meeting is off. president trump cancels the north korea summit and says the u.s. military is ready for any eventuality. >> the president used a more traditional form of message to convey his decision, saying he still hopes he and kim will meet one day. >> stocks initially fell on the news but closed back up. gold seeing its biggest gain in a month, again rallying. >> storage bank cuts jobs and gives up on wall street.

investors wonder if the plan is too little, too late. australia.daybreak there two hours away from open. to be we are going looking at how all the action on wall street will be playing into the trading day in asia. some real fear after president trump canceled a meeting with kim jong-un of north korea. but as you see, we came back a bit and fears cooled down during the session. the s&p finished up. nasdaq trading -- closing just about flat. look at how some of the other assets reacted to this news. a bit of buying on treasuries. again, yields falling to 2.8 9%

of the 10 year. the dollar also drifting lower. that strengthening some of the currencies like the japanese yen. watch the currency movements in asia. yes, we are watching emerging markets as well. central banks not getting much joy out of the 300 basis point rate hike. investors continue to be challenged by having to weigh geopolitical tensions as well as a trading deal with china. in new zealand, trading is underway. he flat this morning. pretty flat this morning. the u.s. dollar falling against every counterpart except the loonie. 75, 77,ollar trading at a pretty negative open going into sydney this morning. let's get a check on commodities.

gold the other beneficiary, jumped the most in a month. crude holding at about $70 a barrel. but we see oil plunging for a the plan is still to talk about exit strategy going into next months meeting. commodities just a little bit softer. -- bloomberg commodity still a little bit softer. betty: indeed. the big story, we were just talking about, president trump canceling his historic summit with kim jong-un and says the u.s. military is ready for any outcome. he cited tremendous anger and but kept the door open for a meeting in the future. mr. trump: i am waiting. to washingtono

and bloomberg national security team leader bilberry. berry. very interesting that this came in a letter, not a tweet. why are they backing away from the summit? -- what u.s.s officials said after trump's decision was announced was one, that they were not getting responses from north korean counterparts when it came to trying to work out some of the details of the summit. one administration official told reporters today that a team had actually flown to singapore to try to lay the groundwork for the summit on june 12 and their north korean counterparts never showed up. they were literally stood up and they return to washington. they are saying there was a break down behind the scenes as they tried to iron out details. clearly, the public rhetoric had

escalated quite a bit. north korea took aim at john bolton. this morning, they did something similar with mike pence. were breakinggs down. the administration arguing that behind the scenes things were even worse. chances at are the summit happens in the future? bill: that was the interesting part of the letter. he was at times attacking north korea for their rhetoric and bragging that the u.s. has a , -- rigor nuclear arsenal bigger nuclear arsenal, and then left open doors, saying i hope you will call or write if you want to do this. it does make the prospect of a second meeting much harder. leaders will not be willing to go into it without a clear agenda of what they are going to achieve, and we are going to start looking to see if the economic sanctions campaign stays in tact whether you start countries,

particularly china, backing down from stringent enforcement of the sanctions. haidi: where does this leave the ?est of our allies bill: south korea, surprisingly, doesn't seem to have been informed or given much of a that this was coming. the government was trying to understand president trump's decision. that doesn't sound they were briefed ahead of time. ,rom the perspective of china if perhaps gives them more of an upper hand if the administration wants to go forward with talks. there are a lot of trade negotiations going on behind the scenes. this gives china a real opportunity to link them up if they want more leverage over washington. thank you.

we will get more on that from tom mccain in just a second. pyongyang followed through on its promise to dismantle its nuclear testing site. it makes for great pictures, doesn't it? >> it does, but it's possibly too little, too late. this is a nuclear testing site in the northeast of north korea. a select group of journalists flew over from beijing to witness this. north korea says they have destroyed this testing facility and all tunnels where six of the previous test have taken place. this as aa sees natural development to the completion of the nuclear weapons program.

