♪ >> concerns kim jong-un is holding -- president trump dialed back on the optimism. here with a mnuchin trade truce. beijing welcomes the chance to resolve their spats. protection asns it threatens the global economy. things are still good but the risks are out there. not, now it isas water. korean air apologizes and says

they are leaving the company. hello from sydney where it is past 8:00 a.m. i am paul allen. we are two hours away from the open here of asia's first asian market. -- major market. kathleen: it is past 7:00 in tokyo. i am kathleen hays. we are looking at the action on wall street playing into the asia-pacific trading day. and you know, i am here mainly originally because the bank of japan is meeting this week, a big decision on friday. the big question had been how any uncertainty around the strength of prime minister abe's leadership in japan might affect his guidance of monetary policy, but it seems to me all is back in president donald trump's court after he got the ball rolling again tweeting on north korea, denuclearization, kim do this.lanning to

that seems to be the information for the trading week ahead. paul: we will be getting into the north korea issue later on in the show. there is a lingering sense that we have seen this movie before the north korea very good at giving away bargaining chips ahead of the game. over the years, the deals that are struck a rather different than first intended. we will explore that a little bit later in the show. let's see what is happening in asia. trading in new zealand getting underway, up and running for a couple minutes. the index showing positivity about here. 1%.st a fifth of of the dollar showing some dollar .trength, 76 futures in australia, expecting a decline at the open about .25%. the aussie dollar back below $.70, and the kiwi showing strength against the aussie

dollar at the moment. as you look at commodities as well. the gold price softening just a little. crude also softening but showing some strength. little look at that later, $68.30 a barrel. coke and coal are looking weaker. the u.s. president is tampering optimism on north korea just days after kim jong-un announced he will hold -- halt nuclear tests. trump says we are alarmed way from conclusion. stephen engle is joining us for the latest. a long way from conclusions but a big step to be taken later on in the week, right? stephen: that is right when the president of the koreas meet at the dmz supposedly on friday. kim jae-in and tim j -- jong-un, there could be a peace deal on the table. donald trump treated we are still a long way from conclusion

of that, but it would be a big step forward. a big step forward came verbally on friday when kim jong-un through the domestic agency, the kc and a announced -- kcna announced they will dismantle their mountainous secluded testing site in the northeast part of the country. the test site which was widely believed to have been damaged effectively in the last test in september where they tested what is believed to be a hydrogen bomb. there has been little activity there since the reports of some tunnel having been collapsed. whether this brought kim jong-un out to the table and his more conciliatory tone, we don't know, but there has not been september. since north korea has been saying they are now a nuclear state, and they can dial back, but the question is whether they can get a peace deal done with the south

friday or at least the baby steps going and then what will happen? willie summit with donald trump happen as he has pledged either by june or late may? of course we know baby steps are important because like a baby, the bigger the steps get, the more progress you can make. sunday news shows in the u.s., look discussion what this means for the global relationship with north korea. outside the u.s., what about china? japan? what is the reaction. i would assume it is cautious. stephen: it is. that is why kim jong-un was invited to beijing, and xi jinping did meet with him. he has pledged a reciprocal trip to pyongyang. china does not want to be left out of this process. they are potentially sidelined with this summit coming up, potentially sidelined with a summit with donald trump if that happens, but we are hearing from

the newspaper which is another one of the mouthpieces of the communist party calling on japan, south korea and the united states to immediately lift all of their unilateral sanctions. i don't think that will happen anytime soon, but the chinese mouthpiece is saying that. japan, senior official in the government there is maybe more pessimistic about the whole process. they have seen firsthand promises made and not kept from the north koreans, saying we have given money in exchange for pledges from the north korea's and all they did was keep their money. there is some skepticism as evidenced by the most recent tweets from donald trump seeing in the news business, time will tell, but donald trump tweeting time will tell. it is pretty appropriate here. got to keep some of your chips, your cards against your chest, right, so thank you to our chief north asia

correspondent stephen engle. now let's move on to our washington secretary. stephen mnuchin is talking about a trip to china to discuss a trip that could derail the global economic upswing. he is optimistic of reaching agreement with beijing. ros krasny is following it all from washington. what else do we know about steve mnuchin's trip to china? much sodon't know very far. he talked saturday at the imf meeting, and he kind of laid out the idea. he is cautiously optimistic of making progress on trade with china, and it seems that overnight we saw from beijing they are aware that secretary mnuchin has plans to come over. i think these sort of like the talks, am jong-un little in the infancy.

