♪ >> 10 year treasury yields pushed to break through .1% with renewed confidence in the .conomy -- 3.1% >> the russell 2000 hits an all-time high. >> postretirement income in sisterly and during population is growing. >> the start of a four-day trade

trip to washington begins at capitol hill. hello from sydney, it is just a.m..8 we are two from asia's open market. betty: and it is just after 6 p.m. here in new york, i am betty liu. we will be looking at all of the action in wall street. haidi, we're just getting some lines coming across our bloomberg. to a reutersding report on u.s.-china trade. china will offer eight deficit reduction package to president trump approaching $200 billion annually. onlyis exciting, and according to some unidentified sources. betty, it is, and interesting because when you take a look at the details, the devil is in the details.

haidi: in terms of how they can do this. they have said that the structural nature of the development and the stage of development we are seeing in china, and there were the economy is modeled prevents it from being able to meet these demands that we've heard from president trump. but it is very interesting, particularly as we heard little aret from these talks riyadh larry kudlow saying that they had been difficult and president trump also bringing north korea into the fray as well. betty: that's right, is it on, is of the summit happening in a june with north korea? we will talk about those issues. u.s. stocks had some decline as you can see here. about 55as down points, s&p 500 a bit lower as well as in the nasdaq too. stocks were searching for some direction as oil rose to levels not seen in four years. we also have the latest economic data. the dollar extends its gains, treasuries falling here.

sue is here with more. >> yes, that is clearly the big focus we will get to. we had a lot of back-and-forth a loss,we ended with disappointing earnings for walmart and for cisco, putting pressure on tech. market snapshot, we saw treasuries falling come at makes treasuries as the curve steepen, and yields up above 3%, which is a key focus across the board. oil was above 72 it one point, and you can see that it is a bit after hours, but again up a lot of gains on concerns about shale output. let us take a look at the stock focus. as a mentioned, walmart showed some growth in the right direction for e-commerce, but week growth. investors are disappointed by the fact that moves like amazon and kroger are pressuring the food business.

cisco slid again. was --me in ok, but it they missed the most optimistic forecasts. their stock was up better than 30% last year, some say that it was right for a come down. and they came down 4% by the close. cbs is also in the spotlight in the battle of corporate tightening. they lost a bid to keep the red stones from interfering with their corporate meeting which is taking place as we speak. will get more on that in a minute. let's go to the bloomberg gtb, where you can find these charts. this is the chart of the day, it tremors. treasury we are looking at how bond volatility has jumped by the most since february's equity-spurred market route. we talked about yields reaching above 3% stepping demands for stocks. there is worries about this crude selloff that we saw. this is a volatility index, closely following. betty: you mentioned the cbs

battle and the board meeting underway. . su: to. su: bring us up to speed on here this really is the battle of titan, for control over cbs. the head of the company, she is the daughter of sumner redstone, from viacom. this latest battle scene is putting cbs on a road to a merger with viacom. keep redstone from voting in the meeting taking place at this hour. they are looking at dividends and other issues, but also, take a look at cbs stocks. thetwo-day chart showed drop, but the bigger picture is that there is concern here clearly, over the future of cbs. if we look at the ceo, he is leading the battle right now. the concern is that what could happen in this order meeting, they could oust the board and

the ceo. he believes that there is a lot more legal fight ahead. expect some details to come out of that meeting in the next hour of the show. but again, this is a huge dust of between two major media companies. we will see who emerges in the .ays and weeks ahead yes indi: we saw brent rallying a london, the first time since 2014 that we have seen those apparent gains, but the global glut is shrinking. so what is the latest? getting above $80 for crude is huge, as you mentioned we haven't seen that since 2014, and it has a lot to do with the iran sanctions and president trump, a study rise accelerated in recent weeks. let us go into the west texas brent isate chart,

widely used in the rest of the world, west texas uses it here in the. u.s. we got about $72 earlier today. as it going to the g2 area, that is right can find the chart. production remains at a record high, and that production caused a bit of a selloff in the west texas intermediate crude futures. but clearly, it is a bullish time right now. view that it is dangerous for investors to cut their bullish bet on oil. haidi: thank you so much of their su keenan with a market update from new york. this is what we are seeing going to the friday session here in australia. trading in new zealand going underway just now, we're seeing it flat. we looking at more pressure coming onto the kiwi. morgan stanley sees another 4% decline by year and. that is on rising debt concerns and declining terms of trade.

