>> it is 7:00 a.m. here in hong kong. welcome to "daybreak asia." an election mandate as turkey enters an era of one-man rule. it was not a fair race. than $108nleash more billion in liquidity with the pboc confirming a triple archivist for many banks. from australian headquarters i am haidi lun. we kick off the brand-new trading week. u.s. and china playing a game of they warn -- as the

eu warns for global rule. promise a rowds production increase of close to one million barrels a day. last week was not short of volatility. a lot of that led into an uncertain outlook going into the opec meeting. the question is still out on the actual impact on oil and energy markets. that 5% surge in wti. it seems counter intuitive to what opec was trying to achieve. there is still doubt as to how much production can be raised and who will be raising it. haidi: we will be watching the closely,ctor

particularly here in australia and new zealand from the commodity heavy currencies. let's take a look at how we are setting up in the early part of tradingion as we get underway in asia. new zealand, we have seen the kiwi dollar performing the worst in the g10 space. that is expected to remain going into the fed rate decision going into this week. messaging out of the new zealand central bank. trading has turned negative when it comes to kiwi stocks. sydney up 2/10 of 1% into that open after a couple of days of weeks. the aussie dollar trading at 74.40. .7440. not just from new zealand but indonesia and argentina throughout the course of this week. let's head over to commodities. oil prices, brent crude trading at 75 bucks a barrel.

new york crude at 68.6 five. one million barrels of crude added after that decision made after the opec and friends meeting in vienna. it is worth noting, that gold and theetween u.s. dollar is actually at the lowest since 2016. a bump up across the commodity sector. yvonne: you mentioned about new zealand, pretty much flat here at the moment. it is lackluster when it comes to how nikkei futures are right now. we are stabilizing around 110 and below that level. pi features down a third of 1%. it unchanged at the moment but the yield on the tenure below 2.9% at 2.89 at the 92.nt, 100 and we do see if fighting getting

closer to 652. we will see if this triple archive from the pboc will do much to turn around the sentiment in the markets. you have been watching the turkish lira after her to one -- erdogan claiming victory. trading at 460 against the dollar. gan claimed a new mandate to govern. his opponents say the election was not a fair race. heernment news agency said had 53% of the vote to 31% with 96% of the ballot counted. this is the former istanbul bureau chief. we are still waiting for speak but we are sensing a u-turn from the opposition. thehe opposition earlier in

evening suggested there was manipulation and they have now conceded to defeat. was nothe campaign entirely fair. i think they are talking about things like air time that gotgan: and his challengers compared to opposition parties. there are not planning any legal challenge. it does not look like they are now. that means that erdogan has won the presidency. his allies won a majority in parliament. third, he does not look like he is facing any headwind through a drawn out legal process after the vote. it is a pretty sweeping victory. yvonne: we are watching some live pictures out of ankran where it seems like celebrations are underway. what do think can come out of this election when it comes to policies now. especially when it comes to the

lira which seems to be in the double digits. celebrationse where the crowds are waiting for the balcony speech, which has tradition.rdogan i would not expect much in the way of policy detail. that is because it is not been what he does. in the nextfocus days and weeks will be on monetary policy. has promised to take more direct control. that is something that makes investors uncomfortable because it suggests to them that he will chip away even further at the autonomy of the central bank. foreign policy is going to be interesting to watch, perhaps over the longer run. with the united states, syria, european union where the membership process was moving forward fast.

his first term is not going anywhere. hashe same time erdogan pulled closer to russia than it used to be. he is talking about joining the shanghai organization led by china and russia. a sense that turkey has drifted away from its traditional role of its western oriented power. maybe looking more to the east. playing into that narrative is these trade tariffs that turkey has announced. 60% on auto to alcohol to rice, now the goods as well. how does that murky the water when it comes to economic outlook and the trading status and relationships that the country has? ben: i don't think that erdogan has done anything as dramatic on that front.

i don't think that is something that is high on the list of what economists are asking. what he done is what a lot of other countries have done in response to united states trade actions. there will be more interest on what he does with monetary policy and what he does with the anyet, and whether he takes kind of action is to what economists think is in oncoming economic crisis for turkey. the election was brought forward by 18 months. that is something that erdogan and has party have never done in 15 years in power. they prided themselves in it. the economy is in bad shape and could get worse and that is why they did it this time. a great deal of uncertainty ahead. economics editor ben holland in istanbul.

paul: china's central bank has -- last week in locking 108 billion dollars in liquidity. the amount of cash lenders must hold will drop by july the fifth. the pboc said the aim is to support micro enterprises and promote the debt to equity swap program. the moves are targeted. the rest ofk says the world raises the risk of slowing the otherwise vibrant american economy. chief economist peters said president trump's threats of tariffs on $250 billion on china's goods would cut three to 4/10 of 1% from u.s. gdp growth this year. the eu said it is ready to retaliate to u.s. threats of 20% memofs, an internal eu being treated

unfairly. disputes between washington is set to escalate with strength for facing rules as the basis for trade relations. eu officials are in china for trade talks. saudi arabia and russia got what they wanted with a deal to increase production. saudi energy minister was going to keep energy prices under control. that signals a supply boost of one million barrels a day but does not believe buyers of its oil will get waivers from the u.s. under sanctions reimposed under president trump. isi believe president trump against the market fundamentals. it is not a benefit of the consumers. the high level price causes the action. paul: global news, 24 hours a day on error at to talk on

twitter, powered by more than 120 countries, this is bloomberg. what was being called an economic game of chicken as the u.s. and china enter a two-week your years may determine who blinks first. stephen engle is in beijing. what is the latest? it is going to be a very expensive game of chicken they are playing. stephen: game of chicken is what they are calling it because we have a couple of key dates coming up on the threats coming from the united states. this friday, we are expecting the department of treasury and the united states 10 ounce a list of restrictions on chinese investments. these are likely to target made it coulds 2025 sectors

get a little bit more tricky by this friday. this is in addition to the july 6th deadline of the first round of tariffs president trump has mentioned. there is another 60 day review on another $16 billion of chinese goods. on top of that, donald trump's administration has asked to identify another $200 billion worth of goods that could potentially get a 10% of tariffs slapped on them. we are getting into the really heated part of the realization of tariffs that have been threatened. china has vowed to take reciprocal steps. report from a south china morning post out of hong kong saying that regime will not necessarily target u.s.

companies that are doing business in china. wouldinking there is that be counterproductive to china's efforts to get more international investment into the country. we also have that much anticipated triple archive from the pboc over the weekend. how much does this soften the blow of what we have been seeing in the china markets, which has been dogged by the trade tensions? stephen: this is a preemptive move. we do not know how far this will go and hurt the economy. of economy is showing signs slowdowns. this is very targeted. they do not want to exacerbate the risk in the economy, they want to limit the risk. billion is what this half a percentage cut is going to inject into the economy. 700 billion.

