haidi: yes stocks listed by a rally in tech, concerns ease about a potential trade war. streak. iran edging away from a threat to veto higher production. haidi: president trump changes course on immigrant family signing in order to understand his own policy after widespread outrage. >> disney is said to be close to antitrust approval for the fox

bid, dealing a blow to rival comcast. haidi: hello from sydney. just past 8:00 a.m. this is "bloomberg daybreak: australia." just two hours away from the opening of asia's first major market. >> just past 6:00 a.m. here in hong kong. i'm yvonne man.looks like the messages keep calm and carry on. looks like we didn't get a lot from the central bankers. looks like the u.s. market continuing to take trade war fears in stride. news, leaving us with a lackluster session overall overnight. they: it doesn't feel like moved into the lloyd blankfein camp, maybe this is just a negotiating start. nothing really fundamentally changed to signal this shift towards mildly more positive sentiment overnight. yvonne: we are still hearing there are no negotiations but for between the u.s. and china when it comes to trade.

take a look at how the u.s. stocks ended for the day on wall street. pretty flat and lackluster next, so to speak that the dow under a bit of pressure. stocks down 1/5 of 1%. the s&p 500 breaking the meltdown we saw throughout this week on trade war concerns. the nasdaq leading the gains, another record close because of the looks of , amazon, netflix at record highs. we are seeing yields picking up higher on the u.s. 10 year at 2.94. some weakness in the yen overnight. the pound getting a bit of a $1.31 after theresa may wins a key brexit vote. offshore, five straight days of weakness here.

this goes to show when it comes to the e.m. fx route, it is hard to pick a bottom as of yet. it seems the global sentiment is weighing on the fundamental so far. haidi: no doubt opportunities have been feeling pretty brave to weigh in at this point. we are not sure how far the route has to go. take a look at asia. it is undoubtedly a slightly brighter day than going into yesterday's open. a big day for new zealand. first quarter gdp numbers coming out this hour. expecting a bit of a slowdown from the previous quarter. the housing market slowing down, and net immigration taking a chunk out of already weak inflation. the kiwi dollar continuing the struggle. as keylooking at that resistance. we are looking as the kiwi dollar is the worst performance. sydney looking moderate into the open.

2/10 of 1% higher. market, been a standout largely on account of this , and agreement on the settlement of put to rest the money laundering allegations against the aussie dollar, trading at 73.67. heading over to the rest of the emerging markets, seeing a little bit of an uptick, but it's not hard to see the next driver against the background of the tightening fed. the commodities index also seeing a much-needed period of rest bite after a horrible few sessions. gold still around a six month low. did not get a bump up from the safe haven trade. not moving much in the other direction either. healthy and in materials and energy space into the sydney open. let's get you the first word news with jake and -- jenna dagan heart.

reporter: economists say u.s. threats to impose tariffs on another $200 billion of chinese imports could cut another half percentage point from the economic growth of the nation. this could lower gdp growth by 1/10 of a percent. chinese policymakers say they will intervene. >> this has escalated to an all-out trade war. marketlications on activity, investment, there would be implications here in china and u.s. clients, so people are watching. people are interested in seeing how this unfolds. everyone is helpful because this relationship is so important that there will be a constructive solution. reporter: tracking argentinian and saudi arabia and stocks, climbing in late training. the msci gave them emerging market status. they will be added to indexes in about one year joining nations

including china, india, turkey, and brazil. this may boost the argentine peso and trading resumes thursday. argentina is now in the rare position of getting an imf credit line and index upgrade in the same week. the u.k. prime minister theresa may has fended off a rebellion from within her own conservative party to win a crucial brexit vote. the fight was over whether she should have the power to take the u.k. out of the eu without a deal. the rebels wanted parliament i have a meaningful vote on the way forward. one eu diplomat says brussels fears that uncertainty will continue out of what he called the brexit soap opera. xiaomi company has set tentative terms for an ipo in heart -- hong kong. bloomberg has been told it plans to press shares at $17 to $22 hong kong a piece. they want to start taking orders