sydney features a bit more positive, about .25% higher your riyadh aussie dollar at 75.1 two, and the kiwi continuing to put on some gains their. we talked about commodities, oil with brent hitting $80 a barrel since 2014, coming off let a little bit, and wti holding at $70 .45, and the broader commodities index is putting on a show, about point 25% higher. let us get the first word news now. >> european leaders are presenting a united and a determined front of against proposed u.s. tariffs and washington's threats to the run deal. the block spoke in bulgaria. the eu said it would continue to fight for a rules-based system and will not negotiate with that a permanent tariff exemption. .owever, it sees no outright

>> trade war will not launch a trade and war against american companies based on what is happening in iran. >> that would not make sense, because the goal is to get this broad agreement including with the signature of the u.s.. >> the eu is also said to have rejected the uk's leaders latest attempt to broker a brexit deal. the prime minister pitched a membership to the customs union to hurt step a hard border in ireland. but we are told that senior eu officials say it is too early to give assurances because of what they call disorienting messages out of london. with brussels could cause skepticism and lawmakers. nafta negotiators are holding last-minute talks to see if an agreement has been reached. but time is running out. . house speaker paul ryan says that a couple of weeks or left to reach a deal. canada and. the u.s. are meeting in washington and mexico is expected to come early next week. paul ryan says he needs

notification of a new treaty by the middle of may, if congress is to approve an agreement this year. gina haspel has been confirmed as the first female director of the cia, after nomination process that reopened the debate about brutal interrogation techniques. vote with bothe parties, six democrats joined support.blicans in she is controversial because of her role in the former cia program to waterboard terror suspects at covert foreign sites after 9/11. global news, 24 hours a day, on air and at tick tock twitter, powered by more than 27 journalists and analysts in more than 120 countries. this is bloomberg. ♪ haidi: jenna, thank you for that. president trump has said that he doesn't consider libya to be a model for the negotiations with north korea over its north korean weapons program. >> there was no deal to keep

more market duffy, the libyan model mentioned was a much different deal -- to keep the qaddafi. kim jong-un would be running his country in this deal. his people would be rich, they are tremendously industrious. haidi: north korea has said that john bolton's comments were repugnant and current to cancel the summit. we are joined from washington by bloomberg greg sullivan. greg, we are a return in terms of this rift. you heard, trump rebutted what his national security adviser said, that john walton said that libya can be a model for this upcoming denuclearization summit, and how the process would unfold after that. now north korea is in the aware bm.hat happened in the

that libya gave up their nuclear weapons, and two years later, could have he was overthrown and killed in the u.s. backed uprising. so they are definitely aware of that, and the took immediate issue with using libya as the model. you just heard trump say there, that he was very specifically saying that came with still be running the country, that he would still be there. that is because analysts believe the regime in north korea is staking their survival on weapons. the pentagon recently released a report saying that rapid nuclear weapons development was what they were using to keep their survival of the regime. toknowing that come understanding the sensitivity there, potentially is signal to the north koreans about how the talks could go,. sawi: interestingly, we president trump kind of conflating trade and to geopolitics again with china, saying that he might've influenced the north korean leader in his behavior. how does this play into the leadership summit in singapore? is it likely to go ahead, even?

.reg: it is a good question certainly, north korea's rhetoric changed pretty dramatically. they called john bolton repugnant, they said there have been a rupture in the talks in south korea this week, actually suspending the talks and citing u.s.-south korean military exercises. but trump also said he had not heard of any changes from the north korean government, that they hadn't altered the summit. so the summit looks likely to go forward right now. the white house says that trump is preparing for the summit regardless of this kind of background commentary from the north korean side. betty: greg, turning to u.s.-china trade and these headlines that just came out. reports that the chinese are not promising to reduce the deficit the purchasing $200 billion in goods. i believe in nearly. that is quite -- they believe that is going to be annually. can the chinese live up to? greg: that is very interesting.