500 billion of that will be at the larger banks, but with instructions that they must go into this debt for equity swap, which is something the banks do not want to do. they will assume that equity and write off bad debt. that is shady for the banks. here, so 12 lending joint stock commercial banks and lending banks will have to up their commitments to the equity stock at heavily indebted companies. "zombie"-called companies. it will be targeted, or for the smaller banks, targeted into smaller companies to give a boost to those small to medium-size enterprises that might be suffering in what could be a slowdown. we will see a turnaround in the shanghai composite, we will see. stephen engle, our chief

northern asia correspondent. after opec and its allies reach a deal, what happens next? we will have matt. the market is not taking a possible trade war as seriously as it should be. this is bloomberg. ♪

haidi: this is "daybreak asia." man in hong yvonne kong. president trump's trade battles are escalating on two fronts. china and the eu promising retaliation. macroamerica head of strategy joins me here from hong kong. thanks for joining us. at how things has escalated, this seems like the

week things get more real. do you think the risks are more manageable? of theink the risk market still expects a deal to be mean. there is this idea of a playbook that president trump uses from his "art of the deal" days. and you get aiate smaller deal and everything is fine and he can claim a victory. my concern is that trade, and his idea on trade has been his idea for the past 30 years. he talked about unfair trade with the u.s. it also plays well in the opinion polls. his approval rating goes up whenever he talks tough on trade. hiss going very well with base. he will see this one through and it could end up escalating a trade war. yvonne: you think china will blink?

we solve reports that they might be limited when it comes to restricting investment for china because it is their main goal. a cannot restrict u.s. companies to a certain extent. >> you can do other things. it is thejust china, rest of the world. i think the rest of the world will be in bolden to stand up to this because it is not just one country, it is the whole of the world. nobody wants to see trade tariffs are a reduction in trade. i think they will try to get trump to blink but i do not think he will. yvonne: and with all of this equity decline we have seen for the last week in this part of the world, i have a chart to show where volatility has been across assets. they were still tame. you take a look at stocks as well as bonds, you can blame it on the world cup, i guess you could say, but why do think there is still so much calm in the markets?

and what if they continue to simmer be on the world cup? lee: the calm is because the markets thinks the deal will be done. we have seen a short-term reaction to it the market -- we will not get to a trade war. the calm.ins some of we are entering the summer months and the world cup is on so that helps. the qe from the central banks is still positive. if you look at the g3 central banks, they are pumping and around monday $5 billion a month. this is down significantly from last year. last year was 120 hundred 25 billion, now 25 billion. that is why volatility started to rise. it becomes a net drain. from september on word we get into less printing from the ecb and we get a net liquidity and that is the real test. volatility will continue to

rise. i think what we are seeing now is a little bit of an expectation that it is still 20 17 and everything is fine, but the reality will hit in the second half of the year. haidi: i want to talk about the difficulty in translating these trade threats and the rhetoric into what it looks like for the economy. at 4.5%,ine here is which is the assumption made by advisors, second-quarter gdp would be more than twice what we saw in the second quarter. what kind of presumptions are you making if we get tariffs put in place? and what the policy reaction is likely to be from the fed? it is veryk difficult to quantify. we do not know how it extensive the tariffs will be and how quickly they will come on. you have to say, we are already hearing from the fed's that is it is impacting companies

delaying hiring because the outlook is uncertain. it may not impact gdp. a couple of tenths of a percentage points off growth. it has been a strong quarter. it is more when we get into q3. that is when we see that impact. companies are delaying investment. they are delaying hiring and we could have a pork quarter -- poor quarter. that is something the fed will be looking at. s last week, i have added an extra one in. expectation is the height in september -- hike in september. if markets continue to reaction, we see a reduction and we see equity markets continuing to suffer, that could play into the fed inking. maybe that december hike does

not arrive. does the blues that we have seen from tax and fiscal start to fade? lee: that is where we are expecting a strong number in q2, but that will fade. q3 was facing headwinds compared to q2. it looks a lot murkier than it does right now. where do you part given some of the volatilities we have been seeing with these trade tensions? lee: what we see from investors is there is just they are putting money into cash. yvonne: how much cash are you holding now? lee: it is still relatively low. but the trend we are seeing is favoring cash. it is out of equity so far. i still think that money will go into treasuries.

you will see demand for yield. is pent for demand. it forces investor out of the risk curve into high-yield. -- into equities. when that to imo's out investors move the other way. that is what i think will continue to happen. treasury is holding pretty well. yvonne: great to have you here. north america head of macro strategy. browse thesers can charts featured on bloomberg television and catch up on key and analysis and save the charts for your future reference. this is bloomberg. ♪

check of thek latest business flash headlines. austria plans to spin off its brokering businesses and may

sell its insurance unit. the new business would be listed on the asx as css group. it also included aussie hormone. the asset management unit will no longer proceed. foode: chinese online product is filing for in ipo in hong kong. the restaurant delivery and review service submitted documents late on friday. the startup was said to have been targeting a fundraising of $6 billion with an evaluation of 60 billion. friday's filings did not specify numbers. retail stock offering on monday ahead of its hong kong listing. the phone maker has not set a timeframe to revive the positivity shares. it could lur its tests -- tech giants in the market. it is also reduced the overall fundraising goal. juste: there is more

ahead. hell the world's largest ipo in two years could rush -- usher in the golden age. we will from one of its investors, next. this is bloomberg. ♪ two, down, back up!