sounds like the first breakthrough we have seen in this whole tit-for-tat on trade between the u.s. and china. as you also mentioned, and i am sure the trump administration is aware of this, the imf and others have seen trade tension and protectionism as the one elemental or the main element that could derail a really sort outlook.economic that is playing into their ideas a little bit. if with what is happening with the u.s. and north korea, the white house is taking a pretty diverse and global view to keep tensions down all the way across the tampingd wondering if down trade tensions with china is another way to get them on board for whatever may happen with north korea. paul: the french president emmanuel macron has struck up a real report with trump.

is there some hope he can influence the u.s.? ros: interesting that young macron and trump, one of the older u.s. presidents, have a strong rapport. trump seems to like macron very much. macron earlier in the week, then angela merkel later in the week, coming to spend and stick up for what i say is the global trading system, the wto, certainly i keener top will be hear from macron instead of merkel. i have a pretty extended meeting on tuesday at the white house as well as a state dinner. there is a little bit of optimism that macron will bring that message to the white house. he said in an interview with fox that ran this morning, you cannot make a trade war with your allies. relief fromg for

u.s. sanctions on aluminum and steel. in a way, maybe to position europe and the u.s. as less competitors as probably allies against china. so that is the dynamics that are going on and again, macron earlier in the week, merkel later. -- y: paul: plenty paul: paul: plenty to watch for. time to get to first word news. here is ramy inocencio. ramy: thank you. the ecb policymakers are said to be waiting until the july meeting to announce how they will wind up the bank's stimulus program. the members of the governing council wants sufficient time to judge if the euro area economy is overcoming at first quarter slowdown. sources say no formal discussions have been held on a

rate strategy. the euro briefly dropped to its lowest level in two weeks on that news. bloomberg has been told theresa may is fighting to avert a rebellion inside her own conservative party with eurosceptics concerned she may break a promise to take the u.k. out of the european union trading block. the prime and asked her's in a circle thinks -- inner circle's thinks she may stay in the union because of parliaments plan to reject. its says it will restart nuclear program if the u.s. breaks the deal struck with the six powers. president trump campaigned on opposition to this and has threatened to drop it unless what he called serious flaws are fixed. the iranian born minister said that would leave america isolated diplomatically and trigger unpleasant consequences. >> everybody has advised. the ministries and, this is not

able literally agreement between iran and the united states. withdrawing from it would be seen i the international community -- by the international immunity that an indication that the united states is not a reliable partner. iran has many options, those are not listened to. ramy: 57 people have been killed by a suicide bomber in kabul. he targeted a voter registration center and half of the victims women and children. more than 100 other people were wounded. the islamic state group claimed it carried out the attack was saying it targeted shiite apostates. this game a month after villagers chilled 31 people celebrating the persian new year. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. inocencio. this is bloomberg. ♪ just ahead on daybreak

australia, more on steve mnuchin's trip to beijing. postage economics is asked whether we see a breakthrough in the spat. paul: and later in the hour, emmanuel macron, the next world leader in line to visit the trump white house. why syria and iran top the agenda. this is bloomberg. ♪ ♪