the report gets to the heart of the trump administration's demands. earlier this month, stephen mnuchin led a delegation to china and they did not look like talks.d come from the today, president trump said he was doubtful that there could be success with china in the trade negotiations, calling the country spoiled and the eu and other countries spoiled on trade as well. but with this new report, it seems that china is willing to make a concession on the u.s.' demands. we need that there were expected to be new offers and the trade negotiation. white house advisor larry kudlow had said as much. it looks like this could be one of the first chinese offers in .hese ongoing talks betty: thank you so much, greg sullivan, our bloomberg reporter in washington. much more on the relationship between beijing and washington is coming up. we will look at how trade

tensions are making chinese companies more determined than ever to look inward for growth. haidi: yes, and up next, larry crozer joins us to discuss the outlook on the u.s. economy, and whether we should really be thisng forward guidance at point. this is bloomberg. -- wendell kirzner. . -- wendell kirzner.

♪ betty: good morning, i am betty liu in the new york. haidi: and i'm had a little in sydney, you are watching "daybreak australia." as to well-known figures question the key tenets of the argument for brexit. global economics and policy editor kathleen hays is here. jim bullard was very dovish yesterday, and today, we heard from others. do you think there is a consensus? kathleen: i think so, but there are a couple of other dovish

voices outside the consensus. that is look at these two, rob kaplan is confident that the u.s. gdp will rise 2.5 percent this year,. itwe look at the chart, looks at the simple relationship between real gdp growth and the core pce. the core pce is down here, and the the is up here. what we see is that it is kind of broad, how they follow each other. just to show you how strong gdp does not mean strong inflation. the u.s. is at or past full employment and neel kashkari says the three point 9% jobless rate could disguise the fact that there is still some labor market slack. you will see unemployment falling. you don't think there is slack? then why are wages so flat? that is the point that neel kashkari is getting at. he said that manufacturing, a

very important gauge of the southeast atlantic region, it surged into latest month. but people are saying that maybe the earth shrugging off trade tensions. so it is setting the stage for consensus and you can see the doves. so it will be interesting to see what comes up. betty: ok, let us ask him. we will bring in former fed governor from chicago, randy croson are. where do you stand, randy? randall: the inflation rate is right around the fed's goal of 2%, so i think continuing this gradual path of rate hikes is successful. staying ahead be of the curve, not behind the curve. and with the 10 year rate going up as it is, we are getting stronger information on data

from retail sales. the fed tont get behind the curve, because they will move up quickly and will be much more distracting to the economy and the markets. betty: it, but there is concern that we could be moving very quickly. i'm sure you have seen the comments already from jim bullard yesterday, randy, talking about how look, we cannot predict will happen to that needs toaps go, as well as the idea that the markets are pricing in three or four rate hikes this year. what did you make of his comments? think -- two to three more rate hikes, i think that is -- i think jim represents the view that this is an unusual time.

we have an unemployment rate below 4%, very low inflation pressure, very low wage pressure, so he is saying, we're not sure, that this is an unusual time. see a little bit more wage pressure and inflation pressure, and some pretty strong numbers for the economy. so i think, gently moving, gradually moving, as they are two or maybe three more rate hikes this year seems reasonable to me. but of course, we have not been in a situation before. so i can't say, oh, this is just like 2001 or 2002, we have never been in this situation before. of thethat is part conundrum, an unprecedented unwinding from policy that we have never had to deploy before, let alone try to come back from. if you take a look at the fact

that these historic models are not behaving the way we are used to them behaving, we don't really know what the future holds. does that make the issue of forward guidance more or less important? should they be communicating more or differently? itdy: i think it makes particularly important, they have to explain what they are trying to do, given that they realize that the situation is not -- it could be a view of the past that is different. you don't want to give up your well, whoy, and say knows? we will just roll the dice, that is not responsible. but you also want to convey that this is a. that is different from other periods, so they will have to move cautiously. and i think jay powell in his speeches, has been trying to convey that. that they want to move ahead, because they think there will be some normalization. but he has been straightforward and saying, this is an unusual. , so we have to move cautiously and gradually? kathleen: i would like to ask

you about one of jim bollards main arguments on his tone, five reasons for the fed to be cautious. i think one of the main reasons is the flattening yield curve, which he says could very well invert, if the fed keep raising rates. if you get 75 basis points, the arithmetic argues that you are going to get an inverted yield curve. we have a chart that shows how it close we are to something like that. to 10 spreads, and also the five to 30's, and the two to 10 has spread. i think his- argument is that the fed has to be cautious now. because you are so close to dangerous territory, potentially? randy: i think we have to step back and think about whether you'd curve is relatively flat.

