day.s. stocks end of the little change, like maryam's, the 10-year topping 3%, oil gaining on middle east concerns. >> indexes lifted by president trump's easing of trade tensions with china, the dollar up against its peers. msci naming its chinese selection come up more than 200 mainland stocks name to join the index. at supreme on come court sparks a -- for cash, ruling individual states can

legalize sports wagers. >> hello from sydney where it is just past 8:00 a.m. this is "bloomberg daybreak: australia." we are two hours away from the open of major markets. >> it's just after 6:00 p.m. in new york. i am betty liu. we will be looking at all the action on wall street and how it will play into the asia-pacific trading day. inh rising yields not just the u.s., but over in europe and elsewhere that caught investors, equity investors, that weighed on stocks has we see here in the equity markets how we closed. still higher, but off of the session highs, the dow up 68, s&p barely closing up, and the nasdaq also a little higher had went 1%. on's get more details breaking news that happen in our

ago. msci reporting in the past hour, 234 chinese companies a-shares included in the benchmark from june. su keenan has the latest on the news. >> big news. it takes the china stock market global. ashave known this was coming msci releases a bi-annual report that came out in the last hour and name the names of more than 200 companies that are being added. again, msci emerging market index. let's take a look at this performance your today. -- you're today. it is widely followed by funds that have to mirror the holdings him us of this will spur an enormous amount of buying. let's take a look at some of the companies added. bf, the largestic market weight shares in the china stock market index.

also petrochina a-shares, china construction bank, another company, and the inflows to these companies will be fairly substantial. citigroup said you will see pretty much a huge influx, and it is expected to channel $17 billion in passive funds into these equity stocks. now chinese stocks with new york and hong kong listings such as alibaba and tencent holdings have long been on the msci global gauges and have had a lot of exposure to these pension funds, but this is the first time the broad-based chinese companies are really going to have exposure to investors him and investors exposure to them. are all that, global investors reservationsd about investments because of chinese stocks and capital controls and debt levels, there is in norman's appetite to be involved given that the growth rate of china has pretty much double that of the u.s. so again, these names are coming

out and we will have more , zte is one of the companies, bank and tech shares on the list. they will be officially added on june 1 20 trading starts. haidi: a lot of buying going into that decision or that announcement of the details of the companies to be added. taking a quick look at the u.s. session, we mentioned trump's efforts to ease up on the trade spat with china to boost tech in particular, but volumes are thin. what is the story? >> it was a light trading day with investors taking a pause. what we saw with the delta rebounding, gold was bogged down according to traders. you did see oil catch a bid come it isgh it looks like still holding that after hours. and what really was the focus was the bonds mentioned with the yields rising above 3%. big movers come it check it out.

-- big movers, check it out. tech and telecom am a but afterec a big story losing a third of value on friday after announcing internal investigation. went higher given what they said after hours and they don't think it will have any adverse effect. caesars entertainment is part of the major story for sports teams. he u.s. supreme court said it will reverse of federal ban on betting on sporting events. caesar's will take betting worldwide. one of the big team owners, mark cuban, says anybody who owns when the big teams just double the value of the team. qualcomm a big story. gtv, get to the bloomberg, qualcomm trading 3.5 times booked by you, and regulators taking another look and giving a new lease on life for investors. haidi: thank you for that.

let's look at what kind of setup we are getting in a should. new zealand trading just getting underway. .3%, the kiwi dollar the biggest loser against the u.s. dollar in that g10 space overnight, 6917. futures in australia, yesterday a close to just shy of a decade high. we are expecting the boost from oil prices, commodities, and material sector to continue today with features looking flat at the moment. trading aheadlar a of key china domestic activity data later today, and the aussie-kiwi up 1.0 883 after we get renewed buying after passing the key psychological level. let's get a check across commodities, gold down, crude price$71, that oil

