u.s. dollar having the biggest impact at the 11 month hi there. take a look as we see trading getting underway. we are waiting for the bank of japan decision to finish off this traffic. inumber of closed markets asia and the philippines. we see pretty light volumes to close out the week. it was a decidedly dovish qe exit as the and as a long-awaited plan to wind down the bond purchase program. but will economics and policy editor kathleen hays is here. also, some things were unexpected. to super mario striking again, who else could announce the end of bond purchases by the end of this rallynd still sparked a in bonds across europe that carried over into the u.s.? we can see mario draghi going to the press conference this morning. the tapering of bond purchases

will finish by december. the surprise was he sees no rate increase until at least the summer of 2019 because he still because he still sees risk in the economy. let's listen to what he had to say. >> are we achieving the seizures taken today and don't want to underplay the existing race. was peaking, coming off of it. some people say no, it's ready to rebound but that is one of the things mario draghi is concerned about, especially a backdrop of possible trade insions and the problems

italy on the political side. another chart to look at is inflation. what is interesting about this, inflation on the headline is about up to 1.9%. exactly where the ecbwhat is in. pretty flat.been a lot of it moved up in the headline of oil prices. presumably, mario draghi is concerned that this won't last. he also said significant stimulus is still needed. that is why this is such a dovish exit. the ecb removing stimulus, the fed had a hike and the bank of japan looking into that. more of the same there. it and more divergence than ever. two big central-bank engines moving toward the left stimulus. the boj cannot move. everybody said they will hold policies. we are looking close up at the fact that here is the main number for the boj.

take food prices from cpi. up april policy meeting was 1% and down to 0.7%. that is why they can't do anything. it needed there is a silver lining in this cloud. the more the policies diverge, this could weaken the yen. it could boost japanese exports. you helped pull out of that. i think it will be so interesting at the press conference, what kind of explaining governor kuroda has to say about that chart. the words will matter a lot. >> it is weakening and we're seeing further weakening right

now in the japanese trading session. now let's get to the first word news with jenna. u.s. economy has become the world's bright spot as china and europe cool. likely to rack up growth of 4% in the current quarter. that is being spurred by solid consumer spending including may retail sales that beat expectations on thursday. imf chief christine lagarde says the treasury secretary steve mnuchin has criticized the u.s. forecast. >> he regards the medium-term outlook as too pessimistic. and frankly, i hope he is right and we are wrong. because that would be good news for the u.s. and it would be good news for the global economy as well. jenna: the world's rich keep getting richer. and they are doing so a lot faster. global personal wealth reached almost 202 trillion dollars last

year, up 12% from 2016 and the strongest annual growth in five years. millionaires and billionaires hold half of all global wealth of from slightly less of 45%. after overtaking japan in the last five years. they agree that sanctions north korea can show complete disarmament. penalties will soon start to be relaxed. they met with china's president trump-kim summit. >> we have made it very clear that it would only happen after the polls. >> republican senators pushing

china and the potential showdown at the white house. the senate may vote in the coming days on a defense authorization bill. the senate may vote in the coming days on a defense authorizationjoining with democy the president who's straight policy has created friction within the party. news 24 hours a day on the air and on twitter powered by more than 2700 and analyst in more than 120 countries. this is bloomberg. >> fbi director christopher wray has just responded to a report saying james comey was insubordinate in handling the hillary clinton investigation. >> we accept the findings and recommendations.

>> doesort did not find the release of the inspector general's report settle anything? >> the short answer is, no. has both sides seeing the picture that they wanted to see. democrats highlighted the part that there was no evidence in thetical bias investigation of hillary clinton's emails or the start of the initial inquiries into russia. theylicans look at it and comey's insubordination in

the way he went about revealing this. comeyinvestigation. and that this report would justify the firing of the special counsel robert mueller. that the investigation was based on faultythere are calls for the department to reopen the grounds. >> we are watching for the next missive on trade. what do we know about the tariffs on china that the administration said they released on friday. reveal what that reveal what that was. he meant for 90 minutes with the trade visors of the white house.

made a decision that is supposed to be announced tomorrow. it is likely to focus on china's technology. as industries part of the china 2025 land to become dominant in industries involving technology. it's not clear that they would tariffshe full boat of that the president had threatened previously. or whether it would be something else that would be less than that. this would probably not take effect until about july 1. china is starting to retaliate. >> the saga with cte still continues here. president trump and congress seem headed for a conflict on this. where does it seem like it's end?g to withpublicans have joined democrats to defy the president with sanctions on cte. the senate republicans say that they are firm and wanting to keep the language in the defense

authorization bill that would reimpose sanctions and for bid government agencies for dealing with cte -- zte. there is a house version that is a little bit softer. and a few of trump's allies in congress including lindsey graham plan to go to the white house next week. his advisers for some sort of compromise. whether or not the republicans in the senate will stand firm. the president has shown that he sway over good republican party voters. he may win some concessions from them on this. sway over republican party voters. it is not clear that he will allow this to go through. to keep them from going through. bloomberg congress

editor, thank you for that. wrapping up a big week for geopolitics, we will have more on president trump's meeting with kim jong-un and the rising u.s. china trade tensions. next, the end of the bull market. you break that down with riverfront investment group. this is bloomberg. ♪