from institutional investors s&s thursday. china mobile and qualcomm are said to be in talks with cornerstone investors. 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. this is bloomberg. yvonne: thank you. taking a closer look at the u.s. market close now. , helping push day trade concerns to the back burner. the nasdaq has a new record close, as facebook rallies above the $200 mark. su keenan joins us here in new york with more. like if you need a place to park amid trade fears, this is the place. reporter: seems like they are you less immune to the multinational stocks. 10 year yields edging higher. the broadest measure of the market, less exposure to

international issues, at a record nasdaq record, telling the story for the bulls. let's go into the big movers. some interesting, sizable moves. walgreens jumping more than five times the normal averages. they have been added to the dow as general electric with a fall from grace comes out. facebook, above $200 for the first time in a while. indicates the privacy woes have faded. clps in bioscience, jumping in a big way after some important fda regulatory designation. signs on thehis china-based clps. this is an info based stock, a recent ipo, the chairman coming out with positive revenue. the jump is remarkable.

let's take a look at the bloomberg. gtb is where you can find -- btv is where you can find these charts. this is a chart measuring the opening bell price volatility. you can see major jumps in the past week alone. these are jumps above the normal half percent move you might see in the open. been, going back to 2013, a bigger than one half percent change just in that opening, and half of those have alone.is year there have been 31 of those jumps, half of than this year alone. it shows you that we have had a very volatile year, and this threatsk with tariff going back and forth, that's a quintessential example. haidi: let's get more on that media drama between fox, disney, and comcast. there are signs disney could be on track to get government approval for the $71 billion entertainment deal for the assets at fox.

major setbacka for comcast reporter:. some believe it would be a death we saw all three stocks immediately moving higher on the news, and then fox gave back some of the gain. the initial was a bidding war that always tends to move the entire group higher. coming had is a report from a person close to the matter, saying walt disney is close to winning antitrust approval for the deal for 21st century fox. fox is said to have welcomed and accepted the bid. according to a source, the justice department is set to approve the deal in a soon as weeks. there's no way to confirm this, this is coming from someone said to be close to the deal. disney has said to be selling some assets. the fox stock has rocketed higher in recent weeks. view on comcast, according to an analyst earlier today,

will they come back and sweeping their deal? the deal they already made heavy forbe too debt the company. there have been a lot of investors selling the debt. number two, there is a view the stock is falling just 20% since the start of the battle. they have tried so aggressively to take on fox that perhaps it indicates they feel they are identity as a cable company is not enough. that has had a negative effect on comcast as well. yvonne: quickly, talking about opec meetinghis indiana, seems like we are reaching compromise. reporter: it does look like that. we can check out the stocks. it has been a seesaw week. some are saying we will continue to see that until there is an agreement. a deutsche fund manager came out and said the fact that donald trump has been so seesaw himself

dulled issues has maybe the lure of gold. people usually pile england there are geopolitical concerns. when there are geopolitical concerns. because he changes his mind so quickly come investors are less likely to jump in. it is a very new element introduced into the mix, and it's interesting that this fund manager seems to think it is hurting the allure of gold. yvonne: thank you, speaking about the markets in new york. a breaking line coming through here. this is after the msci included saudi arabia into the emerging markets index. we are hearing from the saudi arabia regulator that the aramco ipo may be ready before the year's end. there was speculation this would be perhaps postponed, but now that we had this inclusion of saudi stocks not just -- in the

msci of the last couple months, that gave further push for a successful saudi aramco ipo. we will watch those lines and get reaction from many of our guests here in the morning. haidi: certainly a vote of confidence. we will be watching that closely. president trump has signed an advocate of order to prevent children from being separated from their parents when their families cross u.s. orders illegally. this reverses the policies after blistering domestic and international criticism. >> i do not like the site or the feeling of families being separated. this is a problem that has gone on for many years, with many administration, and we are working hard on immigration, just left out in the cold, people have been don't with it. we are dealing with it. bloomberg congress editor is in washington with more. what was the turning point to walk back on this for the president? reporter: there was a rising public voter outrage.

