haidi: italy tries again to form a government. the populist parties say they will bring him down. abene: trump is to meet ahead of historic talks with north korea. so far it is still on. haidi: risk appetites waning. oil extends on the prospect of higher output. yvonne: washington may be ready to resolve the airbus subsidy spat.

it could mean europe avoids u.s. sanctions. hello from hong kong, just past 6:00 a.m. i'm yvonne man. we are two hours away from the open of asia's first major market. haidi: just about 8:00 a.m. in sydney. i am haidi lun. i will be taking a look at the action, or lack of action on wall street, playing into the asia-pacific trading. there is not a lot of risk on the table, not a lot of momentum given we had u.s. markets shot memorial day, the u.k. off for their spring bank holiday. a number of southeast asian markets, singapore, indonesia, malaysia, are going to be closed as well with the celebration of the buddha's birthday. yvonne: this could magnify the move we have seen particularly with the contagion in europe after the president of italy, asking carlo cardarelli to form a new government after he blocked his proposed populist coalition. let's bring up the boards to

check on the biggest moves we have seen. for memorialclosed day, so we do see u.s. futures paring some gains this morning, euro at 116, the weakest in almost seven months. take a look at 10 year italian bonds, yields jumping 22 basis points, the highest in nearly four years. on the flipside, stronger turkish lira after the central bank simplified's monetary policy. a little push and paul. take a look at what we are focusing on when it comes to the bond markets. i have the gtv chart you can find in the bond market at gtv . we see spreads between italy and germany going out by more than 230 basis points. canada widened further. that is the question given the uncertainties surrounding italy. we are set up potentially for early elections that could happen as early as fall. you had spain to the mix as well

as the prime minister, edging closer to the no-confidence vote on friday. politics back in the fray in a big way. haidi: feels like a familiar refrain when we are looking at the economies like italy and spain. got to remind ourselves that these european governments are used to this level of volatility. the question for asia is contagion. let's take a look at commodities because this will inform the rest of the trading day and currencies, the u.s. dollar inching higher overnight. a bit of a haven even as we see the retreat in yields. commodities getting hit as well with the fall in oil, gold trading down by .5%, crude continuing to decline for the fifth session. we are seeing the longest losing streak for new york crude since february. barrel,ude, $75.30 a well off the $80 levels we saw a few weeks ago. bloomberg commodity index getting dragged lower .7%.

we are seeing the selloff deepening, concerned about increased output from the biggest oil producers, saudi's, russians, and americans as we inch closer to the opec meeting. trading in new zealand getting underway. let's take a look at how this quite session in asia is starting off. a little weakness for kiwi stocks. we saw some strength against the euro overnight for the kiwi. the aussie dollar losing ground overnight. sydney looking to open just a touch weaker there. let's take you to first word news with haslinda amin in singapore. haslinda: the u.s. is said to be willing to discuss a deal with europe over illegal subsidies given to airbus. the proposed talks indicate a shift in position for the trump administration and could open the way to the eu avoiding billions and sanctions. we are told washington is ready to impose penalties if the sides failed to reach a solution.

the bank of england is denying a rift with the u.k. treasury after the financial times said the two are at loggerheads over the prospect for the city post-brexit. the financial times cited unnamed bank officials that report claims the bank deputy governor has fallen out with the treasury on giving away regulatory control. a boe spokesman says there is no truth in the information. indonesia's central bank governor has set the stage for a second rate hike in two weeks at wednesday's policy meeting in a bid to stem the rout. a day after he was sworn in, he called emergency talks to support the currency. his move led their rupiah to paring back its decline for the year. he has promised to be ahead of the curve on monetary policy. forces in singapore and india have abandoned talks on a cross-border trading link. it was an 18 year partnership.