that is how north koreans will portray this. as far as south korea and the u.s., they saw this as a potential goodwill step prior to the summit, that experts had always been cautious saying the destruction of this facility would not prevent north korea from developing its weapons program in the future, and in fact, many experts point to a move made by north korea in 2008 when they destroyed a nuclear reactor and then progressed very quickly with their nuclear weapons program. what was hoped to be seen as a goodwill gesture of course does president prevent trump from ending the summit, at least postponing it in light of the heated rhetoric from both sides. what are we expecting in terms of reaction from beijing? >> well, there are two schools of thoughts on this, really. as bill was saying, one side

would argue that the chinese will welcome this development, not publicly, but behind the scenes. they have been concerned that the north korea -- that north korea was moving into the u.s. orbit and the pace of talks had been happening quickly and china risked being frozen out. as anere see this opportunity to use this leverage because ofe talks course it is down to china as far as how strictly these sanctions are enforced, largely. the other side would argue that there will be anxiety and can any potential agreement between the u.s. and north korea may have seen the reduction or removal completely of u.s. troops from south korea. it's a tricky geopolitical issue on their border. two lines of thought.

but clearly, china is now void be at the forefront of how anything moves forward. -- china is now going to be at the forefront of how anything moves forward. betty: let's stay on this top story. is a professor in korean studies and assistant professor at top university -- tufts university. you say this was the right call by the president. why? >> i think president trump elated lee realized that he was walking into an elaborate trap -- belatedly realized he was walking into an elaborate trap and that north korea's demands on the u.s. to make all the concessions up front was no victory for president trump. momenthis is an historic an historichis is

moment. at no point has the u.s. turned the table on the north korean regime. u.s. and its the allies oblige and because they had more to lose in continuing escalation. they would go back to negotiations with bigger and tow.er concessions in so this is shocking to kim jong-un. i am sure his regime did not see this coming. south korea certainly didn't. the south korean president was here two days ago trying to persuade trump to meet with kim saying he was a reasonable statesman with whom you can do business. the north koreans must have known yesterday when

they issued harsh words on the president, threatening that this meeting may not happen, surely they must have thought to themselves that this would, in fact, happen, that the president would, in fact, cut the meeting. >> i don't think so. by north korean standards, what they said about mike pence, mr. bolton, and others, this is pretty civil. north korea has said a lot of strange and file things. things.-- vile they called obama a wicked black monkey who should go back to africa and feed off the bread .rumbs of tourists he called mr. trump mentally deranged after mr. trump called him rocket man. name-calling is not really the issue. i know trump has used that as an i think the

substantive issues are north korea wanted something from the u.s. that was unacceptable, full front withoutp getting anything, meaningless gestures like closing and exhausted nuclear testing site. haidi: do you think a compromise can be reached in the future? do you think a summit will eventually happen? >> i think it is more likely than not because there are political victories to be gained for both sides, kim jong-un has potentially far more to gain. been sequelhas has been playing this awayand has wrested billions of dollars for their efforts. there will be another provocation. paintng-un will try to

trump as uninterested in peace whereas he is struggling to survive and a peacemaker. after a while, after he is able to reset the table, he will put on the charm offensive once again. and at some point, president trump will bite because the bigger the problem grows, the more tendency there is on the part of the u.s. leadership to seek a deal, even if it is not a perfect deal. betty: what do you think the chances are of more emotional escalations going into conflict? >> it's always possible. one cannot rule that out. but history gives us some clues. at no point since the end of the korean war has the u.s. responded with military force, even in cases -- egregious cases attacks,korean lethal

killing americans, shooting down a u.s. spy plane, killing all 31 servicemen aboard. point has the u.s. used recourse because they don't want escalation of the war. itsh korea has shown intentions and abilities to shoot back, unlike many other countries the u.s. has invaded or attacked. haidi: thank you for joining us. a professor in korean studies joining us there. from markthe news crumpton. markle in the european union says any u.s. plan to slap tariffs on auto imports would violate wto rules. russia says it is till assessing president trump's call for insists cars but are no threat to national security. washington will decide whether to impose duties on steel or aluminum. the eu says it still hope to

find a solution. bank of england governor mark carney says his often criticized policy guidance is more important than ever as bright as it nears its final phase. spoke just hours after his deputy told bloomberg the bank doesn't have a communication problem, although forecasting has become more difficult since the brexit vote. u.s. justice department has opened a criminal investigation into whether traders have been manipulating the price of bitcoin and other digital currencies. we are told the inquiry is looking at a legal actions that could move prices such as spoofing or flooding the market with fake orders to fool other traders. bitcoin extended supplies after reported the investigation. sources inside law enforcement say disgraced movie moguld to surrendeeeks. global news 24 hours a day, on

air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. haidi: thank you. australia,n daybreak president trump hinting china played a part in the collapse of the north korea summit. later in the show, we ask if that could affect ongoing trade talks. , geopoliticalead risks and trade tensions as asian markets get set to open. this is bloomberg. ♪

haidi: i am haidi lun in sydney. in newi am betty liu york. you are watching daybreak australia. wall street stocks close lower after climbing back from early losses. president trump canceled the north korean summit. that is the story today.