the republican members of congress were feeling the heat. it was the number one issue that brought up from folks back home. in addition, the president said that both his wife melania and ka also weighedan in on this and said the situation had to be reversed. it had become something of an untenable political position for trump and republicans, who are going to be facing voters in the november elections which will decide control of congress. trump took action that he said he previously couldn't take, but this at least temporarily fixes some of t problems that he faced with this. we have all seen the pictures of the separation of the children from their parents. does this actually change the estuation of how that process

at the border? reporter: not immediately. the government will still need to set up a system after the families detained after the cross illegally will be held at temporary shelters. right now, the process is that they can only hold them for 20 days. the president has directed the attorney general to seek court action so they can hold them longer, but it will take time to set up those family shelters. in the immediate aftermath of this, some of this will continue to go on, and there will still be plenty of these pictures into american households of these children in separate shelters. they also have to work out how they can reunite some of the children who have already been separated from parents. do you think congress

can take any action on this? is the pressure on paul ryan to drum up some kind of immigration bill for smart reporter: it certainly is. right now, that effort is in trouble. lawmakers agree they need to act -- ife ar concerned the they are concerned t order could be overturned by a judge or subject to a suit in u.s. courts. it isant to act, but still unclear how they will go about doing it. the effort in the house put ryan seems to be on the brink of collapse. even if that were to go through, there's no sentiment in the senate to take up that house bill, and they are working on separate legislation to deal strictly with this issue. the senators say they want to take their time and, with a bulletproof piece of legislation. ,vonne: thank you, joe our bloomberg congress reporter. coming up later, the u.s.

congress to have more control over trade policies, including the use of tariffs. the national foreign trade president joins us. reallya look at what is moving the markets, from the tech rally to easing trade war fears. this is bloomberg. ♪

yvonne: i'm yvonne man in hong kong. haidi: and i am haidi lun here in sydney. you are watching "bloomberg daybreak: australia." let's get more in the markets now. the rally in tech shares giving u.s. stocks a boost, among concerns easing of a possible trade war. to get analysis is touchdown advising global market strategist. i was saying earlier, nothing much has actually changed between yesterday and today, yet investors are feeling a little

more comfortable. is their complacency, as we heard from bill krugman earlier this week, that we are still seeing markets not pricing in the potential serious downturn that could come from a trade war? >> i think there is some i -- i don'tbut want to say i completely understand, but i think i understand what the markets are doing. we just learned today that trump does respond to public opinion. i think as we move down this escalation of trade and tariffs, there could be pressure later on, maybe two months from now, that would end up pulling us back out. at -- i think the market is looking at where do these things fallout. haidi: it sounds like you are of the hopeful camp, that lloyd blankfein says, that it's not a that's kind of the

view that a lot of market participants are taking. in the meantime, what is your allocation in terms of how much cash you are holding and how you hedge against this potential risk? >> actually, i like the emerging markets. i think the emerging markets from a backdrop standpoint is in a transition. in a sense to me, that means you don't necessarily want to play the index, but i think there are lots of opportunities within the emerging markets, and the transition we are seeing is emanating from china. china has been the emerging markets story over the last 20 years, but they reached a point where things have to change. have grown so much in china they can no longer be the low cost producer. creating opportunity for manufacturing to go out of china and into emerging markets, giving them a chance to get on the middle class escalator.

we have been talking about this kind of secret night -- synchronized global growth. we have this chart highlight what we have seen. i-4, the snp i've hundred -- s&p 500 with europe amerging markets, but in the last month or two, we have seen a bit of a divergence where it is breaking above the rest of the world. we are not seeing u.s. markets react to trade war fears aggressively. isn't the u.s. still the safest bet here? >> at might be in the short term. to me, two months of data is not enough. use a three to five-year time horizon when eileen out my thoughts in terms of where to put money, and where to invest. if i look across the world, the

cheapest place is emerging markets and the most expensive is the u.s. domestic market. there are some changes within the macro economies. we have seen slowing out of europe, may be slowing in china. there are other extenuating circumstances that you have to consider, especially valuation, but also the fact that in the u.s. we have margins at all-time highs. where do we grow from here? i think growth is an important element when you think about the markets. i still see a lot of growth opportunity in emerging markets, so i feel comfortable, especially in a three to five-year horizon. yvonne: yes, it seems like the tech stocks are lifting street.t on wall people saying the valuations are not even close to the.com era, but we are seeing a $4 million market cap. are you concerned about that? >> i am more cautious