>> what everyone is saying this week one way or another is very similar. things are good but they are getting risky. >> the main risks, gross which is solid, are on the one hand predictions and trade tensions and on the other hand -- >> i don't understand what is taking place but there are different entities, and this concept could stand. [indiscernible] what is the extent of the

damage? >> nobody will take it because what we believe in trade openings and trade will benefit everybody. so whatever falls, somebody will benefit. >> we have a strong economic relationship with the united states and china and indeed from our point of view we are keen to ensure there is no such thing as a trade war. we don't believe there will be a trade war. >> the right solution is not to engage in any kind of war against china. the right solution is to engage china, to have china on board, trying to improve their institutions. often isw free trade staying away from protectionism. inre are so many people poverty, so it will not help us

if we actually fail to meet protectionism with more potential protectionism because only the losers -- paul: there you have some key policymakers speaking with bloomberg at the imf world bank meetings in washington. we will dig into that more and the potential of a trade war with china. we have the prestige economics founder and president jason schenker joining us live from austin, texas. thank you for your time. one of those voices we heard was david lipton of the imf. he is still optimistic for 2019. in 2018, he did contain that note of caution, times are good but getting risky with trade being perhaps the top of that risk pile. >> that is right. trade is a risk. there are other risks that we are seeing on the table in february, that we saw a correlated decline in asset value, equities on prices --

byd rises, oil prices concern of higher interest rates and then of course with the entrance of march came these trade concerns that have added further downward pressures. optimism that we could move to some sort of the taunt would be e whereositive -- detent any further spin out of control with trade would bring downside risk to growth and equities, downside to commodity prices. paul: let's pick up on those commodity prices and the optimism as well. that treasury territory -- treasury secretary stephen mnuchin is optimistic on reaching an agreement. he will go to china but has no timeline or confirmation. if it happens, could we the an end to what you called choppy, bearish sentiment of commodities? how quickly it happens. the longer it takes, the worst

it will be. the interest rate is rising. look at last month or last week to the philadelphia fed index for the month of april, and you saw the prices, figures surged. last week we also saw the empire manufacturing index seeing the second-largest decline in six months ahead of its entire building history. last time was 2001. there is definitely bearish sentiment in the marketplace both on the one hand from these trade risks, which present major risks to the global economy but also from inflationary risks which will be there no matter what happens with the trade situation. interesting that regardless that is true, it seems to me something like oil prices which is a big topic of discussion -- donald trump lashing out against opec, higher

oil prices can be inflationary. they can be deflationary. they raise the cost of production, they raise the cost for consumers of heating their homes and cars. isn't that just as big of a downside risk for inflation now as upside? >> there was a couple things with the oil price. one is we had a big inventory draw last week. yes, opec supplies may curtail but a third factor is the driving season. summer driving season will a bolster, prices up by demand. oil prices like other commodities are going to be bought and not sold. while you might have seen a spike with aluminum higher, there is an oil crisis that follows aluminum, i think that if the demand is there, then that will be inflationary. that is pulling the price up. that is what you saw. up onen: i want to bring

of r.g. tv charts on the bloomberg -- our gtv charts. the u.s. dependence on foreign oil has declined. you see the saudi monthly output, the white line leveling out, russian output leveling out, but when you look at u.s. crude oil total production, it is getting close to saudi arabia and getting close to russia. what does it mean for the u.s. and china and other oil dependent nations if the u.s. is putting so much more on the plate? opec'sle don't get forecast. they are expecting an increase in global demand for oil on the magnitude of one million barrels per day. at the end of the day the global economy is doing really well and the global economy is pulling additional demand of oil. that is driving up prices. the fact the u.s. is producing more oil is partially a function of the relatively lower cost to

produce it in ultra deep oil, oil sand. those supplies are needed in a growing economy where you see growth and increase in oil. if oil demand were slowing, trade concerns in the global economy, or slow because of higher interest rates, that would be a bigger concern for the shale producers. that would be a bigger concern with oil demand. growth remains strong, then oil demand will remain strong and those barrels will find a hold an oil is going to be globally still functional. paul: a lot of talking going on about the oil price. trump tweeting, calling it artificially very high and meanwhile we have saudi arabia trying to talk up a $100 barrel oil. will this make any difference from what you say is driven by fundamentals? >> in the short-term you can get ,hese sorts of pushes and pulls

