haidi: the trade war is off the table. the trump administration said terrorists are on hold for now. betty: comments of relief from investors. there was a trade conflict that could undermine the global economy. haidi: the remaking of malaysia. the prime minister must be given every support. betty: in venezuela, voting largely ignored at home or abroad. washington will not recognize a result and is waiting new

sanctions. -- weighing new sanctions. haidi: in sydney it is fast and :00 a.m. this is daybreak -- it is passed 8:00 a.m. betty: it is after 6:00 in new york. we will be looking at how all the action on wall street is going to play into the asia-pacific trading day, and more in action is always on friday with the u.s. market close. it was pretty much a flattish close. the dow, s&p, the nasdaq touched lower, down .4%. the reason why is there is a lot of jitters around u.s.-china trade negotiations but also the treasury yields hitting above 3% consistently, particularly in the longer and of the yield curve -- end of the yield curve, where investors are saying this bull market really seems to be over. haidi: yeah. there is lots of questions over

are at, and we whether policymaking is going to play into that. i wonder if we will see release. doesn't look like that is the case. you look at how much futures are trading lower in the monday morning asian session, but we did get relatively good news that the trade war for now between china and the u.s. has been put to the side. and agreements of to bring substantially more u.s. goods into beijing. $200nfirmation of that billion number reported earlier on friday. take a look at the fed. seeing downside in new zealand, kiwi stocks off .2%. the dollar at 59.27. one of the outperformance with the session of u.s. dollar strength, the bloomberg index reporting those with a fifth week of gains. sydney futures looking weaker into the monday morning open, the aussie dollar 75.24, the

aussie kiwi 26. gold stemming declines. an ounce,he $1300 crude 71.72, brent crude below $80 a barrel after so much transaction with oil commodities , largely unchanged despite what should be an optimistic tone when it comes to trade. let's get first word news. paul allen in sydney. paul: venezuela is voting in an election largely ignored at home and rejected by foreign critics, including the united states. the main opposition is boycotting what is seen by many as a sham that will have president nicolas maduro in a second term. united nations has refused to certify the vote while washington said it will not recognize the result and warns oil sanctions are under active review. middle east populist parties have agreed on a desk italy's --

italy's populist party has agreed on a prime minister. is a progrowth cabinet later for monday, but they have yet to announce names. france warned the new administration must respect italy's debt commitments and not threaten the current currency. boris johnson says brexit's calling for betrayal. they should trust theresa may to pull out the promises. he was in argentina to drum up post-brexit business. that negotiations begin on tuesday and talks are stalled over the irish border. bloomberg has been told ms. management of money at a middle east group could go beyond its $1 billion health care fund and ordered the commission by hope right -- high-profile investors including the bill and melinda gates foundation that health care money was being diverted

elsewhere. a separate review by deloitte's has uncovered discrepancies and other areas. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. arey: the u.s. and china waving the white flag in a potential trade war after two days of talks last week in washington. the economics and policy editor kathleen hays here with more. treasury secretary steve mnuchin and the state council vice premier, they have been upbeat on where this is heading. caroline: i guess -- kathleen: i guess trade negotiations, if you are not going backwards and not walking away from the table, that is progress. steve mnuchin, the treasury secretary, made it clear for now they are just going to declare a truce on trade. here is what he said to fox news sunday just hours ago.

>> we are putting the trade we are on on hold. right now we have agreed to put the terrace on hold -- tariffs on hold. the president has been cleared since the first meeting with presidency that we are going to reduce the trade deficit. we have an agreement with china that they will substantially agree to it. kathleen: those were some of the key elements on the table going into last week and following the talks between the u.s. and china last week. broadly speaking, president trump has said he would like china to cut this trade surplus, $360 billion, i $200 billion by the end of 2020. and let's tighten up on intellectual property, stop feeling secrets -- stealing secrets. larry kudlow, the head of the national economic council, one of the top advisers, on face the