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yvonne: 7:30 a.m. monday morning in hong kong. we are seeing rain throughout. we are 30 minutes from the first major market open. sydney.:30 in futures looking a little bit like this. we had quite a week of volatility. we have more clarity out of opec, watching the energy sector as we head into the open. it is a beautiful if brisk, cold winter day in sydney. i'm haidi lun. yvonne: i am yvonne man. you are watching daybreak asia. let's get to first word news area paul: turkey's operas vision -- turkey's opposition

said they acknowledge president erdogan one but it was not fair. he got 53% of the presidential vote, but the ak party could not reach it target in parliament. the revised presidential system giving him sweeping new powers will be implemented quickly and he plans to address supporters soon. the uk's five main lobby groups told theresa may they are concerned time is running out for a brexit deal that protects hundred of thousands of british jobs. in a letter they warned in the absence of clarity businesses will have to plan for a worst-case scenario. may has promised a white paper on her plans before the summer recess on july 24. bitcoin has come off 2018 lows after new worries about government scrutiny and skepticism from global central bankers. this group had the biggest cryptocurrency falling.

that brought a decline from , $20,000, record high to 68%. japan ordered trading venues to approve anti-money laundering measures. malaysia's prime minister says fair value for the ringgit is 3.8 to the dollar. that is the same as the previous government imposed in 1998 during the asian energy crisis and hasn't treated at that level since mid-2015. he told bloomberg the current exchange rate affects the state of the world economy, not malaysia's. >> it should be done naturally. >> what is the fair value? >> [indiscernible] paul: you can see more from our exclusive interview with him later in daybreak asia and the full interview, a conversation on friday at 6:00 p.m. in hong kong, 8:00 in sydney.

global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. thank you. let's get more on what you should be watching as trading gets underway. the global markets editor adam haigh here with us. we had the widely well communicated triple cut coming through from the pboc. is it owing to be enough? adam: it is tough to answer, but people want more. they are factoring this in. we are expecting this, and pricing has been reflecting that. we will get another by the time the year is out. overall this shows the authorities are worried about what is happening. from a global standpoint, it is clearly a good thing this move has happened. it will be welcomed. luckily, domestically and in a stock market dominated by retail investors, there is not enough to suggest it will be a big enough swing to get the shanghai

composite out of tricky territory. look at it on the chart. this is the gtv library. still a very tough place for chinese investors on the local market, the mainland. they have a lot to work through in terms of how they are managing this slow down, and that is before we get into a situation where tariffs from the u.s. start to impact economic growth. lot of work to be done, not enough to show sentiment has changed enough to really give any impetus to stocks. we may get some short-term relief, but the question is whether sentiment change in the long-term. i don't think it is enough. yvonne: with the opec meeting wrapped up, we saw a firmly stronger oil price, tt -- wti extending gains. is this as far as it gets for crude prices, or could it go over $70 and stay there? adam: this is kind of part of a

longer trend in support of increases in the oil price. that is having a impact on the inflationary act drop against the world. the oil price in itself from what we are seeing now, look at this chart. wti here, this potentially is a bullish sign going forward and could suggest we kick above 60 -- $70 a barrel and could support that over the longer term. what i was saying about the broader picture for energy prices across the world and how that pertains to inflation will thaty for central bankers met last weekend in portugal. for some it is a troubling environment. this will give some support to those views that inflation comes back. we saw the massive move in crude prices friday on the order of 5%, and a lot of that has not slowed through to asia and publicly traded securities.

we could see decent moves on monday morning when these energy stocks get trading across the region because they will get this kick from the friday move. yvonne: adam haigh, our global markets editor joining us from sydney. don't forget to check out our library for the charts you saw. that is on the bloomberg. the week ahead is sure to be interesting. president trump's trade tariffs will top the agenda when european leaders gather in brussels. there is a fresh round of economic data to hit as well. su keenan joins us. a big question, whether we see a rebound in risk appetite. su: it may have a lotsu: to do .ith trump's tariffs and tweets is going to the snapshot -- let's go into the snapshot. oil coming off a big jump on writing, as mentioned. let's go into the stocks that will be in focus. there is a lot of possible deals

in the works. let's go to the first board, some of the stocks again. let's go to the bloomberg because the other question is technology, will it continue to be resilient to the headline risk we have been seeing? if you look at this chart, you will see consumer staples, down on the bottom, utilities here, a lot of i.t. up here, stocks, tech has been outperforming. it is in the out front. let's go into the stocks. that will be in focus. a lot has to do with bank stocks. jpmorgan citigroup among those getting the go-ahead from the stress test to issue dividends. bank of america, one of the top executives is leaving. general electric is putting a unit up for sale. there will be a lot focused on that. if we go into our second board of stocks to watch, there are interesting movements. kraft heinz eyeing a buyout of campbell soup.

general mills eyeing the same. twitter could be the winner of the world cup according to barron's because it is testing its streaming video strategy. netflix, huge hedge fund, talking about shorting if it goes lower. walgreens foods, which is running up, got added to the dow, could see a payday. let's go to stocks that are about to report. nike is up the top of the list. in terms of ego data, that will be a big look. to grow.orecast household spending, the u.s. consider -- consumer considered a driver of the economy. looking at consumer confidence in june, could it hold near a high? many believe it will, aided by falling gasoline prices and the oil spike. that will be interesting given the question is what the fed does with the rate hikes ahead of it. back to you. haidi: thank you.

xiaomi's monster $6.1 billion share offering gets underway monday. thispartners can count among their portfolio, including moping. as part of the venture china series, this man tells us why he thinks the largest ipo in more than two years will pave the way for more megadeals in the region. >> hong kong has just started this new listing structure, and xiaomi eating the first to file under that listing -- being the first to file under that listing, i hope the ipo will be successful, paving the way for many more chinese innovative tech companies to go to hong interestinganother menu. tom: what are your views on the changes around the moves in china to encourage more of these

tech companies in particular to list in the domestic markets with the cdr land? -- plan? >> i think it is interesting because historically many of the bigger tech companies have chosen offshore markets. so the fundamental change in china has to be listing requirements that enable similar countries of the future to list in china. so i think a lot of people focus primarily on the cdr element of it. portion.ust one small the key is the new change in currency, the unicorns to list here a lot sooner, faster. tom: tencent and alibaba, and

the significance of their role as investors in the tech space, are they proving detrimental in terms of their are they suffocating? does it make your job difficult? duane: it has made our job difficult but on the other hand they also are interesting as avenue of exit. they have bought both companies as well as steaks from early investors such as chi ming. so in that regard it is certainly adding more exit possibilities. in terms of the overall competitive and entrepreneurial environment, i think a more investmentrategic environment, it is probably

healthy. tom: does that intense competition, does that continue to grind on? duane: it will grind on for a little longer. have stronges ability to not only do extremely well in their core business. they have the social and network effect. we have that on the we chat side or the tao about e-commerce side. now go by payment. with that type of effect, they could actually get into a lot of new business and continue to be successful. not tooit is probably early at least for the government to start thinking about regulations and encourage the growth of the home champion but also be mindful of their affect on the overall start of

the environment. it has not been detrimental yet, but if one tamed and unchecked, this could be dangerous years to come. was a cofounder speaking to bloomberg. we will dig into the latest on the opec agreement with the senior managing director. this is bloomberg. ♪ is bloomberg. ♪

haidi: this is daybreak asia. i'm haidi lun. yvonne: i am yvonne man. now for a look at the stories trending across the bloomberg universe. on tictoc, you can follow the latest on the turkish election with the president claiming victory and a new mandate to govern.