but at the end of the day the fact is we are trading contracts for the driving season. as we move into the driving season, contracts are always for the upside, we are above critical technical, above the 30 day moving averages. in a fundamentally strong environment where the u.s. driving season drives low oil prices, and we have one of the lowest on implement rates we reflectingally activity that should the very strong for oil demand growth and driving season in the summer. those things are primarily driving the prices up. opec continuing their talks with russia to push inventories towards the five-year average by curtailing additional production . those things are supportive of prices, but that is not the head of a dog. still more the bit of a tale. kathleen: all right, jason

shaker, president of economics, president of economics and founder of -- when you are in tokyo, your mind gets mixed up. thank you for joining us. you can get a roundup of the stories you need to know to get your day going in today's -- daybreak.em you can go to your terminal or the bloomberg anywhere app. you can customize your settings to only get news on the industries and assets you care about. keep it right here. this is bloomberg. ♪ this is bloomberg. ♪

♪ paul: let's get a quick check on the latestpaul: business flash headlines. toshiba is denying reports it is considering dropping the sale of its flash unit. the newspaper said the sale to the group could be canceled if toshiba doesn't receive approval from chinese antitrust authorities by the end of the

may month. but there is no plans to abandon the deal and transaction will go ahead as soon as possible. kathleen: chinese online health care platform is launching an ipo in hong kong that could raise more than $1 billion u.s. they are taking trading through may 4. citigroup and j.p. morgan are joint sponsors. it is currently known as a different name. paul: the chairman of north korea -- of korean airlines apologize for the behavior of his daughter and said she and her sister are leaving the company. emily joe is reported to have sold and advertising -- insulted and advertising executive and through water in his face. he was jailed after ordering a plane back to the states when she thought she had been served nuts in the wrong manner. jong-un: coming up, kim

has suspended nuclear tests, but there are strings attached. insight from the peterson institute next. this is bloomberg. ♪ next. this is bloomberg. ♪

♪ paul: it is 8:30 a.m. in sydney where the markets open in under 90 minutes time. we have futures a little weaker at the moment, off .25%. i am paul allen in sydney. kathleen: i am kathleen hays in tokyo where it is 7:30 a.m., and you are watching daybreak australia. let's get right to first word news with ramy inocencio. ramy: good morning to you. china says it welcomes potential visit by u.s. treasury secretary steve mnuchin and says he is cautiously optimistic the two sides can reach an agreement on trade. the ministry of commerce says mnuchin will travel to beijing,

but no dates have been determined yet. the u.s. and china have both been warned a full blown trade dispute could derail the global economy. president trump is tampering the optimism about north korea as lawmakers sound skeptical about the halt to a nuclear testing program. he had said it was big progress. he said he looks forward to meeting kim jong-un at some point. now he says that things are a long way from a conclusion and things will or will not work out. are -- cybersecurity this company has possibly targeted others seeking information on tokyo's policy for revolving -- resolving the north korean issue. the suspect is a group that china-based espionage has been .racking since 2009 they frequently target research and development organizations to collect information on geopolitics.

and chinese telco zte has told us hong kong -- told the hong --g stock exchange that was they are blocked from buying american components for seven years. that is punishment for exporting equipment to iran and north korea. the company said this could hurt its global business and it is working with authorities to find a solution. global news 20 for hours a day on air and on tick tock on twitter powered by 2700 journalists and analysts in more than 120 countries. i am ramy inocencio. kathleen: let's move on to tampering hisp's optimism on north korea, tweeting we are a long way from a conclusion. maybe things will work out, and maybe they won't. only time will tell but the work i am doing now should have been done a long time ago.