nation he was asked if the tariff threats was still there. he said they were taking them off the table. i don't think we are there yet, he said. that is what we know for sure so far. actualare there any concrete steps that have been taken? well the chief economic advisor to xi jinping said we will not have a trade war. we made meaningful progress and agreed on a framework. that includes their agreements, u.s. agreements to reduce the trade deficit by increasing purchasing goods. larry kudlow saying this would billions. exports by let's take a look at the joint statement and see the elements that were there. they agreed that steps will be taken to cut the u.s. trade deficit with china. china will buy more goods and

services, and they will buy more of the u.s. farm and energy exports. there will be more trade back and forth and manufacturers -- manufactured goods, and they want paramount importance on intellectual property. is that country? i asked concrete? no. they will be going to china to hammer out details on many issues, but you know how trade talks go, it will take time. haidi: strike while the iron is hot. setting a lot more optimistic than last week. but in terms of trade and nafta, there has been speed bumps. what is the treasury secretary saying on those prospects? kathleen: it seems the trump team, led by stephen mnuchin, also in essence sees progress. what he said to fox news sunday was that the president is focused on getting a good deal, not so much the deadline, because it is two weeks

according to the current deadline something has to be proposed to congress, and trump is opening to waiting to passing the nafta deal until the next congress is in session. according to stephen mnuchin. the finance minister spoke to bloomberg. he is in talks with mexican delegates, u.s. elegant. he also seems to be saying this is taking time, but we are moving ahead. haidi: thank you so much. a lot of wait and see. kathleen hays there for us. the former malaysian prime minister has been questioned about the scandal with the investment funds. it was part of a renewed investigation into melting billions of dollars. let's get more from the chief international correspondent. how serious has this become? it is serious.

the investigation is gaining momentum, and the agency said the man will appear for questioning on tuesday, and the investigation involved the former 1mdb subsidiary. we have been told by the agency that it has rejected a claim by the former prime minister's lawyer that it was recorded at his home. as with reporting, investigations have been reopened, and they have said the scandal is much worse than initially thought. speaking with the coalition leader friday evening, he wants to throw his weight behind the prime minister days after being released from prison. said they charges, he man is fully behind malaysia's reform and gender, and there was a common desire to address widespread corruption relating

to 1mdb that brought them together again. here is what he had to say when we sat down in his home in kuala lumpur. think he should be given support. because once you start giving the impression, he would not be as effective. it is my duty to ensure that he be given all the support possible. my life has been disclosed. in a week i have spent a long time with him. and i expressed some of my concerns, and they have been kind and sensitive, taking these into account. reporter: do you see him getting his views are being put behind bars? >> i can't think what will happen, but it could take place.

i see many people ask who is responsible for the second imprisonment. we have seen the king said this. it would not have happened if the judicial is free and not obstructionist. level,a personal forgiven. i am not going to pursue it against him for the crime committed against me. but what he squandered from the people, he has to answer. haslinda: realistically, how much can the current government achieve in the next five years? dismantle the more compromise, correct media,shment, free the

and make sure apologies are efficient and disciplined and all seem comfortable, there is a major breakthrough. i think we can achieve this first, even in the one here for two years. great. it will feel the major task has been to plead. you have seen me [indiscernible] outinda: rooting corruption, the one causing that splits party and racial lines. betty: he said he was opposed to affirmative action policies that favor ethnic malays. what did he say about this? haslinda: there are no plans currently to abolish a summative action, even when he takes over power. he said the malaise, which

account for the majority of the population, will have their rights upheld, but other races onld also receive based merit and need. they are focused on correcting economic inequality, which he said was worsened by the past government. we will have a 30 minute special on friday coming up. don't miss that conversation. betty: looking forward to it. haslinda amin, chief correspondent for asia. later on daybreak australia, tensions are using, but u.s. and china will go head-to-head on a wide range of's subjects -- of subjects. haidi: jim carrey tells us how it is positioning itself for the treasury market with the key inflection points. this is bloomberg. ♪ this is bloomberg. ♪

good morning.