we are expecting him to make a speech in ankara any moment now. you can read about how banks may be using a lehman style trick to disguise their debt. also the trade story ranking highly as the u.s. and china enter this game of chicken. in this more discussions on this there will be restrictions on investment. that is announced friday. yuan inbillion liquidity, also gaining traction on the terminal. this is where you will find our most read stories. if you want more on opec, we have a right of -- a right up -- write-p= onu -- you can check out online. haidi: we are watching the turkish lira, which whether that was a knee-jerk reaction or something sustainable, you are looking at them president, modern turkey's longest serving

ruler. he has claimed a mandate to govern with a sweeping new power from a victory in presidential and parliamentary elections. he has arrived with -- we have heard with the opposition leader, conceding that defeat, but pointing out the contest was not fair. the president getting 53% of the vote, versus 31%, and lots of uncertainty. yvonne, watching over whether he takes more control over the monetary policy. yvonne: taking reaction to the lira, there has been positive this election outcome. removing the uncertainty that really talked turkish markets, but there is the risk of him taking back control of interest rates. we talked about his preference to interest rate cuts despite the fact we see the lira hovering around record lows, double digits with inflation.

a lot of investors watching to see how he is steering the economy. a lot of questions about what he will say at the podium as well. looks like he has been greeted by many crowds out there. he walks up to the podium. we will get the latest when he starts his speech. we mentioned the u-turn from the opposition, conceding to their defeat. but the president saying his party did not read the goal -- reach the goal they wanted in parliament. we will see if that is a drawback here for his government, haidi. haidi: and in fact, you spoke earlier on to a crowd of supporters, saying we need to put these are election tensions behind us. lots of concerns over the fairness of this race. we have had one analyst saying the results didn't match the last step of turkey's transformation into a one-man

regime. that is the copresident of , reacting toigence this pretty contentious election situation that you are watching. looking at live pictures of interest in the evening -- ankara in the evening. when the president arrives, we will hear some tones of jubilance in his victory speech with the opposition party already conceding defeat but pointing out they didn't think the contest was fair. moree watching that, also across the emerging markets. let's look at the other big story we are tracking into the weekend. now clarity. investors are starting to assess how much supply will flow into the oil market. opec and friends sealing the deal to boost starting next month. the uae energy minister spoke to bloomberg. >> i think the decision is very clear. the decision is to target 100%.

taking that decision, countries among members of opec, new that their production can't be 100%. you can only do that by the shooting -- distributing it to the countries at an allocation of degrees or you do as a group. all of the member countries elected to do it as a group and that was unanimous. haidi: joining us to dig into this is a senior managing director joining us from your what in kansas. i want to ring up this chart to set the scene to what we came out of. knowing one million barrels to be added to the market a day, that works out to be 700,000 barrels. is that the right kind of i guess balancing act given the other side of demand, there is not much we know about how this trade war, how the geopolitical issues result? >> the trade war is something we

are watching, presenting a major risk to oil prices. but fundamentally short of something negative on the trade site, markets are very tight -- trade side, markets are very tight. it is 50% over the long-term average annual growth. we need additional supply out of ,pec, and the united states which are related to two places that can supply incremental production to meet a robust demand. that: you thought supportive effect -- you saw that supportive effect as a reaction to the opec announcement. where does that you would -- where does that leave u.s. shale and the attractiveness if prices stay around where they are now? matt: we have seen a huge ramp in the permian basin production in the last couple of years.

what is interesting is if you look at a chart of permian production, that growth rate has slowed a bit. the reason we believe is there is not only a labor shortage and oilfield service, but pipeline constraints are an issue. production in the permian is 3.5 million euros a day which is where pipeline and local demand takeaway capacity sit. so we see a little bit of risk in the bullish reduction, estimates for growth out of the permian basin temporarily, really over the next several quarters. we think constraints are really becoming quite evident in the market, which is good for the midstream companies but not as good for the local producers that don't have enough takeaway capacity. i think we will continue to see u.s. reduction growth on the permian, but we think that may slow down a bit which is supported for oil prices in our view. yvonne: what did you make of the

reaction? the 5% surge after the announcement, is it still a lot of down about how many barrels will materialize from this announcement? there seems to be a lack of concern about cheating moving forward. matt: right. ofhink there was a lot consternation going into the decision, and people sitting on the sidelines putting on a short positions. then you saw a bit of a relief rally or short recovery friday. there was a bigger priced response. we were expecting the decision about what most of the market was looking for, what we were looking for. there is doubt about the ability to achieve that one million barrels per day because it is primarily tony arabia, a little , but youaq and russia are really going to be lenient on saudi arabia largely to achieve the one million barrels per day increase and that would

use of a decent chunk of their spare capacity. you have libya, venezuela, a number of other countries, iran sanctions, that will bring additional market off the market. it will be a challenge to really get new that million barrel per day increase. haidi: we are going to go to live pictures. yvonne: you see the newly elected president erdogan starting his balcony speech to supporters. he has that with many crowds. we will see what he says throughout the speech, but that thisst underway in ankara evening. let's bring back the conversation with matt soli, oil price. you mentioned the u.s. and how president trump is a winner in all of this. he has blamed opec for heil that higher oil prices get a lot of the games we have seen with him pulling out of the deal, how

influential do you think the u.s. is? matt: i think they are listening. opec, producers in the u.s. really just one kind of a happy medium on price. we don't want prices moving to .ine -- too high for the economy to be healthy, domestically you want a healthy , $80.ice, college $60 outside of that, you heard producers or you slow the economy. yvonne: you mentioned the supply shortages in the second half. is there a chance we could see opec production disappear by year end if you are talking about sanctions in venezuela and iran that might lead to a spike in prices? matt: the market has been surprised at the pace of decline out of venezuela. it is interior rating and a rapid pace.

we don't see that changing anytime soon. iran, you are going to lose 500,000 or more potentially there with those sanctions. certain european oil companies are already pulling out and not investing. the impacts are coming ready swiftly for iran. there was some recent terrorist attack's on terminals in libya were that could remove 300,000 barrels a day, and issues in angola. there are a lot of risks to the supply of oil. we see more risks to surprising on the downside than the upside. sort of saudi arabia really pumping all out, the market is going to stay tight for a while. haidi: that spread, how quickly, and you expect it at all to close? matt: the spread between brent, wti?