for more on this and the latest on the trade battles around the world, let's bring in peterson institute for international economics senior fellow jacob kierkegaard joining us from washington. so north korea, kim jong-un has theed to stop testing missile plants. president trump tweeting himself that is praising himself in one week, then expressing caution. how optimistic are you that maybe, just maybe president trump for one reason or another is a u.s. president that helps pushes forward? >> i am not very optimistic for the simple reason that president trump has already by holding out the prospects for a summit, bilateral summit with the north korean leader, without any real facts on the ground, without process tohere is no

verify anything the north koreans have said they are going to do. and you know so far it is all hot air. and i don't think that is a good foundation upon which to build a nuclear detente. kathleen: the sanctions are clearly defining against north korea and certainly the trump administration helped toughen those, push them forward. you got the south korean president moon. the south korean president that people seem to your china seems to be on board. do you think perhaps whether donald trump has all his docks in a row -- all his docks in a row, the forces are aligning and he has maybe tweaked something in a way that has moved this forward because other portions -- forces are aligning as well? done. they are not

the south korean government was partly helpful on restoring the sunshine policy. there is no doubt the chinese leadership would prefer not to have to spend a lot of his political capital dealing with a rogue north korean regime, so they would like some sort of diplomatic process to begin and hopefully last a long time. but at the same time the fact of the matter is the north koreans have as far back as the mid-1990's been saying, been stringing along the united states and the rest of the world by saying we will be willing to suspend, stop, do a lot of things area they have never ever been willing to submit to any process that can verify those claims. as long as that is the case, i am very skeptical any u.s. president, this one included, can engage in a credible diplomatic process aimed at

defusing the nuclear standoff with north korea. paul: i want to continue on that theme. donald trump tweeted this out, saying it is work that should have been done before. it has been. i covered this story more than when there was much fanfare. the international media was not invited to film that, and now we have them closing a test site after six test. pakistan did six and felt he need to do anymore. is this a return to a familiar pattern, north korea giving away a bargaining chip, then we are back to square one of couple years later? jacob: absolutely. that is the pattern that i see repeating itself. the fact that the whole offensive in doing the solo lunatics was obviously brilliantly executed by the north koreans. it made the bargain seem

plausible, sensible, hard to refuse, but this is all about from the pyongyang regime in my opinion, about getting south ease up onhina to the enforcement of sanctions. but is all it is about. sitting cynicism aside, maybe we are witnessing something historic. it could be like myanmar opening up and the north korea could be a new bright frontier market. do you hold any glimmer of hope? jacob: no. at the end of the day kim jong-un is still a leader who executed members of his own family, continues to hold hundreds of thousands of people of his own people in prison camps. quite frankly i don't see any credible evidence of that happening, but there is a lot

the north korean government could do to make this much more credible starting by inviting in the international atomic inspectors to verify their claims. if they did that, then i would be willing to drop my cynicism, but not before. kathleen: are you a little less cynical on the potential for trade, averting a trade war and helping to open china's markets more to global trade? the french president on his way to washington to try to get some special treatment for european exports from the trump team, but prime minister abe did not fare so well last week with his buddy, donald trump. abe could certainly use political support at home. how well will emmanuel macron do with his quest for relief? jacob: i suspect he will do better. prime minister abe's problem is

that donald trump wants to sort of have japan enter into a collateral trading unit with the united states, and following the tpp is very difficult. since prime minister abe wasn't to do with that, the trump administration was not willing to give japan any waiver on this steel and aluminum sanctions. on the european side it is different. if the europeans or the trump administration is willing to tradet the transatlantic and investment partnership, i think the europeans would say we can do that. and the other thing is i think the trump administration is realizing if it wants to be a credible threat of a real sort of crack down on chinese trade practices in tech transfer and

that set of issues, it would be very beneficial for it to have europe on its side rather than in china's quarter. so i suspect president macron might be more successful than prime minister abe in getting a waiver. paul: we have only got about a minute left but president macron will be trying to rescue the iran nuclear deal. do you think he can keep that alive and when president trump -- win president trump's confidence? jacob: i wish i could express confidence in his diplomatic charm, but i must say i am unfortunately skeptical that is going to happen, and in terms of really creating a schism and a potential significant, or investment then trade war that -- the you and e.u. and the united states, iran