they failed to reach consensus on the timing, regulatory guidelines, and resources required for the project that would have also seen traders in singapore buy and sell derivatives. 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'm haslinda amin. this is bloomberg. yvonne: thanks for that. -- continuing to dominate the markets with risk appetites fading as italy had stored for us elections. carlo cardarelli is the latest to be asked to form a government in rome. the economist known as mr. scissors says he is only aiming to pass a budget and move the country toward new elections early next year. his nomination as opposed by the antiestablishment movement, whose leader is demanding a new election as soon as august. >> [translated] the italian

is still growing and public finances remain under control. i can absolutely assure you that a government guided by myself would guarantee caution in the handling of public finances. haidi: for more on italy and europe, let's bring in oppenheimer funds portfolio manager from new york. thanks for joining us. i know it is a holiday for you, but watching what we are seeing, the euro under pressure once again. chaotic even for italian standards at the moment. how should we read into these developments from italy? >> i think these developments are concerning. this is coming from somebody that until last week was not particularly concerned with the italian situation, but with the trust gone between the five-star movement and the league, the market has taken a different tone.

the market no longer believes what the parties are saying but has seen what their true motivations were. moving forward to this week, this is still concerning because i do not think that carlo cottarelli will have the confidence vote. many have hinted they will not support his government, so we are talking about elections around september, october. that brings a lot of uncertainty to the market, so expect a better italian summer, so to speak, in the sense that the market will be unable to move forward into a different narrative until these elections are out of the way. most importantly, the elections are not likely to bring a very different outcome than the one seed on march numeral -- then the one seen on march 4. we have taken some adjustments in our portfolio in the week that just passed. we have increased our duration antigovernment german -- duration into government joran been bonds and increased our

underway to the euro and overweight to the yen or swiss franc. fors unclear how much room more widening in the near term some of the peripherals can have because we are not going to have a lot of new news on this. but compared to a month ago or even compared to the results of the elections, we are worried. the risk is that with growth slowing and the ecb moving closer to an exit strategy, the bond market doesn't have a lot of sentiment support from either the ecb or financial market participants. yvonne: really at this point, there is not a clear pathway for things to clear out is what you are suggesting. i want to bring up a chart for our viewers, which shows the five-year credit default in italy. they have jumped to levels we saw in plain 12 during the european debt crisis.

what does this spell out to you? are we seeing some financial crisis looming? >> that is the big question. that is the risk for the narrative to change this year. is this a repeat of 2011 all over again? i think directionally speaking, the risk here is that we will spend the bulk of the remainder of 2018 worrying about italy and the periphery in general and spreads widening and a weaker euro. the order of magnitude domain need not be as dramatic as what we saw in 2011 and 2012 because we have a lot of new mechanisms that have been put in place as a result of the crisis. however, we know that all those trigger if they will and only if these countries voluntarily apply. we know the only way for these countries to apply for help will be decided by the price of the market leading them that way. it is a bit of a chicken and an egg problem.and an

the narrative for the year has changed and this situation with the periphery is bent on growth sentiment as well, which was supporting europe in the first place. i think we need to be ready for ongoing volatility and risk of underperformance on some of the peripheral spread as well as european equities and the euro. haidi: what about systemic weakness in the italian banking sector? i want to throw up this quick chart for our viewers. we have seen some progress being made to shore up the balance sheets of italian lenders over the past few years. loan, the mpl to total ratio is very much higher compared to the rest of the area, italy in purple and the euro area a little higher in this chart in the white. do you think the coalition government plan has a wide range of review planned for fiscal

accord,even the basel that there is some systemic risk that we are going to do -- going to undo a lot of the effort that has taken place over the last few years? logic isunately, the perfectly valid. the systemic risk in this case is stemming from a deterioration in the value of your assets. what you focus on is the reliability side, but let's are member the risk to what is happening here is that through the deterioration of the growth outlook and the sentiment and the widening of peripheral spreads -- let's remember that italian banks still hold a very large amount of dtv's. the asset side of the balance sheet is not going to look any better. foroes raise concern european financials in general and italian financials as well.