>> welcome back. : us to get closer look at the u.s. market close. that rally across tech and big media. bloombergs here with more. the tech stock seems less affected by the prospect of rising rate. >> that is definitely the case. we saw them rise, the banks

under pressure. was also a very big story. , it haso time warner opened the gate for other deals. all moving in a very big way. if we go to bloomberg, gtd is where you can find the charts. disney, lewis foxx, comcast is yellow. all these stocks ticking up. the cable giant took a step after at&t. a billion dollar bid for the property and now you have approving the 52.4 billion offer. let's go to tech stocks real quick because the size of the moves are significant here.

on twitter, a three-year high. how made goods, crafts, the retailer. the software company, momentum is being lauded by all the in higher. >> let's get more on this and we from the global strategist at riverfront investment. was a lot of yield and looking at real estate but the text was agnostic. give me your takeaway first. >> this is what we will see the

next few months. it will probably not go up much. >> take a look at the bloomberg terminal. ramy: we are taking a look at the s&p 500, doug. it is titled "bouncing back. i know a lot of folks, curious about where you think this is going to go. it is titled "bouncing back. between 2550 and 28 hundred. -- 2550 and 2800. our views were bullish on the market. it markets reasonably valued. are seeing,vior you small caps leading and technology leading. it is typical at the end of the

bull market. ultimately we have 12 months on the market. haidi: this report from the post thata morning china has approved a deal suggesting that regulators in china post that china has approved a deal suggesting that regulators in china have approved qualcomm's proposed $44 billion acquisition, which is the shift conductor according to people familiar with the matter. it kind of clears the way after a monthlong antitrust investigation. a bit of good faith or quid pro quo. it leads me to my next question about trade tensions. does threatened by both beijing and the united days. point -- at what point do

you take away from the benefit of the markets that you see from tax reforms? >> i think we still have a francois hollande the negotiation process. -- a front seat to the negotiation process. i think trump has the winds on the table and he can choose to do it whenever he wants. i take -- i think a lot of the trade talk, i think we get favorable deals going into the midterms. >> this is the question.

how much potentially more of a boost do you get from even tariffs some aspects to be inflationary? think the tax side, i think it is flowing through. would people haven't recognized is that corporations not only got the tax cuts, but it was even bigger than people expected. that is what you see analysts having to raise earnings faster. the other cool thing about tax cuts is you start to invest in projects that have a return on them so you get return upon return. , they aree estimates accelerating. behavior not typical at the end of a bull market. i think there is still a lot of blood from the rock's that corporations can squeeze. i don't think it's a problem that we will have a recession and 12 months from now. about the future

of fed hikes here because we have to pull that into the equation. 3.5 for this year, closer to two for 2019. how will you position yourself for the expectation of five by the end of 2019? number of years, we have expected higher rates. bonds, fewer bonds. the benchmark, the s&p, they have about a six-year duration. fori think owning things inflation protection or floating-rate securities, corporate bonds with a significant spread built into that. that is the three-pronged strategy. doug sandler, thank you

for joining us from buffalo, new york. bloomberg users can interact with the charts shown. it you can browse recent charts to catch up on key analysis and save the charts for your own future reference. bloomberg. ♪ ♪

haidi: the world cup in russia has officially kicked off. the motion saudi arabia and the tournament, you can check all the results on the bloomberg using wcup. i'm in new york and you are watching daybreak australia. check of the

business headlines. chinese companies prepare for a bonanza of dividend payments abroad. hand outirms will almost $20 billion of dividends and overseas currencies three months through august. ramy: the hong kong ck asset has theht ubs headquarters in financial district for $1.3 billion. the office building was sold by british land company and dropped out-- they to of talks to buy the building earlier this month. bhp billiton has approved a $2.9 billion development of the iron or project in western australia. the move will help a minor increase at a time when high-grade material is selling. coming up, the end of an era. mario draghi surprises investors with plans to wind back stimulus

but can the european economy really beat the risk? we talk about that next. this is bloomberg. ♪

haidi: markets open for the friday session in about 90 minutes time. about .6 percent, a dovish exit plan and looking ahead to the bank of japan. and any guidance on their monetary policy path. i'm haidi lun in sydney. it is just past 6:30 p.m. and you are it is just past 6:3.

and you are watching daybreak austria. >> the trump administration will receive a -- release a refined list. it is shortly after the release. mario draghi has put the european central bank on the road to raising interest rates. >> progress toward a sustained adjustment.