jason, you know, every day, we seem to be moving back and forth on these headlines. first off, what do you make of that and the health of the markets? what is your biggest concern right now? jason: the first part, i think you saw movement today as emblematic of how investors are thinking about this. there is initial reaction, and then it crawls back. it's a shrug of the shoulders. it's day today. if you look at the vix, it's around 12.5-13. over 30.ry, it was even in march when we had trade tensions it was higher. this is relatively low compared to where we have been in the last couple of months. this ranks inere our priorities, i think it's relatively low. it's really hard to calibrate politics because it does change

day today. then you go back to well, from an economic perspective, a markets perspective, the fundamentals, does this change the story for us? on trademental impact is going to be relatively modest. when that happens, you go back to what does the economic data say? what do the earnings say? focus on that. betty: what are you hearing from clients? what are you telling your clients? jason: stay calm and stay invested. advice.ple an questions come in, how do we interpret this political noise? when investors are initially skittish, now when we talk to clients and buyers, they come down quite a bit. negotiationse that

on trade, even with north korea, these are long-term stories that aren't going to be resolved in a couple of weeks. you can't get caught up in the day today. stay calm and stay invested. we think the economic story is good. you don't want to react to news and pullback even though the economics are reflected in the markets. haidi: what does make you cautious? it does feel as if there has been more of a fundamental shift from buying everything grows to more of a value perspective. are two things that are interrelated. one is where does inflation go? right now, we think inflation is going to get up to a 2% target and hug that. good inflation rise more significantly? if so, how does the fed respond. the fed is transparent in terms of what it wants to do. it is deliberate.

if we get something like inflation moving higher, , that could markets be one of the biggest fundamental changes that causes short-term volatility. then you have to start reassessing the environment for the markets overall. stillnow, we are comfortable that that is a risk and not a base case scenario. about ratcheting up trade tensions if we don't manage to get a deal with china? do you think that will continue to weigh on sentiment? jason: a canon terms of how much it will escalate, but i always try to -- it can in terms of how much it will escalate, but i always try to put it into perspective of how much it will affect the economy. less than 2% of total u.s. imports. the tariffs are $12.5 billion. percent of than .1

1% of the u.s. economy. , it's a secondary issue for the markets and for us as well. after the fed minutes, do you see a lower dollar? i think the-term, dollar will still appreciate. it has good momentum and the technicals are favorable. long-term, we think it is going to weaken. betty: much more ahead on daybreak australia. ♪

betty: a quick check of the latest headlines at this hour. a u.s. jury has awarded apple more than half a billion dollars in damages from samsung in a retrial over their long-running patent is you. samsung argued it should pay only 28 -- patent dispute.

samsung argued it should pay only $28 million. netflix briefly topped disney a market value during thursday's trading in new york. challenging the title for most valuable media company. ck is up 82% this year and has already surpassed comcast. the house of representatives has voted to punish chinese phone makers the zte. phone maker the vote was part of an annual defense policy bill and was passed overwhelmingly. it bans federal agencies from technology and the

defense department from renewing contracts. ♪

haidi: haidi lun in sydney. betty: i'm betty liu in new york. you are watching daybreak australia. we are getting some lines here on north korea and casey n/a, north korea saying they are willing to talk with the u.s. and also expressing regret over the cancellation of the summit between the u.s. and north korea. certainly a different tone than yesterday. haidi: it's an emotional roller coaster. i suppose this goes to the thing that it's not over until it's over and even though president trump did leave the door ajar for the future summit or perhaps july 12 to be back on, still a great deal of uncertainty there. betty: a great deal. but certainly this could be looked on by the market as more favorable. let's get the first word news with mark crumpton. mark: thank you.