is the real threat because here is the trump administration with the full backing of the u.s. congress as well as this mixture of national security issues and trade issues that make a levelheaded compromise often very difficult to achieve. so this is the one to watch in my opinion. paul: peterson institute for international economics senior fellow jacob kierkegaard, thank you very much for joining us. the trump administration's protectionist moves against beijing to put chinese investors on alert, responding by making changes for their overseas strategies. an investment firm affiliated with the country's leading electric vehicle maker, one of but nowadays there is one sector of that regarding issues. and we just, this will definitely change some behavior

of the china investor. but this is also good. we are seeking for the minority shares. we would not be speaking for the board. -- stment overseas is not tom: does it make you look at other jurisdictions with greater focus? focusple will move their from the u.s. to the other regions, maybe europe or israel. to close the door is not one-sided thing, it is to side thing. i don't believe this will last long, but we take very serious this. tom: you focus on a lot of areas and technologies that fit into the made in 20 -- made in china 2025 strategy. i wonder how you are concerned about the hostility chinese company's are facing from the u.s. in terms of the excess to u.s. technology and the impact

that is going to have on some of these sectors. if it is an open market, if we can get everything very easier, you will forgot, you bring up your own confidence. then if the other side its door is closing, your thinking of ok, i need to prepare my own threat in this area. although it is hard, this is a good sign to remind everybody a healthy industry, a healthy economy has a big route and basis for other things by your own hand. so i would say in short-term to have something in the industry, the economy, but it might be a good thing for us to build up a solid entity. the ultimately this move by

u.s. to restrict access to its own technology could prove a catalyst for chinese companies. china> also it will help with this decision that until we start to -- that we start to research.the this should be a good, very good push. tom: how big do you think the rich -- ridesharing market can be? >> it is definitely one very important extrapolation of this model in china. the only ridesharing with a high remark rate. they have not reached their full potential yet. seeing in the investment territory [indiscernible] in the, like uber, market.

it is how diversified market and like in china, each sector, each area, each region will have so weown extrapolation, have fully high confidence in that sector it will triple or even larger. kathleen: that was neo capital partner speaking with tom mackenzie. an important week for earnings in the u.s. we will look at the biggest names such a report. keep it right here. this is bloomberg. ♪ this is bloomberg. ♪

♪ kathleen: i am kathleen hays in tokyo. paul: and i am paul allen in sydney. you are watching daybreak australia. let's get a quick update on the markets.

new zealand has been trading for under an hour, a bit higher, a fifth of 1% higher. we have the kiwi dollar also showing strength against the greenback. aussie futures, looking weaker at the moment, off .25 percent right now. on what we should be watching us trading gets underway in asia. robert scoble market editor is here -- bloomberg's global market editor is here. we looked at how much global equity has fallen from the spikes in early february. adam: it has been a dramatic shift. if you look back only 10 weeks or so to that early february turmoil with the markets, and there was a lot of calls from the investors, and others saying we are coming up years and years of low volatility, this at an era where we are entering a new regime where we have elevated volatility levels, you have to expect those to be higher over

the next few years, and what we've seen in less than three months is basically those used spikes. they have all come back down. this chart picks up a couple of examples. we focus on korea and the europe , that you can make this case for markets across the world. we are back below average levels over the last 12 months. what this speaks to is a renewed appetite for the bulls in the market incrementally to top up the equity positions, so that is what we are seeing this warning. we have had news over the weekend very we had a potential movement of the talks in korea on the koreanions peninsula. all it takes is a little bit of news like that. volatility levels low that, people are a lot more inclined to add risk to portfolios and put money into stocks. looks like we are setting up the week reasonably mixed for asia,