the transaction over the last week has shown clearly the underperformance of the space compared to core european equities. this is the chicken and egg problem that we saw also in 2011, the nexus between government bonds and bank shares and growth. will --ree phenomena that they are self-fulfilling prophecies, as one deteriorates, all three elements of the nexis deteriorates. that is the risk that needs to be interrupted. i don't think the ecb is really in a position -- neither should the ecb really worry about this in a direct sense. the ecb will worry, rightly so, about the macro picture for overall europe, the profitability of all europe, but they will be concerned with the monitoring mechanism within usually -- within italy and

possibly broader europe were to be broken again as a result of banks not feeling as confident with extending lending. haidi: we are going to have to leave it there, but certainly italy at yet another inflection point as the struggle to form a government continues. alessio de longis joining us on the line, appreciate you joining us on this memorial day holiday. the united states is said to be willing to discuss a deal with europe over claimed illegal subsidies given to airbus. benjamin joins us now in washington. what do we know and what is the timeline for getting some sort of deal? benjamin: as you mentioned, this news is breaking on monday from our european colleagues. basically this could signal a possible shift on behalf of u.s. trade representative. that would be significant because on monday, the wto was

expected to consider what sanctions might look like. we don't have a timeline for what these talks might entail, but it is important to note that boeing had said previously that airbus had harmed the company and that would result in billions of dollars of tariffs on european exports. if these talks happen, it is a significant shift. some: we are reaching also sort of timeline or deadline when it comes to the eu-u.s. pat.e is that -- trade sa is it likely there will be fruitful negotiations? benjamin: looking at the larger context, this trade spat, this issue with airbus and boeing is kind of in the larger context of the eu racing to come up with some kind of deal with the u.s. before president trump is expected to impose tariffs at the end of the month on steel

and aluminum imports. there is a lot of attention right now. the commerce secretary, wilbur ross, is going to be in europe later this week to deal with some of this. we are really pressing against the deadline in the larger eu-u.s. trade issue. yvonne: what is the latest out of d.c. when it comes to the singapore summit? we heard yesterday that all systems could be ago. potentially moon jae-in, the south korean president, might be there as well. what are the details today? benjamin: it is, located. let's take it -- it is complicated. late last week, you had president trump abruptly said that the summit was not happening. then you had him over the weekend appear to say that it was back on. as you mentioned, now we are hearing from the white house on monday that japanese prime minister and the u.s. white

house are going to be cord knitting ahead of the -- are going to be coordinating ahead of the expected meeting. it has become an on-again, off-again thing. right now it appears it is on. yvonne: it seems like the treasury also holding back on further sanctions on pyongyang as well. benjamin bain, joining us from washington. the world's biggest mutual fund is optimistic about beijing's reform of financial services. catch our interview with james noris and hear about his plans to enter the chinese market. haidi: up next, more on president trump's flip-flopping over the summit with kim jong-un. this is bloomberg. ♪

haidi: let's get more now on the north korean summit and president trump proceeding as if the meeting is back on track,

just days after he abruptly called it off. our next guest says there is still a gap between what the u.s. is demanding and what north korea is willing to offer. this is strafford's vice president of global analysis, joining us from austin, texas. the question is not so much will they meet in singapore, but will they meet given there has been criticism over the lack of preparatory work at the lower levels and how far apart the parties seem to be on the concept of denuclearization. >> i think there are two things going on here. it is important to keep distinct the negotiating theater from negotiating fundamentals. what we have seen late last week was more of the negotiating theater, where it was more about who gets to monopolize the unpredicted ability card, trump or kim, two tighten egos. trump would say, don't play your

games, none of that is going to fly, the name-calling, all of that. we are going to go into these talks and i can play the unpredictable the card by canceling the summit. the fundamental issue is there has been this gap and if we are going to talk denuclearization, what exactly do both sides mean by that. that is a political question more than anything. over the past couple of days and continuing into this week, that is where we will see more substantive negotiations among more of the technical experts in trying to prepare for a summit on an extremely aggressive timeline if they are still going to try to make the june 12 date. haidi: do you think there is still some confusion over the libyan model? >> confusion, i would not say maybe confusion. i think there is a very deliberate tactic of playing both sides of the libyan model in the examples. one side of it is, look, we can come up with a process for