>> and part of the u.s. and european central banks, investors will be focusing on that. helping japan's exporters and assistinghelping japan's exportd assisting the boj inflation campaign. they might be able to stay in the block past march 2019. talks are stalled on the irish border and the future trade deal. privately questioned whether they can finish on time. british prime minister theresa withn parliament next week eu lawmakers. >> we allow parliament to instruct the government. undermines my three guests.

kit would be constitutionally unprecedented. >> the u.s. security and it weighedmmission currency.ond it bitcoin had the biggest rally in almost two months. powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thanks for that. let's get you a quick update on the market where we had to the final trading session. headwindsing some coming through when it comes to manufacturing. expected weaker than and suggesting a manufacturing sector.

also out for the kiwi dollar as we look expected at a little bit of softening as we have strengthen the u.s. dollar. we take a quick look ahead. it looks pretty robust and the aussie dollar, ahead of chinese home numbers. this trading session. a little bit more broadly, the , we have the yen holding at 110. folding -- also falling. folding reminder, despite these concerns, we have that coming through the tech companies and media companies driving momentum and the closing session up by about 25%. here in asia this friday, bloomberg market. , a very well calibrated

statement. >> another rabbit out of the hat. >> we did get an idea of just how extraordinary and down the rest of the world. that was the biggest one they dropped since brexit. it is quite something. >> another rabbit out of the hat. event was a shattering and mario came a close second to on with the euro. so that is a good effort on his part. and you really set off a on wit. broad dollar. find on thatcan library later on, to download and play with it yourself. everything's going along quite smoothly, especially for the euro. nobody really sought coming and

for theertical line bloomberg dollar spot index. and we set off a lot of corruption's around the world markets.erging we're going to get the split picture, i think. and heavy markets. markets, they are going to do well. that was the u.s. story. but emerging markets, they are otherwise closed today. other emerging markets and china in particular, they are going to struggle. >> to what degree did that dollar surge make the selloff worse? >> it really hammered everything in latin america. there is an asset class that does allow for contagion.

the way the s&p and american stocks have diverged. it struggled over the last month or so. we take moneyr out of emerging markets. ramy: don't forget to check out our dtv library. and a little bit more on what we've just been talking about,

china and having things improve that. it is kind of an opening up at least. just as donald trump is reported to pull the trigger on many tariffs. i am curious to know. >> given this antitrust kind of holding pattern. it is a bit of an olive branch,

perhaps, that we are expecting? entity would make a far more powerful. the timing comes after they struck a deal, a little bit of quid pro quo going on. the tests that are in president trump's list will be by friday and heavily focusing on chinese tech ambitions. we have more on that story and plenty more to come including fallout on the summit. what would be the next conflict shaping of between beijing and washington. this is bloomberg. ♪

ramy: i'm in new york. up ahead, a check of the latest headlines. unveil plans for a high-speed underground and the city's airport to downtown. is for the bid 18-month-old startup, ideas that have largely been there. >> it is a hard thing. it is a new thing. and i hope you cheer us on for this. , it's going to be a great thing for the city. and if we fail, i guess, we will lose a bunch of money. qualcomm, job cuts at

a further 280 positions will be cut from the data center chip .nit the company is scaling back ambitions and the lucrative server market in order to paris inches and he promises made with shareholders. the reduction comes with a previously announced call of 1500 workers across the company. apple is taking it a hollywood one step further and right into feature films. the tech giant is nearing the deal with the rights to an animated movie as part of the at ofing -- upcoming slate offerings. of offerings. a cartoon studios behind the movie that has yet to be made and apple does not say how it >> mike pompeo says the u.s., china, south korea, and japan all agree that sanctions on north korea will previous material. not be lifted until kim jong-un's regime can show repeat -- complete disarmament.

tom mackenzie has been recovering the visit to beijing. what was he hoping to achieve here? >> this was the first visit to china in his role of secretary of state. pompeo met with the foreign minister and the key focus for ensuring that china would continue to implement these sanctions because china is by far the number one trade north korea. that he had the agreement from china and they would continue along with south korea and japan, as you say. those sanctions would hold until we see a complete disarmament of north korea. he was also pushed on this being reversible around denuclearization or denuclearization.