domestically. however, it is hard for me to find a place to go. the fixed income doesn't look either.ble, the yields are quite low still, even though they have moved up off of the bottom, and the spreads on the credit side are tight. it makes it for a difficult balance. it's one of the reasons why i think a more diversified approach now makes more sense. this: i want to throw up chart, you have spoken about your preference for the emerging markets. the exodus is the same from asia to emerging-market stocks is the worst since 2008. a lot of that is going into japanese assets. is this a case of not differentiating enough between you have tos, or do be super brave to go in right now because it feels like a bit a catch and fall situation in terms of the moment? >> it's interesting, because if

you look inside the index, there's a lot of dispersion. if you look year to date, china is actually up versus the emerging markets as a whole, which is down. again, this all comes back to my underlying theory that there is a major transition in emerging markets. there are opportunities as well as risks. if you take just a passive approach, you are going to get it all. you talk about china. to be fair, it is not really the em and the general context of the rest of the emerging markets. the fundamentals are totally different. do you see that as a bit of a haven when everything else is looking volatile? >> not necessarily. -- again, if we look backwards, that is china, but china is being forced to change.

they have to look up market into a higher margin of manufacturing, and there's a lot of their labor intensive low-margin manufacturing that is leaving china. that is creating opportunities outside of china. india is one of the biggest recipients. remember, when we had the election two years ago, foxconn, a big supplier for apple and a china manufacturer, they made a big announcement that they were going to click -- put a huge wisconsin. what you probably didn't know is they are doing 12 plans of those size in india. there is dramatic growth that is happening. --nne: we have to live it leave it there. thank you, crit thomas, touchdown advisors from cincinnati. full-years cut the profit forecast. china announced 25% levy last week on cars imported from the

u.s. in retaliation for president trump's threats. daimler also expects trade barriers to result in higher costs. andmercedes sedans crossovers are made in alabama. haidi: tesla is suing a former employee for allegedly hacking confidential and trade secret of information. a former technician is accused of transferring several gigabytes of data to outside entities, along with illicit photos of the production line. ceo elon musk has warned employees to be on the lookout sabotage.e calls he tweeted that a few bad apples will not stop tesla from reaching its goals. an unsolicited bid for australian billboard set -- specialist. , itapn billboard group would be the french advertising company's biggest acquisition in decades. of caps off are is about 11% the wednesday closing price.

coming up next, xiaomi said to be raising $6.1 billion in the hong kong ipo, hong kong's biggest in two years. we get the latest from beijing. this is bloomberg. ♪ . ♪

haidi: the markets open in about 90 minutes. futures looking moderately to the upside. a very miserable looking sydney opera house you are looking out at this morning. i'm haidi lun in sydney. yvonne: i am yvonne man in hong kong. am -- 6:30 a.m. live pictures of the president meeting with steelworkers in i presume, duluth, minnesota. this is on the back of what we commercem the u.s. secretary, wilbur ross, announcing the trump administration has begun granting first product exclusions from imports of steel.

were 42 expedition requests being issued today, which cover seven different companies, including steel products in japan, sweden, belgium, germany, and china. seven of those companies received those exclusions. we also hear from the commerce department they will also be denying 8-6 steel exclusion request -- 56 steel exclusion requests. more on those lines coming through here. in the meantime, let's get the first word news. reporter: thank you. in new york, crude place -- prices climbed the most in more than a week as they worked behind closed doors to heal a production limit. crude inventories were falling last week by more than double the average estimate.opec prepares to meet indiana friday, the saudi ministers indicated they are moving closer to agreement. toward a converging that not only the

stakeholders would enjoy, countries, and companies, but also consumers. reporter: president trump has reversed course on his policy of separating immigrant children from parents who cross the u.s. border illegally. he signed an executive order directing homeland security to detain families together and house them on military bases. trump has been under intense criticism from congress, the public, and business leaders over the separation, which saw around 2000 children placed in federal custody. >> i didn't like the site or the feeling of families being separated. this is a problem that has gone on for many years, as you know, through many administrations, and we are working very hard on immigration. it has been left out in the cold. people have not dealt with it and we are dealing with it. reporter: republican lawmakers say they have made congress --

progress in meeting with president trump, but there is still no deal. senators want stronger penalties for the chinese telecom company, which they see as a threat. new zealand prime minister jacinda ardennes has entered a hospital for the birth of her first child. the 37-year-old will become just the second elected world leader to give birth while in office, after the late pakistani prime minister. she plans to take six weeks maternity leave.her due date was june 17 and she has not revealed the baby's gender. 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. this is bloomberg. haidi: thank you for that. let's get a quick update on your early market session.