pushing higher as we have the disturbance on the gaza strip in the u.s. moving its embassy to sayingem despite the uae opec has the spare production capacity to deal with any impact coming through from sanctions on iran. brent 78.23. the commodities index pushing higher, tracking gains in oil. that's get the first word news with jessica summers. thanks. some next messages from senior fed officials today. the cleveland president is endorsing a path of steady, gradual rate hikes. james bullard is warning that such a strategy could cause problems for the u.s. economy. their comments come as investors continue to bake the pace of rate hikes. three more are expected before the end of the year. >> when the fed is thinking about our dual mandate coal on inflation of 2%, of course we are thinking about it on a sustained basis, that we will

look through transitory movements were inflation is going. my own forecast is we will see inflation 2% on a sustained basis of the next 1-2 years. >> the trump administration's pick says he fully supports the dual mandate of maximum employment and stable prices. he said that if confirmed by the senate, he would support policy that takes a balanced approach to achieving his objectives. he is a global strategic advisor at pimco and will face a senate panel tuesday. beenast 55 people have killed in filing clashes between the israeli army and palestinian kroos testers on the gaza border. monday was the deadliest day in gaza since the 2014 cross-border war. protest came as the u.s. moved its embassy from tel aviv to jerusalem. hamas led opposition to the move, and the palestinian authority said it will launch a war crimes case against israel. has freedupreme court

states to legalize gambling on individual sporting events. it struck down a federal law that had large single-game gambling in the country. new jersey instigated legal debate and betting could begin in weeks at casinos and racetracks. the american gaming association says 100 $50 billion a year are placed any legal sports bets. global news 24 hours a day on air and on tic-toc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. the u.s. and china are signaling a desire to avoid a trade war after president trump andred a lifeline to zte china opened a review in two qualcomm's bid. a top economic adviser from china is on his way to washington for a meeting with steven mnuchin.

what is behind the president's sudden interest in goodwill toward saving zte. >> this reversal by the president has a lot of people in congress and his own administration scratching their heads. there was some bipartisan shock this morning in congress after his tweet about the penalties on zte costing too many chinese jobs. the president gave somewhat of a next donation this afternoon where he said the chinese company buys a lot of parts from be. suppliers and this would part of larger talks between china and the u.s. on some of their trade differences. still a switch from where his administration had been heading with the talks scheduled to begin in washington on tuesday. comments,h these almost a belated criticism coming through from wilbur ross.

is there any indication how the u.s. side will handle this? >> it is still somewhat confusing because ross today said they would be looking at alternatives to the punishment zte dealing with north korea and iran, but said he wanted that separate from the larger trade negotiations. couples contradicted a of hours later by trump statement this is part of a larger negotiation, so ross will be going into these talks or taking part in these talks tomorrow with the chinese vice premier with i guess something of a new strategy for how that will go about. seem to be wanting to cool the rhetoric down a bit. you mentioned the chinese regulators are again wreak ,pening their look at qualcomm and there were other signs the

chinese were acting positively to trumps tweets from sunday night. they have got some momentum going into the talks, and apparently some desire on both sides to ease this. betty: where does this leave the prospects which seemed close for a while for a trade war? >> commerce secretary ross today when he spoke said that the differences between u.s. and china remain fairly wide. that will be negotiated, you remember the round in beijing with the u.s. delegation leaving empty-handed? these talks out take on more urgency, and it appears the his commerce not secretary and treasury secretary, are willing to give a little bit to get something in return from china. we just don't know yet what that is and what the u.s. is asking for in return, or what china

might be offering, but they are at least talking, so it has to help ease the situation somewhat. betty: you would think. thank you so much. our bloomberg congress editor. still ahead, some insight into the trump administration, contradictory messages on zte and trade with china when we speak to one guest from the peterson institute. next, markets return to normalcy come or is it just the calm before the storm? we will put that to our next guest. this is bloomberg. ♪

haidi: i am haidi lun in sydney. betty: i am betty liu in new york. you are watching "daybreak: australia." stocks mixed as investors assess the outlook for trade talks, also rising tensions.