denuclearization, we have some president. -- some precedent. there has to be u.s. acceptance of them were synchronized approach to doing so. on the other hand, the administration wants to sustain the maximum pressure tactics. those of veiled threats averaging change our what it change i of regime what it thinks will drive north korea to the table. pyongyang is looking for security guarantees. i think it is more of a good cop/bad cop mannerism, but that is the tactic, not the fundamentals. yvonne: you have to question kind of what happened for the future to happen from president trump as well to resume these talks for singapore, because you have this more cozy relationship between president moon and kim jong-un now. does that, take -- does that u.s. in their

strategy when it comes to exerting maximum pressure on pyongyang? >> if the summit falls apart, yes. there has been a lot of coordination between the u.s. and south korea. south korea was very much blind-sided by that letter, but got to work right away to try to get the summit right -- summit back on track. objective is to avoid the military course at all cost. if the diplomatic summit collapses between trump and kim, china and south korea are going to do everything they can to keep the diplomatic ball rolling. that is where the diplomatic momentum stays with pyongyang, which undermines any attempt by the u.s. to revive the maximum pressure campaign. we are talking sanctions that will not have a strong un security council platform, much less support for military option. yvonne: you could say we have seen this display of diplomacy coming from chairman kim in the last few months.

he has made good it seems with china and south korea. do you think this is a statesman and making on the world stage? how do you view his negotiating tactics? >> that is one of the more fundamentals that north korea is aiming for. north korea is looking to break out of isolation. so if it can get a political agreement with trump, then work out the technical details over time on denuclearization, that effectively means north korea has come to the negotiating table as a nuclear. peer. if it can get a peace treaty with the united states, that is essentially a recognition of its place of the table. i think a lot of this is about playing that statesman role and shunning that pariah status. yvonne: what do you think is really driving that diplomatic motivation from kim jong-un? is it the fact that sanctions are really biting? do you think he actually has altered your motives? >> i think it is a combination of factors.

the biggest difference from previous rounds of negotiation in the past decade is that north korea is coming to the table as a nuclear peer. it has demonstrated its ability to develop nuclear deterrence. that is a game changer, first of all. also north korea is looking at a future in which it has to balance more effectively with the great powers in the region, particularly the united states and china. this is the history of korea, to where there has always been the come together and be stronger, politically, economically, and militarily, as unified state. there is an incentive by the north to get the ball rolling on reunification, but there is the gap on just what they are willing to agree to on denuclearization. the u.s. is going to have to accept some step-by-step approach. yvonne: we are going to leave it there. plenty more to come on daybreak australia. this is bloomberg.

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>> 8:30 a.m. in sydney. futures looking a little bit negative. of course, we have a real absence of risk on the table as u.s. markets, u.k. markets closed for their respective holidays. also, a quiet day in asia. i'm haidi lun in sydney. hong kong.e man and a few are watching "daybreak australia." nda: the white house says president trump will meet japan's prime minister shinzo abe ahead of his summit with kim jong-un. the two spoke by phone and said they shared the same goal of

dismantling north korea's program for weapons of mass destruction. the u.s. has sent a delegation to singapore to prepare for the summit, and another team is talking with kim. brazil's state-run oil company is suffering its worst rout in 20 years as a truck strike wreaks havoc on latin america's largest economy. it has lost $34 billion of market value since the strike began last week. sao paulo stock market fell 4%. malaysia is scrapping a plan for a singapore high-speed rail line. the new prime minister said he is canceling the project. finals the decision is and accepts that malaysia will have to pay contractual

penalties for exiting the deal. the european commission is proposing a total ban on some simple use plastic products. the measure will drastically cut consumption of others. if approved, the ban would apply plates, andutlery, straws. global news 24 hours a day on air and on facebook and twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am haslinda o amin. haidi: as asia wakes up this tuesday morning, new zealand will get things under way, down about 1%. the kiwi-dollar, 69.40. if you look at this collapse in oil prices, it puts more