so if you look in the gulf coast, the houston price is right on top of brent. they are close. if you move inland to the wti marker, all of a sudden your $10 back. $10 discounted. if you move to the permian basin, you had another five dollars. it is clear there are constraints on the transportation side to get oil to where it wants to go, the gulf coast with refineries, and a lot is getting exported to overseas markets. for production to ramp more will be a challenge. takes a long time. we will not see major relief on the permian until late 2019. that is assuming you don't have any delays on projects in the meantime. we expect the spread statewide and to get wider. steley there, thank

you. we are counting down to the market open in japan, south korea and australia. this is bloomberg. ♪ ♪

8:00 a.m. here in hong kong. i him yvonne man, welcome to "daybreak asia." toime yvonne man, welcome "daybreak asia." the pboc finally delivers, but cannot lift chinese stocks from a two-year low? the lira surging after president erdogan claiming victory. raising hope of economic private is him. -- privatism. haidi: just turned 10:00 a.m. in sydney. the u.s. and china are caught up in a game of chicken as the eu

warns of breakdown in global rules. minister, ourme exclusive interview. yvonne: let's go straight to those live pictures out of -- where president erdogan is speaking to supporters in the city after what look like a decisive victory for him when it came to his party, as well as what we saw in parliament as well. erdogan talking more about coup plots, saying they have escaped to america. opposition.r the the big question still remains for investors about where the president will be taking

monetary and fiscal policy moving forward after this election win. haidi: you speak about the opposition. the republican people's party had surprising support going into this election, but didg this -- defeat not think the contest was run fairly. these hopes of economic private of thell be one side markets going into the asian you look at these live pictures of ankara with the president doubling down on his leadership, speaking to supporters on that balcony. yvonne: continuing to watch headlines coming through in turkey. it seems like we've had more tailwinds headed through asian markets. we do see uncertainty reduced in turkey. was get theood play latest with sophie kamaruddin. sophie: we are seeing asian stocks sliding in seoul as well

as in wellington p or do on the way up in sydney and tokyo. we are keeping an eye on oil after the opec deal. it will not change this outlook by 75. we are tracking the lira. the risk coming through does not look to be likely. currency moves away from that five handle. we are keeping an eye on shanghai shares. market territory and we have the yuan trading at 650. they expect further losses. we still have the u.s./china trade spat to contend with. we are keeping an ion indonesia trade data. that is ahead of the central banks policy decision later this week. but it's get a look at cba shares in sydney. this as commonwealth spins off its wealth. they have a new company listed as cfx group.

a sell me on the cards -- maybe on the cards. they have named david cohen executive december 1. asand out shares are halted the company is expected to report updated reports. that is what we are keeping an eye on this morning. sophie kamaruddin taking a look at the markets. wondering if asian markets are investors are feeling optimistic . we finally got the rrr from the pboc. a little more uncertainty with the outlooks of turkey. let's get over to bloomberg's analysts. let's talk about the election results in turkey. by the election results likely to pass through as asia wakes up today? >> good morning. it should come as some relief. the last thing investors in asia needed was another problem from turkey.

the turkish lira can be very volatile and cause a lot of disruption and draw in currencies and asia. particularly the rupiah and the indian rupee. and the malaysian ringgit as well. it is a good sign that turkey seems to be taken this result calmly. of course investors will also be looking to see what president erdogan on has to say about monetary policy. it is a bit unnerving for foreign investors. it looks as though he wants to take part in monetary policy and lower interest rates. maybe that was just election talks and there will be nothing more about that. is relatively calm. volatility should be out at four. it is a relatively good sign for emerging-market currencies. yvonne: spring risk on sentiment is the -- what do you expect to see when china markets open later on? mark: probably not a huge one.

it was well targeted people -- targeted. people expected it to come. the pboc was looking close at what they could do for the economy. if you look at the details of what they have done here, as the economist in beijing says, five hundred billion of the targeting is specifically towards the debt for equity swaps. it is a very specific support for the domestic economy and the deleveraging and china. it looks as though the pboc is aware that this is a long-term situation. they need to continue on this path of cleaning up the domestic base in china. they are probably preparing for a fairly drawn out trade war. there might be short-term relief, but this rrr cut is not designed to say yes, everything is beautiful and china again. it is part of an ongoing process. it might not be that long-lasting. mark, strategist joining

us from singapore. you can follow more on this story on our markets live blog. you can get a market run down in one click. there is commentary and analysis from bloomberg's expert editors. the markets is market strategist joining us here in hong kong. focus more on china here with this rrr cut. we finally got it and it seemed like the markets were highly anticipating this last week. you think it is too little too late? >> markets were highly anticipating this, but i think the key points to think about what the rrr cut that we got was that it really signals a shift in tone from monetary policy in beijing. a think that we are now looking government that is choosing between growth and deleveraging. i think that this latest rrr cut and the decision not to follow

the federal reserve rate hike, as well the rrr cut in april, signals that we are headed towards a more growth focused stance. enough to think it is turn around what we have seen in the east share market? the pbocthis creates taking a certain approach. that adds to more cost to the markets. eleanor: i think what you are saying is correct, it was highly anticipated. the effect that this triple are cut might not be too extreme, but what we have to look forward to in the future is if the outlook is changing and we are focusing less on deleveraging on -- and more on growth, we might see fiscal and tax cuts and things like that. atdi: i had a little chuckle the idea of moral hazards in the markets. come toat what you

expect from the chinese markets, and also a pretty key pillar of the argument for, in times like this, maybe it is a haven because you know that the regulators and the national team will do whatever it takes? eleanor: i think that is exactly the key point that we are seeing the shifting point from deleveraging towards growth. we are starting to see the geopolitical tensions on the world stage causing volatility and the chinese markets, but i think that, looking forward to the future, it will depend on how those trade tensions play out. if we see in easing in the rhetoric, we could see a shift and a decrease in volatility feeding through to the asia market. present a buying opportunity for some of the stocks as they are trading below intrinsic values and their usual ratios. we havehis languish seen in shanghai and shenzhen.