i want to bring in a chief market strategist in boston. about thetalk markets, i want to ask about the ago, mscibout an hour releasing the list of 230 plus that will be joining the msci indexes. these are basically chinese stocks going global. what did you make of the list? amazing. this is one of those things we have been waiting for. i think it does three things. investing in chinese equities has always been difficult because it is difficult to get resources and information, but inclusion in an accredited index like this is a confirmation or a way of investors saying i feel more comfortable and now i know more about this, and obviously these guys were included in this index for a reason. so it is credentialing for these

companies. you get a new kind of investor, the passive index investor. that brings its own support. the most important thing is much-needed liquidity. these companies have been public for a while, but the liquidity is a great help in running a business and capital formation. i think on three levels it is an exciting story that we have been waiting for. betty: i want to correct myself, 230 four chinese a-shares included in these indexes. is this a turning point for the emerging market? >> it certainly helps. we have long held that you should invest in emerging markets as part of a balanced portfolio. have always gone about our asset allocation is pick that index will give you that basket of trade because that transfer is difficult and hard to do that research. this moves the index further up the chain is this something we

would recommend them a so i think it is extremely helpful. we hear about the big five chinese publicly traded companies. these are the companies that would be harder to know and is a great opportunity. know the top-tier icbc, chinese construction bank, and petrochina. do think that will come at the othere though of companies or other countries in the indexes, like south korea for instance? >> that is an interesting question. when you think about emerging markets in other companies or other countries in the general, when we think about asia-pacific, we think about that in a larger sense. i don't know this has to be mutually exclusive. partnk the credentialing of this, we have long needed more chinese companies. we have had more south korean companies we have known about. this is more of an addition if not an addition by subtraction. i think we are in good shape there. haidi: i want to throw up a

quick chart. we have which is when that crazy roller coaster ride and the selloff in mainland china, back then a-shares were trading at a higher premium than msci china. that gap has pretty much closed. does that signify to you that investors have increasing the grown more positive when it comes to corporate governance and some regulatory issues, that were clearly problems in 2015, do you think enough progress has been made to give the confidence to foreign investors right now. >> part of what happened in 2015 is when we talked about chinese currency valuation and the peg, and those were the times when we were seeing the large moves. ist of that valuation because of the fear of how far that might go. that concern has been moderated over the course of the last three years. about the chinese

currency movement, not as radical as we saw. the follow 2015 had that massive selloff in u.s. equities, and it had to do the paste that china was pegging their currency and making his move on a daily basis. i think that has slowed down quite a bit. , both aref valuations more reasonable violations, and the approach to do this on an indexed basis is safer for an investor in that fashion. we have seen a sense of calm despite morgan stanley saying the easy times are over. does the earnings season that prodigiouse as being and the oil story revived, does that stretch out this later section of the growth cycle we are in? >> i do think it does. dollarer one of us had a for every time a major house said this is the end of cycle, we would have enough money to go to dinner tonight.

concern a preponderance on the length of the economic recovery and bull market. it must be the reason it's going to end. of stimulusamount just introduced at the beginning of this year that is reflected in first-quarter earnings speaks to the fact that is not the case. we have got the corporate tax ,ate much lower for this year earnings growth rate in the mid-20 percentile, and no real indications necessarily of leading economic indicators that are slowing down or rolling over , so we are probably in a good place that this can extend. thet more concerned and back half of 2019 and the first part of 2020 when the cycle may unwind am a but we are in the early stages of realizing what some of the fiscal policy will add to the economic growth. haidi: thank you so much for that. up next, the u.s. supreme court striking down a federal law that prevents sports gambling,

leaving it in the hands of the state. we will look at what it means for the industry just ahead. this is bloomberg. ♪ this is bloomberg. ♪

