i think there would be more openness to adding new provisions to the tpp, and they are doing more on electronic commerce, doing more on cyber issues that are of course a big concern in the region, doing more perhaps on currency revisions could be negotiable. betty: what do you think the u.s. wants? what would have to be added on or changed to get president trump to sign off on rejoining

tpp? i don't think they have a clear idea, but it has to be bigger and better. that is the instructions from the white house. the three areas i mentioned, which go along way i think to make a deal that ambassador light heiser could bring to the white house, you get approval from president trump. betty: i imagine that is what the president wants. he wants something along those lines. what would be the next step? >> the next step is really to prepare, do some pre-negotiations to see what specific, what the specifics are that the united states would want to see put on the table and see if that is good with the other countries. but the fact that has to wait a little bit, until you get more countries that ratify the tppement, six of the 11

countries have to ratify the agreement before it enters, and the united states cannot join the agreement until he goes live. so i suspect the united states will start talking with japan at japan will try to broker least a preliminary discussion with the other countries so that by early next year, they might be able to start a full-fledged negotiation. thank you so much, jeffrey schott, the senior fellow at the peterson institute in washington. for more breaking news wherever you are, we have launched tick-tock by bloomberg. it is the first global news network designed for social media offering live video coverage and hourly updated top news reports verified by us. jump on twitter and follow tick-tock by bloomberg. this is bloomberg. ♪

♪ haidi: i am betty liu in new

york. haidi: i'm haidi lun in sydney. you are watching daybreak australia. that is almost it for daybreak australia, but yvonne and betty have daybreak asia. looking at the next two hours. yvonne: i will be assessing that market reaction to this military response to syria over the weekend. president trump has called this a mission accomplished, but investors are taking it at it doesn't seem like things are escalating any further from here. this could be a one and done deal. we will ask alan henderson from the eurasia group, the managing director of global markets, great guy to talk about how geopolitics can continue to be if not an overhang on markets, whether this is actually the right call. are we slowly going to be seen to political risk being priced out of the market? betty: a very pessimistic view of the market unfolding between the u.s. and syria. professorkissinger

who says the u.s. will pay a bigger price on this u.s.-syrian conflict than serious themselves or the assad regime. we will bring him on to explain more when you think this will be much worse for the u.s. todi: and we will continue assess the fallout when it comes to trade, where the u.s. position on trade lies reopening tpp. another a week and more developed its in the trade entry tensions with beijing. china gdp coming out this week. we will be joined by the texas global head of investment banking mark vincent. they have been expanding their m&a footprint in china, three m&a events in china, so getting these views about the impact of tensions on cross borders, m&a transactions and also a broader investment of banking outlook

across asia. that is all coming up next over the next two hours of daybreak asia. that is just about it. looking at a pretty tepid open as asia wakes up. this is bloomberg. ♪

♪ 7:00 a.m. here in hong kong. asiae live from bloomberg headquarters. i am yvonne man, welcome to daybreak asia. u.s. sanctionsw for links to chemical weapons in syria. trump says the attacks were mission accomplished. nikki haley says washington is sending a strong message and this time, everyone will feel it. york, ity live in new is just after 7:00 p.m. on the sunday. asia-pacific markets face a pretty muted start to the week. the yen is weakening as traders take the missile strikes in stride. the boston fed president i