pressure on these currencies. sydney futures, looking a little bit weaker. we've got the aussie dollar ahead of the546 china pmi numbers. s&p futures, a bit of a pickup as we resume trading in the u.s. , and the euro, continuing to get slammed with uncertainty over italy and the second failure to form a government. the 10-year yield on the italian bonds, looking like this, and a little bit of a pickup in the lira has we got a greater communication from the central bank in turkey. let's get more on what you should be watching. turmoil, ast the yvonne mentioned. italy is no stranger to political turmoil, but how is this going to play out for the euro? 2018 opened out with

everybody very optimistic about european stocks. the economy seemed to be going well. the economy was going well. the ecb was going to be able to end qe without many problems, but do it gradually, and that was going to set rings up for a nice steady climb, climb, climb. there had been some difficulties with that outlook for a wild. along came italy, and bang. have look at the charts we on the screen, that has been the euro story for the year, condensed into one little day. realize, all those problems that had been shoved under the carpet have come back out. they got rather moldy now they were there.

haidi: i'm talking about the systemic risks as we unwind. em worries across indonesia, turkey, possibly in oila, the clips prices being a new story. what does that say about these currencies? >> the aussie is front and .enter, especially this week there were a series of holidays, and the u.s. and the u.k., and today, we have a half of asia out. the aussie is here. it's there to be traded. againstn bumping down of this $.75 level. as you can see, we've got a chart up on the screen about how , leveraged bets, have turned strongly against the u.s. dollar.

once it does make a decisive break, keep it going. this has to completely put the kibosh on any talk of a rate rises for at least a year, you would think would i think there is a good chance the aussie-dollar is going to go down, and if it's going down, that is signaling risk assets will stay under pressure. haidi: thank you so much. you can check out our charts that you just saw there on the bloomberg terminal. yvonne: for more on italy's turmoil and the impact on the market, let's bring in marvin lowe joining us this morning. if you are taking a look at what we are seeing in europe, it seems like this growth story has taken a breather given the political situation. be watching this europe story when the u.s.

markets wake up this tuesday yeah k certainly -- this tuesday? marvin: there has been a step back in terms of risk assets. people kind of knew about it but were ignoring. one of the bigger impacts has been on treasury yields. once again, it has become that safety bid. assad the strong move even when people were more concerned about rates going up rather than coming back down again. yvonne: a safety bid when it comes to dollars. the short we are seeing in the treasury market, how much further can yields go lower, especially when you are looking at oil falling, but also the situation in italy? marvin: fed policy has been front and center. i think falling oil prices to have an impact on how the fed is going to view this inflation discussion. we will hear from the fed in a few weeks, but really, in terms

of how they approach the rest of 2019, its suspect at this point. the most aggressive folks that thought the fed was going to raise rates another three times this year are possibly rethinking how aggressive the fed can be in light of some of these geopolitical things, as well as some inflation discussions out there. haidi: it kind of sets up an interesting storm around some of these fx pairs. at this chart looking at emerging-market currencies at the mercy of u.s. rates. they've actually been holding pretty resilient, what is the worst still to,? even if we have this decoupling of u.s. rates, the yield side coming down, but the dollar side holding on to its gains, with everything happening in europe, the dollar is gaining more of a haven status.

u.s. dollar strength being the theme for some time to come? marvin: i think it comes back to that italy discussion. certainly, the euro is under pressure because of what is going on in italy. that in turn is going to strengthen the dollar and keep a lid on the dollar by virtue of the fact it is such a large component of how the dollar is viewed around the world. low interest rates coming down should relieve some of that pressure on emerging markets, we have italy coming into play and taking some of those benefits off the table. haidi: how much of a bigger systemic issue do you see the selloff in the emerging market space? it's markets like turkey, indonesia, maybe other markets across southeast asia, but if you throw in the oil selloff, does that complicate matters? marvin: it's a function of how much oil moves. certainly, we are within the highs we've seen in the last 12

months. there a lot of trading around those moves. for the most part, i think emerging markets are moving towards the weakest economies and those that have had problems that we know about. there is, however, firmness that was established in argentina, to a certain degree in turkey, but i wouldn't call it all clear. people are being selective, and that is encouraging. yvonne: taking a look at the moves that we saw when it came to the lira, we are seeing a little bit of respite when it comes to that depreciation. i have a chart that highlights what we have seen, but it has keyen out from the technicals of where the lira is. when it comes to central banks, are they doing enough? we were at risk of these central banks and the em space being behind the curve.