i think that is because this is an unusual situation where the fed, unfortunately, in many a roads in the past, has been behind the curve. when they were starting to raise rates, the work expecting a lot of inflation or more inflation, react. fed was slow to here, there being much more proactive, which i think is under the reasons the yield curve is not going as much as is typical in the past. but as you mentioned, it has gone up a little bit over the last week or so. we are seeing the tenure rate of above 3%. it is flatly historical standards, but i think it is because the fed has been proactive. inflation expectations are quite anchored. the markets are pricing very little risk of inflation spike upwards, which is not typically the case when the economy is under 4% employment. we are getting estimates of gdp for this quarter to be above

between three or 4%, usually an alarm bell for inflation. that will keep the yield curve flatter than where it should should be. betty: is there a risk for the fed doing too much this year? potentially putting the u.s. on track for recession? halfling: that is what has been -- kathleen: that is what has often been presaged in the past? randy: gdp growth might start to fall off and it is problematic, could be setting us up for a difficult situation. however, i don't see that as part of the situation. if we see the economy slowing i think the fed would pause and would not do as many rate hikes, they would stop at a ,otal of free for the year rather than go to four. so i don't think the fed has gone too far yet, especially

given the we just had a very strong report on retail sales, gdp seems to be doing quite well this quarter. we are seeing a lot of growth in manufacturing, so it is not like the economy is slowing, where there's any's -- or that there is any sign of it slowing, imminently. haidi: we are just getting this , the in on the bloomberg trade representative saying that nafta countries are nowhere close to a deal adding done. how closely are you watching the trade talks? and of course, the talks with china happening in the white house at the moment? arey: obviously, these risks to the economic outlook. nobody wants a trade war, and that has been said, including by the trump administration. but the trump administration has said, we want to make sure that we are not getting the bad deal. mexico and canada have also said, it is time to rethink some of the things in an old

agreement like nafta. hopefully, what it means is that they will continue the discussions. so with nafta, nafta will continue, they would like to have some of renegotiations sooner than later, but it does not mean that it is the end. so that would be a problem, if we just suddenly ripped things up. beingdon't see that proposed, at least not the moment. randy, talking a lot about emerging markets and how they might be affected by rising rates. do you think the emerging markets are buffered or in better position than they were 2008?n 2013 or randy: we saw in argentina the confidence can shift very rapidly. andas a darling last year, the situation is dire this year.

this could be fragile, even if economic substance is ok. there is concern that things could change rapidly, and we could be seeing higher rates in the u.s., putting more pressure in emerging markets. betty: thank you very much for joining us. and of course, bloomberg's kathleen hays. this is bloomberg. ♪ is bloomberg. ♪

♪ haidi: the final trading wa day of the week opening here u.s. stockse had giving closing pretty fruitful session, ending the day lower. sydney is higher by about .25% as we get to the open. i am haidi lun here in sydney. betty: and i am betty liu fewer in new york, you are watching daybreak australia. let's get to the first word news with jenna. >> reports from washington to say that china is ready to extend an olive branch on trade. >> the new york times has beijing is offering to reduce

the trade deficit as much as $200 billion annually. >> the news is yet to be confirmed by the white house or .y beijing , but sources close to the talks say that that is what is on the table president trump originally asked china to cut $100 billion off the trade gap. has rebutted his national security adviser, saying that libya is no model for north korea. john bolton had said that nuclear disarmament should follow the libyan model, accepted by more muamar qaddafi, who after giving up his weapons, was overthrown and killed. north korea criticized those comments threatened to cancel the trump summit. >> there was no deal to keep kind o qadhafi. the libyan model was a different deal. this would be something with kim jong-un where he would be running his country his country would be very rich. his people are tremendously industrious. >> toshiba has won china's

approval for the sale of its chip unit to a group led by bain capital. the $18 billion sale will go ahead june 1, having missed earlier deadlines as the two sides awaited a decision from beijing. toshiba will retain a stake after the deal goes through. the soccer world cup is less than one month away, and ubs says it knows who is going to win. the bank has deployed a team of analysts and run a computer simulation 10,000 times, trying to predict the eventual champion. it says germany will come out on top, however, such simulations don't always work. for years ago, ubs said brazil would win, only to see them defeated 7-1 by germany in the semi finals. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts, in over 120 countries. this is bloomberg.