i am betty liu in new york. haidi: i'm haidi lun, you are watching daybreak australia. as the debate rages on about the number of rate hikes, pimco says investor should not be concerned. treasury yields are topping out at 3.5% for them. pacificus is the asia head. let's start with where these yields are going. i want to throw out a chart from the gtv library say the economy can hold 3% yields. if you look at the lag between interest rates and levels of growth, there is still some room to run, if you look at the difference between nominal rates and actual interest rates. have we consolidated around 3%? >> i think we can go higher, and if you look at the big picture, we are a few steps along the normalization bad. we have had many hikes already from the fed, six in fact.

the market is contemplating another four, so that takes us in pimco's view right into the territory where policy will feel tight, having been easy for many years. many countries are different. some countries are nowhere near that path, but it is advanced. haidi: we talked about yields getting to a certain point, 3.25, 3.5, where you start getting foreign buyers coming back in. do you see a cap, what is that level? robert: we think the yields will range 3.5%. 3.5% is implying the cash rate is already on the higher side of neutral, so when that happens, rather than shocking yield curves higher and higher, you will see flattening of curves and envision of curves -- in version of curves as the economy goes lower under pressure in

terms of the policy rates. haidi: do you see in person for this year? -- inversion for this year? robert: it is possible. it could steepen before it starts to flatten because there is more policy action to happen. we also have a good backdrop in terms of the fiscal stimulus that is coming. it is hard to see a scenario where economic growth disappoints, but it is hard to see something where we outperform potential growth by a significant margin. betty: but it has been interesting hearing at least a few fed speakers, important ones, talk about or worn about this in version of the yield curve. we will heal more -- here more this week. is there any week to talk that back -- anyway to talk that back door robert: it all depends. as central bankers will always is datary division

dependent. if we see changes in the data, there is plenty of scope for backpedaling, but i think in terms of the markets pricing, it is right in our view. but given that, we think there is an underlying momentum in the economy, and we think that those rate hikes will occur, but any curve inversion probably comes much further down the track. we may decide to see evidence that the momentum in the economy is slowing and the rate hikes are not justified in order to see any significant form of inversion. betty: i want to pull up this chart, which we have been showing, rolling a bit as you have talked about the treasury, particularly the 10 year yield. we settled at 3.0% on friday, above the 3% level. a gradual rise in these yields over the last six

months or so. is there any indication or evidence that we might see an acceleration of those yields? you mentioned a target of 3% to with but any inflation now this about 3%, and i said the ration of those yields -- an acceleration of those yields? robert: we don't think so. it is similar to what we have seen already. in mid-om, 1.5%, 1.4% 2016, it has been a gradual path ever since, so already four years and even longer than that since we talked about paper and that sort of thing. even the hiking cycle has been going for a long time, which is confusing with what we heard way back. a measured pace, data dependency, the feds being very cautious. i think that path is likely to continue, so we are not worried about a breakout in inflation.

that would be one area where you can see yields done more quickly, but that is not in the base case. it is a leap higher in yields, which means investors should stay invested because you are earning a type -- a higher return in our expectation versus other assets, especially when the starting point in the yield is higher than it was a couple of years ago. betty: are you worried about the impact on emerging-market currencies, this rise in yields? there hasdo think been a great sweet spot for emerging markets for quite a long time now. gradual normalization of policy sort of phrases some questions around the sustainability of that am a but it has also been a couple of very local impacts in different economies, so i would not overemphasize a change in sentiment around fed pricing. the fed pricing has been pretty well in trained for a while now,

but we have laid over geopolitics and issues that are locally oriented. those will be more short-term, and when we look at words, emerging markets will have been a great contributor to tighter return. haidi: key to the outlook for u.s. dollar. i have this chart that shows five weeks of stellar gains, up 4.5% over that point. the best run in three years. a lot of people are saying this is peak dollar we will see for a while. is it because -- the fundamentals from when we started this rally to now have not changed. is there anything to suggest anything could change in reverse and stop this rally? robert: they have further to go. the trade talks over the weekend suggesting that the trade war tight outcomes are unlikely.