president trump's says of the u.s. military is ready after canceling his summit with kim jong-un. it was a setback for north korea and the world that the world would act as required in the event of conflict. the president held on to the hope that the june 12 summit in singapore could happen or that he and kim could meet in the future. he said we have to get it right and casey in a reporting they are willing to talk. the north has shut down the nuclear weapons test site in the presence of foreign media, but not independent foreign fixed specters. kim announced it -- foreign inspectors. south korea and the u.s. ,nterpreted it as a good faith but arms experts said decommissioning would not impede kim's ability to make new weapons. efforts to salvage the iran

nuclear deal picked up on friday in vienna where officials will meet for the first times without u.s. diplomats. france, anda, u.k., china will -- and germany will discuss economic incentives. they will consider the verification activities of the iaea, which reported that iran is sticking to its commitments. australians long housing boom is buckling under the weight of credit rules of decreased supply and wage growth. it fell frequent 4% from a year earlier, seventh straight month of declines. sydney properties were gaining 60% a year. deutsche bank seized the downturn as only mildly negative for the aussie dollar. 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'm mark crumpton. this is bloomberg. back to you. haidi: thank you for that. let's get an update on your markets. a lot to contend with. trading new zealand underway doing better up by .25%, kiwi dollar at 69.36. -- .6936. other than the yen. sydney features still looking negative though. at aussie dollar trading .7578. looking at the risk radar. gold picking up the safe haven demand. 109.17.racking at we had the biggest gains for sterling in five weeks. the 10 year yield also ticking lower as the market treasuries picked up in the safe haven trend. .25% come uplosing

the u.s. leader summit has been called off. james born health is there for us. james, will they, won't they? you wonder if markets will ignore the ignores, right? >> right. on wall street and in lower but there is no sense of panic out there. on theing the comments investors, there a sense that when you are dealing with characters like trump or kim, people are starting to live with that. the markets are reflecting that. we will start a little bit lower in asia. s&p futures are pointing around a 15% slide in the open. australia has their own issues

to deal with, like the banking sector. it's a major part of the index. that is playing a part. we will see weakness early on. well contained and in the context of the headlines, flashing past, being prepared to talk. i thought trump, it contained his usual soundbites. here was also a concealer tone. betty: is there a risk of more volatility? james: yeah, i mean, we are in that period of early volatility in january and february. the market has come down a bit and we have long ranges. if you take a look at this chart we have put together, what it shows is that there has been a strong demand coming back into the market from volatility in

recent weeks over the course of may. i think that reflects that there is a lot of issues bubbling under that haven't come to a head and maybe will be doing so in the next month or two. first of all, u.s. china trade battle, that appears to be calm for now. there is uncertainty surrounding that. bark has been worse than his bite, but will that continue? who knows what trump will do? of course also, we have a flareup in emerging markets, most recently in the turkish lira, which is taken a battering. thethe risk there is contagion spreads to the rest of the market and ends up infecting worldwide. we also got risk in italy. we don't know how that will play out. the new government is causing your options within the european

union. they all could come to a head. i think that is reflected in some increase in volatility coming into the market. betty: certainly things to watch. james thornhill, bloomberg's deputy bureau chief. don't forget to check out our library for some of the charts you just saw. it's on the bloomberg terminal. deutsche bank shares dropped to the lowest level and 20 months after the ceo announced plans that lets investors wondering if it is too little, too late? 10% of all staff are going to lose their jobs. ramy inocencio has more on deutsche bank. ramy: in total, that number is 7000, but according to people familiar, it can be as much as 10,000, representing about 10% of all the jobs

currently existing at deutsche bank. there is a lot of investor wrath at the annual general meeting in germany as well as the share prices, down 4.8%, the lowest since september 2016. based on all of this, it could be too little, too late because there is a lot of frustration and anger, not just over this most recent aggressive attempt at cost cuts, but over the past four or so ceo's. but the new one, who just started in april, tried to dissuade those fears. take a listen. >> let me state quite clearly. we are committed to our corporate and investment bank and we are staying international. we are active in more than 60 countries. that's the way it's going to stay. cuts now, 25% of those job

are actually coming from the equities trading visit and that got my first bloomberg terminal behind me. you can see the performance of the business. ever since 2013, that's the white line, that's been up 25%. in the blue line, this is the performance of the bondholders. since look at that, ever 2013, that's in the negative, 62%. that's the reason there is all these cuts happening on the equities side but people are saying this really is not enough. , heexample, the head of eos has said job cuts are not a new strategy and they are not value creating. they are saying they need a clearer strategy moving ahead notright now, they're getting any confidence in terms