i want to look at this chart. we are still on the cusp of almost 20% from that january peak. if you look at the premium investors are paying to hold stocks, they are paying almost double for that privilege. fromthat make sense to you a value perspective, given that we talking about the policy lawmakershat chinese have available, and also the fact that it is domestically driven and a domestic focused growth story? right.: you are exactly that does not make sense to me. when we look at the outlook for the u.s. markets, and whether the u.s. growth is sustainable, we have seen a massive boost from the tax cuts. is that sustainable in the long term? not sure. looking up the chinese market, we still have fundamental goods,

domestic consumer demand is good. we also have the pboc and the government policy stances are focused on driving domestic growth feeding into gdp as the economy switches from being an expert led economy towards a consumption led economy. you spoke a couple minutes ago about being opportunistic when it comes to buying these. do you buy at the moment or is it catch a falling knife? what stocks would you be interested in? i think at the moment there is opportunities. there is opportunities in consumer discretionary, opportunities in technology, there are stocks trading below and theymental values are focused mainly on domestic consumer demands. they should be sheltered from a trade war with the u.s. if that were to develop. cautious atve to be

the moment because there are trade tensions. up inlly do see a dialing the rhetoric and we could see more pain to come in the short-term. haidi: do stay with us. market strategist. i want to get you up to date with first word. : the trade battle between the u.s. and the rest of the world raises the risk of slowing a vibrant american economy. chief economist at president threats of tariffs on $250 billion of chinese goods and a levy on eu cash set -- topments would cut three 1/10 of shipments. eu is ready to retaliate with 20% tariffs on european cars and that theyemo rebuffs are treating the u.s. unfairly. it also wants the disputes between washington and partners are set to escalate with thengths replacing rules as

basis for trade relations. eu officials are in china for trade talks. saudi arabia and russia after the opec meeting with a deal to increase production. promisedrgy minister to act decisively to keep oil prices under control. boostnals a real supply approaching one million barrels a day. iran says it does not to leave that they will get waivers from the u.s. under the sanctions reimpose by president trump. malaysia's prime minister says fair value for the ringgit is 3.8 to the dollar. that is the same as the pay previous government proposed in 19 98 turn the asian financial crisis. they have not traded since mid-2015. he told bloomberg the current exchange rate reflects the state of the world economy, not malaysia's. >> we would like to strengthen our ringgit. >> what is the fed value of the ringgit?

paul: you can see more from our exclusive interview with prime mahathir later. i am paul allen, this is bloomberg. ahead, it does not have the timeframe to revisit its china share offering. we dig into what that means. we will be asking whether the pboc's $100 billion will be enough to stir a stock market revival. this is bloomberg. ♪

haidi: this is "daybreak asia." yvonne: i am yvonne man in hong kong. it will unleash 108 billion

dollars of liquidity. let's go to our chief asia economic correspondent for more on this. tell us more of what the pboc is trying to achieve. >> on the one hand this is well signal. advance, a speech made a point that smaller and more micro lenders are facing a cost. it is designed to alleviate credit strengths -- credit strength that businesses are facing. importantly what the pboc is saying, they still maintain their prudent and monetary policy setting, and that this is not an outright evening. are we likely to see more? we have had three sophia this year. this is part of a package? it is difficult to say. the backdrop is things are slowing.

certainly more moderation going in the second half. you have the trade tensions looming over the economy. they will not go away anytime soon. all of the indications is that china growth story is growing and policymakers are a little bit concerned. we have seen a language during recent trade tensions when they were clear they were willing to step in and support the economy at all times. is probably a view that policy are on the cautious side. there are not showing any signs of leaning towards out rice -- outright stimulus. the benchmark rate has been untouched. the rrr is still a fairly targeted measure. it seems like they are putting some kind of based on for sure. yvonne: chief asia economic correspondent. let's bring back the market strategist. given the fact that we have seen a couple of rounds of these triple cuts, we have not seen

sentiment turned when it comes to the china a share market. does the pboc need to do something more drastic like a rate hike? eleanor: that could be on the cards in the future. we have to look forward to what the government can do on the fiscal side of things, whether we get tax cuts for the middle middle-class, going into more domestic consumption and consumer consumption in china. it is important for investors to really come back to the fundamentals in the market. the earnings-per-share are forecast at 27% on the shanghai composite. if we look forward to 2020, they are forecast that 51% on the shanghai trump is it here it if we compare that -- shanghai trump is it. if we compare that -- shanghai composite. seems like we have been talking about these trade tensions that have been weighing on the market. there was all this hype during

the inclusion of chinese shares. the benchmarks were that this would be the catalyst to turn things around. why do think it has not materialized? eleanor: the msci inclusion was so small that we would not see that drastic inflows into the markets that would be enough to render anything significant in terms of a big main man equity boost. small butat being a diplomatic start, that is really symbolic of the fact that over time we could see the msci inclusion increase to around 15%. at the moment it is euro .73%. if we think about that and we were to increase the inclusion over time, at that point the foreign inflows would have a massive effect on the market. we saw last week where we had that big one-day decline in trading. there was a lot of concern about when the national team would step in and where the pain threshold is.

as you would imagine we have these companies pledging their support. do you expect to see more of that. what has changed about the market, or the mainland market since 2015? mainlandi think the market has changed massively since 2015. we have seen a decrease in foreign ownership limits. just recently we have seen it quadrupling of the national quotas on the stock connect northbound. all of this is signaling china's commitment to open capital markets. that is one thing china does not have in comparison to the u.s. in their quest to rising status in the world economic laying field. deep and liquid capital markets. that is something that a developed economy really needs to fund innovation and investment. haidi: how do you trade the chinese infrastructure roll out and soft power? how do you trade belgium road?

eleanor: that is a good question. multilateral trade organization that is focusing on contracts. eyes,really -- in china's becoming more open and multilateral trade with the globe where the u.s. is now focusing on a more in would -- inward looking policy stance. we are seeing president trump ofng against the essence globalization. in that sense, i think the one belt, one road can bring about significant changes in the domestic stock market. yvonne: i know you focus on the all the markets as well. this is going to be a safety haven in the tensions? still hovering around the tenure highs at the moment. eleanor: the thing with the australian market is it is inward looking. the main constituents of the australian stock markets are not really focused on an outward

basis. there are financials, then we bhp and rio with explosion to china and that we have long-term commodity prices. basis, the australian stock market could be somewhat of a haven. i think there are stocks within the australian market that are poised to benefit from the u.s./china fallout. where the china are placing tariffs on u.s. imports. in there areas australian market that could benefit from that and step in and pick up the slack. yvonne: what about for the banks? it seems like they have seen the worst of it. will they pick up any bargains? with the financials, i am not sure. we have the third round of commission coming. we are focusing on the agricultural sector. it could war on the heartstrings of many australians and we could see more fallout coming in may

australian financial sector are. i would not be ready to step in and by the financials yet. they are trading at around five your lows. we could see that pick up once we see the world commission come to an end. yvonne: eleanor, saxo bank market strategist. and get your day going. for bloomberg subscribers goto dayb on your bloomberg terminals. it is also available on the anywhere app. you can customize your settings looking at the news on the industries and assets that you care about. this is bloomberg. ♪

quick check of malaysia's business headlines. their food giant is set to file for a public offering in hong kong. we are told the restaurant delivery and review service