marvin: certainly, we have seen and are starting to understand what happens when investors were the populists lose faith in the central banks, and it is a difficult world to negotiate. the fact that the turkish elections are still forthcoming, and certainly, politics has made its way back into it, i don't think we are clear there yet. i think there are going to be a lot of headlines, and you are going to need the central bank to be aggressive and be nimble in order to avoid this volatility we've seen. yvonne: where do you park then? marvin: a lot of the conversations i'm having with folks is the short end of the treasury curve, this flattening type yield that we have seen really makes the two-year versus the 10-year more attractive if you are looking to park and get away from some volatility. we also have to remember while we have had volatility, we are relatively rich from an asset perspective. equity markets have not sold

off, and when you look at corporate spreads and a lot of other risk assets that we monitor as a barometer, they are still rich by historical standards and not even close to approaching or selling off the levels from earlier last year or the year before that. fiscal andou look at market fundamentals, are there any em's at the moment or developed markets that you see as unfairly punished by the strong dollar market? marvin: yeah, certainly there is a baby in the bathwater type of discussion, and we've seen some economies around asia, which will benefit from a chinese economy that is firming to outperforming are certainly opportunities in here. i wouldn't say we are through the emerging market volatility. there still might be better times to get in. again, it's watching how all of these markets move.

they do have a tendency to move together, but they are distinct markets. emerging markets are often thrown together, but there are dozens of different economies with dozens of different businesses that generate gdp for their residents. yvonne: before we let you go, how big of a game changer could this jobs report on friday be? if we see this wage growth number break out once again, could this change the narrative all over again? certainly, the opportunity of a fourth rate hike for the year is on the table. the fed is leaning towards there. it is something i think we are going to have to look at again. haidi: thank you so much for joining us, marvin loh. .ust getting a couple lines nissan, cutting its north american output by up to 20%

through the summer. that is according to a "nick king news -- "nikkei news" report. our exclusive with vanguard, coming up. this is bloomberg. ♪

yvonne: i'm yvonne man in hong kong. haidi: i'm haidi lun in sydney. you are watching "daybreak australia." china is set to be prepared to approve qualcomm's $43 billion if it wins assurances that the u.s. will lift its ban on his et. -- on zte. the deal has been pending for 18 months of but has recently been overshadowed by washington's ban on zte on national security

grounds. yvonne: chinese electric car startup neo is said to have filed for an ipo in the u.s. it is planning a share sale that could raise around $2 billion with orders taken this summer or early autumn. u.s. first time share sales have billion, on- $1.8 pace to top $4 billion through the whole of 2017. haidi: singapore wants to move beyond ride-him into becoming the everyday app for consumers. it is exploring new services such as food delivery and insurance for freelance workers. groep agreed in march to buy uber's southeast asia operations and uber eats. yvonne: the world's largest mutual fund manager says outside the u.s., china is at the top of the list in targeting affluent investors.

vanguard international managing director james norris told us more about your strategy for the chinese market. james: the biggest thing you have to look out is you already have 80 million investors in that mass affluence environment. i think those challenges are becoming less so in the years ahead. for all the talk about what is happening between the u.s. and trade perspective, the market is actually opening up more and more by the year. we can now see a path to manager ining a fund mainland china. that would be one of our goals. really do need to be a local provider. you need to be competing on the .round china, you will probably need to work with local partners.