♪ haidi: jenna, thank you. let's get a quick update on the markets. new zealand is looking pretty flat,kiwi stocks looking kiwi dollar looking under renewed pressure, with yet more calls for a 4% decline but the end. of the year from morgan stanley. futures in australia look a bit positive. going into the opening of trading. the kiwi dollar at 75 want to -- 75.12 there. at .7512ssie dollar there. there are conflicting reports regarding the united kingdom position in the eu customs union, that is also affecting stocks. when it comes to data, let us get some indication of what we should be watching as trade gets

underway here in asia. what are we expecting in terms of inflation numbers? >> good morning, haidi. and the gdpy orders numbers, that has seen the dollar-yen ratchet higher. the yen is down 1% overall so far this week, and it is not too hard to see the dollar-yen targeting 1.2 12 or 1.14, where it was in 2017. so as you said come by this big inflation, economists were expecting that the number will show and others go down, a disinflationary trade -- trend. the forecast is for the main 7% -- .07%.orth of that is going to reinforce the pressure. probably what is bearing in mind, the economies expect that

low inflation to start picking up, as the effects from higher import prices start to feed through. i think we are looking at a soggy start across asian equity markets. they could be an interesting day. betty: interesting indeed, james thornhill, bloomberg step into sydney.hief for don't expect to check out our gtb library for some charts you saw. the program is also on gtb on the bloomberg terminals. walmart shares dropped the most in a week after reporting mixed earnings.ter investors were focused on the retailers e-commerce growth, of course, that had been falling for the past three quarters. ramy inocencio year has the details. ramy: yes, the number for e-commerce as you wanted out, , and that is up from the 23-24% of that was in the fourth quarter last year. but it is not as good as what

the company was hoping for for the full fiscal year. let us happen to the bloomberg terminal so we can show you this.we stand on 32% is where we are, but actually, we can really see it on here, it is a bit small -- 40%, is what the fiscal year is supposed to be for the guidance. so we are clearly still seven percentage points off that. with that said, looking back at the fest barts over the best year or so, we are coming off that did. because when -- coming off that dip. when the new ceo of jet.com came in, he pulled in e-commerce and it has been booming. also, the brand that they bought come up on bus was scooped up by the company. you can see the numbers that dropped, the earnings per share inusted by a couple of cents there, the estimate was 1.12. billion,as a most $123

and same-store sales were amiss, two .1%, versus an estimate of 2.3%. if it included fuel, -- that is a negative. you can see year to date, the stock price is down nearly 15%. just coming off as year-to-date low after we learned of course, that the company did go into a , trying ton india get a little game on in terms of the e-commerce space in their. india is the second most populous country in asia, and that is that most positive things there but again,. relative to amazon, it still has a long way to go. haidi: speaking of amazon, we love the comparison. walmart buses amazon. what is the latest in that matchup? ramy: real quick, that is pop into the bloomberg terminal, i would like to show you the

market cap when it comes to this match. amazon is in blue, you can see it is totally blowing walmart out of the water. really no surprise in this, especially because amazon has the membership, the prime membership, $119 as we heard a few weeks ago. it has also acquired as we know, whole foods, and there are now saying that they could have two our delivery, not del today two hourp -- to ou delivery, as opposed to two day delivery. betty, an interesting thing here have a you don't have to subscription, so they are giving just a little bit of competition in terms of that delivery time there. betty: ramy, thank you so much. amazon is a was a big topic for walmart. cbs facing off in a

battle just after redstone won fight to protect their company. 5:00, asng started at it ended? when is the latest update. >> it just ended, and they have voted today leave it the redstone families voting power over the company from 80% to about 17%. yes, soy this dividend the board has elected to issue this dividend. it passed pretty easily, and i am reading the board statement right now, saying that the believe it is the best interest for all shareholders, and also that this would enable the company to operate as an independent, non-controlled company and will fully evaluate strategic initiatives. betty: so what might we expect theome from the national --