trading in new zealand getting just underway. we are expecting the first baby to arrive hopefully at some point today. a little bit of an upside when it comes to keeley stocks trading. the new zealand dollar just ahead of gdp dollars. , theiwi trading overnight worst performer in the g10 space. , up about 2/10 of 1%. more of the best-performing raret on a decade high, a bright spot given the volatility here in asia. the aussie dollar also trading up. as i mentioned, global equities have had a pretty rocky time over the last few days. australia has emerged as a rare bright spot. thebing in three of possible sessions, hitting the highest level since january 2008. what has been driving this unusual strength? reporter: the asx has been

strong for a while now. january.decade high in it has, quite a lot since then, but the miners have given a lot of support. this has been driven by the banks care they hit a one and a half year low on thursday, and there have been a lot of gains since then. haidi: i guess a bit of reassurance. reporter: the cba is kind of over it. there is an income happy market. australians love dividends. banks are paying high yields at the moment. while there are issues, they are still paying in cash. haidi: it has been unusual how well the -- australia was seen as one that would take the brunt of china slowing down. reporter: yes, a definite case. to china,y is exposed but in the top 10 stocks in australia, only two of them are directly exposed. commodity prices have held up pretty high. energy hasn't tumbled like a lot

of people thought. bhp.is proving helpful for iron ore still around $62 u.s. per ton. into earnings,e which is why the share prices are still high. i was going to say, when it comes to the other stocks in australia, they are more domestic focused. things are still looking ok. for theand even exporters, with blackrock making the call we could be seeing $70 for the aussie dollar, that would be a boost. reporter: there's no doubt. any drop in the aussie dollar would be good, and good for australia's economy as well. yvonne: ok. we will leave it there.

our asian equities reporter in sydney. let's get more on what we should be watching as trading gets underway in asia. adam haigh. outside of australia, we are talking about a lackluster set up for equities. tech is the one place finding plenty of buyers. reporter: it is. it's remarkable when you think about it. the u.s. equity market is becoming a bit of a haven with everything going on with an escalation in geopolitical tensions. the u.s. tech market is , asively outperforming em lot of it driven by tech, the outperform or, even though many people had doubts a few months the case oft in facebook, but the overarching idea of increased regulation and a tough sector to be. it is already being priced massively on a forward basis. the fact that you are still getting gains in tech, even

after the run-up we have had so far this year on many years of good returns is quite remarkable. it means people are still wanting to allocate money into places they feel comfortable with. matt was talking about this with australia. it is the case in these u.s. names people are familiar with and wanting to allocate more money to, lend their are a lot of pockets of discontent in other parts of the world. haidi: and in india, we have a prominent advocate. therter: yes, these are securities, brokerage aligned with the biggest private bank in india. they are saying it's all about equality. we are getting into the stage where people are thinking about politics again and the election next year. it is about lying large-cap, trying to raise cash so you have money to reallocate when you see a selloff, and protect your stocks. earnings growth is lagging a little bit now in india.

there have been many points during the rally of the last few years of this running in the inequities, where people question, prices are running, but earnings growth has not lived up to that. that is really a question at this point. it is really politics back as a central theme in india, and this is what we will be talking about many months now with elections coming up soon in turkey, mexico, and further down the line in india. haidi: lots to watch out for. thank you so much for that, our global markets editor adam haigh. checkout btv live on your bloomberg terminal. let's take a look at some of the other stories we are watching into trading in china and hong kong. xiaomi is gearing up for the world's largest initial public offering in nearly two years. bloomberg sources say the giant has set a tentative set of terms for hong kong. stephen engle joins us from beijing. what more do we know? reporter: we know what we are