submitted documents for share late on friday. the startup was said to have been targeting a fundraising of $6 billion at a valuation of 60 billion. the -- they did not specify any numbers. starting the stock offering on monday. the filmmaker says it has not set a timeframe to revive an offering of chinese shares. that delay could hurt china's envision. last week they withdrew from the plan with mainland investors omi's goal.a haidi: it pushes ahead with this international expansion plans. they start services in melbourne and plans to shave offerings and other australian cities. it is being bankrolled right before billion dollar december funding round. yvonne: malaysia's prime

minister takes aim at neighboring singapore and donald trump. our exclusive interview with the outspoken 92-year-old leader. this is bloomberg. ♪

yvonne: 8:30 in singapore. pretty cloudy. half an hour away from the opening in the lion city. i am yuan man in hong kong. haidi: you are watching "daybreak asia." let's get to the first word news. china's central bank has concern. billionabout 108 dollars in liquidity. the amount of cash some lenders might hold will drop from july the fifth. the pboc said the aim is to support small and micro enterprises and promote the debt-to-equity swap program. the moves are targeted and precise. turkish president has taken aim

at the u.s. in his election victory speech. he told supporters in ankara that he saw lots of votes from americans, saying that is where the 2016 coup plotters escape to. the opposition parties that it'd win, but to erdogan's said it was not a fair race. the u.k.'s lobby groups have told theresa may that time is running out for a deal that protects hundreds of thousands of british jobs. they warn, in the absence of clarity, business rules will have to plan for a worst case scenario. that is before the summer recess starts on july the 24th. it coin comes off a 2018 low en route renewed worries about government scrutiny. the biggest crypto currency falls declining below $5,920. him as a decline from

20,000 dollars to 68%. on friday, japan ordered trading venues to improve money laundering measures. global news, 24 hours a day and on air at tick-tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. yvonne: let's get the latest with sophie kamaruddin. sophie: you have stocks lighting in tokyo as well as in seoul. change 200 has a little with the yen at 109.6 six level. japanese shares fluctuating. the kospi is up a 10th of a percent. the korean won is at a low trading at 11.16 handle. we have the one extending after falling for a third straight week last friday. offshore yuan is set for in

eight a low. that is the longest streak of october 2016. that after the triple are cut. trading at the lowest level since january 10. we are tracking the turkish lira, erdogan which is on the move. erdogan-- which is on the move. and theylaim the win are dipping against the dollar. let's check in on movers in sydney. met cash jumping, rising 10%. this after profits met estimates and plans for a buyback or it commonwealth bank is snapping after reporting plans to spin off two units fighting over 1% this morning. over the course of the year the stock has been under pressure. down 11% since hitting the year's high in january. haidi: sophie kamaruddin on the markets this monday. australia's biggest lender is d -- is the merging. ging,-mer

and it is part of a plan to become a bigger and better bank. it is sort of an industrywide thing going on. >> we have talked about the various problems and the australian banking sector. it has all been concentrated. it has not been by and large the day-to-day processes that are making retail loans or commercial loans. it has all been advisory and wealth. getting rid of these units, what cba is doing is ridding itself of potential problems. these are the ones that have disproportionate scandals associated with them. they do not make that much money for the bank. cba it self makes nearly 10 billion australian dollars a year. it isery rough guide, about net income, about 500 million.

in the great scheme of things, these businesses cause a lot of headaches without that much benefit. i think we can see the chart shareg how much cba's price has been hit by the succession of scandals. investors have been looking -- we can see on here it is the worst that we have seen after the fall. investors have been looking for the bank to do something about it. haidi: we have heard about the plans. what -- where does that lead? dead. that is the global asset management will be part of the new business. the new business will be a listed entity. it will be another asx company to deal with. haidi: the new ceo, what is it tell us about his approach? ceo is wasting no time. he only ascended to the top job in april. this is a pretty substantial structural overall of what the

bank -- overhaul of what the bank does. he is clearly getting his team in position. a have also seen cba settle lot of outstanding lawsuits. 700 million settlements and allegations. money laundering, regulation cases. this is him putting his stamp on the bank. haidi: emily, thank you, our finance reporter in sydney. little lower. let's take a look at the want. we are seeing moves across price action when it comes to south korean currency. 1115.17./10 of 1% to that is the highest since november. continuing to watch out for that in terms of implications across the rest of the fx markets. he started the day with a big jump in the turkish lira, always going to evolve and move in that space. we will get you more on that as the details become available.

yvonne: it just seems like the one is getting caught in the u.s. and china trade tensions. we talk about a third week of decline for that korean currency. it is a pretty crucial think we see. trumpt comes to the administration and chinese investments, also looking ahead to july 6 when both sides will be potentially imposing goes tariffs. moving on from the reopening of the dispute with singapore over the price of water. taking a swipe at president trump. hasysian prime minister swiftly return to the outspoken foreign-policy of his previous tenure. the exclusive interview with bloomberg, he explained by contracts with china were also in his sight. >> the cost is too high. we cannot afford. down.l have to slow simply because we do not have the money. besides that, we do not believe

in that kind of operation. have -- in fact, we want to have a fair country, where we benefit. but also, chinese investors wanting to bring in technology welcome.al, that is >> some have argued that because of china, there needs to be a balance. that balance could come from india and japan. what are your thoughts on that? not try country should to dominate the whole world. wealth of the world should be shared. haslinda: your personal thoughts

on president trump. is material, he changes his mind within 24 hours. wants to meet, then he does not want to meet, and then he met, then he thinks president kim is a great president to do business with. can you trust a man who changes his mind's about -- mind about issues and policies every other day? >> when you have a man like that you need to be cautious. you need to know whether this is for real or not. haslinda: how would you deal with a man like president trump? >> like with any normal person. nobody in this world is perfect. everybody has got his own weaknesses. we have to deal with them knowing their weaknesses as well as their strengths. think the world

order would change with a leader like trump? has it changed? we still have issues with nafta. now issues between the u.s. and china. are you concerned that we will turn around and make a trade issue with malaysia? mahathir: if there is a good proposal, why not. it must be balanced. i do not believe in absolute free trade because when it is between -- because when the competition is between the weekend strong, you need to have some protection for the week. haslinda: our relations with malaysia better now? mahathir: it has been ok because we cannot avoid the fact that we are their neighbor. there are some issues that we need to talk about. haslinda: what are the issues?