betty: i am betty luke. you are watching daybreak australia. the supreme court has allowed individual states to legalize sports betting. that decision expected to start a race to attract billions of dollars in wagers amid a new era for american sports. i want to bring in our los angeles bureau chief for more on this. who will be the big winners here? >> the first big winners will be the traditional casinos because almost every state that has passed this so far has given those land-based properties first dibs on what is going on. there will be opportunities for other folks to partner with them. there are a lot of companies

that rally today that supply technology to the sports betting business. other people from outside the u.s., european companies in particular i'm a who have been doing this for a while and have expertise will be able to partner as well. betty: how big of an opportunity is this? >> i have seen $4 billion in five years. a number i sought seems plausible. just to put some context and here, sports betting has been legal in nevada since the 1940's and is a 280 million dollar market for the casinos last year. that isniche business important to the casinos can because they attract people to come in for the super bowl and big tournaments and friends get together and bet. alli: how quickly does this happen, and where are we expecting it to get on the ground first? >> you will probably see it

first in new jersey, which passed legislation shutdown initially. they are making the move within weeks. states over all that have passed some sort of legislation allowing this, so they will move quickly with the processes that still have to be decided. for example, sports leagues want a cut of the action. that has not been determined for sure. the nfl, processes that still have to be decided. nba, a lot of discussions there. is too earlyose it to tell, but what kind of upside are we pricing in for these big aiming stocks? >> you have seen some pretty big jumps today. 10% come up as much as a which is surprising because it was baked in in a way. this really was not unanticipated. growing from a very small base for a lot of companies, there could be

substantial growth for some companies. haidi: always appreciate your time with us. chief ofngeles beer bloomberg there. check of the business flash headlines. tesla set up a new company in shanghaishanghai, moving a stepr to production. that is its first factory outside the u.s.. the business was registered and beijing would announce it would allow foreign makers to fully owned factories as early as this year. portugal's biggest energy company ready to reject an $11 billion takeover bed. -- bid. it views the current offer as too low and shares search the .ost in a decade in lisbon investors expect the chinese utility to sweeten its offer.

haidi: coming up, malaysia's government facing an early test of unity as friction resurfaces between the newly elected leader and the man he has promised to hand the reins to. this is bloomberg. ♪ ♪

haidi: it is 8:30 a.m. in sydney. this is how we are shaping up in terms of futures. pretty flat at the moment. we had stocks closing just shy of that 10 year high in yesterday session. i am haidi lun in sydney. betty: i am betty liu in new york. you are watching "daybreak: australia." let's get to first word news with jessica summers. ofmsci has released a list 230 four chinese a-shares to be added to the benchmark equity gauge is next month. the three largest positions to the index will be icbc, china construction bank, and petrochina.

expected to channel 17 billion dollars in passive funds into the world second-biggest equity market. the new additions begin with a very low rating. rossrce secretary wilbur it attacked china and says is a member of the wto in name only in beijing enjoys the benefits of membership, but does not abide by the rules. ross spoke with the trump administration and said they are making progress on trade talks including itsc. readin treatment of zte. is the mostd states open and most exploited market in the world. eloquentlyand europe espouse free-trade rhetoric, but in practice are far more protectionist than the united states. saudi arabia told opec its oil production with the least

since output cuts were introduced a year ago. the cartel's biggest member reported 9.9 million barrels, the lowest since january 2017. traders are asking if the kingdom or allies will be forced to raise output if iranian exports are curtailed by new sanctions. >> we have seen a withdrawal from the agreement, which seems to be the beginning of another negotiation of some time. million aread to a also day off the market that could affect things. there is a lot uncertainty and that is reflected along with what is happening in venezuela and affecting the oil price now. >> global news 24 hours a day on air and on tic-toc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. haidi: let's get a quick update on your markets. this is what we are seeing in