hearing from sources, that xiaomi will issue an updated prospectus this morning ahead of the open in hong kong, said to be about 8:00. we are learning as well they have set tentative terms for this ipo. scaled back a bit because of the delay or postponement, or the cancellation, we are not sure -- listing.r as much as half of the ipo was supposed to be in a china depository receipt in shanghai, but that has been scrapped. i will get into that in just a bit. let me give you the updated terms we are hearing from people close to the situation. $17pricing could be between hong kong and $22 each. plans to offer about 2.1 8 billion shares. that would raise about $6.1 billion u.s., still the second-largest ipo in the last couple of years, but still a bit

off of the $10 billion we were expecting because of the joint cbr and hong kong listing. upwards of half of that would be in it, but it has been postponed. we are hearing that institutional orders could be starting as soon as today. are also hearing that plans to finalize the cornerstone investors later today or as of last night, we are hearing among the big cornerstone investors would be qualcomm. xiaomi uses its snapdragon trip -- chips in their mobile phones. yvonne: you highlighted it, but what's the latest on my xiaomi pulled out of this listing, and is that going to hurt sentiments in hong kong? reporter: it could, because

there are a couple of reasons bandied about as why they delayed this listing. one side is still tweaking the rules for the china receipts, which is a new thing in china, but also we are hearing that there has been some disputes between xiaomi and regulators on arm ofuation of the cdr this listing. they have decided to list it. it was expected to be about a $10 billion ipo, but now it's $6.1 billion. perhaps a listing could come down the road instead of a joint simultaneous listing. yvonne: thank you, stephen engle, our chief northeast asia correspondent from beijing. coming up, the impact of trade tensions on u.s. companies. and national foreign trade president weighs in from washington. this is bloomberg. ♪ erg. ♪

haidi: i'm haidi lun in sydney.

yvonne: i'm yvonne man in hong kong. you are watching "bloomberg daybreak: australia." with china cymer, and president trump says unspecified new trade deals could be announced rapidly. one official says the president deserves more support. >> i wish the president would get more credit for what he has done and have more credibility when he says, this is our trade policy. is it going to be rough for a while? yes, but we are trying to get people to change their behavior. you don't get china to change behavior on technology transfer by asking politely. yvonne: our next guest wants congress to have more say in u.s. trade policies. let's go to washington now, the president of the national foreign trade council, which advocates on behalf of companies for a rules-based world economy. he's also a former wto deputy director general. thank you for joining us on the

program. hearing what mick mulvaney is saying, it doesn't seem like at this point we are seeing any kind of negotiations going forward with the u.s. and china. do you think at this point there is still room for compromise, or has the damage already been done ? >> i think a certain amount of damage has been done, but i think there's always still hope for the two sides to begin to talk more about how they resolve their differences. we have said all along that the administration has raised very legitimate concerns about , ofa's industrial policy course technology transfer, intellectual property issues, and many u.s. businesses want to see more positive outcomes and movement from china to do that, thethe big concern is that administration's effort to do this through very hasty imposition of sweeping tariffs and then escalating that further by expanding that is moving us

further away from that kind of a compromise. concern.ur big we support the effort to try to get china to move. we think that could have been done better by getting a global alliance of countries to push on china and by building stronger international rules to behavior, china's rather than unilateralist tariff policy alone. yvonne: just a second, breaking news from new zealand. first quarter gdp numbers expanding half of 1% quarter on quarter, 2.7% year on year. not seeing a big reaction to the expected, bigger than but the slowest since 2014.let's bring back the conversation with rufus. you talked about this letter you wrote to the white house about how congress can step in. what can congress do at this time? d.c., iteing china and

seems like they are making more enemies than friends in washington these days. >> we actually sent the letter to the leadership of the house and senate committees that deal with trade. under the conga -- constitution, congress has the authority with trade. they delegate a lot of that to the president in past pieces of legislation, and it is actually a old lobby president is using on steel andiffs aluminum. we tried to emphasize we think there is an overage in using national security to raise products. a number of now they are talking about automobiles. this is inconsistent with the basic purposes of that statute. we are asking congress to reassert its authority, conduct somengs, try to bring back kind of sense of reason how