of investor base. haidi: just based on these job losses, we know that about one billion euros to 22 billion next year, but creating value longer-term growth is a different thing altogether. it's been a longer-term challenge for quite some time. ramy: yeah, and let me just walk you through some of these. there really is no confidence building through the next three number terminals. the first one looks at revenue. reasons for shareholder angst is number one. take a look at the four bars to the right-hand side here. revenue has been falling for the past four quarters and if you annualized this, ever since 2008, is actually down by nearly 42%. this is not something that they should be proud of. no doubt they are not. but this is something that has been dragging down confidence as

well as share price. i also want to bring up the return on equity. deutsche bank is down for the r.o.e., negative. this is in the white, for the past three years. hsbc is seeing an r.o.e. of about 5% and it only gets better there. bank of america up 7% and jpmorgan up more than 10%. finally, take a look at the share price relative to the ceo 10 years. this is a great -- tenures. this is a great way to look at how performance has been. since 2006, wenzhou ackermann was in charge, ever since through 2012, this is down 12%. then ceo juergen fitschen down 11%. then from 2015, we can see john cryan down by 25%.

just as little sliver here on the right-hand side is christian sewing. he started april 8 of this year and shares our army down 9.6%. are already down 9.6%. he needs to do more and the strategy needs to be clear to get consumer confidence and investor confidence act. haidi: thank you so much for that. novo jumped the most in a year after their first double-digit percentage increase since late 2015. they are looking to reverse years of declining growth which assaults the stock removed from the han sang index. cop -- found how damaging it is. >> i wouldn't call it the word damaging. it is disappointing. the hang seng is looking at the

market cap. we are aware that the last few years, the environment has been atllenging, but now looking the results and seeing the momentum in just one quarter, we have been building up that momentum. we believe it will continue. for us, the key is how to continue the momentum. how we get back to a reasonable level. i hope we will. lenovo had that experience before. while includes operation performance? >> if the rules allow it, would that make sense? >> we are looking at the various capital market platforms. lenovo is very significant in china as a brand. we look for opportunities to see if we could have that platform to be -- to enable the chinese

investor to invest. >> you are a chinese company. on the trade fixture between china and the united states and perhaps the collateral damage from the cte and whether you are guilty by association? >> i think lenovo is a global company. if you look at our shareholder base or our business, china accounts for 40%. you just need to comply the rules and regulations. that's the benefit and cost of being a global company. countrysay that if any posted rules, it definitely has in impact. as to whether we should accolade, we should arrange our supply chain. , in china,chain north america, brazil, india, everywhere. as a global company, you have that benefit.

you just need to take actions to make sure you will be able to compete in the most efficient manner. betty: that was lenovo's cfo wong wai ming speaking to stephen engle. let's recap some of the headlines we have been getting the last several minutes or so from kc na on north korea. really sounding very contrite here, saying they are willing to meet with the u.s. at any time and some of the latest lines coming out saying the current situation reflects a desperate need for a summit. clearly it looks like the north koreans were taken by surprise from this letter from president trump. haidi: it's very interesting because it almost seems a little contrite saying he regrets his cancellation saying, very interesting and somewhat puzzlingly, that they really hope that the trump model could resolve these models.

i don't know what the trump model really refers to or with the details are, but saying there is no change in north korea's will to do the best and willingness to give it a chance. this is from the korean central news agency citing the foreign minister. betty: that's right. talking about the trump model, it's unclear what the trump model is to resolve the issues. noo noting that there is change in north korea's will to do the best for peace. this is interesting coming from the north korea side, and has the willingness to give chance and time to the united states. so really, the ball is back in trumps court. that's what north korea has done. they are willing to meet and now it's a matter of waiting to see if we see anything coming from president trump's twitter page or what happens tomorrow morning when it's back to business as usual in the white house. haidi: and the president did

leave the door ajar, with some considerably tones and what he's used as aggressive and negative hostile language coming from north korea. we had reported that some of the officials who turned up in singapore last week scheduled to meet with north korean officials in preparation for the summit, said they were stood up. the north koreans didn't turn up. all of this building into ill feeling between the two parties. said, the markets should take this as certainly a toneive, but at least that remains conciliatory and the talks appear to be continuing. we are going to get more over the course of daybreak today. coming up, another tariff threat. trump is shaking up the global auto market. a deep dive into the implications.

this is bloomberg. ♪

betty: i'm betty liu in new york. haidi: i'm haidi lun in sydney. you are watching daybreak australia. north korea isn't the only reason president trump is in the news. he's called into investigation of a national security threat. ross responded on twitter, saying the department will conduct a thorough, fair, and transparent investigation. senior, christie mcdaniel joining us. great to have you. what is your first reaction to hearing this news? is this a reasonable path to follow? guest: first reaction was, shock and horror, but with these things, the shock and horror factor is going down.