the early part of the trading day for new zealand, a bit of upside, the kiwi dollar the worst performer against the u.s. futures in australia come not a great deal of guidance as we get into a session that follows animals 10 year high for the asx boosted by materials, oil gaining, so that should produce a nice lift. tosie dollar trading at .75 nine and watching is that there continues to see some bid after we surpass that mark. let's look at what else we are watching. 109 with ading at mixed open and a lot of earnings from the tokyo session. sterling, 1.3 5, 10 year yield holding at that 3%, a reminder we had a flat session when it comes to u.s. stocks. we are seeing mixed

messages from senior officials at the fed. cleveland fed president endorsing steady, gradual fed hikes, but her colleague warns that such a strategy could cause problems. kathleen hays is here with more. say loretta mester is in the majority more than jim bullard. an interesting conversation and important for markets and investors around the world. has beenester considered a hawk on monetary policy and more concerned about inflation and ready to pull that itchy trigger finger on rate hikes. she is calling for steady rate hikes. in her prepared remarks in paris she said the inflation goal remains unmet even though they have touched 2% on that key inflation gauge. she does see the inflation will hit and sustain that target.

i do think we might see some variation in numbers over time and it may go above 2%, but that does not mean we are in a time what inflation will take off. i think it will be a gradual process. therefore the fed can stay on a gradual upward path of interest rates and meet both parts of the mandate. >> that was the red of mester amplifying her views with bloomberg television after her hesitation. inflationome of the pick up recently is due to higher commodity prices. look at what oil has done. this could be temporary. let's look at another chart, gtv , this redline is the 2% inflation target, the key gauge getting back to 2%. the core measure at 1.9%. i think you can understand why she is being prudent. we are there, but have to stay

there for some time. she said the global economy looks healthy and the economic outlook is positive, another reason why she is on board with the rest of the fed come up most of the fed, when it comes to gradual rate hikes in 2018 and beyond. we have a very different minority view from jim bullard. he does not favor rate hikes. did he say why? >> he has. i have been interviewing him for many years.-- he always has views he researches, percent, and sticks with them. let's look at some point he made gave on friday, why he is cautious on rate hikes. he says inflation expectations remain low. the current policy rate is neutral. the yield curve is flat. further, business investment is low and has room to get stronger. the labor market is at equilibrium.

you don't want to upset that. one of these points is so important. jim bullard it is raising the red flag on the yield curve. but he saysit flat, it is in danger of inversion and could happen as early as september. it is a negative signal for the economy. let's look at a chart that helps us what he is looking at. you know what, kids, i don't know if i can. it is supposed to be the yield curve -- anyway, come back to me. you have got it. thank you. further flattening. you are looking at the spread from 5-30, the white line, down to 26 basis points, the flattest in the whole course of its bull run coming out of the great recession. the two zen tens have also gotten flatter. you can see why he is worried and inverted yield curve. it is a negative signal for the u.s. economy. others have mentioned this.

is --d of mester said it loretta mester said it is something she is watching. he was asked about cryptocurrencies because he was a conference here in new york and said it is pushing the u.s. in the wrong direction. multiple currencies have not been good for the u.s. in the past. richard clarida, end line to be , testifiesd chair tuesday and that will be closely watched by markets around the world. haidi: absolutely. thank you for that. don't miss kathleen's exclusive interview with james bullard live at 3:30 a.m. thursday if 1:30re awake in sydney, p.m. wednesday for new york fears. reynolds,arfield

let's continue this conversation about treasury yields. >> in fact, overnight, treasury yields kicked against jim bullard's concerns with the 10-year rising to 3%, one of those magic numbers out there. if it can sustain about that, and we will get more calls about how the bull market might be ending. this was something that wasn't just a product of technicals. there was some talk overnight from one of the ecb policymakers indicating that they are moving closer to reducing their purchases. that sent yields up, and 10 year yields up. chart that we have a we can show you of the intraday action where the yield curve, this is the 5-30, that bottomed that is amped up, so potential stabilization in the back curve, which might