most people thought this would be something like what happened, given there is a lot of rhetoric around the early trade negotiations, but there is typically some softening at the margin which we seem to be seeing over the weekend, so that is to suggest the global trade stays healthy. we don't have to worry about that, then as a result of that, currencies at these levels have probably raised the price where they should be. that doesn't mean we can't get additional dollar strength over the short term, especially with news overnight. haidi: we will wait and see for the details. thank you so much. the pimco head of the asia-pacific portfolio management in sydney. you can find in-depth analysis on the day's big news. 8:00 inm 6:00 a.m., sydney. you can download the apple are accessed via bloomberg radio. this is bloomberg. ♪ this is bloomberg. ♪

betty: a quick check of the folksss flash headlines, in international looking for acquisitions to gain a foothold in the north american tourism market. the chinese conglomerate told bloomberg they are interested in anything related to the sector from travel agencies and resort brands to recreational content for buyers. the owner of club med has launched a new line of chinese resorts. years, they are checking out of hilton. this largest investor had agreed to sell 15.8 million shares valued at $1.3 billion. blackstone will realize some $14 billion in profit, meaning it has tripled its investment. get a venezuelan vote

update from caracas and find out how geopolitical tensions surrounding the oil markets. that is up next. this is bloomberg. ♪ this is bloomberg. ♪

haidi: it is 8:30 in sydney, markets open for a brand-new trading week in 90 minutes. beautiful morning, futures looking less than beautiful, even though we had progress on the trade front. equities looking lower, tracking the u.s. betty: a lot of questions. i am betty liu, it is 6:30 in new york. let's get to first word news with paul allen. administration says it is putting the potential trade war on hold after making progress with china on reducing the deficit. treasury secretary stephen mnuchin said tariffs against beijing will be cost while an agreement -- paused while an

agreement is finalized. he promised up to $150 million, and beijing said it would retaliate. >> we are putting the trade war on hold, so we have agreed to put the tariffs on hold while we try to execute the framework. the president has been very clear since the first meeting with president xi in mar-a-lago that we are going to reduce the trade deficit. we have an agreement with china that they will substantially agree to it. paul: the former malaysian prime minister will be questioned about his investment fund scandal on tuesday as the new government steps up its investigation into the missing millions. he has requested police protection and blames the new government for what he calls a campaign of slander and personal attacks. the man who transformed algae into south korea's fourth-largest conglomerate has died.

he turned the company from a maker of cheap appliances into a global tech and chemical powerhouse. he fell ill a year ago and died sunday morning. he is expected to be succeeded by his son who was nominated to the board last week. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. ♪ haidi: let's get you a quick update on the markets. trading is underway in new zealand. we see the kiwi dollar and the aussie dollar catching a bit thanks to this restoration, these trade talks between beijing and washington coming to some sort of fruition. kiwi stocks are paring earlier losses, lower by a quarter of 1%. futures in australia setting up going into the citi open a little bit of weakness. there is the issue see the s&p futures getting higher, to see

how quickly those losses are corrected into the asian open. the aussie dollar at 75.23. pretty quiet kind of session in terms of data this week out of asia. we have a bank of korea's decision. they are expected to stay on hold. gdp out of thailand and singapore. going into the tokyo open, this is how we look when it comes to sterling. we have the u.s. 10 year yield falling below 3.1% level. still have a market grappling with trade tensions and what the fed does next. we have u.s. stocks ending lower friday. venezuelans have been voting in election in gordon -- ignored by many but could affect decades to come. this could give nicolas maduro another six years. joining us now is our bureau chief in caracas. can you give us a sense of the mood we are seeing?