amusement side, surely redstone? up with all, she came nuclear option and changed the bylaws of the company which should mean that this vote as it went today, is actually invalid. what she has done is to say that instead of just a simple majority of directors, what you need is a supermajority. which means that every director, bar one has to vote for it to pass. she is on the board and she has a couple of members on her side. so by her reckoning, the results of this board do not count. haidi: what is spinning the reaction to the latest drama? nabila: cbs shareholders were down today, they did not think they should be forced into this deal of viacom. there was little changed to viacom shares, and there is some uncertainty built into this stock. this is a two-year-old saga at

this point, which means that it continues for a bit longer. haidi: alright, bloomberg deals reporter there, not be enough nabila ahmed. has boostedernment spending across health, education and housing, and still delivering a fiscal surplus. let us get more from wellington, our bureau chief, matthew. what is the main thrust of the budget? we spoke about how there was a political balancing act for the coalition government it is. matthew: let's read, and i think that was very obvious in this budget. the government was trying to achieve to pretty clear objectives, to make good on election promises by increasing spending on social services, and also starting to address those issues of poverty and homelessness. the other was to show that it is

a responsible manager of the economy. by and large, it has achieved both of those aims and boosted spending on health, education and housing. -- it has still maintained forecasts on rising burgett surpluses and falling government dale. haidi: has the government managed to increase spending and keep the books in the black? matthew: the economy is really helping them out. tech revenue has been higher than expected, so there has been more money for the government to play with. continue.pected to . the economy is in its ninth year of expansion and is forecast to continue growing at a healthy clip, for many years to come. of islly, it is a case the economy really helping the along.ent and of course, the economy will be boosted by the government's plans to invest about $42 billion in infrastructure projects over the next five years. betty: matt, has the budget been well received?

matthew: broadly, yes, it was in a particularly exciting budget, much of it has been well telegraphed. there were no real surprises. but there has been criticism, and it has ironically come more from the left of the political spectrum, or some people feel that the government has been too conservative and could afford to spend more. new zealand by international standards has a relatively low level of government debt, just over 20% of gdp. the government expects that to 2022.o 19% by so it is trying very hard to be a prudent fiscal manager. some people feel that that is coming at the expense of being bolder on some of those big issues, like poverty and homelessness. betty: thank you so much, bloomberg wellington bureau chief there on the budget. i wanted to reiterate some of the headlines from earlier. we have confirmed from bloomberg here that china is said to have

offered president trump $200 billion in essentially a purchase of american goods, to cut down the trade deficit with china. this would include increased imports of american products, essentially buying more american products. again, about $200 billion in cuts to the u.s. trade deficit. there are already reports of how big a hurdle that might be for china to actually meet this headline. $200 billion of cuts in the u.s.-china trade deficit. up next, caught in the crosshairs. the impact of president trump's trade spat with beijing, and how it may prompt chinese businesses to go it alonethis is bloomberg. ♪ . this is bloomberg. ♪

♪ betty: good morning, i am betty liu here in new york. haidi: and i am haidi than in

sydney, you are watching "daybreak australia." as u.s. trade talks strengthen, china has more reason to go it alone. our next guest is here to talk about that. even if the u.s. and china don't come to an agreement, it is creating a headache for multinational companies have spent decades constructing global supply chains. peter, we are getting these headlines from neal, who has left his private meeting with the president, and talks of this $200 billion cut in u.s. trade deficits, as part of a big package being offered by beijing. do you expect further rounds of tensions, as china tries to assume and create more muscle on the global sphere? peter: oh, for sure. the $200 billion number that number has recently confirmed is a big number. the total trade deficit

with china last year was $375 billion. so it would reduce the deficit by over half. the problem is that it doesn't specify what kinds of things would be affected. china could very well reduce its trade deficit with the u.s. say soybeans purchases, more oil and gas, but these are not strategic products. it is always a good thing when the u.s. can sell more, but china is on a long-term mission to climb the value chain and be among the first tier of nations, with some of the very best technology, across a wide range of products. it is a long game, china is playing it expertly, and it is not likely to be dissuaded from that by the americans. he came to washington with a very clear mission, to try to

strike a deal with the u.s., but not in a way that would prevent "made in china 2025 mission." the cracks of it. $200 billion is more than what trump asked for, but maybe they just by 1000 boeing planes or something, to make up the bulk of that. but when you talk about the tech or innovation aspect, is that the ideological battleground the we are looking at? china and idea of ,merica are inextricably linked the term goes back to 2006. the difference now is that the countries are trying to us to get themselves from each other. the best example of that is what , the bigon with the te china telecom company, is th zte.