loretta mester's line and see that were not headed for an inverted yield curve. we are actually heading for a steeper yield curve. it tenure two-year at high as well. >> yes, that is key, especially in australia. a big part of what is driving the yield curve flattening is the short-term yields are coming up, and longer-term yields are staying about where they have been. betty: garfield, how about australia? what are investors watching out for today? >> apart from watching to see if the stock market keeps going up, they are watching to see if the austrian dollar will go down. we are talking about u.s. yields and what is going on there, and if you then turn to how australian yields are staying because the australian

central bank is going absolutely the current cash rate futures shows 80% chance that we are on hold until at least the 2019, and the impact of that on a global basis , we have another chart to show you, this looking at the yield spread between australia's to your notes and the treasury to your notes and how that has collapsed over the past couple of decades, averaging two percentage points in australia's favor. now that has dropped to well below zero, so a discount. as the fed raises rates, that will get bigger and bigger, that discount, and that would indicate the austrian dollar is going to go further and further down. it is currently trying to cling onto the 75% mark, but it's hard to see it not reaching 70% at some stage.

betty: garfield reynolds. don't forget to check out our gtv library for some of the charts you just saw. gtv on the bloomberg terminal. malaysia's government faces a test with the opposition leader expected to be released from jail this week. newly elected prime minister mahathir mohamad has promised to hand power to him, but is warning of possible delays. from sophiere kamaruddin who has been reporting all this and kuala lumpur. what is the latest? has been coyohamad around the timeline regarding the release. on monday, he said the process procedure has to be followed, but slight delays expected. we were anticipating a release by this tuesday, but on monday, one person said the board will only meet a 11:00 am wednesday

according to the prime minister's department issued to pk are. it puts at risk the ability of the government to quickly execute campaign promises, cutting back on government spending, and this attentional ruling the coalition might to stabilize what we could see around optimism for the delivery of those campaign pledges. is thathave seen so far heads are rolling on monday. there were updates regarding individuals across the business landscape who have stepped down from positions, including those cases ono one of the this long list of scandals plaguing the country am a but again, without a clear timeline as to win he will be pardoned come and therefore can seek an election or stand for the primes to roll we are still waiting to see how that will play out. are they licking their

wounds are they doing some soul-searching? >> definitely a lot of soul-searching. that is the message we are hearing, particularly from the youth wing. the leadership had gathered on monday a full day of meetings and in an afternoon update announced they were forming a task force to rebuild the party. to takingmes advantage perhaps of the to stability, we are seeing an attempt to negotiate with other political parties in order to form a block against the government. rallyinghe youth chief members as well when it comes to seeking a reform agenda. he told me on monday that party elections are to be held next month. those have been twice delayed, and that puts him at risk of being the registered because it would be in violation of its

constitution. he also told me there is systemic rot in the party that needs to be addressed. have a listen. >> we all have to be collectively responsible. if we were to say this was his fault, then we would be in greater denial. i think there is a systemic rot that has set in, which we need to handle. he also has been seen as a bright story for the party -- star for the party over the years, and he is certainly under pressure given the concerns surrounding the parties future, and the instability that has been caused by the leadership, the old guard, that remains. he is seen as a contender to lead the party going forward. we will have to see what happens with the elections next month. haidi: thank you for that. sophie kamaruddin there covering the aftermath of the

extraordinary election result in malaysia. coming up next, president trump's u-turn could be signaling compromise with china. we will speak to our next guest. this is bloomberg. ♪

betty: good morning. i am betty liu in new york. haidi: i am haidi lun in sydney. you are watching "daybreak: australia." president trump has defended his after bipartisan criticism that could jeopardize national security. raging as beijing sends its top economic adviser to washington for another round of trade talks. let's get some analysis now from our next guest. we are hearing reports that may be an exchange for easing up on zte we will get an easing up when it comes to tariffs on u.s.