but we have seen a decent bounce on s&p futures. it will be interesting to see as people grapple with these details and what is happening whether they want to take more risk on. paul: we have a week left in april, so it is time to revisit that adage, sell it and may and go away. it could come back again. how does it really work? adam: the second half of the saying is don't come back until saint leger's day, the old british horseracing event in the -- mid-september. the idea of selling in mae and booking your profits made early on the year does sometimes work. this year it has been a tough start to the year but there are clear patterns. we have looked at returns over a third year -- 30-year timeframe. you can see the likes of u.s. equities, u.s. bonds, even u.s. high-yield have given 2%, 3%

returns on average over the 30-year timeframe. asian equities have performed relatively poorly. you have made negative returns .n average basis of course over 30 years a lot happened, so there are times within those averages that you would have great returns, the likes of the rebound in 2009 for example. you would have missed a 20% rally in european stocks if you had sold in may and gone away. this is getting into the start of may, it is something you will read more in sell side straddle is -- cel-sci strategists who are keen to pick up on this. looking over 30 years, it has been a tough start to this year. people have been rocked by a lot of things, geopolitical concerns, some of the inflation worries rearing their ugly head again. it is a lot to suggest it will be a rocky time over the next kind of 15 months -- few months

as we get to september. paul: adam haigh, thank you so much. remember bloomberg users can interact with the charts that we show using g tv . you can browse recent charts to catch up on the analysis and save those charts. the future reference. the week ahead on wall street gets underway. bringing another round of earnings including major tech companies. u.s. investors will be focused on numbers from manufacturing giants such as boeing and lockheed martin. financial heavyweights like ubs and credit suisse, oil companies from exxon to chevron. su keenan has more. su: we are getting at least 10 of the 30 dow companies. it is also the third week of earnings, the peak if you will, the last two weeks ended up, and that is the expectation here,

that the earnings will prop up the market. let's go into the first bloomberg caterpillar. you can see these chart that btv . caterpillar reporting this week. the white in terms of sales is report sales from asia-pacific. they are down. aquaw is north america and is sales worldwide. what is expected is first quarter results should again be share.us, $2.08 a the 2018 guidance will be raised as demand is stronger than it active. analysts say this. and cost cutting years will aid margin gains. that is the theme we are likely to hear. let's go into the other companies expected to report. what we have again is a lot of the manufacturing giants, airbus and lucky will be -- lockheed will be reporting. we are not just looking at what they have to say about tax reform as we did before but now

with these companies and ceo's have to say about potential tariffs and the next chart now. volatilityhowing which has a lot to do with the tariffs debate. what we are seeing is the percentage one day change. read is the decline, there has been a lot of volatility with boeing on this very issue. kathleen: all right, su keenan, some of the big earnings out in the u.s. this week. we are watching for oil companies as well. thank you. for breaking news wherever you are, we have teamed up with twitter to launch tick-tock. it is the first global news network for social media, offering live video coverage and updated stock news reports verified by us. make sure you follow tick-tock by bloomberg.

♪ paul: it is almost it for daybreak australia, but yvonne man and kathleen are up next with daybreak asia. let's look at what is happening. yvonne: of course we will continue with coverage on the developments out of north korea that shocking development, pyeongchang -- pyongyang saying they will halt their nuclear testing. is this and all the branch, or is it negotiating tactics? we have park strategies senior vice president joining us to talk about it. he has been a skeptic about what will play out in these north korean discussions. he said a peace treaty talks make him nervous. we will ask him why. and dominic schneider of ubs wealth management to talk about oil in the news. donald trump speaking out against opec via tweets, so we will see what he says about oil. that is it from daybreak

australia. all the action next. this is bloomberg. ♪ s bloomberg. ♪

♪ 7:00 a.m. here in hong kong. welcome to "daybreak asia." thetop stories this monday, imf warns rising protectionism threatens the global economy. things are still good but the risks are out there. stephen mnuchin hits on a trade truth with china. beijing says they welcome a chance to resolve their spat. kathleen: just past 8:00 a.m. hearing tokyo. -- here in tokyo. president trump dials back on the optimism. the white house says opec is keeping the oil price artificially high.