reporter: the streets are quiet today. we seem a dozen best we have seen a dozen voting centers, mostly in the western areas, and they were practically empty. sometimes i was the only person there apart from the people working, so it was eerily quiet. the people coming in and go straight in and vote and walked out. it was basically most of them were empty all day. haidi: what does that tell us about the candidates and the overall campaign so far? tells you you have an electorate extremely disappointed with the options, and on one hand you have the biggest coalition called boycott the vote today, and that is why a large person sat out today, but then on the other hand you have people pining for anyone to do anything. people that can afford food, then you have public services

that have collapsed, running water has become a luxury here. you have power outages they go on for waters -- for hours during public transportation is a problem because there are no spare parts for trucks and buses . it is understandable that many feel uninterested in the election. betty: tell us more about the opposition candidates and whether they will accept the results. patricia: the biggest opposition candidate is a former state governor, and he used to be a chaves supporter back in the day. he has some support, but he has been accused by part of the opposition of legitimizing today's election. on the other hand you have a televangelist who has never held public office before and who has gained a bit of momentum in recent weeks. betty: thank you so muchbetty:. patricia there in caracas,

venezuela bureau chief on the results of these elections. the outlook for energy will be involved in sharp focus this week through the lens of russia and iran. brent and wti crude are touching since 2014.en ramy inocencio is here to tell us what to watch. ramy: thank you. we are looking ahead to later this week in st. petersburg. that would be the st. petersburg international economic forum. it will not just be world leaders. it will also be energy ministers , the prime among them vladimir putin, emmanuel macron, shinzo abe. most important right now, the energy minister of russia as well as saudi arabia, alexander novak and delete also lay. fale.alid a they have been described as having a bromance because you

cannot have one without the other talking about the trajectory of oil. i want to show you my chart here. looking at what i have called the temptation to produce, this is in your own gtv library. the one line here is that production target for oil. for russia you can see that is under 11 million barrels a day, but it is above that now. when you look at a relative to brent crude futures, it is now on the $75 handle. some folks are thinking this might rise higher, but you can see there is pressure to produce as this increases and people want more profits in their pockets. we will be looking ahead to see forum.mes out of the we have the ceo of russian oil giant rosneft. ross and -- russia has been trying to support iran in terms of what has been happening with

u.s. sanctions, and i want to hop back into the terminal, the gtv library because this is looking at iranian oil production. you can see as sanctions were expected to come back from the u.s., we thought oil production start to fall, to plunge even as brent futures, crude teachers rather continue to rise to those nearly four-year highs, but the e.u. is trying to preserve that iran nuclear deal. this past friday the european commission, the executive branch of the e.u., set is telling governments to try to find a way to make sure oil related revenues tended to iran at least in a one-off fashion. those are the two things, russia and iran. looking past this week at the iea, they say because of the rising oil prices, we might see this growth start to taper. i have one more graphic.

i will show you there is a little bit of pessimism coming out of the iea. that is here in the white line with the 2018 forecast, but opec still being bullish, looking ahead, the orange line hasn't come off just yet. but we heard what has been happening out of venezuela, with oil falling in the past several months. sanctions on iran as well as shall growth trying to take advantage, trying to take the opportunity in russia and more. looking ahead, we will see in oil, wti and brent, we will stay or rise higher in the four-week highs. haidi: a key week coming up for the oil trading. thank you very much, ramy inocencio in hong kong. looking at asia, our cross asset analysis is here. the trade war is apparently on hold for now.

that is pretty welcome news for much of asia. welcomingit is very for risk assets in general. we have seen, i think you mentioned the meetings that are higher at the open. it is not just be all goes that thatriving those -- algos are driving those are we have reaction to the aussie dollar which also jumped up and stowed -- so did the kiwi dollar. that is important because it signals part of what will go on is the u.s. dollar is going to go down. we have had such a problem with emerging markets recently and a big part of that has been the trade as well as the u.s. yield, so if you have the u.s. dollar declining, that signals risk assets are free to go up. pressure will come off emerging-market currencies across asia, and such an export dependent place as asia, everybody will be happy to see this cloud at least fullback,