agricultural imports. is there a sense that pragmatism is starting to prevail? >> i think so. there are a couple of issues to untangle. first, it was surprising to see this announcement today regarding zte in a way, but in another way it was not that surprising. it was not that surprising because obviously zte and other chinese tech companies have a lot of connections with u.s. companies, and obviously anything that is done to these companies will inevitably have an effect on american companies, so i think it is part of the reason for the announcement. the other obvious part of it is of course north korea and the upcoming talks on june 12. there are a couple of things that seem to be shifting around and definitely for the time being brought down some of these trade tension escalations that have been going on in the past

couple of weeks. haidi: i want to throw up a .uick chart it shows the u.s. trade deficit with china. blue, u.s. imports, and the trade balance $350 billion. is there a sense we might move on to more transactional negotiations and getting deals done to use the president's language as opposed to being fixated on these large structural issues that really most economists say can't a result that quickly? >> i would hope so. the idea of reducing bilateral trade deficit has we heard over and over again and all economist agree, it is unproductive and will not get anybody anywhere. so focusing on that as a starting point is a lose for everyone.

if it does go the direction of hitting china to buy more products from the u.s., if that is the direction the conversation takes in negotiations, then that is a much more productive approach to resolving issues with china than simply throwing around threats of tariffs back-and-forth. it just brings a lot of uncertainty to the outlook. haidi: what about the issue of china's rise when it comes to the tech sector? that feels like a fundamental, almost existential, fight that the u.s. is fighting, or ideological fight, i should say. they likely to back down on that? >> i don't see the administration backing down has much as i see them retreating for the time being. for the time being, it will be inevitable if they don't want -- if they want the kind of support from the chinese government on the north korean talks. there are lots of entanglements here.

we have all the trade issues tangled up with the geopolitical ones, and really separating the two out at this point is very difficult. for now, the geopolitical side of things is dominant, so that will ease the trade tensions for the time being. as for what happens after june 12, we will have to see how things play out. how far awayurious do you think we are from a trade war question mark have we of rooted one yet? >> i don't think we can say we have averted one, but we are farther away from when then we were two weeks ago. two weeks ago, we had the u.s. 1300g out with its products of goods, chinese goods come it is about to put tariffs on. there are public hearings going on this week. china on the other hand coming

out with its own list of we have noted,s a number of products are in the cultural sector and other significant sectors in the u.s. and could be damaging. i think we have walked away from that a bit. whether we will be back to that in about a month is still something to be seen, but as of now, things are certainly moving in a positive direction. betty: thank you. now you can get a roundup of that story and many more you need to know to get going in today's edition of daybreak. mobilelso available on in the bloomberg anywhere app, and you can customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪

betty: good morning. i am betty liu in new york. haidi: i am haidi lun in sydney. you are watching "daybreak: australia." we have daybreak asia up next. chinese shares going global. those 230 four a-shares now included in the msci emerging market index. the impact could be mild at first. with theo through managing director for cbe. there is more than expected money flowing into a-shares, but before shares jump in sustained, it will be a challenge given the fact they are relatively more expensive than the h-share market, but there are some names outside the h-share market that could be interesting as well. betty: we will get the reaction to this msci news with the voya

investment cio and how he is pricing in geopolitical risks we keep discussing on the program, u.s. china trade tensions, the u.s. backing out of the iran nuclear deal, and also on one positive side the upcoming meeting between the u.s. and north korea, so we will be pricing how all that risk is being watched in these markets. the mosty be one of complex issues is how to price for all these uncertainties. china data dump day, industrial production, retail sales due out in the next few hours. we will speak to standard chartered greater china asian economist in the number one forecaster when it comes to china inflation, consumer inflation, so getting his view. he thinks this stability could just be seasonal, and also expecting more flexible monetary

policy from the pboc as well. lots of analysis coming up. "daybreak:for australia." this is bloomberg. ♪ retail.

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yvonne: 7:00 a.m. here in hong ong. i'm yvonne man. welcome. rkets face a mix start after wall street closed little change. treasury yield topping 3% again. 200 mainland mpanies selected to join industries. just app after 7:00 p.m. in new york on this monday. betty liu. china looks again at qualcomm's bid for