i think with this administration, i'm learning to judge of the less by what they do. so we will see. remember, the u.s. south korea sga revisions went much better than many had thought would go. so there's hope for that. i think this could be a negotiating tactic. nafta didn't go as many had hoped. it could also be a negotiation tactic for china and the eu to lower their auto tariff. that said, the economics don't make sense for the united states and they will feel the steel and aluminum tariffs take their toll. we'll see. haidi: how beneficial or damaging is it for trump;s base? voters, consumers, and auto workers? guest: right, so the rhetoric plays well with his base.

but when the tariffs really kick in, there is a sort of wake-up call. we are already seeing with the steel and aluminum tariffs, manufacturing workers from across the country are starting to speak up and say, we wanted you to get tough on china, but we don't want to get cut off from rolled markets. needcan manufacturers access to competitively priced imports to stay competitive here and around the world. so for autos, looking at the 960r statistics data, about thousand american workers worked in the auto industry and over 2 million americans work in car dealerships and retail trade. so again, this would be the same thing playing out. the unintended consequences would be grim for america. this kind of negotiating

tactic you are expecting, or the bark is worse than the presidents bite on these matters, do you think this is something trading partners and allies are getting used to? or is it starting to fray these relationships in a substantial of way? guest: i think it's still early to say. again, with south korea, the chorus 2.0 if you will, i think that went overall, a win-win. with nafta, the things that were in favor, that the in ministration wanted, didn't come to fruition. that was a positive sign. then they come up with this. things are still pretty much in the air right now. but nobody wants a gun to their head in trade negotiations. all the tariffs in place now are a function of everyone sitting around the table and figuring

out what they could give in exchange for what they get rid then we -- what they get. then we get this new administration who wants to do it from scratch their way. it's a new playbook. it's new for everybody. betty: into new and it you think it's going one way and it makes and happens turn again and again. i'm curious, not between u.s. and china or u.s. and canada, theco, how do you think back-and-forth here and the surprises, how do you think it's going to affect relations with the u.s. and other countries, as well? australia, europe, european counterparts. is a lot to catch up on all the time. guest: it's exhausting for everybody. , our allies will stick with us.

there are a couple of people in the administration that have a particular outlook, but then a lot of other people like secretary mnuchin and secretary kudlow, who are working very hard to keep negotiations with china and others moving forward. but they only have so much bandwidth. you can really only deal with some a crises at once. manyen you have -- so crises at once. so when you have a mechanism when so many crises are being made, that puts some in an unfortunate position. i was encouraged to see secretary ross's statement about how the investigation would be transparent. be looking for a lot more transparency on this 232 than there was on the last one. and congress is not happy either. you have seen people come out and say -- i think congress patience is running thin, too. haidi: thank you so much for

that. certainly a lot to grapple with for everyone. george mason university. that's about it for daybreak australia this morning. yvonne and betty up next with daybreak asia. whiplash, right? we are continuing to unpack this latest twist and turn. betty: we are going through the stages of a breakup when it comes to these talks between president trump and kim jong-un. it seems like right now, it's not the right call for president the definition of denuclearization. sean hayes.g what does this mean for north korea now? it seems they are willing to talk anytime. how does china play into all this? does this make them less willing to put pressure on pyongyang? betty: we will stay on that fame

with gordon chang, the author of nuclear showdown. north korea takes on the world. he thinks the president just had no choice but to cancel the meeting. although he would come back to the north koreans with a different type of question. his question would be, do you want to meet or not? but it looks like it makes tough talk from the president has gotten the north koreans back to the table. fori: even some accolades the president, saying this is the right thing. we are going to look at market implications. what do investors do with the constant flow of information? one of our regulars join us saying watch the 10 year to recover with a slight to safety and the risk of negative momentum from the north korean will escalate. daybreak asia next with yvonne and betty. this is bloomberg. ♪

yvonne: it is 7:00 here in hong kong. welcome to "bloomberg daybreak: asia." top stories, president trump cancels the north korean summit and says the u.s. military is ready for anything. a moresident used traditional form a message to convey his message, saying he still hopes to meet kim someday. betty: it is just after 7:00 p.m. in new york. gold stock has gained in a month and yen is rallying. as unlikely as it seems, amazon tries to explain how alexa