which is what is going on. what are the longer-term implications for markets when they stop salivating this news? -- celebrating this news? gives, whatmnuchin mr. trump or mr. ross or mr. mnuchin again could take away, because they have only suspended it. there was a lot of talk over the weekend about this $200 billion a year reduction in the china trade surplus with america that the trump administration wants, and as we have had some reporting on the bloomberg thing is unclear if they can make any significant progress. $100 billion would be beyond what seems possible. these are supertanker economies. so trump is going to face plenty of pressure to keep on being hard on china with the midterm

elections, practically just round the corner. i think in the longer-term you could see an increase in volatility unless there is real progress. it will be like nafta, where every couple of weeks, we get some positive headlines and then the mexican peso goes up, then it goes down again. betty: all right, thank you so much, garfield reynolds on the market. he is the bloomberg editor for cross assets analysis. don't forget to check out our gtv library for the charts you just saw. that is on gtv and the bloomberg terminal. the week ahead on wall street will see a new round of earnings. zuckerberg will be grilled again, and the fed minutes should give us clues on the pace of rate hikes. we will have fed speakers. su keenan has the latest. su: can the earnings and ego data move the needle, because we are reigning in the geopolitical

distractions to focus on that? friday, the bond and the rising dollar will continue to be an area of focus. the s&p 500 have a two-day losing streak on friday. can it snap that? the russell 200 as well. will that continue? let's take a look at some of the companies that are going to be reporting earnings. we have got tech and retail in the mix, target, tiffany, a ,uxury jeweler, hewlett-packard this is the way they closed. they will be front and center this week. let's going to bloomberg. gtv is where you can find a library of charts. this is new highs for small caps. the russell 2000 is in the white. this is an all-time record light -- late last week.

the s&p is nowhere near a record it hit in january. this has to do with the strength of the dollar. small-cap make their money at home, so they are not print by a stronger dollar whereas s&p 500 for the large part are. so you see a big break away where the money is favoring the small caps in terms of record highs. haidi: investors will be focused on the fed minutes, the latest ego data as well. that shows the strength in the economy. we are watching any indicators that report inflation. su: that is why the housing reports with new homes and existing homes are front and center in terms of the focus because economists are predicting we will continue to at anw home sales elevated level consistent with what we saw last month. very important, we will get the report on existing homes out on thursday. that is expected to hold near where we have been, a

seven-year, or the highest since 2007. that is more than a decade high we have nothing the fastest pace of home sales since we had back in 2007. that is clearly an underscore of the strength of the economy, particularly where you have rising interest rates and you still have significant sales that does go to the strength of the economy. we have durable goods, we have the fed minutes coming out. the fed did not raise rates at meetings.and 2 what these policymakers have to say will be of great interest to the market. haidi: absolutely. under great scrutiny as usual. thank you. fighting.hina-trade the nations have been heading for a clash for years. we get a guest next. this is bloomberg. ♪

i am haidi lun in sydney. betty: i am betty lou, you are watching daybreak australia. the trade war is off the table. we heard steve mnuchin saying the u.s. will not impose tariffs on chinese products for now, but questions remain unanswered after last week's talks in washington. the next guest says it will be a long time before they find common ground. joining us is the stratford vice president roger baker. stephen mnuchin said these tariffs are on hold. you believe it? >> i believe the tariffs are on hold. this administration has been very consistent in pushing negotiations from a maximus position and then setting off

and at least in the short-term much less what they laid out at the beginning. so they seem to have hold back for now. there is space for dialogue and theng, expanding trade, but trade spat is not over. early? oesn't seem too rodger: i don't know. we are a year-and-a-half in the administration. betty: does it seem to our early -- too early for the u.s. to say after a day of talks, let's put tariffs on hold? rodger: that is what some are arguing that the u.s. is giving to quickly, that gives china space, the chinese can make promises, keep things going, but the administration can do what it seems to do regularly and swing back around and through the tariffs on quickly. betty: that option is always on the table. in these talks, who has been most effective? rodger: i am not sure.