those partners could be distributors. if you think about all the the largestide asset management market, the u.s., china has to be at the top of your list, particularly if you are going after that mass affluent type of client. >> where is the majority of your competition coming from? is it local players or international players? james: if you are trying to serve institutions in mainland china, frankly, you can do that offshore. that is a whole different set of competitors from what we would generally think about. in any market, and china is going to be the same -- if you want to serve retail investors, serve people in the local market, you have to have an approach of a local company, and you have to assume if you are going to win over time, you

aren't going to win at the expense of other global offshore firms. you are going to have to compete against local companies who have local capabilities. co-opition to be a versus being a foreign asset manager trying to go it alone. haidi: that was vanguard international managing director james noris speaking to bloomberg's francine lacqua. watch us live and catch up on our interviews on tv . you can also dive into any of the bloomberg functions, plus a join in on the conversation during the show. this is for bloomberg subscribers only. be sure to check it out at tv . this is bloomberg. ♪

haidi: i am haidi lun in sydney. yvonne: i am yvonne man in hong kong. you are watching "daybreak australia." in the us is bad loans to the country's five biggest eight-run banks are $7 billion more than the lenders assessed. for the yearts ended march 20 17 and showed discrepancies triggered large losses as the banks increased provisions. haidi: volkswagen is opening three new factories in china with its local partner sow group as it seeks to step up ownership. there will be focused on suvs and electric vehicles, the fastest-growing segments of china's auto market. yvonne: the japanese owner of chinese soy sauce

maker is said to be considering a sale. he is talking to advisors about the level of potential interest in the 100-year-old amoy, which began producing soy sauce in 1908. we are told deliberations are at to early stage and ajinomo might decide against a sale. that is a lot of soy sauce. a look at how markets are faring here for memorial day. for theof that holiday u.s., let's take a look at how u.s. futures are pointing, a little bit firmer, up about 1/5 of 1%. 1.1625,see the euro at leadership concerns surrounding italy. throw spain into the mix, as well. of course, we have seen that lira rebounding at 4.58 against the dollar. take a look at how we are faring in new zealand. we have many of these southeast

asian markets closed for the holiday. perhaps we could be getting some good volumes. qe, pretty much flat. we continue to watch oil prices proceed further into decline. the aussie, at least in the asian session, holding steady at .75. dave are upe and with more with "daybreak asia." dave, what are you watching? dave: we talk about the leadership. i think yvonne was just talking about volatility. it's a fascinating conversation we are about to have. he is thead -- tashaon of lauren joining us to talk about a new book, how you really want to leadership.ples of

they have a framework that applies to things like afghanistan. if you look at business leaders across the world, how can that apply to today's reality? they will be joining us in about 40 minutes from now to talk about the book and where we go from here. yvonne: an interesting, fascinating case study in india, as well, which they highlight in their book. of course, these concerns whether saudi arabia and russia output curves.e he's not concerned the saudis are ready to ease those curves. we're going to ask kim his view. he says we could still hit $90, which is fascinating. haidi: that is quite a call and a brave call in this environment. as you say, oil is just one of the headwinds playing into what is going to be an interesting

storm for fx, particularly emerging-market fx, the dollar shaping up to be the haven we haven't seen it behave like for quite some time. we could potentially see an eu orion risk to italy's european union membership, getting some implications for the euro, looking ahead to the french election, as well. also, taking a look at the risks of some of these commodities and risk currencies like the aussie, kiwi, and looney. that is about it for "daybreak australia." yvonne fortdave and "daybreak asia." in asia, not a great deal of direction given that we had the u.s. markets closed on memorial day. right across asia, we have the public holiday.

liquidity is going to be thin on the ground, but of course, watching oil is a major story. this is bloomberg. ♪

yvonne: it is 7:00 a.m. in hong kong. we are live from bloomberg's asian headquarters. i am yvonne man. dave: i'm david man. form, making an attempt to a government. mr. scissors is put forward, but populist parties say they will bring him down. yvonne: trump is to meet shinzo abe ahead of talks with north korea. reignseopolitics supreme. yvonne: the world of social value investing. we discussed the role of business in society with warren buffett's grandson. ♪