trade authority would be used, not to create massive new protection for a range of u.s. injures -- industries, but deal with legitimate concerns the statutes were originally designed for. haidi: since you are formerly of the dove eto, we know the president does not think much of their is institutions, but do you expect china would take this to the wto? >> i think if the u.s. imposes tariffs under 301, there would be a dispute. there are already pending disputes about the steel and aluminum national security actions. i think there will be a whole host of actions flying around in the wto dispute. u.s. industry knows those take a long time. in the meantime, a lot of damage can be done. a lot of harm to their health

and their business activities. obviously, we have to try to push our own government into recognizing the collateral effects of a lot of these kinds of actions. -- aredo you anticipate you of the part of the markets we are seeing that believe this to just be a starting point, a negotiating tactic, just president trump talking tough, hoping to get the other party, china or the other members of nafta to the table, or do you think this could escalate? if you are an american business or chinese business, what do you do about investment decisions? >> those are all good questions. obviously, sometimes the threat of rebalancing your trading relationship can be useful in trying to get your partners to address legitimate concerns, but we think that can be taken too far when you start very hastily

and immediately issuing edicts that you are going to substantially raise the stakes. of hours but a matter after china had announced counteraction on $50 billion that the president tweeted out he would instruct the u.s. to raise the ante by another $200 billion. that kind of stuff can start with small skirmishes, big wars. that creates a lot of uncertainty for businesses, not knowing if these measures are going to go into effect or whether there is going to be a negotiated outcome. are you going to end up with a lot of trade restricting tariff s, or new deals that will open markets? that uncertainty is bound to persist while this process goes on, and what we think is needed is a clearer strategy that is designed to push china in the right direction without threatening the stability of the

global trading system. with china as a member of the wto, they still have often disregarded wto requirements. taking a look at flexing the military muscles in the south china sea, creating the aib as a rival to the imf, can we trust china to follow the rules of a global system? >> i don't think it's a question of truck -- trusting them, it's a question of using the system china.pressure on china has lost a lot of wto cases, and they have actually implemented some measures in response to those. they have not just thumbed their nose at it. if we can use it effectively and work with europe and japan and others who share our concerns about china's practices and show the chinese that respect for multilateral rules is extremely important, rather than trying to go tit for tat with them in some kind of economic nationalism,

industrial managed trade sort of arrangement. door prettyis that much closed now for chordae needing a response after the g7? very quickly, rufus. all right, i think he can't hear us. we will say goodbye, rufus yerxa, national foreign trade council president in washington. don't miss our interview with u.s. commerce secretary wilbur ross. atjoins "daybreak america" 7:20 p.m. in hong kong, 9:00 in the morning in america. this is bloomberg. ♪

spain, portugal, and uruguay all winning in the world cup.

up on the latest , and see how others are faring with their predictions so far. yvonne: so far i think i'm in the halfway mark of the pack. my bracket is pretty much shattered at this point, given the upsets. let's check in with the latest headlines. disney is close to winning u.s. antitrust approval for $71 billion deal for 21st century fox entertainment assets, which would create a potentially insurmountable hurdle for rival comcast. we are told the justice department could approve the deal in a soon as two weeks, after disney agreed to sell assets to address competition concerns. haidi: walmart is selling bonds worth $16 billion fortment in india's online seller, flip card. it may yield around 1.05% above u.s. treasuries. it would be the second largest of the year, edging out and

offer. in the wants a 77% stake retailer. yvonne: amazon berkshire hathaway and jp morgan chase have named a ceo for their new health care business. he is a surgeon, writer, and public health researcher. the company will provide health care to berkshire, amazon, and j.p. morgan's one million u.s. employees. called the u.s. medical system and expensive pile of junk. on "daybreak up asia," i will be hanging around for the next two hours. that conductedng by david ingles, speaking in tokyo at the apec summit. talking about global markets and trade angst, whether we are seeing an emergence from that at this point.

yvonne: a little bit of complacency, given some of these trade tensions. the market open is coming up. this is bloomberg. ♪ this is bloomberg. ♪

yvonne: 7:00 a.m. in hong kong. we are live from bloomberg's asian headquarters. welcome to "daybreak: asia." a mixed start for asian start ahead of a global rally on wall street. broke long losing arabia winsudi status. >> opec moves closer to a new output deal with iran moving away from high production and putting their heads