there was still a part of the deal that they came to. take a look at what they had to say. >> we made it clear that the sanctions and the economic withf will only happen complete denuclearization of north korea. >> and another report coming out just in the last half an hour or that allf he is military drills between south korea and the u.s. will be suspended for the for seeable future. it trump had a mentioned there would be an end to the war games which he that described as provocative. we also had a pompeo talking about the trade situation, of course. trade,r and balanced

this as the clock ticks down. in terms of the u.s. from the high-tech goods imported from china. saying he was deeply concerned about the militarization of the south china sea and an issue that many military analyst has .een beijing, thezie in kennedy school of government, the former u.s. secretary of defense and also special defense adviser under president reagan. he is also the author of a recent book on china and the u.s. entitled "destined for war." thank you so much for joining us , and following the singapore summit, do you believe that president trump should be

getting more creditwar." thank you so much for joining fe slightest amount of achievement that came about that. >> the overselling of that or the under appreciation of the other. much,d say that pretty the critics have drummed themselves up with such predictability. in terms of the bottom line. that we would appear in any feasible alternative. i was say that this gets good marks. deficit going both ways being filled out a little bit more after this meeting? >> if we listen to both trump , we would believe so. what they actually mean by trust and in terms of trust with each other is clearly hard to tell. but it is pretty clear that they

have a sense that they have a rapport and they have a casarful line of the blanca movie with bogart, this will be a beautiful relationship. tuned.e will stay i'm not sure it says romantic as that. toant to get your reaction the breaking news we just got from our china correspondent tom mackenzie in beijing regarding the indefinite suspension of military exercises between the united states and south korea. is this a wise decision? >> it is a sensible decision. on the upside and downside. in terms of the u.s. military , the exercises are very marginal.

they are worthwhile. hold -- the whole picture. and south koreans dropped out, the last set. exercises as long as there is progress being made. >> approving tariffs, this is what we had been expecting to happen. in terms of this, in addition to what is happening, it seems like inre is no rhyme or reason

terms of the engagement with the white house and beijing. sometimes with north korea, a pat on the back. and a proverbial slap in the face? >> trump is a most unusual terms of the engagement with the white house and beijing. leader. it certainly on the main stage, for a long time. and it is hard to mix it, to try to find a good system in the pattern of activity. for sure, he was focused on the north korean summit and wanting to have a declared success. success significant more than most critics would do, compared to what the realistic alternatives were. back and in step terms of the trade conflict with china. and increasing characterization , even an enemy from the

u.s.. that is the direction in which the administration is headed. likely have those tariffs. haidi: thank you so much for joining us from the harvard kennedy school of government, the author of "destined for war." we are getting breaking news when it comes to argentina, naming the new central bank chief. they have resigned from the bank.inian central bank. presumably changing roles here. function,teractive tv

we dive into any of the securities with a bloomberg function and becoming part of the conversation by sending an instant message during our show. this is for bloomberg subscribers only. this is bloomberg. ♪ function

ramy: so new zealand's prime minister will soon become just giveecond world leader to birth in office. this is part of the bigger plan to show the world that women do not need to sacrifice their careers in order to become mothers. give birth in office. matthew, is the prime minister's pregnancy a boost for working women? matthew: it is quite unusual for a prime minister to give those in office -- so there is and it isle interest

beyond there's. people saying it's an important signal that women don't have to sacrifice their careers. they plan to go back to work just six weeks after getting -- giving birth. >> it is highly symbolic. the government is doing much to improve a lot of other matthew: theys? have quite an vicious plan to close the gender pay gap. they want to start in the top sector where the gap is wider than for the whole country which is about 9.4%. they want to close the public gap by the end of 2021. she gave us a bit of a prelude. it includes things like making

jobs more flexible, involving people. so they don't fall behind. training to recognize shortlisting more women. >> the first country to give is quite aote, it issues.ader on these >> women got the vote in 1993 after the third female prime minister here. and i think she is saying look, new zealand ranks well on a lot and we have been stagnating the last decade. we want to start to do something to fix this. that is it for daybreak a straw you this morning. but we are up next with daybreak asia and a look at what is coming up over the next two hours. happy friday. looking ahead to the boj

after the fred, announcing the end of qe. does it relieve more pressure for corona to start to think or talk about an exit strategy? we have cathie here with chief japan equity strategist. anding us is the 8:00 hour, talking about the biggest risks. not much about the domestic politics with political limbo here but trade protectionism. we will talk more about that. and we will get some reaction to the news clear seeing here that donald trump has actually pulled the trigger on $50 billion worth of goods from china. with robert scott, the economic policy institute and senior economist. he is just here in the city, talking about the outlook for central banks, even that we have the extraordinary

messaging from mario draghi. at the same time, expectations for the fed. and where the dollar will go from here. that is it from daybreak us to rally up. -- australia. ♪ ♪ retail.

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yvonne: it is 7:00 a.m. in hong kong. we are live from bloomberg's asian headquarters. welcome to "daybreak: asia." cb winds up- the e purchases by year's end. mario draghi with a promise to keep interest rates low. markets shift toward the boj, looking at the tone of corona's exit -- or kurdoa's exit strategy. >> tech is said to be a target of trump's tariffs,