these are two of the world's major economies. the chinese have been changing the status quo of the global economic structure. the united states feels off guard, feels left behind, losing its position of prominence. that puts them in a position where there is no good, clean easy compromise for the two. haidi: you can leave aside tariffs, leave aside opening up the financial markets, but you go to the crux of -- it is really the ideological insecurity, can i say that, that china is moving into these high-tech industries? there is no resolution in terms of curbing those ambitions. rodger: there is not. this is a repeat of how the united states felt in the 1980's when its on europe and japan start to expand substantially economically. that challenged the central role of the united states.

the chinese, the 2025 plan is all about high technology, and the united states right now, the way the administration talks, is talking about 90 to 20th century to 20thgies -- 19th century technologies. haidi: how does this end? rodger: i think this will keep going on for a while. in the end, this isn't just a trade negotiation. there is whether we want to look at the trade component as a piece of it, but there is a broader strategic component between the united states and china. they see china as probably the only emerging near here competitor -- peer competitor not just in economics but in some sense ideological, military, and that becomes the focus of the united states moving forward and out of the attention just to small-scale issues and back into state to

state competition. russia fits, but china is the emerging power. that is where their attention will be focused. is the hegemony coming to an end? are we seeing a global power shift? rodger: i don't think it is all the way to a global power shift or the hegemony or overwhelming strength under fred, but that -- threat, but the percentage is shifting. we are not holding the same size preponderance of power by default, by the expansion of the chinese economy. by the expansion of chinese political activity, military. it first that people were recognizing it in the militaries , but itmilitary sphere is playing out in economics. it is not overwhelming. it will have to adjust and adapt. betty: we also had that olive branch from the chinese about

buying $200 billion worth of american goods, and i wonder in your view is that realistic? rodger: the number is high, but the chinese can pick up more energy exports, agriculture exports, and even the promises or adjustments in that help out in the truck territory into the midterm elections. it may be enough of a benefit for this president. betty: thank you so much, roger bakerbetty: on the u.s.-china trade talks. that war seems to be on hold. you can get around of of that story and more to get your day going in today's edition of daybreak. you can go to the terminal and it is also available on mobile in the anywhere app. you can customize settings so you only get news on the industries and the assets you care about. this is bloomberg. ♪

betty: i am betty liu in new york. haidi: and i am haidi lun. you are watching daybreak australia. that is a most it this morning, but we have daybreak asia next, taking a look at what is coming up over the next hours in week. david: we are going beyond a week, exactly about a month from now, a little over a month from now. june 22, that is when opec meets. the story last week, when you consider that the price inflation expectations, there was a case to be made for opec ,ot to extend production cuts and we are joined from singapore to talk about that. opec might need to rethink the target market. if it is the five-year average on inventory, and we are there already, he thinks we might see opec adjust their target to seven years, and we will see how that plays out. there is the iranian factor to

consider. lots of assets to the oil conversation into the new trade week. betty: there isbetty:. a lot of factors undermining oil prices. let's focus more on the equity chiefs, ubs wealth market investment officer come a quite a long title. he is joining us and he will talk about how investors are focused on rising yields. i don't know about the risks they pose, interesting take. there is a lot of focus on the risks, but we will talk more about how that will affect equity markets. he has the ubs production on the world cup. haidi: [laughter] lead with that. we will talk about china msci and financial markets opening implications. there is a power shift with regional markets and the structural readiness of the platforms around the region. the asian securities industry

and financial markets association ceo sigma, mark austin joining us for that conversation. he says we have not seen this level of unprecedented opening up from china before. that is all coming up. this is bloomberg. ♪ ♪

>> it is some :00 a.m.. welcome to "daybreak: asia." markets are set to meander. the trump administration puts a trade war on hold. that will come as some relief for investors. betty: i'm betty liu in new york where it is just after 7:00 p.m. evening. president trump to note the obama administration infiltrated his campaign team. the remaking of malaysia.