>> water. haslinda: what is the sticking point? still paying three , we canr 1000 gallons buy back 10% of that. at the same time they can share 1000 gallons for 17 singapore dollars. that is a lot of money. haslinda: is there a resolution insight? mahathir: we sit down and talk with them like civilized people. yvonne: that was the malaysian prime minister mahathir speaking exclusively to haslinda. you can see our special conversation on friday at 6:00 p.m. hong kong time and in kuala lumpur, it :00 p.m. if you are watching in sydney. just getting some details

on this. hong kong ipo filing. the details of the application coming through. in 2017 of 2.8st billion u.n. revenue. that is versus 13 u.n. a year ago. quite a jump. that net loss rising from 5.7 6 billion in 2016. goldman sachs, morgan stanley and bank of america merrill joint sponsors of this ipo in hong kong according to those filing details. we have reported this, but now confirmed today. most recently the company was valued at 30 billion dollars as a mashup of groupon, yelp, it does food delivery and comes on the wave of up-and-coming startups. the other big when looking to revive the chinese tech sector. coming up, this is a rare company that deserves the premium. we will speak with one of its earlier's investors -- earliest

investors next. this is bloomberg. ♪

yvonne: this is "daybreak asia." i am haidi lun in sydney. one of the earliest investors is set for a windfall in the tech giant six point $1 billion public offering as part of our venture china series, he tells what drove his decision to invest in the company early on. got involved in a company in very early days. when we made the decision to go with that company, that was only an idea. the secondary market, they make the judgments for the numbers. if they see we can have another view to observe, how will the

user react to the malaysian delivered to them? they do not know this company's background. they have no idea. there is great entrepreneur. they just know this is maybe more studio. they are screaming about this and they are crazy about it. they are loyal to the product. they take huge risks. means we already have market share from the competitor , even without sending any -- when the company decided to raise valuation. although they had zero revenue. looks like it is very expensive but it is really treat -- cheap. to digital millions

of dollars. no more than the hundred million. of the most successful technology companies , and you are a major shareholder at less than $100 million. investment iss great, it is fantastic. we are very happy about that. the challenges is about the history. that was morningside venture capital cofounder richard speaking to bloomberg. the price range up to 29.3 times forecast earnings. here is why the cfo is saying the company deserves a premium. the marketse of rare companies that can be a hardware, internet and e-commerce company, so we deserve a premium. joining us from

bloomberg intelligence, i want to bring in a double-team. i want to start with you, they have dow back the expectations for the ipo. what do you think is the price range? even at the high end, everyone would know that it is still more expensive than hang seng. mentionederview you is the trust in the founder. how much you want to value that talent. he mentioned an interesting point that xiaomi has the disruptive power. with more capital they can go to other emerging markets with the low-cost products to gain market share. it is more on the growth rather than the bottom line and the belief in the founder. yvonne: you were just saying this. every retail investor will be thinking the way richard was thinking with this ipo. >> yes.

it is basically faith in the founder. areou look at how they marketing themselves, it is an internet company. you have to look at the definition of an internet company, which is a company that derived a book of its revenue from online sales. with the likesit of alibaba and tencent. they have less than 10% of its sales coming from internet sales. among games, apps and so on. companies that are in alibaba have over 80% of sales. that is a pretty significant difference there. yvonne: when it comes to -- i guess it speaks to what xiaomi is going to be doing with the merits and challenges of their business, it is getting so hard for investors to put a price in value for the company. it is not like in apple, gopro or fit in any way. anthea: just now we mentioned

about the disruptive power that picked thatld have up. we would keep our margin not more than 5%. everyone wants to be in the high premium and to make the most of it. so, the strategy is completely different. it is new. number oneg lost the position in india. from our conversation, they said wereis something that they not prepared for it. again, the challenge is, in emerging markets how can they keep the users? it is not like china. in other countries you have a .ot of new rivals also, you do not really have the expertise and distribution. is of the things xiaomi strength -- has is strength in all might sales. in emerging markets, i believe that they would need to rely on distributors.

far so good. bottom line is, it remains a challenge. in terms of the internet related revenue proportion of it standxiaomi, does out when you compared that to other internet giants in china? over 90% of their sales are coming from hardware. the are using fairly valued high quality hot where to bring users in. .his trend is set to continue it means their sales are still going to come from hot where were -- hot where rather than internet services. haidi: one of the biggest setbacks we have talked about the other, and any of internet companies coming to takes some time for

the chinese depositary shares to is that takingn, a big chunk of interest in the mainland participation? particularly when you look at a company like xiaomi, and just in terms of the founder. it would be coming from retail investors on the mainland. ofhea: definitely in terms valuation, most retail investors would boost up valuation if you have participation. fault to the some hong kong listing, that at the same time, a think this is the first time they do see this. it is not surprising for xiaomi to get a delay. they still have lots of questions unanswered. isn they defined the ipo, it supposed to be a hong kong listing. i think the delay is not a surprise, but definitely, it

would hurt them a little bit. ofnne: we just got the news them filing for their ipo. what do you make of this company? we talked about how they dabble into everything in the internet space. vey-sern: the primary business is still in fnb. auto company in china where they bring a huge amount of online traffic to off-line businesses such as restaurants. the merger basically made them the biggest player. the real problem for them as the low margins and the off-line businesses because of the investments, the delivery man, the on the ground presence, these costs will drag the margins. yvonne: our bloomberg intelligence senior analyst joining us here in hong kong. or more breaking news we have teamed up with twitter to watch tick-tock live twitter. the first global news for twitter offering live video coverage and hourly top news

reports verified by us right here on twitter. .ake sure to follow tictoc this is bloomberg. ♪

haidi: it was an absolute gold fast and the matches at the world cup. inland leading the race for the golden boot after a hat trick against panama. you can get the latest results

on the bloomberg. you can check how you are going against your colleagues and our very own bloomberg presented her's, including yvonne. presenters, including yvonne. yvonne: you really don't want to compete with me. i picked all the wrong ones in this bracket or it that was in insightful game. you watching this? rishaad: i did not actually get the memo for the world cup thing so i did not get involved. i probably would have had the same as you. click word on what is coming up. looking at general global outlook and what happens next with geopolitics. about 12n trades in minutes time. in light of for happen with the opec meeting in vienna. on top of that looking at what is happening elsewhere.

believe in always your soul. we have that up on gold. just before we handed over to rish, let's take a quick look at how markets are trading. we have not had that positive lump up from the pboc, rrr and the turkey election result. trading 3/10 of 1% lower. theave seen the selloff in one there as well. australia, which has been a haven. not so much today. yvonne: plenty more to come with "bloomberg markets." this is moberg. ♪ -- bloomberg. ♪

rishaad: asian stocks and negative territories. -- in negative territories. we are now awaiting chinese market reaction. trading remaining a major headwind with tariffs front and center. united states and china and a game of chicken. they warn of a breakdown in global rules. they could bring emerging-market relief. we had to -- we had to stumble. i'm rishaad salamat. this is bloomberg markets. ♪