the u.s. basically told them that they would not allow them to use american components from companies like qualcomm and intel for seven years. zte essentially had to stop production, a company that is one of the national champions of china. so i think that president xi others looked at this and said, we can't have this, we can't have a situation where america, which is more and more seen as a rival than a partner, can essentially shutdown when of our companies. redoubled probably the efforts of the chinese government to go ahead with this "made in china 2025" and achieve more self-sufficiency in key technologies. betty: did it sent -- i am sure it sent some of them to a panic that they could be shut down just like that by one person. more than justbe

-- let's keep doing "made in china 2025?" is it going to accelerate their desire to be more self-reliant? peter: yes, which is of course mission.ite of the when the trade representatives went to beijing in early may, they had a set of demands. one of them was for china to stop subsidizing the very strategic industries that are part of "made in china 2025." that seems like a nonstarter from the point of view of the chinese. so this $200 billion number, if it is true, it is like china knows it has to do something. and what it can do, is just come thatth a very large number might lead the trump administration away from its insistence on doing something about these strategic industries. betty: thank you, peter, good to see you. coming up, the prospect for

bitcoin from the world's leading crypto miners. we talked to the bit main con co-founder next. this is bloomberg. ♪

♪ haidi: i am haidi lun in sydney. betty: and i am betty liu in a new york, you are watching " daybreak australia are: one controversial name in the industry of bitcoins remains bullish. theays he sees cryptocurrency at $100,000 value in the next five years. >> i don't think there is very many scams in the ico market, and a lot of scammers, which takes money away, and people lose money in the this kind of affair, and spreading it on the market. i am not sure the market is -- it is kind of -- it is in kind

of a recession. >> how long does a recession go on for? jihan: three or six months, but i think it will be short. >> the last month, he said bitcoin could reach $100,000 in five years. do you still hold to that view? toan: yes, i hold that view a bitcoin cash right now. >> if you were choosing a horse in this race, you would choose bitcoin cash? jihan: right now, we is bitcoin cash and other currencies, as a basket. >> you don't think it was going to be one of dominant cryptocurrency to use? jihan: yes, in the future, there think thati don't one currency will be dominant. >> do you have a price prediction for bitcoin cash in the next two to five years?

jihan: after five years, i think bitcoin cash will be more than $100,000. well, the bitmain co-founder was speaking to bloomberg's tom mackenzie in beijing. next withetty are up the friday edition of "daybreak australia." taking a look at what is coming up with the next few hours, we have spent quite some time talking about this, the reported all the branch offered from beijing to washington. >> quite a big branch, $200 billion. in fact, alan bollard, we will be having him on and about 60 minutes or so, he is the apex secretary, and a lot of people in the market will know him, and he will be talking about where we go from here. the monetary policy

perspective, how are the central banks looking at this moving target? do you preempted? or do you wait until it becomes disruptive. so you becoming on in about an hour. betty: looking forward to that iliad and we were talking about bitcoin at $100,000, i don't think equity markets will quite get there. the path of least resistance for he is a ciohigher, of a capital management company, he will give us his take on equity markets and why they are likely to equity markets. maybe we could even get his take on bitcoin. haidi: yes, and we will feel a little bit better about the state of the japanese economy at the end of the week, after a couple of horrible misses on the data found on gdp. key inflation, the consumer inflation rate, but is also expected to ease back a little bit in april. so calling into question

abenomics. whether this reflationary pressure is starting to come off the pedals a bid for japan. that is it for "daybreak australia." ♪

>> it is 7:00 a.m. in hong kong and we are live from bloomberg's asian headquarters. i am david and glass. -- ingles. a muted session in new york. treasury yields climbing above 3.1%. the longest week of weekly gains and almost three years. round five and counting. betty: from bloomberg's global headquarters i am betty liu in new york. thea said to be offering u.s. a trade surplus sweetener worth